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"fact1577": {
"value": "Dividend \u00a0
The Board of Directors proposes a dividend of DKK 7.5 per share, totalling DKK 6,466 million to be paid out of the net profit for the Parent Company. Dividend \u00a0
for 2023 of a total of DKK 14.5 per share consists of a proposed dividend of DKK 7.5 per share for the second half of 2023 and an interim\u00a0dividend of DKK \u00a0
7.0 per share that was paid in connection with the interim report for the first half of 2023. \u00a0
Highlights \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
2021* \u00a0
2020 \u00a0
2019 \u00a0
Net interest and fee income \u00a0
44,324 \u00a0
38,267 \u00a0
39,266 \u00a0
39,004 \u00a0
38,749 \u00a0
Value adjustments \u00a0
6,165 \u00a0
-33,063 \u00a0
36,307 \u00a0
22,340 \u00a0
34,034 \u00a0
Staff costs and administrative\u00a0expenses \u00a0
23,885 \u00a0
24,994 \u00a0
24,973 \u00a0
26,289 \u00a0
24,700 \u00a0
Provision for Estonia matter \u00a0
-
13,800 \u00a0
-
-
-
Loan impairment charges \u00a0
262 \u00a0
1,502 \u00a0
141 \u00a0
7,089 \u00a0
1,729 \u00a0
Income from associates and group undertakings \u00a0
-110 \u00a0
9
226 \u00a0
-93 \u00a0
386 \u00a0
Net profit \u00a0
21,262 \u00a0
-4,580 \u00a0
13,001 \u00a0
4,589 \u00a0
15,072 \u00a0
Loans \u00a0
1,846,867 \u00a0
2,015,496 \u00a0
2,051,903 \u00a0
2,047,930 \u00a0
2,150,059 \u00a0
Total equity \u00a0
175,739 \u00a0
160,278 \u00a0
175,997 \u00a0
168,679 \u00a0
170,508 \u00a0
Total assets \u00a0
3,770,981 \u00a0
3,790,556 \u00a0
3,981,082 \u00a0
4,109,231 \u00a0
3,761,050 \u00a0
Ratios \u00a0
2023 \u00a0
2022* \u00a0
2021* \u00a0
2020 \u00a0
2019 \u00a0
Total capital ratio (%) \u00a0
23.1 \u00a0
22.1 \u00a0
22.4 \u00a0
23.0 \u00a0
22.7 \u00a0
Tier 1 capital ratio (%) \u00a0
20.5 \u00a0
19.6 \u00a0
20.0 \u00a0
20.5 \u00a0
20.4 \u00a0
Return on equity before tax (%) \u00a0
15.9 \u00a0
-1.0 \u00a0
9.6 \u00a0
3.7 \u00a0
8.3 \u00a0
Return on equity after tax (%) \u00a0
12.7 \u00a0
-2.7 \u00a0
7.5 \u00a0
2.7 \u00a0
9.0 \u00a0
Income/cost ratio\u00a0(%) \u00a0
191.5 \u00a0
96.4 \u00a0
153.5 \u00a0
115.8 \u00a0
140.3 \u00a0
Interest rate risk (%) \u00a0
-
0.3 \u00a0
-1.0 \u00a0
1.9 \u00a0
2.9 \u00a0
Foreign exchange position (%) \u00a0
1.9 \u00a0
4.6 \u00a0
1.9 \u00a0
23.4 \u00a0
4.0 \u00a0
Foreign exchange risk (%) \u00a0
-
-
-
-
-
Loans plus impairment charges as % of deposits \u00a0
146.7 \u00a0
155.3 \u00a0
153.7 \u00a0
149.1 \u00a0
181.5 \u00a0
Liquidity coverage\u00a0ratio (%) \u00a0
170.4 \u00a0
151.0 \u00a0
163.7 \u00a0
153.5 \u00a0
140.1 \u00a0
Sum of large exposures as % of CET1 capital \u00a0
100.5 \u00a0
120.2 \u00a0
108.7 \u00a0
128.6 \u00a0
138.1 \u00a0
Impairment ratio (%) \u00a0
-
0.1 \u00a0
-
0.3 \u00a0
0.1 \u00a0
Growth in loans (%) \u00a0
-7.5 \u00a0
-1.7 \u00a0
-0.2 \u00a0
0.7 \u00a0
2.4 \u00a0
Loans as % of equity \u00a0
10.5 \u00a0
12.6 \u00a0
11.6 \u00a0
12.1 \u00a0
12.6 \u00a0
Return on assets (%) \u00a0
0.6 \u00a0
-0.1 \u00a0
0.3 \u00a0
0.1 \u00a0
0.4 \u00a0
Earnings per share (Nominal value DKK 100) \u00a0
24.8 \u00a0
-5.4 \u00a0
14.6 \u00a0
4.7 \u00a0
16.7 \u00a0
Book value per share (DKK) \u00a0
204.4 \u00a0
186.7 \u00a0
207.1 \u00a0
197.6 \u00a0
199.7 \u00a0
Dividend per\u00a0share (DKK)** \u00a0
14.5 \u00a0
-
2.0 \u00a0
2.0 \u00a0
-
Share price end of period/earnings per share (DKK) \u00a0
7.3 \u00a0
-25.3 \u00a0
7.7 \u00a0
21.3 \u00a0
6.4 \u00a0
Share price end of period/book value per share (DKK) \u00a0
0.88 \u00a0
0.74 \u00a0
0.55 \u00a0
0.51 \u00a0
0.54 \u00a0
* 2022 comparatives have been restated as described in note G2(a). 2021 comparatives have been restated for the change in treat ment of own shares, as described in note G2(a). \u00a0
Comparatives prior to 2021 have not been restated as it is impracticable. \u00a0
** Dividend for 2023 of a total of DKK 14.5 per share consists of a proposed\u00a0dividend of DKK 7.5 per share\u00a0for the second half of 2023 and an interim dividend of DKK 7.0 per share that \u00a0
was paid in connection with the interim report for the first half of 2023. \u00a0
The ratios and key figures are calculated in accordance with the requirements stipulated\u00a0in the Danish FSA\u2019s Executive Order\u00a0on Financial Reports for \u00a0
Credit Institutions\u00a0and Investment\u00a0Companies, etc., and on the basis of IFRS figures except where otherwise indicated. \u00a0
Dividend per\u00a0share (DKK) \u00a0
The total of proposed dividend\u00a0to be paid in the subsequent year and any interim dividend\u00a0payment paid during \u00a0
the year, divided by the number of shares issued at the end of the year. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDividendsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1578": {
"value": "Earnings per\u00a0share (DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Net profit attributable to the shareholders of the parent company \u00a0
21,262 \u00a0
-4,666 \u00a0
Number of shares issued at 1 January \u00a0
862,184,621 \u00a0
862,184,621 \u00a0
Average number of own shares held by the Group (including share buy-back programme) \u00a0
3,400,761 \u00a0
3,852,779 \u00a0
Average number of shares outstanding \u00a0
858,899,954 \u00a0
858,331,842 \u00a0
Number of dilutive\u00a0shares issued for share-based payments \u00a0
1,143,355 \u00a0
4,590,464 \u00a0
Adjusted average number of shares outstanding\u00a0after share capital reduction,\u00a0including dilutive\u00a0shares \u00a0
860,043,309 \u00a0
862,922,306 \u00a0
Earnings per share (DKK) \u00a0
24.8 \u00a0
-5.4 \u00a0
Diluted earnings\u00a0per share (DKK) \u00a0
24.7 \u00a0
-5.4 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
The share capital consists of shares of a nominal value of DKK 10 each. All shares carry the same rights; there is thus only one class of shares. \u00a0
Highlights \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
2021* \u00a0
2020 \u00a0
2019 \u00a0
Net interest and fee income \u00a0
44,324 \u00a0
38,267 \u00a0
39,266 \u00a0
39,004 \u00a0
38,749 \u00a0
Value adjustments \u00a0
6,165 \u00a0
-33,063 \u00a0
36,307 \u00a0
22,340 \u00a0
34,034 \u00a0
Staff costs and administrative\u00a0expenses \u00a0
23,885 \u00a0
24,994 \u00a0
24,973 \u00a0
26,289 \u00a0
24,700 \u00a0
Provision for Estonia matter \u00a0
-
13,800 \u00a0
-
-
-
Loan impairment charges \u00a0
262 \u00a0
1,502 \u00a0
141 \u00a0
7,089 \u00a0
1,729 \u00a0
Income from associates and group undertakings \u00a0
-110 \u00a0
9
226 \u00a0
-93 \u00a0
386 \u00a0
Net profit \u00a0
21,262 \u00a0
-4,580 \u00a0
13,001 \u00a0
4,589 \u00a0
15,072 \u00a0
Loans \u00a0
1,846,867 \u00a0
2,015,496 \u00a0
2,051,903 \u00a0
2,047,930 \u00a0
2,150,059 \u00a0
Total equity \u00a0
175,739 \u00a0
160,278 \u00a0
175,997 \u00a0
168,679 \u00a0
170,508 \u00a0
Total assets \u00a0
3,770,981 \u00a0
3,790,556 \u00a0
3,981,082 \u00a0
4,109,231 \u00a0
3,761,050 \u00a0
Ratios \u00a0
2023 \u00a0
2022* \u00a0
2021* \u00a0
2020 \u00a0
2019 \u00a0
Total capital ratio (%) \u00a0
23.1 \u00a0
22.1 \u00a0
22.4 \u00a0
23.0 \u00a0
22.7 \u00a0
Tier 1 capital ratio (%) \u00a0
20.5 \u00a0
19.6 \u00a0
20.0 \u00a0
20.5 \u00a0
20.4 \u00a0
Return on equity before tax (%) \u00a0
15.9 \u00a0
-1.0 \u00a0
9.6 \u00a0
3.7 \u00a0
8.3 \u00a0
Return on equity after tax (%) \u00a0
12.7 \u00a0
-2.7 \u00a0
7.5 \u00a0
2.7 \u00a0
9.0 \u00a0
Income/cost ratio\u00a0(%) \u00a0
191.5 \u00a0
96.4 \u00a0
153.5 \u00a0
115.8 \u00a0
140.3 \u00a0
Interest rate risk (%) \u00a0
-
0.3 \u00a0
-1.0 \u00a0
1.9 \u00a0
2.9 \u00a0
Foreign exchange position (%) \u00a0
1.9 \u00a0
4.6 \u00a0
1.9 \u00a0
23.4 \u00a0
4.0 \u00a0
Foreign exchange risk (%) \u00a0
-
-
-
-
-
Loans plus impairment charges as % of deposits \u00a0
146.7 \u00a0
155.3 \u00a0
153.7 \u00a0
149.1 \u00a0
181.5 \u00a0
Liquidity coverage\u00a0ratio (%) \u00a0
170.4 \u00a0
151.0 \u00a0
163.7 \u00a0
153.5 \u00a0
140.1 \u00a0
Sum of large exposures as % of CET1 capital \u00a0
100.5 \u00a0
120.2 \u00a0
108.7 \u00a0
128.6 \u00a0
138.1 \u00a0
Impairment ratio (%) \u00a0
-
0.1 \u00a0
-
0.3 \u00a0
0.1 \u00a0
Growth in loans (%) \u00a0
-7.5 \u00a0
-1.7 \u00a0
-0.2 \u00a0
0.7 \u00a0
2.4 \u00a0
Loans as % of equity \u00a0
10.5 \u00a0
12.6 \u00a0
11.6 \u00a0
12.1 \u00a0
12.6 \u00a0
Return on assets (%) \u00a0
0.6 \u00a0
-0.1 \u00a0
0.3 \u00a0
0.1 \u00a0
0.4 \u00a0
Earnings per share (Nominal value DKK 100) \u00a0
24.8 \u00a0
-5.4 \u00a0
14.6 \u00a0
4.7 \u00a0
16.7 \u00a0
Book value per share (DKK) \u00a0
204.4 \u00a0
186.7 \u00a0
207.1 \u00a0
197.6 \u00a0
199.7 \u00a0
Dividend per\u00a0share (DKK)** \u00a0
14.5 \u00a0
-
2.0 \u00a0
2.0 \u00a0
-
Share price end of period/earnings per share (DKK) \u00a0
7.3 \u00a0
-25.3 \u00a0
7.7 \u00a0
21.3 \u00a0
6.4 \u00a0
Share price end of period/book value per share (DKK) \u00a0
0.88 \u00a0
0.74 \u00a0
0.55 \u00a0
0.51 \u00a0
0.54 \u00a0
* 2022 comparatives have been restated as described in note G2(a). 2021 comparatives have been restated for the change in treat ment of own shares, as described in note G2(a). \u00a0
Comparatives prior to 2021 have not been restated as it is impracticable. \u00a0
** Dividend for 2023 of a total of DKK 14.5 per share consists of a proposed\u00a0dividend of DKK 7.5 per share\u00a0for the second half of 2023 and an interim dividend of DKK 7.0 per share that \u00a0
was paid in connection with the interim report for the first half of 2023. \u00a0
The ratios and key figures are calculated in accordance with the requirements stipulated\u00a0in the Danish FSA\u2019s Executive Order\u00a0on Financial Reports for \u00a0
Credit Institutions\u00a0and Investment\u00a0Companies, etc., and on the basis of IFRS figures except where otherwise indicated. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1579": {
"value": "Number of shares outstanding \u00a0
2023 \u00a0
2022* \u00a0
Issued at 1 January \u00a0
862,184,621 \u00a0
862,184,621 \u00a0
Holding of own shares \u00a0
2,410,915 \u00a0
3,791,869 \u00a0
Shares outstanding\u00a0at 31 December \u00a0
859,773,706 \u00a0
858,392,752 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
(DKK millions) \u00a0
Number \u00a0
Number \u00a0
Value \u00a0
Value \u00a0
Holding of\u00a0own shares \u00a0
2023 \u00a0
2022* \u00a0
2023 \u00a0
2022* \u00a0
Holding as at 1 January \u00a0
3,791,869 \u00a0
3,001,737 \u00a0
521 \u00a0
340 \u00a0
Acquisition of\u00a0own shares \u00a0
148,409,820 160,892,469 \u00a0
23,030 \u00a0
18,021 \u00a0
Sale of own shares \u00a0
149,790,774 160,102,337 \u00a0
23,082 \u00a0
17,773 \u00a0
Value adjustment \u00a0
-
-
-33 \u00a0
-67 \u00a0
Holding as\u00a0at 31\u00a0December \u00a0
2,410,915 \u00a0
3,791,869 \u00a0
435 \u00a0
521 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Holdings of own shares disclosed above are those held in the Group\u2019s trading portfolio. In addition, the Group holds DKK 1,299 million of own shares on behalf \u00a0
of customers which are not deducted from equity, comprising DKK 199 million of own shares in Assets under pooled schemes, DKK 60 million of own shares \u00a0
in Assets under unit-linked investment contracts, and DKK 1,040 million of own shares in Assets under insurance contracts. Details on\u00a0acquisitions and \u00a0
sales of shares under Assets\u00a0under unit-linked\u00a0investment contracts and Assets under insurance contracts are presented under Statement of Capital of \u00a0
Danske Bank A/S. \u00a0
The Board of Directors is authorised to let Danske Bank A/S acquire own shares up to a total nominal amount of 10% of the share capital. The shares may \u00a0
be held for ownership or provided as collateral. If shares are acquired for ownership, the acquisition price may not deviate by more than 10% from the price \u00a0
quoted at\u00a0the time of\u00a0acquisition. Danske Bank A/S has obtained permission from the Danish Financial Supervisory Authority\u00a0to acquire own shares f\u00a0or \u00a0
market-making purposes etc. and this amount is deducted from the Group\u2019s common equity\u00a0tier 1 capital. \u00a0
Total capital and total capital ratio \u00a0
31 December \u00a0
31 December \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Total equity \u00a0
175,739 \u00a0
160,318 \u00a0
Revaluation of\u00a0domicile property at fair value \u00a0
211 \u00a0
217 \u00a0
Tax effect of revaluation of domicile property at fair value \u00a0
-27 \u00a0
-28 \u00a0
Total equity calculated\u00a0in accordance\u00a0with the rules of the Danish FSA \u00a0
175,923 \u00a0
160,506 \u00a0
Common equity tier 1 capital instruments** \u00a0
175,923 \u00a0
160,506 \u00a0
Adjustment to\u00a0eligible capital instruments \u00a0
-914 \u00a0
-222 \u00a0
IFRS 9 reversal due to transitional\u00a0rules \u00a0
1,634 \u00a0
3,063 \u00a0
Prudent valuation \u00a0
-890 \u00a0
-1,338 \u00a0
Prudential filters \u00a0
-
-567 \u00a0
Expected/proposed dividends \u00a0
-6,466 \u00a0
-
Intangible assets of banking operations \u00a0
-5,690 \u00a0
-5,529 \u00a0
Minimum Loss Coverage for Non-Performing Exposures \u00a0
-916 \u00a0
-500 \u00a0
Deferred tax on intangible assets \u00a0
316 \u00a0
242 \u00a0
Deferred tax assets that rely on future profitability,\u00a0excluding temporary differences \u00a0
-733 \u00a0
-352 \u00a0
Defined benefit\u00a0pension plan assets \u00a0
-845 \u00a0
-1,424 \u00a0
Statutory deduction for insurance subsidiaries \u00a0
-6,111 \u00a0
-4,683 \u00a0
Common equity tier 1\u00a0capital \u00a0
155,308 \u00a0
149,197 \u00a0
Additional tier\u00a01 capital\u00a0instruments \u00a0
14,805 \u00a0
15,300 \u00a0
Tier 1 capital \u00a0
170,113 \u00a0
164,497 \u00a0
Tier 2 capital instruments \u00a0
20,790 \u00a0
20,765 \u00a0
Total capital \u00a0
190,902 \u00a0
185,261 \u00a0
Total risk exposure amount \u00a0
827,882 \u00a0
838,193 \u00a0
Common equity tier 1 capital ratio (%) \u00a0
18.8% \u00a0
17.8% \u00a0
Tier 1 capital ratio (%) \u00a0
20.5% \u00a0
19.6% \u00a0
Total capital ratio (%) \u00a0
23.1% \u00a0
22.1% \u00a0
* Comparative information has not been restated. See note G2(a) for more detail. \u00a0
** Common equity tier 1 capital instruments is equal to Total equity in accordance with the rules of the Danish FSA . \u00a0
Total capital and the total risk exposure amount are calculated in accordance with the rules applicable\u00a0under the Capital Requirements Regulation (CRR), \u00a0
taking transitional rules\u00a0into account as\u00a0stipulated by\u00a0the Danish Financial Supervisory Authority. \u00a0
In terms of the transitional\u00a0arrangements for\u00a0the impact of IFRS 9 on regulatory\u00a0capital, the Group applies the so-called dynamic approach in accordance \u00a0
with the CRR. \u00a0
Risk Management\u00a02023 provides more details about the Group\u2019s total capital, the total risk exposure amount and the Group\u2019s solvency need. The report \u00a0
is available at danskebank.com/reports and is\u00a0not covered by the statutory\u00a0audit. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1580": {
"value": "Number of shares outstanding \u00a0
2023 \u00a0
2022* \u00a0
Issued at 1 January \u00a0
862,184,621 \u00a0
862,184,621 \u00a0
Holding of own shares \u00a0
2,410,915 \u00a0
3,791,869 \u00a0
Shares outstanding\u00a0at 31 December \u00a0
859,773,706 \u00a0
858,392,752 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
(DKK millions) \u00a0
Number \u00a0
Number \u00a0
Value \u00a0
Value \u00a0
Holding of\u00a0own shares \u00a0
2023 \u00a0
2022* \u00a0
2023 \u00a0
2022* \u00a0
Holding as at 1 January \u00a0
3,791,869 \u00a0
3,001,737 \u00a0
521 \u00a0
340 \u00a0
Acquisition of\u00a0own shares \u00a0
148,409,820 160,892,469 \u00a0
23,030 \u00a0
18,021 \u00a0
Sale of own shares \u00a0
149,790,774 160,102,337 \u00a0
23,082 \u00a0
17,773 \u00a0
Value adjustment \u00a0
-
-
-33 \u00a0
-67 \u00a0
Holding as\u00a0at 31\u00a0December \u00a0
2,410,915 \u00a0
3,791,869 \u00a0
435 \u00a0
521 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Holdings of own shares disclosed above are those held in the Group\u2019s trading portfolio. In addition, the Group holds DKK 1,299 million of own shares on behalf \u00a0
of customers which are not deducted from equity, comprising DKK 199 million of own shares in Assets under pooled schemes, DKK 60 million of own shares \u00a0
in Assets under unit-linked investment contracts, and DKK 1,040 million of own shares in Assets under insurance contracts. Details on\u00a0acquisitions and \u00a0
sales of shares under Assets\u00a0under unit-linked\u00a0investment contracts and Assets under insurance contracts are presented under Statement of Capital of \u00a0
Danske Bank A/S. \u00a0
The Board of Directors is authorised to let Danske Bank A/S acquire own shares up to a total nominal amount of 10% of the share capital. The shares may \u00a0
be held for ownership or provided as collateral. If shares are acquired for ownership, the acquisition price may not deviate by more than 10% from the price \u00a0
quoted at\u00a0the time of\u00a0acquisition. Danske Bank A/S has obtained permission from the Danish Financial Supervisory Authority\u00a0to acquire own shares f\u00a0or \u00a0
market-making purposes etc. and this amount is deducted from the Group\u2019s common equity\u00a0tier 1 capital. \u00a0
G17. Assets and deposits under pooled schemes and unit-linked investment contracts \u00a0
Assets and\u00a0deposits under pooled schemes and unit-linked investment contracts comprises contributions to pooled schemes and unit-linked contracts \u00a0
defined as investment contracts. Assets include intra-group balances, which are eliminated.\u00a0Consequently, the\u00a0value of the line item Deposits under pooled \u00a0
schemes and unit-linked\u00a0investment contracts exceeds that of Assets under pooled schemes and unit-linked\u00a0investment contracts. \u00a0
Accounting policy \u00a0
Assets earmarked for customer savings are measured at fair value and recognised under Assets under pooled schemes and unit-linked\u00a0investment \u00a0
contracts. Deposits made by customers are recognised under Deposits under pooled schemes and unit-linked investment contracts. These deposits are \u00a0
measured at the\u00a0value of savings, corresponding to the fair value of the assets. \u00a0
The Group has elected not to deduct own shares from equity that are held on behalf of customers. Therefore total assets under pooled schemes and unit- \u00a0
linked contracts includes these own shares that meet this criterion. \u00a0
Pooled schemes \u00a0
Unit-linked contracts \u00a0
Total \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
2023 \u00a0
2022* \u00a0
2023 \u00a0
2022* \u00a0
(a) Assets \u00a0
Bonds \u00a0
16,992 \u00a0
18,493 \u00a0
6,024 \u00a0
4,891 \u00a0
23,016 \u00a0
23,384 \u00a0
Shares \u00a0
14,676 \u00a0
13,421 \u00a0
11,146 \u00a0
7,579 \u00a0
25,822 \u00a0
21,000 \u00a0
Unit trust certificates \u00a0
16,434 \u00a0
14,228 \u00a0
2,564 \u00a0
7,124 \u00a0
18,998 \u00a0
21,352 \u00a0
Other \u00a0
38 \u00a0
115 \u00a0
3,379 \u00a0
875 \u00a0
3,417 \u00a0
990 \u00a0
Total \u00a0
48,140 \u00a0
46,256 \u00a0
23,113 \u00a0
20,469 \u00a0
71,253 \u00a0
66,725 \u00a0
including \u00a0
other intra-group balances \u00a0
263 \u00a0
-104 \u00a0
90 \u00a0
91 \u00a0
353 \u00a0
-13 \u00a0
Total assets recognised in balance \u00a0
sheet \u00a0
47,877 \u00a0
46,360 \u00a0
23,023 \u00a0
20,378 \u00a0
70,900 \u00a0
66,739 \u00a0
(b) Deposits \u00a0
48,140 \u00a0
46,256 \u00a0
23,113 \u00a0
20,469 \u00a0
71,253 \u00a0
66,725 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Assets under pooled schemes include DKK 198 million of own shares that are not eliminated\u00a0(2022: DKK 207 million). Assets under unit-linked \u00a0
contracts include DKK 60 million of\u00a0own shares\u00a0that are\u00a0not eliminated\u00a0(2022: DKK 33 million). \u00a0
G18. Assets and liabilities under insurance contracts continued \u00a0
(a) Assets under insurance contracts\u00a0(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Due from credit institutions \u00a0
6,922 \u00a0
2,094 \u00a0
Investment securities \u00a0
468,312 \u00a0
472,975 \u00a0
Holdings in associates \u00a0
11,612 \u00a0
11,162 \u00a0
Investment property \u00a0
21,716 \u00a0
27,373 \u00a0
Tangible assets \u00a0
-
45 \u00a0
Reinsurance contract assets \u00a0
213 \u00a0
23 \u00a0
Other assets \u00a0
9,780 \u00a0
16,200 \u00a0
Total \u00a0
518,555 \u00a0
529,872 \u00a0
including \u00a0
own bonds \u00a0
5,984 \u00a0
7,302 \u00a0
other intra-group balances \u00a0
16,540 \u00a0
19,575 \u00a0
Total assets under insurance contracts \u00a0
496,031 \u00a0
502,995 \u00a0
* Comparative information has been restated, as described in note G2(a) and G2(b). \u00a0
Assets under insurance contracts include DKK 27,794 million of own\u00a0bonds that are\u00a0not eliminated\u00a0(2022: DKK 26,535 million)\u00a0a nd\u00a0DKK 1,040 \u00a0
million of\u00a0own shares that are not eliminated (2022: DKK 782 million). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1581": {
"value": "The Board of Directors is authorised to let Danske Bank A/S acquire own shares up to a total nominal amount of 10% of the share capital. The shares may \u00a0
be held for ownership or provided as collateral. If shares are acquired for ownership, the acquisition price may not deviate by more than 10% from the price \u00a0
quoted at\u00a0the time of\u00a0acquisition. Danske Bank A/S has obtained permission from the Danish Financial Supervisory Authority\u00a0to acquire own shares f\u00a0or \u00a0
market-making purposes etc. and this amount is deducted from the Group\u2019s common equity\u00a0tier 1 capital. \u00a0
Total capital and the total risk exposure amount are calculated in accordance with the rules applicable\u00a0under the Capital Requirements Regulation (CRR), \u00a0
taking transitional rules\u00a0into account as\u00a0stipulated by\u00a0the Danish Financial Supervisory Authority. \u00a0
In terms of the transitional\u00a0arrangements for\u00a0the impact of IFRS 9 on regulatory\u00a0capital, the Group applies the so-called dynamic approach in accordance \u00a0
with the CRR. \u00a0
Risk Management\u00a02023 provides more details about the Group\u2019s total capital, the total risk exposure amount and the Group\u2019s solvency need. The report \u00a0
is available at danskebank.com/reports and is\u00a0not covered by the statutory\u00a0audit. \u00a0
Capital risk is the risk of not having\u00a0enough capital to\u00a0cover all material risks arising from\u00a0the Group\u2019s chosen\u00a0business st\u00a0rategy. \u00a0
The Danske Bank Group (the Group) has licences to provide\u00a0financial services and must therefore comply with the capital requirements\u00a0of the Capital \u00a0
Requirements Regulation (CRR) and the Danish Financial Business Act. The Danish rules are\u00a0based on the EU Capital Requirement\u00a0s Directive (CRD)\u00a0and \u00a0
apply to both Danske\u00a0Bank A/S (the Parent Company) and the Group. Similarly, the Group\u2019s financial subsidiaries\u00a0in and outside Denmark must comply \u00a0
with local capital requirements.\u00a0The regulatory requirements stipulate a\u00a0minimum capital\u00a0level of\u00a08% of the total risk exposu re amount\u00a0(REA) under Pillar \u00a0
I (including\u00a0risk exposure amounts\u00a0for credit risk, counterparty credit risk, market risk and operational risk). In addition,\u00a0f inancial institutions\u00a0are required \u00a0
to calculate their solvency need\u00a0under Pillar II to\u00a0reflect all relevant risks. As stipulated in the CRD, a\u00a0combined buffer\u00a0requirement (CBR) applies to \u00a0
financial institutions\u00a0in addition to\u00a0the solvency need ratio. The Group\u2019s CBR consists of\u00a0a systemic risk buffer, a counterc\u00a0yclical buffer,\u00a0a capital \u00a0
conservation buffer\u00a0and a SIFI buffer and must be funded with common equity tier 1 (CET1) capital.\u00a0Because Danske\u00a0Bank A/S is designated\u00a0a systemically \u00a0
important financial institution\u00a0(SIFI) in Denmark,\u00a0the Group must meet a SIFI buffer requirement\u00a0of 3%. \u00a0
The Group\u2019s total capital consists of tier 1 capital (share capital and additional tier 1 capital after deductions)\u00a0and tier 2 capital\u00a0(subordinated loan\u00a0capital \u00a0
after deductions). \u00a0
The Group\u2019s CET1 capital is\u00a0based on the carrying amount of shareholders\u2019 equity and\u00a0adjusted with the following main deductions. \u00a0
\u2022
Adjustments to\u00a0eligible capital instruments \u00a0
\u2022
Deferred tax assets that rely on future profitability \u00a0
\u2022
Defined benefit\u00a0pension fund\u00a0assets \u00a0
\u2022
Intangible assets\u00a0of banking\u00a0operations, including goodwill \u00a0
\u2022
Minimum loss coverage for non-performing exposures \u00a0
\u2022
Expected/proposed dividends \u00a0
\u2022
Prudent valuation \u00a0
\u2022
Prudential filters \u00a0
\u2022
Reversal of\u00a0the effect\u00a0of IFRS 9 (expected\u00a0credit losses) implementation\u00a0due to transitional\u00a0rules \u00a0
\u2022
Statutory deductions\u00a0for insurance subsidiaries \u00a0
The presentation\u00a0of the Group\u2019s total capital in the statement\u00a0of capital\u00a0shows the difference between the carrying amount of shareholders\u2019 equity and \u00a0
CET1 capital. At the end of 2023, the Group\u2019s CET1 capital amounted to DKK 155.3 billion (2022: DKK 149.2 billion), and\u00a0its CET1 capital ratio was \u00a0
18.8% (2022: 17.8%) \u00a0
The Group\u2019s additional tier 1\u00a0capital and tier 2 capital may, subject to certain conditions, be\u00a0included in total capital. Th\u00a0e conditions are described in the \u00a0
CRR. Notes G22 and G25 show additional tier 1 capital and tier 2 capital. At the end of\u00a02023, the Group\u2019s total capital was DKK 190.9 billion (2022: \u00a0
DKK 185.3\u00a0billion), and its total capital ratio was 23.1% (2022: 22.1%). The Group\u2019s tier 1 capital was DKK 170.1 billion (20\u00a022: DKK 164.5 billion), and \u00a0
its tier 1 capital ratio was 20.5% (2022: 19.6%). \u00a0
Internal Capital Adequacy Assessment 2023 provides a\u00a0description of\u00a0the Group\u2019s solvency need. \u00a0
The target\u00a0for the CET1 capital\u00a0ratio of above 16% was reaffirmed at the Group\u2019s Investor Update\u00a0on 7 June 2023 and ensures a\u00a0sufficiently prudent \u00a0
buffer in relation\u00a0to the capital requirement.\u00a0This implies a\u00a0capital target buffer of at least\u00a018.8% in relation to the fully phased-in CET1 capital \u00a0
requirement. \u00a0
The Group aspires to improve\u00a0its credit ratings, which are important for its access to liquidity\u00a0and for the pricing of its long-term funding. The Group \u00a0
therefore includes rating targets in its capital considerations. \u00a0
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"fact1190": {
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"fact1572": {
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"fact1436": {
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"fact1574": {
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"fact1575": {
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"fact1576": {
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"fact1584": {
"value": "G1. Basis of preparation \u00a0
(a) General \u00a0
Danske Bank\u00a0Group prepares its consolidated\u00a0financial statements in accordance with the IFRS Accounting\u00a0Standards (IFRSs)\u00a0and applicable \u00a0
interpretations (IFRIC)\u00a0issued by\u00a0the International\u00a0Accounting Standards Board\u00a0(IASB), as adopted by the EU. Furthermore,\u00a0the consolidated\u00a0financia l \u00a0
statements comply\u00a0with the Danish\u00a0FSA\u2019s Executive Order\u00a0No. 1306 dated 16 December 2008 on the use of IFRSs by undertakings\u00a0subject to the Danis\u00a0h \u00a0
Financial Business Act. \u00a0
On 1 January\u00a02023, the Group implemented IFRS 17,\u00a0and the amendments to\u00a0IAS 1, IAS 8 and IAS 12. Implementation\u00a0of IFRS 17 resulted\u00a0in a decrease \u00a0
of DKK\u00a00.7 billion in the Group\u2019s equity as\u00a0at the transition\u00a0date of 1 January 2022, and a net decrease of DKK 40\u00a0million in\u00a0the Group\u2019s equity as at 31 \u00a0
December 2022. \u00a0
As a result of IFRS 17 implementation,\u00a0the Group has changed the presentation\u00a0of the Income statement\u00a0to include material lin\u00a0e items as\u00a0required by \u00a0
IAS 1 and new sub-totals. \u00a0
In addition,\u00a0the Group has adopted\u00a0EU\u2019s carve out\u00a0to IAS 39 in 2023 to hedge the interest\u00a0rate risk on a portfolio\u00a0of non-maturing\u00a0core deposits at its \u00a0
subsidiary Northern Bank\u00a0Ltd. \u00a0
Further information on the changes to accounting policies\u00a0and presentation\u00a0in 2023 can be found in note G2. Except for these changes, the Group has \u00a0
not changed its material accounting policies from those applied in the Annual\u00a0Report 2022. \u00a0
For changes in the financial highlights and segment reporting, see note G3. \u00a0
Financial statement figures are\u00a0stated in\u00a0Danish kroner and whole millions, unless otherwise stated. As a\u00a0result, rounding discrepancies may occur \u00a0
because totals have been rounded off and the underlying\u00a0decimals are\u00a0not presented\u00a0to financial statement users. \u00a0
Monetary assets\u00a0and liabilities\u00a0in foreign currency are translated at the exchange rates at the balance sheet date. Exchange rate adjustments\u00a0of monetary \u00a0
assets and liabilities\u00a0arising as\u00a0a result of differences in the exchange rates at the transaction\u00a0date and at the balance sheet date are recognised in the \u00a0
income statement. Non-monetary assets and liabilities in foreign\u00a0currency that are subsequently\u00a0revalued at\u00a0fair value are translated at the exchange \u00a0
rates at the date of revaluation.\u00a0Exchange rate adjustments\u00a0are included\u00a0in the fair value\u00a0adjustment of an\u00a0asset or liability.\u00a0Other non-monetary items in \u00a0
foreign currency are translated at the exchange rates at the transaction\u00a0date. The accounting treatment of foreign\u00a0currency translation of\u00a0units outside \u00a0
Denmark is described in note G25. \u00a0
For the purpose\u00a0of clarity, the primary financial statements and the notes to the financial statements are prepared using the concepts of materiality\u00a0and \u00a0
relevance. This means that line items not considered material in terms of quantitative\u00a0and qualitative\u00a0measures or relevant to financial statement\u00a0users \u00a0
are aggregated and presented together with other items in the primary financial statements.\u00a0Similarly, information not considered material is not \u00a0
presented in\u00a0the notes. \u00a0
The material accounting policies are incorporated into the notes to which they relate. \u00a0
(b) Significant\u00a0accounting estimates and judgements \u00a0
The preparation of financial information requires, in some cases,\u00a0the use of judgements\u00a0and estimates\u00a0by management.\u00a0This includes judgements made \u00a0
when applying\u00a0accounting policies.\u00a0The most significant\u00a0judgements made when\u00a0applying accounting policies relate\u00a0to the classification\u00a0of financial assets \u00a0
and financial liabilities\u00a0under IFRS 9,\u00a0especially related to the business model assessment, and the solely payments of\u00a0principal and interest (SPPI) test \u00a0
(further explained\u00a0in note\u00a0G15) and the designation\u00a0of financial\u00a0liabilities at\u00a0fair value through profit or loss to eliminate or significantly\u00a0reduce an \u00a0
accounting mismatch (further\u00a0explained in\u00a0note G16). An overview\u00a0of the classification\u00a0and measurement\u00a0basis for financial instruments\u00a0can be found in \u00a0
section (c) of this\u00a0note. \u00a0
Further, the determination\u00a0of the carrying amounts\u00a0of some assets and liabilities\u00a0requires the estimation of the effects of uncertain future events\u00a0on \u00a0
those assets and liabilities.\u00a0The estimates are based on premises that management\u00a0finds reasonable but which are inherently uncertain and \u00a0
unpredictable. The\u00a0premises may\u00a0be incomplete,\u00a0unexpected future events or situations may occur,\u00a0and other parties may arrive at other estimate\u00a0d \u00a0
values. In\u00a0view of the inherent uncertainties\u00a0and the high level of subjectivity\u00a0and judgement\u00a0involved in\u00a0the recognition and measurement of the items \u00a0
listed below,\u00a0it is possible that the outcomes in the next financial year could differ from those on which management\u2019s estimates are based. \u00a0
Measurement of\u00a0expected credit\u00a0losses on\u00a0loans, financial guarantees\u00a0and loan commitments,\u00a0and bonds\u00a0measured at amortised\u00a0cost or fair\u00a0value \u00a0
through other comprehensive income \u00a0
The three-stage expected credit loss impairment model in IFRS 9\u00a0depends on whether the credit risk has increased significantly\u00a0since initial recognition. \u00a0
If the credit risk has not increased significantly,\u00a0the impairment charge equals the expected credit losses resulting from default events that are possible \u00a0
within the\u00a0next 12 months (stage 1). If the credit risk has increased significantly,\u00a0the loan is more than 30 days past due, or the loan is in default or \u00a0
otherwise impaired, the\u00a0impairment charge equals the\u00a0lifetime expected credit losses (stages 2 and 3). In determining\u00a0the impairment for\u00a0expected credit \u00a0
losses, management exercises judgement and uses estimates and assumptions as\u00a0explained below. \u00a0
G1. Basis of preparation continued \u00a0
(b) Significant\u00a0accounting estimates and judgements \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as\u00a0a function of probability\u00a0of default (PD), exposure\u00a0a t default (EAD)\u00a0and loss given default \u00a0
(LGD) and incorporates forward-looking information. The estimation\u00a0of expected credit losses involves\u00a0forecasting future economic conditions over a \u00a0
number of\u00a0years. Such forecasts are subject to management\u00a0judgement and those judgements may be sources of measurement uncert\u00a0ainty that have \u00a0
significant risk of resulting in a material adjustment\u00a0to a carrying amount\u00a0in future periods.\u00a0The incorporation of\u00a0forward-looking elements reflects\u00a0the \u00a0
expectations of\u00a0the Group\u2019s senior management and involves the creation of scenarios (base case, upside and downside), includ\u00a0ing an\u00a0assessment of the \u00a0
probability for\u00a0each scenario.\u00a0The purpose of using multiple scenarios is to model the non-linear impact of assumptions\u00a0about macroeconomic factors on \u00a0
the expected credit losses. \u00a0
The base case scenario enters with a probability\u00a0of 60% (2022: 70%), the upside scenario with a probability of 20% (2022: 10%) and the downside \u00a0
scenario with a\u00a0probability of 20%\u00a0(2022: 20%). On the basis of these assessments, the allowance account at the end of 2023 amounted to DKK 20.1 \u00a0
billion (2022:\u00a0DKK 19.6 billion). If the base case scenario was\u00a0assigned a probability\u00a0of 100%,\u00a0the allowance account would decrease DKK\u00a02.0 billio\u00a0n \u00a0
(2022: 2.1 billion).\u00a0Compared to the base case scenario, the allowance account would increase DKK 10.2 billion (2022: DKK 10.9 billion),\u00a0if the downside \u00a0
scenario was assigned a probability\u00a0of 100%. The increase reflects primarily\u00a0the transfer of exposures from stage 1 to stage 2 an\u00a0d increased expected \u00a0
credit losses within stage 2. If instead the upside scenario was assigned a probability\u00a0of 100%, the allowance account would decrease DKK 0.2 billio\u00a0n \u00a0
(2022: DKK 0.4 billion)\u00a0compared to the base case scenario. \u00a0
In determining\u00a0the expected credit losses, management is required to exercise judgement in defining what is considered a\u00a0sign ificant\u00a0increase in credit \u00a0
risk. According to the Group\u2019s definition of a significant increase in credit risk, i.e. when a loan is transferred from stage 1 to stage 2, facilities with an \u00a0
initial PD\u00a0below 1% are transferred to stage 2 if the facility\u2019s 12-month PD has\u00a0increased by\u00a0at least 0.5 of a percentage point and the facility\u2019s\u00a0lifetim e \u00a0
PD has doubled since origination. The allowance account is\u00a0relatively stable in\u00a0terms of changes to the definition\u00a0of significant\u00a0increase in credit risk. At \u00a0
the end of 2023, the allowance account would increase by DKK 0.3 billion (2022: DKK 0.3 billion), if instead an increase in the facility\u2019s 12-month PD by \u00a0
at least 0.25 of a percentage\u00a0point combined\u00a0with a doubling\u00a0of the lifetime\u00a0PD was considered a significant increase\u00a0in cred it\u00a0risk. \u00a0
Management applies judgement when\u00a0determining the need for post-model adjustments.\u00a0At the end of 2023, the post-model adjustments\u00a0amounted to \u00a0
DKK 6.7\u00a0billion (2022: DKK 6.6 billion). They mainly cover the increasing macroeconomic risk due to the\u00a0uncertainty related to\u00a0the elevated inflation and \u00a0
severity of\u00a0an economic downturn as well as the global tension uncertainty.\u00a0See further in the separate sections\u00a0below. Further information on the types \u00a0
of risks\u00a0covered by\u00a0post-model adjustments\u00a0and the allocation\u00a0of post-model adjustments\u00a0to the underlying\u00a0exposures can be found in the section \u00a0
Forward-looking information in\u00a0note G40. \u00a0
Loan impairment charges for 2023 amounted to DKK 262 million (2022: DKK 1,502 million).\u00a0Low impairments\u00a0were driven by robust credit quality \u00a0
driven by successful restructurings within oil and\u00a0offshore and post-pandemic recoveries. \u00a0
The applied macroeconomic scenarios in 2023 differ from those used at 31 December\u00a02022. The downside scenario continues to capture the severe \u00a0
recession scenario with high interest rates (reflecting a stagflation scenario)\u00a0applied in the Group\u2019s Internal Capital Adequacy Assessment Process 8 \u00a0
(ICAAP) processes and\u00a0is similar in nature to\u00a0regulatory stress tests. The severe recession scenario reflects negative growth\u00a0, increasing interest rates, \u00a0
and falling\u00a0property prices\u00a0for a longer\u00a0period. The use of the downside scenario has been made to better capture the increasing risk from\u00a0high interes\u00a0t \u00a0
rates and high inflation,\u00a0and in order for the ECL calculation\u00a0to include potential\u00a0downside risks due to the elevated asset prices across the Nordics. \u00a0
Except as\u00a0described above, all other policies and principles remain in place. Staging criteria are unchanged, including the 3\u00a00 days past due criteria and \u00a0
PD-based criteria for\u00a0transfer to stage 2. \u00a0
Sustainability risk \u00a0
The Group may be exposed to sustainability\u00a0risk as a result of current or future environmental,\u00a0social and governance\u00a0(ESG) events or conditions,\u00a0and are \u00a0
considered external factors that can\u00a0impact existing risks. Sustainability\u00a0risk is therefore considered a cross\u00a0-cutting driver of existing risks as outline\u00a0d \u00a0
in the Group\u2019s risk taxonomy,\u00a0which can further exacerbate\u00a0the risks the Group is already facing. \u00a0
G1. Basis of preparation continued \u00a0
(b) Significant\u00a0accounting estimates and judgements \u00a0
Sustainability risk\u00a0continued \u00a0
Credit risk is deemed to be the risk type most materially\u00a0affected by\u00a0sustainability drivers\u00a0in the long term, of which clima\u00a0te risk is currently the most \u00a0
urgent of\u00a0all ESG-related drivers capable\u00a0of affecting the Group\u2019s credit risk. From a financial\u00a0significance perspective, climate-related risks have\u00a0been \u00a0
deemed most\u00a0relevant for\u00a0the Group\u2019s lending activities. Climate risk pertains to transition\u00a0risks, which are the risks assoc\u00a0iated with shifting to a low- \u00a0
carbon economy,\u00a0and to physical risks arising from\u00a0projected climate changes,\u00a0including both\u00a0long-term shifts (chronic changes) and event-driven\u00a0changes \u00a0
(acute changes) to weather patterns.\u00a0Credit risk will be affected by both\u00a0of these climate\u00a0-related risks in the medium and long term, and\u00a0efforts are being \u00a0
made to obtain improved climate data to refine the long\u00a0- term view of climate\u00a0risk across sectors. \u00a0
The Group takes a risk-based approach in prioritising\u00a0risk management\u00a0efforts for credit portfolios that are likely to be most exposed to transition\u00a0and \u00a0
physical risks. For that purpose, the Group applies a mix of qualitative\u00a0and quantitative\u00a0input to define the credit exposures most exposed to transition \u00a0
and physical risks. \u00a0
High transition-risk\u00a0exposures are identified\u00a0using a mix of insights, including financed emissions estimates, findings from conducting clima\u00a0te scenario \u00a0
analysis as\u00a0well as qualitative\u00a0judgment to account for, e.g., credible transition\u00a0plans, potential\u00a0future technology\u00a0and demand risks to a given sector. Most \u00a0
of the emissions\u00a0are attributable\u00a0to only a few sectors, e.g., Shipping,\u00a0Oil and Gas, which the Group actively monitors and m\u00a0anages. From the initia\u00a0l \u00a0
assessment of customers subject to high transition\u00a0risk, the exposure to the lagging transition category remains limited but will be monitored on an \u00a0
ongoing basis. \u00a0
The Group has identified flooding risk (river and coastal flooding) as the key physical\u00a0hazard applicable to the portfolio on the basis of\u00a0the report on high \u00a0
confidence of hazard\u00a0increase in Northern\u00a0Europe issued by the Intergovernmental\u00a0Panel on Climate\u00a0Change. The current analyses on\u00a0flooding risk\u00a0focus \u00a0
on residential and commercial property and the risk is assessed to be limited. \u00a0
Moreover, the\u00a0Group performs\u00a0ad-hoc climate stress tests to assess physical and transition\u00a0risks of climate changes. Stress tests in relation to physical \u00a0
risks cover collateral-related\u00a0exposures and are based on river and coastal flooding.\u00a0Stress tests in relation to transition\u00a0risks consider an introductio\u00a0n \u00a0
of carbon taxes. \u00a0
The Group will continue to refine its assessment methodology as more climate risk data becomes available to support the ident\u00a0ification of\u00a0both transitio\u00a0n \u00a0
and physical\u00a0risks for the purpose of determining\u00a0financial significance, however, conclusions have no\u00a0t led to adjustments\u00a0to staging or modelled\u00a0expected \u00a0
credit losses, as the impacts either manifest over a longer time period than loan maturities,\u00a0or as transition\u00a0risks are conc\u00a0entrated on\u00a0a few sectors with \u00a0
downside risks already recognised in the Group\u2019s modelled expected credit losses. Both transition and physical risks are\u00a0either managed through risk \u00a0
tolerances or\u00a0strategic targets, or\u00a0already have post model adjustments/management\u00a0overlays allocated covering the climate re\u00a0lated risks. \u00a0
For more detail on Sustainability\u00a0risk, see note G40. \u00a0
Fair value measurement\u00a0of financial\u00a0instruments \u00a0
At the\u00a0end of 2023, no unusual challenges in obtaining reliable pricing apart from\u00a0insignificant parts\u00a0of the portfolio remain\u00a0ed. The majority of\u00a0valuation \u00a0
techniques continues to employ only observable market data, and there has been no\u00a0significant increase in financial instruments\u00a0measured on the basis \u00a0
of valuation\u00a0techniques that are\u00a0based on one or more significant\u00a0unobservable inputs. The latter continues to include only u\u00a0nlisted shares,\u00a0certain bonds \u00a0
and some long-dated\u00a0derivatives for\u00a0which there is no active market. On the derivatives\u00a0portfolio, the Group makes fair value adjustments\u00a0to cover changes \u00a0
in counterparty risk (CVA and DVA) and to cover expected funding costs (FVA and ColVA)\u00a0on derivatives,\u00a0bid-offer spreads on the net open position\u00a0of the \u00a0
portfolio of assets and liabilities\u00a0with offsetting market risk recognised at mid-market prices, and model risk on level 3 derivatives.\u00a0With effect from 2023, \u00a0
FVA is calculated\u00a0including both\u00a0funding cost and funding benefit. To avoid double-counting\u00a0between DVA and\u00a0the funding benefit, DVA is offset\u00a0in the \u00a0
financial statements. At\u00a031 December\u00a02023, the adjustments\u00a0totalled DKK 0.4 billion (2022:\u00a0DKK 0.2\u00a0billion), including the adjustment for\u00a0credit risk on \u00a0
derivatives that\u00a0are credit impaired.\u00a0Note G33(a) provides more\u00a0details on\u00a0the fair value measurement of financial instrument\u00a0s. \u00a0
The Group uses derivatives\u00a0to hedge the fixed interest rate on some financial\u00a0assets and liabilities,\u00a0thus converting the fix\u00a0ed interest\u00a0rates on the financial \u00a0
instruments to\u00a0variable interest rates by the use\u00a0of swaps. \u00a0
Measurement of\u00a0goodwill \u00a0
Goodwill is\u00a0tested for\u00a0impairment once\u00a0a year or more frequently if indications\u00a0of impairment\u00a0exist. Impairment\u00a0testing requi\u00a0res management to\u00a0estimate \u00a0
the present value of future cash flows. A number of factors affect the value\u00a0of such cash flows, including\u00a0discount rates, changes in the economic outlook, \u00a0
customer behaviour\u00a0and competition.\u00a0As at 31 December\u00a02023, goodwill amounted to DKK 4.4\u00a0billion (31\u00a0December 2022: DKK 4.4 billion). \u00a0
In connection with the quarterly reporting, management performs an\u00a0impairment review\u00a0to assess whether there are\u00a0indications that\u00a0goodwill might be \u00a0
impaired. This includes a\u00a0review of decline in income, increase in loan impairment charges, decline\u00a0in the\u00a0m arket\u00a0value of assets under management, \u00a0
major restructurings, macroeconomic developments\u00a0etc. The impairment\u00a0test conducted in 2023 did not reveal any impairment loss. During\u00a02022, \u00a0
goodwill in Danica Pension amounting to DKK 1.6\u00a0billion was\u00a0assessed to be impaired due to increasing discount rates and lower financial outlook. \u00a0
Following the impairment charges on goodwill, goodwill in Danica Pension amounts to DKK 0.0 billion as at 31 December\u00a02023 (31 December\u00a02022: \u00a0
DKK 0.0\u00a0billion). \u00a0
The remaining goodwill mainly consists of DKK 2.1 billion (2022: DKK 2.1 billion)\u00a0in Markets,\u00a0DKK 1.8 billion\u00a0(2022: DKK 1.8 billion)\u00a0in Asset Management \u00a0
and DKK\u00a00.5 billion\u00a0(2022: DKK\u00a00.5 billion) in General Banking\u00a0(all part of the business segment Large Corporates\u00a0& Institutions)\u00a0showing significant \u00a0
amounts of\u00a0excess value\u00a0in the impairment tests in 2023 and 2022. \u00a0
Note G19 provides more information about the impairment\u00a0test in 2023 and 2022 including\u00a0sensitivity to\u00a0changes in assumptions. \u00a0
Measurement of\u00a0liabilities under\u00a0insurance contracts \u00a0
Liabilities under\u00a0insurance contracts are measured using either the General Measurement Model (GMM), Variable Fee\u00a0Approach (V\u00a0FA) or Premium \u00a0
Allocation Approach (PAA).\u00a0GMM and\u00a0VFA both comprise fulfilment cash flows, which are estimates of the present value of future cash flows for \u00a0
insurance contracts, adjusted for\u00a0time value of money and effect\u00a0of financial\u00a0risk including\u00a0a risk adjustment\u00a0for non-financial\u00a0risk, and a contractua\u00a0l \u00a0
service margin (CSM). \u00a0
Estimates of\u00a0future cash flows include\u00a0actuarial computations\u00a0that rely on estimates\u00a0of a number of variables\u00a0such as mortali ty\u00a0rates and disability rates. \u00a0
Mortality rates\u00a0are based on the Danish FSA\u2019s benchmark, whilst others are estimated based on data f\u00a0rom the Group\u2019s own\u00a0portfolio of insurance \u00a0
contracts. \u00a0
The discount rate is fixed on the basis of a zero-coupon yield curve, which is adjusted by a currency and credit risk deduction and a volatility\u00a0adjustment. \u00a0
The yield curve is calculated according to principles and based on data that results in a curve bas\u00a0ed on European\u00a0Insurance and Occupational\u00a0Pension \u00a0
Authority (EIOPA) discount yield curve, which can\u00a0be found at www.eiopa.europa.eu/tools-and-data/risk-free-interest-ra\u00a0te-term-structures_en. \u00a0
For life insurance contracts, risk adjustment\u00a0for non-financial\u00a0risks is calculated based on a safety margin on applied\u00a0actuarial assumptions, such as \u00a0
mortality rates\u00a0and longevity. \u00a0
The confidence level used to determine the risk adjustment is at least 85%. \u00a0
For insurance contracts measured using VFA, CSM is\u00a0calculated on\u00a0the basis of\u00a0stochastic models, whereas a deterministic\u00a0mode l\u00a0is used for life \u00a0
insurance contracts measured using GMM. \u00a0
For health\u00a0and accident insurance\u00a0contracts, the loss element includes\u00a0expectations about\u00a0mortality, reactivation, reinstatem\u00a0ent and\u00a0repurchase, as well \u00a0
as expected\u00a0costs offset by premiums\u00a0not yet due. Risk adjustment for non-financial risk is calculated\u00a0based on a safety margin on applied actuarial \u00a0
assumptions. The confidence level used to determine the risk adjustment is at least 85%. \u00a0
Note G18 provides further information on the measurement of insurance liabilities.\u00a0Note G40 contains a\u00a0sensitivity analysis for\u00a0li fe\u00a0insurance. \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
Financial instruments\u00a0account for around 98% of total\u00a0assets and liabilities.\u00a0A portion of\u00a0financial assets\u00a0relate to investments\u00a0made under insurance \u00a0
contracts. The following sections provide a general description of the classification\u00a0and measurement\u00a0of financial\u00a0instruments and\u00a0obligations under \u00a0
insurance contracts. \u00a0
Financial instruments\u00a0\u2013 general \u00a0
The Group recognises financial assets and liabilities\u00a0when it\u00a0becomes a party to the terms of the contract. A financial asset, or a portion of a\u00a0financia l \u00a0
asset, is derecognised if the contractual\u00a0rights to cash flows from the asset have expired, or have been transferred, usually\u00a0by sale, leading\u00a0to substantially \u00a0
all the risks and rewards of the asset or significant risks and rewards being transferred. Financial liabilities\u00a0are derecognised\u00a0when the liability\u00a0has been \u00a0
settled, has\u00a0expired or\u00a0has been extinguished. \u00a0
Regular way purchases\u00a0and sales of financial instruments\u00a0are recognised\u00a0and derecognised at the settlement\u00a0date. Fair value adjustments\u00a0of unsettle d \u00a0
financial instruments\u00a0are recognised from\u00a0the trade date to the settlement\u00a0date if the financial\u00a0asset is classified at fair value through profit or loss or \u00a0
through other comprehensive income. The classification\u00a0is shown in the table below. \u00a0
G1. Basis of preparation\u00a0continued \u00a0
Financial instruments\u00a0and obligations\u00a0under insurance contracts, classification\u00a0and measurement\u00a0end of 2023 \u00a0
Amortised \u00a0
Fair value \u00a0
cost \u00a0
OCI \u00a0
Fair value through profit or loss \u00a0
Held to collect \u00a0
Held to collect \u00a0
and sell \u00a0
assets/ \u00a0
financial \u00a0
Held for\u00a0Managed at\u00a0FVPL due to \u00a0
Interest rate\u00a0Own shares / \u00a0
(DKK billions) \u00a0
Liabilities \u00a0
assets* \u00a0
trading \u00a0
fair value \u00a0
SPPI test\u00a0Designated \u00a0
hedge ** \u00a0
bonds \u00a0
Total \u00a0
Assets \u00a0
Cash in hand and demand \u00a0
deposits with central banks \u00a0
259 \u00a0
-
-
-
-
-
-
-
259 \u00a0
Due from credit institutions\u00a0and \u00a0
central banks \u00a0
22 \u00a0
-
-
93 \u00a0
-
-
-
-
115 \u00a0
Derivatives \u00a0
-
-
346 \u00a0
-
-
-
6
-
352 \u00a0
Bonds \u00a0
155 \u00a0
107 \u00a0
178 \u00a0
21 \u00a0
-
-
-
-
461 \u00a0
Shares \u00a0
-
-
19 \u00a0
-
-
-
-
-
19 \u00a0
Loans *** \u00a0
919 \u00a0
-
-
175 \u00a0
753 \u00a0
-
-1 \u00a0
-
1,847 \u00a0
Assets under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
43 \u00a0
-
-
-
28 \u00a0
71 \u00a0
Assets under insurance \u00a0
contracts \u00a0
-
-
-
460 \u00a0
-
-
-
1
461 \u00a0
Total financial assets, \u00a0
1,356 \u00a0
107 \u00a0
542 \u00a0
792 \u00a0
753 \u00a0
-
6
29 \u00a0
3,585 \u00a0
31 December\u00a02023 \u00a0
Total financial assets, \u00a0
1,433 \u00a0
116 \u00a0
635 \u00a0
771 \u00a0
724 \u00a0
-
3
28 \u00a0
3,710 \u00a0
31 December\u00a02022**** \u00a0
Liabilities \u00a0
Due to credit institutions and \u00a0
central banks \u00a0
69 \u00a0
-
-
-
-
86 \u00a0
-
-
155 \u00a0
Trading portfolio liabilities \u00a0
-
-
442 \u00a0
-
-
-
13 \u00a0
-
454 \u00a0
Deposits *** \u00a0
1,102 \u00a0
-
-
-
-
120 \u00a0
-
-
1,222 \u00a0
Issued bonds at fair value \u00a0
-
-
-
-
-
749 \u00a0
-
-
749 \u00a0
Issued bonds at amortised cost \u00a0
*** \u00a0
219 \u00a0
-
-
-
-
-
-5 \u00a0
-
214 \u00a0
Deposits under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
-
-
71 \u00a0
-
-
71 \u00a0
Liabilities under insurance \u00a0
contracts ***** \u00a0
-
-
-
-
-
483 \u00a0
-
-
483 \u00a0
Non-preferred senior bonds \u00a0
96 \u00a0
-
-
-
-
-
-3 \u00a0
-
93 \u00a0
Subordinated debt \u00a0
39 \u00a0
-
-
-
-
-
-
-
39 \u00a0
Loan commitments\u00a0and \u00a0
guarantees \u00a0
3
-
-
-
-
-
-
-
3
Total financial liabilities, \u00a0
1,528 \u00a0
-
442 \u00a0
-
-
1,508 \u00a0
5
-
3,483 \u00a0
31 December\u00a02023 \u00a0
Total financial liabilities, \u00a0
1,599 \u00a0
-
533 \u00a0
-
-
1,402 \u00a0
-
27 \u00a0
3,562 \u00a0
31 December\u00a02022**** \u00a0
* Unrealised fair value gains and losses are presented in Other comprehensive income, and realised fair value gains and losses are recycled to the income statement . \u00a0
**The interest rate risk on some fixed-rate financial assets and liabilities is hedged by derivatives (fair value hedging). The interest rate risk on some fixed-rate bonds 'hold to collect and sell' \u00a0
is also hedged by derivatives. The fair value represents changes in the fair value of the interest rate risk on the hedged items, i.e. not a full fair value of the hedged items. \u00a0
*** Loans (amortised cost), Deposits (amortised cost) and Issued bonds at amortised cost include Assets held for sale and Liabilities i n disposal groups held for sale which are measured in \u00a0
accordance with\u00a0IFRS 9. These are presented separately on the Balance sheet. \u00a0
**** Comparative information has been restated, as described in note G2(a). \u00a0
***** Liabilities under insurance contracts comprise the liability for remaining coverage and liability for incurred claims, which includes estimates of present value of future cash flows, risk \u00a0
adjustment for non-financial\u00a0risk and contractual service margin. \u00a0
.
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
Classification and\u00a0measurement of\u00a0financial assets\u00a0and financial\u00a0liabilities \u2013 general \u00a0
Financial assets are classified on the basis of the business model adopted for\u00a0managing the assets and on their contractual\u00a0cash flow characteristic\u00a0s \u00a0
(including embedded\u00a0derivatives, if\u00a0any) are grouped into one of the following\u00a0measurement categories: \u00a0
\u2022
Amortised cost\u00a0(AMC) \u00a0
\u2022
Fair value through other comprehensive income (FVOCI) \u00a0
\u2022
Fair value through profit or loss (FVPL) \u00a0
Financial assets are measured at AMC if they are held within a business model for the purpose of collecting contractual\u00a0cash flows\u00a0(hold to collect) and \u00a0
if cash flows are solely payments\u00a0of principal\u00a0and interest\u00a0on the principal amount outstanding. \u00a0
Financial assets\u00a0are measured at FVOCI\u00a0if they are held within\u00a0a business model for\u00a0the purpose of both collecting\u00a0contractual cash\u00a0flows and selling \u00a0
(hold to collect and sell) and if cash flows are solely payments of principal and interest on the principal amount outstanding.\u00a0FVOCI results in the assets \u00a0
being recognised at fair value in the balance sheet and at AMC in\u00a0the income statement. Gains and\u00a0losses, except for expected credit losses and\u00a0foreign \u00a0
exchanges gains and losses, are therefore recognised in other comprehensive\u00a0income until the financial asset is derecognised. When the financial asset \u00a0
is derecognised the cumulative\u00a0gains and losses previously\u00a0recognised in other comprehensive\u00a0income are reclassified\u00a0to the income\u00a0statement. \u00a0
All other financial assets are mandatorily\u00a0measured at FVPL including\u00a0financial assets held within other business models, such as\u00a0financial assets \u00a0
managed at\u00a0fair value or held for trading and financial\u00a0assets with contractual cash flows that are not solely payments of principal and interest on the \u00a0
principal amount outstanding. \u00a0
Generally, financial liabilities\u00a0are measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities measured at\u00a0fair value comprise the trading portfolio (derivatives and\u00a0obligations to repurchase securities) and\u00a0liabilitie s \u00a0
designated at\u00a0fair value through profit or loss under the fair value option.\u00a0Value adjustments relating to the inherent credit risk of financial liabilitie\u00a0s \u00a0
designated at\u00a0fair value\u00a0are recognised in other comprehensive\u00a0income unless this leads to an accounting\u00a0mismatch. \u00a0
The business\u00a0model assessment \u00a0
The business model assessment in Danske Bank Group has been applied separately for\u00a0each business\u00a0unit represented\u00a0by the Group\u2019s reportable \u00a0
segments, and\u00a0it is based on observable\u00a0factors for the different portfolios, such as (1) how the performance of the business model and the financia\u00a0l \u00a0
assets held within that business model are evaluated and reported to the Executive\u00a0Board and the Board of Directors,\u00a0(2) the\u00a0risks that affect\u00a0the \u00a0
performance of the business\u00a0model and the way such risks are managed and (3) past and expected frequency, value and timing of sales from the portfolio. \u00a0
In general, the business model assessment of the Group can be summarised as follows: \u00a0
\u2022
The Group\u2019s banking units, comprising Personal Customers, Business Customers, General Banking at Large\u00a0Corporates &Institutes\u00a0(LC&I) and \u00a0
Northern Ireland, have a \u201chold to\u00a0collect\u201d business model. The financial assets consist primarily of loans. The management and reporting\u00a0of \u00a0
performance are based on collecting\u00a0the contractual cash flows,\u00a0and loans are only very infrequently\u00a0sold. \u00a0
\u2022
The trading units at LC&I (Markets and Investment\u00a0Banking & Securities) and the financial assets related to the Group\u2019s insurance activities\u00a0at \u00a0
Danica Pension have a\u00a0business model that is neither \u201chold to collect\u201d nor \u201chold to collect and sell\u201d and the financial assets are mandatorily \u00a0
recognised at FVPL. The assets consist of bonds, shares, repo transactions\u00a0and short-term loans.\u00a0Some of the financial assets are included in \u00a0
portfolios with a trading pattern that falls under the definition of \u201cheld for trading\u201d while other portfolios are managed and their performance reported \u00a0
on a fair value\u00a0basis. \u00a0
\u2022
Group Treasury has portfolios\u00a0of bonds\u00a0within the \u201chold to collect\u201d business model, the \u201chold to collect and sell\u201d business models and\u00a0the \u201cother\u201d \u00a0
business model. \u00a0
\u2022
The remaining portfolio of\u00a0Non-core is \u201chold to\u00a0collect\u201d. The financial assets consist primarily of loans. \u00a0
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
The SPPI test (solely\u00a0payment of\u00a0principal and\u00a0interest on\u00a0the principal\u00a0amount outstanding) \u00a0
The second step in the classification of the financial assets in portfolios being \u201chold to collect\u201d and \u201chold to collect and sell\u201d relates to\u00a0the assessment of \u00a0
whether the contractual\u00a0cash flows are consistent\u00a0with the\u00a0SPPI test.\u00a0The principal\u00a0amount reflects the fair value at initial\u00a0recognition less\u00a0any subsequent \u00a0
changes, e.g. due to repayment. The interest must represent only consideration\u00a0for the\u00a0time value of money, credit risk, other basic lending risks and a \u00a0
margin consistent\u00a0with basic lending\u00a0features. If the cash flows introduce more than de minimis exposure to risk or volatility\u00a0that is\u00a0not consistent with \u00a0
basic lending features, the financial asset is mandatorily recognised at\u00a0FVPL. \u00a0
In general, the Group\u2019s portfolios of\u00a0financial assets that are \u201chold to collect\u201d or \u201chold to collect and sell\u201d (loans and bonds)\u00a0have contractual\u00a0cash flows \u00a0
that are consistent with the SPPI test, i.e. they have basic lending features. \u00a0
However, loans granted under Danish mortgage finance law are funded by issuing listed mortgage bonds with matching terms. Such loans are granted \u00a0
by the Realkredit\u00a0Danmark subsidiary only. Borrowers may repay such loans by delivering the underlying bonds. This represents an option to prepay at \u00a0
fair value that can be both above and below the principal amount plus accrued interest. Changes in the fair value of\u00a0the underlying bonds\u00a0include other \u00a0
elements than\u00a0the effect of changes in the relevant benchmark interest rate and the prepayment option is therefore not consistent with the SPPI test in \u00a0
IFRS 9\u00a0and are mandatorily\u00a0measured at FVPL. \u00a0
All equity instruments\u00a0have contractual cash flows that do not pass the SPPI test. All such holdings\u00a0are recognised at FVPL since the Group has decided \u00a0
not to use the option to designate equity instruments\u00a0at FVOCI. \u00a0
Financial liabilities \u00a0
Financial liabilities\u00a0are generally measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities\u00a0measured at fair value comprise derivatives,\u00a0the trading portfolio and liabilities\u00a0designated at\u00a0FVPL under the fair value \u00a0
option. Value adjustments relating to\u00a0the inherent\u00a0own credit risk of financial\u00a0liabilities designated at fair value are, however, recognised in Other \u00a0
comprehensive income unless this leads to an\u00a0accounting mismatch. \u00a0
IFRS 9 allows the designation\u00a0of financial\u00a0liabilities at\u00a0FVPL when doing so results in more relevant\u00a0information, because either (1)\u00a0it eliminates\u00a0or \u00a0
significantly reduces\u00a0an accounting\u00a0mismatch that\u00a0would otherwise arise, or\u00a0(2) is part of a portfolio\u00a0of financial\u00a0instruments that are\u00a0managed and their \u00a0
performance reported on\u00a0a fair value\u00a0basis to management. \u00a0
The Group designates the following financial liabilities\u00a0at FVPL: \u00a0
\u2022
Mortgage bonds issued by Realkredit Danmark.\u00a0The bonds fund the loans granted by Realkredit Danmark, i.e. loans that due to the SPPI test are \u00a0
mandatorily recognised at\u00a0FVPL. The\u00a0fair value of the loans is based on the fair value of the issued bonds (the loans and the issued bonds that are \u00a0
funding the loans have matching\u00a0contractual terms) adjusted for\u00a0changes in the fair value of the credit risk of borrowers. To eliminate\u00a0the accounting \u00a0
mismatch that exists if the loans are measured at FVPL and the issued bonds at AMC, the issued bonds are designated at FVPL, and fair value \u00a0
changes of the issued bonds (including fair value changes related to own credit risk) are offset by the fair value changes of the loans. Hence, changes \u00a0
in the fair value attributable\u00a0to the Group\u2019s own credit risk on the issued bonds are also recognised in the income statement\u00a0since an accounting \u00a0
mismatch would otherwise arise. \u00a0
\u2022
Financial liabilities\u00a0in Markets\u00a0and Investment\u00a0Banking &\u00a0Securities at\u00a0LC&I. These financial liabilities\u00a0are part of a portfolio\u00a0of financial\u00a0assets and \u00a0
liabilities that\u00a0is managed\u00a0and performance reported to\u00a0the Management on a\u00a0fair value basis. The financial liabilities\u00a0consist of repo transactions\u00a0, \u00a0
deposits and\u00a0commercial papers. Changes, if any, in the fair value attributable\u00a0to the Group\u2019s own credit risk is, however,\u00a0recognised in other \u00a0
comprehensive income. \u00a0
Hedge accounting \u00a0
The Group uses derivatives\u00a0to hedge the interest rate risk on some fixed-rate assets and fixed-rate liabilities\u00a0measured at\u00a0amortised cost\u00a0and on some \u00a0
bonds measured at fair value through other comprehensive income. Hedged risks that meet the criteria for\u00a0fair value hedge accounting\u00a0are treated \u00a0
accordingly. The interest rate risk on the hedged assets and liabilities\u00a0is measured at fair value through profit or loss. At the end of 2023, hedging \u00a0
derivatives measured\u00a0at fair value\u00a0accounted for about 0.2% of total assets and about 0.4% of total\u00a0liabilities (31\u00a0December 2022: 0.1% and 0.6%, \u00a0
respectively). For further information on hedge accounting, see\u00a0note G12(d). \u00a0
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
Insurance activities\u00a0\u2013 general \u00a0
The Group issues contracts for\u00a0life insurance and health and accident insurance, which are divided into insurance and investment\u00a0contracts. Insurance \u00a0
contracts are contracts under which the Group accepts significant insurance risk from a\u00a0policyholder, by\u00a0agreeing to compensate\u00a0the poli\u00a0cyholder if\u00a0a \u00a0
specified uncertain\u00a0future event adversely affects the policyholder. Investment\u00a0contracts are contracts that entail no significant insurance risk and \u00a0
comprise unit-linked\u00a0contracts under which the investment\u00a0risk lies with the policyholder. \u00a0
Insurance contracts \u00a0
With effect from 1 January\u00a02023, the Group\u2019s insurance contracts are\u00a0measured in\u00a0line with\u00a0IFRS 17, Insurance\u00a0contracts. Unde\u00a0r IFRS\u00a017, the majority \u00a0
of liabilities\u00a0under insurance contracts are\u00a0measured based on estimates\u00a0of the present value\u00a0of future cas\u00a0h flows, risk adjustment\u00a0for non-financial\u00a0risk, \u00a0
and contractual\u00a0service margin. Most of these insurance\u00a0contracts are with direct participating\u00a0features, which\u00a0means that th\u00a0at the policyholde\u00a0r \u00a0
participates in\u00a0a share of a pool of underlying\u00a0items, the return of which accrues to the policyholder.\u00a0The underlying items are\u00a0measured at fair value, and \u00a0
are classified\u00a0as Assets\u00a0under insurance contacts in the Balance sheet. \u00a0
Insurance contracts with one-year duration are\u00a0measured using an estimate of expected benefits payable but not yet disbursed. \u00a0
Investment contracts \u00a0
Investment contracts are\u00a0recognised as financial liabilities,\u00a0and, consequently,\u00a0contributions and\u00a0benefits under such contracts are recognised directly \u00a0
in the balance sheet. Deposits are measured at the value of the savings under Deposits under pooled schemes and unit-linked\u00a0investment contracts. \u00a0
Savings under unit-linked investment\u00a0contracts are measured at fair value under Assets under pooled schemes and unit-linked\u00a0investment contracts. \u00a0
The return on the assets and the crediting of the amounts\u00a0to policyholders\u2019 accounts are\u00a0recognised under Net\u00a0return on investments\u00a0backing insurance. \u00a0
Net income\u00a0from insurance\u00a0business \u00a0
Insurance activities are\u00a0presented in the Income statement under Net insurance result. Net insurance result comprises Insuran\u00a0ce revenue, Insurance \u00a0
service expenses, Net return on\u00a0investments backing insurance\u00a0liabilities and\u00a0Net finance income or expenses from insurance. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1585": {
"value": "G1. Basis of preparation \u00a0
(a) General \u00a0
Danske Bank\u00a0Group prepares its consolidated\u00a0financial statements in accordance with the IFRS Accounting\u00a0Standards (IFRSs)\u00a0and applicable \u00a0
interpretations (IFRIC)\u00a0issued by\u00a0the International\u00a0Accounting Standards Board\u00a0(IASB), as adopted by the EU. Furthermore,\u00a0the consolidated\u00a0financia l \u00a0
statements comply\u00a0with the Danish\u00a0FSA\u2019s Executive Order\u00a0No. 1306 dated 16 December 2008 on the use of IFRSs by undertakings\u00a0subject to the Danis\u00a0h \u00a0
Financial Business Act. \u00a0
On 1 January\u00a02023, the Group implemented IFRS 17,\u00a0and the amendments to\u00a0IAS 1, IAS 8 and IAS 12. Implementation\u00a0of IFRS 17 resulted\u00a0in a decrease \u00a0
of DKK\u00a00.7 billion in the Group\u2019s equity as\u00a0at the transition\u00a0date of 1 January 2022, and a net decrease of DKK 40\u00a0million in\u00a0the Group\u2019s equity as at 31 \u00a0
December 2022. \u00a0
As a result of IFRS 17 implementation,\u00a0the Group has changed the presentation\u00a0of the Income statement\u00a0to include material lin\u00a0e items as\u00a0required by \u00a0
IAS 1 and new sub-totals. \u00a0
In addition,\u00a0the Group has adopted\u00a0EU\u2019s carve out\u00a0to IAS 39 in 2023 to hedge the interest\u00a0rate risk on a portfolio\u00a0of non-maturing\u00a0core deposits at its \u00a0
subsidiary Northern Bank\u00a0Ltd. \u00a0
Further information on the changes to accounting policies\u00a0and presentation\u00a0in 2023 can be found in note G2. Except for these changes, the Group has \u00a0
not changed its material accounting policies from those applied in the Annual\u00a0Report 2022. \u00a0
For changes in the financial highlights and segment reporting, see note G3. \u00a0
Financial statement figures are\u00a0stated in\u00a0Danish kroner and whole millions, unless otherwise stated. As a\u00a0result, rounding discrepancies may occur \u00a0
because totals have been rounded off and the underlying\u00a0decimals are\u00a0not presented\u00a0to financial statement users. \u00a0
Monetary assets\u00a0and liabilities\u00a0in foreign currency are translated at the exchange rates at the balance sheet date. Exchange rate adjustments\u00a0of monetary \u00a0
assets and liabilities\u00a0arising as\u00a0a result of differences in the exchange rates at the transaction\u00a0date and at the balance sheet date are recognised in the \u00a0
income statement. Non-monetary assets and liabilities in foreign\u00a0currency that are subsequently\u00a0revalued at\u00a0fair value are translated at the exchange \u00a0
rates at the date of revaluation.\u00a0Exchange rate adjustments\u00a0are included\u00a0in the fair value\u00a0adjustment of an\u00a0asset or liability.\u00a0Other non-monetary items in \u00a0
foreign currency are translated at the exchange rates at the transaction\u00a0date. The accounting treatment of foreign\u00a0currency translation of\u00a0units outside \u00a0
Denmark is described in note G25. \u00a0
For the purpose\u00a0of clarity, the primary financial statements and the notes to the financial statements are prepared using the concepts of materiality\u00a0and \u00a0
relevance. This means that line items not considered material in terms of quantitative\u00a0and qualitative\u00a0measures or relevant to financial statement\u00a0users \u00a0
are aggregated and presented together with other items in the primary financial statements.\u00a0Similarly, information not considered material is not \u00a0
presented in\u00a0the notes. \u00a0
The material accounting policies are incorporated into the notes to which they relate. \u00a0
(b) Significant\u00a0accounting estimates and judgements \u00a0
The preparation of financial information requires, in some cases,\u00a0the use of judgements\u00a0and estimates\u00a0by management.\u00a0This includes judgements made \u00a0
when applying\u00a0accounting policies.\u00a0The most significant\u00a0judgements made when\u00a0applying accounting policies relate\u00a0to the classification\u00a0of financial assets \u00a0
and financial liabilities\u00a0under IFRS 9,\u00a0especially related to the business model assessment, and the solely payments of\u00a0principal and interest (SPPI) test \u00a0
(further explained\u00a0in note\u00a0G15) and the designation\u00a0of financial\u00a0liabilities at\u00a0fair value through profit or loss to eliminate or significantly\u00a0reduce an \u00a0
accounting mismatch (further\u00a0explained in\u00a0note G16). An overview\u00a0of the classification\u00a0and measurement\u00a0basis for financial instruments\u00a0can be found in \u00a0
section (c) of this\u00a0note. \u00a0
Further, the determination\u00a0of the carrying amounts\u00a0of some assets and liabilities\u00a0requires the estimation of the effects of uncertain future events\u00a0on \u00a0
those assets and liabilities.\u00a0The estimates are based on premises that management\u00a0finds reasonable but which are inherently uncertain and \u00a0
unpredictable. The\u00a0premises may\u00a0be incomplete,\u00a0unexpected future events or situations may occur,\u00a0and other parties may arrive at other estimate\u00a0d \u00a0
values. In\u00a0view of the inherent uncertainties\u00a0and the high level of subjectivity\u00a0and judgement\u00a0involved in\u00a0the recognition and measurement of the items \u00a0
listed below,\u00a0it is possible that the outcomes in the next financial year could differ from those on which management\u2019s estimates are based. \u00a0
Measurement of\u00a0expected credit\u00a0losses on\u00a0loans, financial guarantees\u00a0and loan commitments,\u00a0and bonds\u00a0measured at amortised\u00a0cost or fair\u00a0value \u00a0
through other comprehensive income \u00a0
The three-stage expected credit loss impairment model in IFRS 9\u00a0depends on whether the credit risk has increased significantly\u00a0since initial recognition. \u00a0
If the credit risk has not increased significantly,\u00a0the impairment charge equals the expected credit losses resulting from default events that are possible \u00a0
within the\u00a0next 12 months (stage 1). If the credit risk has increased significantly,\u00a0the loan is more than 30 days past due, or the loan is in default or \u00a0
otherwise impaired, the\u00a0impairment charge equals the\u00a0lifetime expected credit losses (stages 2 and 3). In determining\u00a0the impairment for\u00a0expected credit \u00a0
losses, management exercises judgement and uses estimates and assumptions as\u00a0explained below. \u00a0
G1. Basis of preparation continued \u00a0
(b) Significant\u00a0accounting estimates and judgements \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as\u00a0a function of probability\u00a0of default (PD), exposure\u00a0a t default (EAD)\u00a0and loss given default \u00a0
(LGD) and incorporates forward-looking information. The estimation\u00a0of expected credit losses involves\u00a0forecasting future economic conditions over a \u00a0
number of\u00a0years. Such forecasts are subject to management\u00a0judgement and those judgements may be sources of measurement uncert\u00a0ainty that have \u00a0
significant risk of resulting in a material adjustment\u00a0to a carrying amount\u00a0in future periods.\u00a0The incorporation of\u00a0forward-looking elements reflects\u00a0the \u00a0
expectations of\u00a0the Group\u2019s senior management and involves the creation of scenarios (base case, upside and downside), includ\u00a0ing an\u00a0assessment of the \u00a0
probability for\u00a0each scenario.\u00a0The purpose of using multiple scenarios is to model the non-linear impact of assumptions\u00a0about macroeconomic factors on \u00a0
the expected credit losses. \u00a0
The base case scenario enters with a probability\u00a0of 60% (2022: 70%), the upside scenario with a probability of 20% (2022: 10%) and the downside \u00a0
scenario with a\u00a0probability of 20%\u00a0(2022: 20%). On the basis of these assessments, the allowance account at the end of 2023 amounted to DKK 20.1 \u00a0
billion (2022:\u00a0DKK 19.6 billion). If the base case scenario was\u00a0assigned a probability\u00a0of 100%,\u00a0the allowance account would decrease DKK\u00a02.0 billio\u00a0n \u00a0
(2022: 2.1 billion).\u00a0Compared to the base case scenario, the allowance account would increase DKK 10.2 billion (2022: DKK 10.9 billion),\u00a0if the downside \u00a0
scenario was assigned a probability\u00a0of 100%. The increase reflects primarily\u00a0the transfer of exposures from stage 1 to stage 2 an\u00a0d increased expected \u00a0
credit losses within stage 2. If instead the upside scenario was assigned a probability\u00a0of 100%, the allowance account would decrease DKK 0.2 billio\u00a0n \u00a0
(2022: DKK 0.4 billion)\u00a0compared to the base case scenario. \u00a0
In determining\u00a0the expected credit losses, management is required to exercise judgement in defining what is considered a\u00a0sign ificant\u00a0increase in credit \u00a0
risk. According to the Group\u2019s definition of a significant increase in credit risk, i.e. when a loan is transferred from stage 1 to stage 2, facilities with an \u00a0
initial PD\u00a0below 1% are transferred to stage 2 if the facility\u2019s 12-month PD has\u00a0increased by\u00a0at least 0.5 of a percentage point and the facility\u2019s\u00a0lifetim e \u00a0
PD has doubled since origination. The allowance account is\u00a0relatively stable in\u00a0terms of changes to the definition\u00a0of significant\u00a0increase in credit risk. At \u00a0
the end of 2023, the allowance account would increase by DKK 0.3 billion (2022: DKK 0.3 billion), if instead an increase in the facility\u2019s 12-month PD by \u00a0
at least 0.25 of a percentage\u00a0point combined\u00a0with a doubling\u00a0of the lifetime\u00a0PD was considered a significant increase\u00a0in cred it\u00a0risk. \u00a0
Management applies judgement when\u00a0determining the need for post-model adjustments.\u00a0At the end of 2023, the post-model adjustments\u00a0amounted to \u00a0
DKK 6.7\u00a0billion (2022: DKK 6.6 billion). They mainly cover the increasing macroeconomic risk due to the\u00a0uncertainty related to\u00a0the elevated inflation and \u00a0
severity of\u00a0an economic downturn as well as the global tension uncertainty.\u00a0See further in the separate sections\u00a0below. Further information on the types \u00a0
of risks\u00a0covered by\u00a0post-model adjustments\u00a0and the allocation\u00a0of post-model adjustments\u00a0to the underlying\u00a0exposures can be found in the section \u00a0
Forward-looking information in\u00a0note G40. \u00a0
Loan impairment charges for 2023 amounted to DKK 262 million (2022: DKK 1,502 million).\u00a0Low impairments\u00a0were driven by robust credit quality \u00a0
driven by successful restructurings within oil and\u00a0offshore and post-pandemic recoveries. \u00a0
The applied macroeconomic scenarios in 2023 differ from those used at 31 December\u00a02022. The downside scenario continues to capture the severe \u00a0
recession scenario with high interest rates (reflecting a stagflation scenario)\u00a0applied in the Group\u2019s Internal Capital Adequacy Assessment Process 8 \u00a0
(ICAAP) processes and\u00a0is similar in nature to\u00a0regulatory stress tests. The severe recession scenario reflects negative growth\u00a0, increasing interest rates, \u00a0
and falling\u00a0property prices\u00a0for a longer\u00a0period. The use of the downside scenario has been made to better capture the increasing risk from\u00a0high interes\u00a0t \u00a0
rates and high inflation,\u00a0and in order for the ECL calculation\u00a0to include potential\u00a0downside risks due to the elevated asset prices across the Nordics. \u00a0
Except as\u00a0described above, all other policies and principles remain in place. Staging criteria are unchanged, including the 3\u00a00 days past due criteria and \u00a0
PD-based criteria for\u00a0transfer to stage 2. \u00a0
Sustainability risk \u00a0
The Group may be exposed to sustainability\u00a0risk as a result of current or future environmental,\u00a0social and governance\u00a0(ESG) events or conditions,\u00a0and are \u00a0
considered external factors that can\u00a0impact existing risks. Sustainability\u00a0risk is therefore considered a cross\u00a0-cutting driver of existing risks as outline\u00a0d \u00a0
in the Group\u2019s risk taxonomy,\u00a0which can further exacerbate\u00a0the risks the Group is already facing. \u00a0
G1. Basis of preparation continued \u00a0
(b) Significant\u00a0accounting estimates and judgements \u00a0
Sustainability risk\u00a0continued \u00a0
Credit risk is deemed to be the risk type most materially\u00a0affected by\u00a0sustainability drivers\u00a0in the long term, of which clima\u00a0te risk is currently the most \u00a0
urgent of\u00a0all ESG-related drivers capable\u00a0of affecting the Group\u2019s credit risk. From a financial\u00a0significance perspective, climate-related risks have\u00a0been \u00a0
deemed most\u00a0relevant for\u00a0the Group\u2019s lending activities. Climate risk pertains to transition\u00a0risks, which are the risks assoc\u00a0iated with shifting to a low- \u00a0
carbon economy,\u00a0and to physical risks arising from\u00a0projected climate changes,\u00a0including both\u00a0long-term shifts (chronic changes) and event-driven\u00a0changes \u00a0
(acute changes) to weather patterns.\u00a0Credit risk will be affected by both\u00a0of these climate\u00a0-related risks in the medium and long term, and\u00a0efforts are being \u00a0
made to obtain improved climate data to refine the long\u00a0- term view of climate\u00a0risk across sectors. \u00a0
The Group takes a risk-based approach in prioritising\u00a0risk management\u00a0efforts for credit portfolios that are likely to be most exposed to transition\u00a0and \u00a0
physical risks. For that purpose, the Group applies a mix of qualitative\u00a0and quantitative\u00a0input to define the credit exposures most exposed to transition \u00a0
and physical risks. \u00a0
High transition-risk\u00a0exposures are identified\u00a0using a mix of insights, including financed emissions estimates, findings from conducting clima\u00a0te scenario \u00a0
analysis as\u00a0well as qualitative\u00a0judgment to account for, e.g., credible transition\u00a0plans, potential\u00a0future technology\u00a0and demand risks to a given sector. Most \u00a0
of the emissions\u00a0are attributable\u00a0to only a few sectors, e.g., Shipping,\u00a0Oil and Gas, which the Group actively monitors and m\u00a0anages. From the initia\u00a0l \u00a0
assessment of customers subject to high transition\u00a0risk, the exposure to the lagging transition category remains limited but will be monitored on an \u00a0
ongoing basis. \u00a0
The Group has identified flooding risk (river and coastal flooding) as the key physical\u00a0hazard applicable to the portfolio on the basis of\u00a0the report on high \u00a0
confidence of hazard\u00a0increase in Northern\u00a0Europe issued by the Intergovernmental\u00a0Panel on Climate\u00a0Change. The current analyses on\u00a0flooding risk\u00a0focus \u00a0
on residential and commercial property and the risk is assessed to be limited. \u00a0
Moreover, the\u00a0Group performs\u00a0ad-hoc climate stress tests to assess physical and transition\u00a0risks of climate changes. Stress tests in relation to physical \u00a0
risks cover collateral-related\u00a0exposures and are based on river and coastal flooding.\u00a0Stress tests in relation to transition\u00a0risks consider an introductio\u00a0n \u00a0
of carbon taxes. \u00a0
The Group will continue to refine its assessment methodology as more climate risk data becomes available to support the ident\u00a0ification of\u00a0both transitio\u00a0n \u00a0
and physical\u00a0risks for the purpose of determining\u00a0financial significance, however, conclusions have no\u00a0t led to adjustments\u00a0to staging or modelled\u00a0expected \u00a0
credit losses, as the impacts either manifest over a longer time period than loan maturities,\u00a0or as transition\u00a0risks are conc\u00a0entrated on\u00a0a few sectors with \u00a0
downside risks already recognised in the Group\u2019s modelled expected credit losses. Both transition and physical risks are\u00a0either managed through risk \u00a0
tolerances or\u00a0strategic targets, or\u00a0already have post model adjustments/management\u00a0overlays allocated covering the climate re\u00a0lated risks. \u00a0
For more detail on Sustainability\u00a0risk, see note G40. \u00a0
Fair value measurement\u00a0of financial\u00a0instruments \u00a0
At the\u00a0end of 2023, no unusual challenges in obtaining reliable pricing apart from\u00a0insignificant parts\u00a0of the portfolio remain\u00a0ed. The majority of\u00a0valuation \u00a0
techniques continues to employ only observable market data, and there has been no\u00a0significant increase in financial instruments\u00a0measured on the basis \u00a0
of valuation\u00a0techniques that are\u00a0based on one or more significant\u00a0unobservable inputs. The latter continues to include only u\u00a0nlisted shares,\u00a0certain bonds \u00a0
and some long-dated\u00a0derivatives for\u00a0which there is no active market. On the derivatives\u00a0portfolio, the Group makes fair value adjustments\u00a0to cover changes \u00a0
in counterparty risk (CVA and DVA) and to cover expected funding costs (FVA and ColVA)\u00a0on derivatives,\u00a0bid-offer spreads on the net open position\u00a0of the \u00a0
portfolio of assets and liabilities\u00a0with offsetting market risk recognised at mid-market prices, and model risk on level 3 derivatives.\u00a0With effect from 2023, \u00a0
FVA is calculated\u00a0including both\u00a0funding cost and funding benefit. To avoid double-counting\u00a0between DVA and\u00a0the funding benefit, DVA is offset\u00a0in the \u00a0
financial statements. At\u00a031 December\u00a02023, the adjustments\u00a0totalled DKK 0.4 billion (2022:\u00a0DKK 0.2\u00a0billion), including the adjustment for\u00a0credit risk on \u00a0
derivatives that\u00a0are credit impaired.\u00a0Note G33(a) provides more\u00a0details on\u00a0the fair value measurement of financial instrument\u00a0s. \u00a0
The Group uses derivatives\u00a0to hedge the fixed interest rate on some financial\u00a0assets and liabilities,\u00a0thus converting the fix\u00a0ed interest\u00a0rates on the financial \u00a0
instruments to\u00a0variable interest rates by the use\u00a0of swaps. \u00a0
Measurement of\u00a0goodwill \u00a0
Goodwill is\u00a0tested for\u00a0impairment once\u00a0a year or more frequently if indications\u00a0of impairment\u00a0exist. Impairment\u00a0testing requi\u00a0res management to\u00a0estimate \u00a0
the present value of future cash flows. A number of factors affect the value\u00a0of such cash flows, including\u00a0discount rates, changes in the economic outlook, \u00a0
customer behaviour\u00a0and competition.\u00a0As at 31 December\u00a02023, goodwill amounted to DKK 4.4\u00a0billion (31\u00a0December 2022: DKK 4.4 billion). \u00a0
In connection with the quarterly reporting, management performs an\u00a0impairment review\u00a0to assess whether there are\u00a0indications that\u00a0goodwill might be \u00a0
impaired. This includes a\u00a0review of decline in income, increase in loan impairment charges, decline\u00a0in the\u00a0m arket\u00a0value of assets under management, \u00a0
major restructurings, macroeconomic developments\u00a0etc. The impairment\u00a0test conducted in 2023 did not reveal any impairment loss. During\u00a02022, \u00a0
goodwill in Danica Pension amounting to DKK 1.6\u00a0billion was\u00a0assessed to be impaired due to increasing discount rates and lower financial outlook. \u00a0
Following the impairment charges on goodwill, goodwill in Danica Pension amounts to DKK 0.0 billion as at 31 December\u00a02023 (31 December\u00a02022: \u00a0
DKK 0.0\u00a0billion). \u00a0
The remaining goodwill mainly consists of DKK 2.1 billion (2022: DKK 2.1 billion)\u00a0in Markets,\u00a0DKK 1.8 billion\u00a0(2022: DKK 1.8 billion)\u00a0in Asset Management \u00a0
and DKK\u00a00.5 billion\u00a0(2022: DKK\u00a00.5 billion) in General Banking\u00a0(all part of the business segment Large Corporates\u00a0& Institutions)\u00a0showing significant \u00a0
amounts of\u00a0excess value\u00a0in the impairment tests in 2023 and 2022. \u00a0
Note G19 provides more information about the impairment\u00a0test in 2023 and 2022 including\u00a0sensitivity to\u00a0changes in assumptions. \u00a0
Measurement of\u00a0liabilities under\u00a0insurance contracts \u00a0
Liabilities under\u00a0insurance contracts are measured using either the General Measurement Model (GMM), Variable Fee\u00a0Approach (V\u00a0FA) or Premium \u00a0
Allocation Approach (PAA).\u00a0GMM and\u00a0VFA both comprise fulfilment cash flows, which are estimates of the present value of future cash flows for \u00a0
insurance contracts, adjusted for\u00a0time value of money and effect\u00a0of financial\u00a0risk including\u00a0a risk adjustment\u00a0for non-financial\u00a0risk, and a contractua\u00a0l \u00a0
service margin (CSM). \u00a0
Estimates of\u00a0future cash flows include\u00a0actuarial computations\u00a0that rely on estimates\u00a0of a number of variables\u00a0such as mortali ty\u00a0rates and disability rates. \u00a0
Mortality rates\u00a0are based on the Danish FSA\u2019s benchmark, whilst others are estimated based on data f\u00a0rom the Group\u2019s own\u00a0portfolio of insurance \u00a0
contracts. \u00a0
The discount rate is fixed on the basis of a zero-coupon yield curve, which is adjusted by a currency and credit risk deduction and a volatility\u00a0adjustment. \u00a0
The yield curve is calculated according to principles and based on data that results in a curve bas\u00a0ed on European\u00a0Insurance and Occupational\u00a0Pension \u00a0
Authority (EIOPA) discount yield curve, which can\u00a0be found at www.eiopa.europa.eu/tools-and-data/risk-free-interest-ra\u00a0te-term-structures_en. \u00a0
For life insurance contracts, risk adjustment\u00a0for non-financial\u00a0risks is calculated based on a safety margin on applied\u00a0actuarial assumptions, such as \u00a0
mortality rates\u00a0and longevity. \u00a0
The confidence level used to determine the risk adjustment is at least 85%. \u00a0
For insurance contracts measured using VFA, CSM is\u00a0calculated on\u00a0the basis of\u00a0stochastic models, whereas a deterministic\u00a0mode l\u00a0is used for life \u00a0
insurance contracts measured using GMM. \u00a0
For health\u00a0and accident insurance\u00a0contracts, the loss element includes\u00a0expectations about\u00a0mortality, reactivation, reinstatem\u00a0ent and\u00a0repurchase, as well \u00a0
as expected\u00a0costs offset by premiums\u00a0not yet due. Risk adjustment for non-financial risk is calculated\u00a0based on a safety margin on applied actuarial \u00a0
assumptions. The confidence level used to determine the risk adjustment is at least 85%. \u00a0
Note G18 provides further information on the measurement of insurance liabilities.\u00a0Note G40 contains a\u00a0sensitivity analysis for\u00a0li fe\u00a0insurance. \u00a0
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(d) Financial\u00a0highlights \u00a0
The financial highlights\u00a0and reporting\u00a0for each segment shown\u00a0in note G3 are used in the Management\u2019s report and represent the financial informatio\u00a0n \u00a0
regularly provided to management. The Reclassification\u00a0column in note\u00a0G3 shows the\u00a0reconciliation between\u00a0the presentation\u00a0in the financial highlights \u00a0
and the presentation in the consolidated\u00a0financial statements\u00a0prepared under IFRS and includes\u00a0the following: \u00a0
Operating leases \u00a0
In the IFRS income statement, gains or losses on the sale of operating lease assets, excluding\u00a0properties, at\u00a0the end of the lease agreement\u00a0are presented \u00a0
on a gross basis (the Group\u00a0acts as a lessor). This\u00a0means that\u00a0the proceeds from the sale of the assets are recognised under Other\u00a0income, whereas the \u00a0
carrying amount of\u00a0the lease assets is recognised under Operating expenses. \u00a0
In the financial highlights,\u00a0the gains or losses on the sale of the\u00a0lease asset are presented\u00a0on a net basis under\u00a0Other income to better reflect the \u00a0
development in\u00a0the cost\u00a0base. \u00a0
Markets and Investment\u00a0Banking &\u00a0Securities (both\u00a0part of\u00a0Large Corporates\u00a0& Institutions)\u00a0and Group Treasury (part of Group Functions) \u00a0
In the IFRS income statement,\u00a0income from Markets and Investment\u00a0Banking & Securities and Group Treasury is\u00a0presented as\u00a0Net interest income, the \u00a0
net of Fee income and Fee expenses. Net trading\u00a0income or\u00a0loss and Other income, depending on\u00a0the type of\u00a0income. The distribution\u00a0of income between \u00a0
the various income line items can\u00a0vary considerably from\u00a0one year to the next, depending\u00a0on the underlying\u00a0transactions and\u00a0market conditions.\u00a0To better \u00a0
reflect income in those areas, the following\u00a0reclassifications are made in\u00a0the financial highlights: \u00a0
\u2022
All income contributed by Markets, excluding Market\u2019s share of margins on customer derivatives,\u00a0is presented\u00a0as Net trading\u00a0income \u00a0
\u2022
Trading-related income at Investment Banking &\u00a0Securities is presented as Net trading\u00a0income. However,\u00a0income contributed by\u00a0Equity Finance \u00a0
(also part of Large Corporates\u00a0& Institutions,\u00a0Investment Banking & Securities) is presented as Net fee income \u00a0
\u2022
All income in Group Treasury, except income at Internal Bank, income on bonds held to collect and bonds held to\u00a0collect and sell, are presented as \u00a0
Net trading income. \u00a0
Danica Pension \u00a0
In the IFRS income statement,\u00a0all income and expenses from insurance activities except gain or loss from sale of disposal groups is presented within Net \u00a0
insurance result. In the financial highlights,\u00a0Gain or loss on sale of disposal groups is included within Net income from insurance business. \u00a0
Non-core \u00a0
In the IFRS income statement and balance sheet, income and expense items and asset\u00a0and liability\u00a0items from\u00a0the Non-core segment are included\u00a0in the \u00a0
various income statement and balance sheet line items, as the segment does not fulfil the requirements\u00a0in IFRS 5, Non-current Assets Held for Sale and \u00a0
Discontinued Operations. \u00a0
The Non-core segment includes\u00a0certain customer segments that are\u00a0no longer considered part of the Group\u2019s core business. To better reflect activitie\u00a0s \u00a0
from the Group\u2019s core and non-core business, the profit or loss of the Non-core segment is presented as one amount in a separate line item \u2018Profit before \u00a0
tax, Non-core\u2019 in the\u00a0financial highlights. Similarly,\u00a0assets are presented together\u00a0as Total\u00a0assets in\u00a0Non-core and liabilities\u00a0together as Total liabilities\u00a0in \u00a0
Non-core in the balance sheet in the financial highlights. \u00a0
(e) Reporting\u00a0on the ESEF Regulation \u00a0
The Commission\u2019s Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF\u00a0Regulation) requires a spe\u00a0cial digital reporting \u00a0
format for annual\u00a0report for publicly\u00a0listed entities. The ESEF Regulation includes requirements related to the\u00a0preparation of\u00a0the annual report in XHTML \u00a0
format and iXBRL\u00a0tagging of the\u00a0consolidated financial statements\u00a0key elements\u00a0including Income\u00a0statement, Statement\u00a0of comprehensive\u00a0income, \u00a0
Balance sheet, Statement\u00a0of capital, Cash flow statement and notes. \u00a0
Danske Bank\u00a0Group\u2019s iXBRL tagging is prepared in accordance the ESEF taxonomy which is included in the appendices\u00a0of the ESEF Regulation\u00a0and is \u00a0
developed based\u00a0on the IFRS taxonomy that is published by\u00a0IFRS Foundation. For\u00a0the annual\u00a0report for\u00a02023, the ESEF Taxonomy for 2022 has been \u00a0
applied. \u00a0
The account balances in the consolidated financial statement is\u00a0XBRL tagged to the elements in the ESEF Regulation\u00a0that is as\u00a0sessed to correspond to \u00a0
the content of the account balances. For account balances that are assessed not to be covered by the accoun\u00a0t balances\u00a0defined in the ESEF taxonomy, \u00a0
the Group has incorporated entity specific extensions to the taxonomy. These extensions are \u2013 except subtotals \u2013 embedded in the elements in the ESEF \u00a0
Taxonomy. \u00a0
The annual report comprises\u00a0\u2013 in accordance with the requirements of the ESEF Regulation \u2013 of a zip-file\u00a0danskebank-2023-12-31-en.zip, that\u00a0includes \u00a0
an XHTML-file,\u00a0that can\u00a0be opened with standard web browsers and a number of technical XBRL files that make automated extracts of the\u00a0incorporate d \u00a0
XBRL data possible. \u00a0
G2. Changes and forthcoming changes to accounting policies and presentation \u00a0
(a) Changes\u00a0to material accounting policies and presentation during\u00a0the year \u00a0
On 1 January\u00a02023, the Group implemented\u00a0a new standard, IFRS 17, and the amendments\u00a0to IAS 1, IAS 8\u00a0and IAS 12. \u00a0
As a result of IFRS 17 implementation,\u00a0the Group has changed the presentation\u00a0of the Income statement\u00a0to include material lin\u00a0e items as\u00a0required by \u00a0
IAS 1. At the same time, sub-totals\u00a0for Net fee income, Net insurance\u00a0result, Total other income and Total income have been included in\u00a0the Income \u00a0
statement. \u00a0
The subsidiary Northern Bank Ltd. has a portfolio\u00a0of non-maturing\u00a0core deposits where the interest rate risk is most efficiently hedged by using \u00a0
derivatives. To\u00a0avoid accounting mismatch between deposits at amortised cost and hedging derivatives\u00a0at fair\u00a0va lue, hedge accounting after EU\u2019s carve \u00a0
out to IAS 39 has been applied on this portfolio in the local reporting\u00a0for Northern Bank Ltd. To hedge the interest rate ris\u00a0k on this portfolio at group level \u00a0
and to simplify the group financial reporting process,\u00a0Danske Bank Group has\u00a0adopted EU\u2019s carve out to IAS 39 in 2023. Hedging of Northern Bank Ltd. \u00a0
core deposits at group level has only taken\u00a0place with prospective effect. The adoption of EU\u2019s carve out to IAS 39 has reduc\u00a0ed net profit for 2023 by \u00a0
DKK 1\u00a0million. \u00a0
The sections below explain in further details the changes to accounting policies. \u00a0
IFRS 17, Insurance contracts \u00a0
On 1 January 2023, the Group implemented\u00a0IFRS 17, Insurance Contracts.\u00a0IFRS 17 replaces IFRS 4, which was a provisional\u00a0accounting standard that \u00a0
did not explain the measurement of\u00a0insurance contracts but was based on pre-existing accounting\u00a0policies. IFRS 17 is a comprehensive\u00a0standard \u00a0
containing the principles for\u00a0recognition and measurement and presentation of\u00a0insurance contracts in the financial statements\u00a0. Disclosures required by \u00a0
IFRS 17 are in notes G7 and G18. \u00a0
The key impacts\u00a0of the implementation\u00a0of IFRS 17 are: \u00a0
\u2022
Life insurance products and Health and Accident products have been disaggregated, as they are subject to different risks and therefore cannot \u00a0
be grouped\u00a0together under IFRS 17. This resulted in\u00a0a decrease of DKK 1.4 billion in the Group\u2019s equity as at 1 January 2022\u00a0. \u00a0
\u2022
Premiums are no longer recognised in profit or loss at their due dates. Instead,\u00a0insurance revenue\u00a0comprises the expected claims and \u00a0
insurance service expenses in the period, the release of the risk adjustment\u00a0and the contractual service margin (C\u00a0SM), which\u00a0is recognised as \u00a0
services are provided over the expected coverage period of the group of insurance contracts. \u00a0
\u2022
Benefits are\u00a0no longer recognised in profit or loss when paid. Instead, insurance service expenses are recognised when incurr\u00a0ed, comprising \u00a0
incurred claims\u00a0and other\u00a0incurred insurance expenses. \u00a0
\u2022
Changes in\u00a0insurance obligations during the\u00a0year due to additional provisions for benefit guarantees and the tax on pension r\u00a0eturns are no \u00a0
longer under Net trading income or loss. \u00a0
\u2022
The return on\u00a0assets earmarked for\u00a0insurance contracts is\u00a0no longer carried under Net interest income and Net trading income\u00a0or loss. This \u00a0
is now presented\u00a0as Net return on investments\u00a0backing insurance liabilities. \u00a0
\u2022
The Group has simplified its reporting of Danica, and now reports the majority of Danica\u2019s assets and liabilities\u00a0under Asset\u00a0s under insurance \u00a0
contracts and Liabilities under\u00a0insurance contracts respectively in\u00a0the Balance sheet. Previously,\u00a0an allocation\u00a0of Danica\u2019s assets and liabilitie\u00a0s \u00a0
(equating to\u00a0Danica\u2019s equity) were\u00a0consolidated on\u00a0a line-by-line basis in the Balance sheet. \u00a0
\u2022
The presentation\u00a0of the IFRS Income\u00a0statement has\u00a0been changed: the line items Net\u00a0premiums and\u00a0Net insurance benefits\u00a0are removed, and \u00a0
new lines in relation to insurance are added: Insurance service result and other insurance income, Net return on investments\u00a0backing \u00a0
insurance liabilities\u00a0and Net finance income or expense from insurance.\u00a0The IFRS Income statement has thus been restated for\u00a02022. The \u00a0
restated IFRS\u00a0Income statement for\u00a02022 has been amended from that published in Interim report \u2013 first nine months 2023. \u00a0
The fair value approach has been applied on\u00a0transition to\u00a0IFRS 17, since the full retrospective\u00a0approach is\u00a0impracticable to\u00a0apply due to\u00a0relevant data \u00a0
not being available or high resource consumption. \u00a0
In addition,\u00a0the following changes have been\u00a0made to accounting policies as a\u00a0result of IFRS 17 implementation: \u00a0
\u2022
When, and only when, the Group reacquires its own equity instruments (i.e. own\u00a0shares) to be included in investment\u00a0funds tha\u00a0t provide\u00a0s \u00a0
investors with\u00a0benefits determined by\u00a0units in\u00a0the fund, and for which financial\u00a0liabilities are\u00a0recognised for the amou\u00a0nts to be paid to those \u00a0
investors, IAS 32\u00a0has been amended with an optional election not to deduct these shares from equity,\u00a0and account for them as financial assets \u00a0
held at fair\u00a0value through profit or loss. The Group has applied this election to its own shares in Pooled schemes and Unit-linked\u00a0investme nt \u00a0
contracts which\u00a0meet the\u00a0IAS 32\u00a0election criteria. The same\u00a0election applies to the Group\u2019s own shares that are included as u\u00a0nderlying items \u00a0
of direct participation\u00a0contracts (Assets under insurance contracts). \u00a0
\u2022
When, and only when the Group repurchases its own financial liabilities\u00a0to be included in investment\u00a0funds that provides investors\u00a0with benefits \u00a0
determined by\u00a0units in\u00a0the fund, and for which financial liabilities\u00a0are recognised for the amounts\u00a0to be paid to those inves\u00a0tors, or includes the \u00a0
own financial\u00a0liabilities as\u00a0underlying items of\u00a0direct participating\u00a0contracts, IFRS 9 has been amended with an optional ele\u00a0ction to\u00a0not \u00a0
derecognise the financial liabilities,\u00a0and to account for the repurchased instrume\u00a0nts as\u00a0financial assets\u00a0held at fair value through profit\u00a0or loss. \u00a0
The Group has\u00a0applied this election to own\u00a0bonds in Assets under insurance contracts which meet the IFRS 9\u00a0election criteria. \u00a0
The impact of the changes in IAS 32 and IFRS 9 accounting\u00a0policies resulted in an increase of DKK 0.7 billion\u00a0in the Group\u2019s\u00a0equity and the\u00a0Group\u2019s assets \u00a0
as at 1 January 2022. \u00a0
At the transition\u00a0date of 1 January\u00a02022, the Group: \u00a0
\u2022
Identified, recognised and measured each group of insurance contracts and reinsurance contracts according to\u00a0IFRS 17 \u00a0
\u2022
Derecognised previously reported\u00a0balances that would not have existed if IFRS 17 had always been applied \u00a0
\u2022
Reclassified Danica\u2019s assets and liabilities\u00a0to Assets under insurance contracts and Liabilities\u00a0under insurance contracts re\u00a0spectively where \u00a0
relevant \u00a0
\u2022
Recognised own shares and own bonds as assets that were underlying\u00a0items of direct participating\u00a0contracts at\u00a0fair value \u00a0
\u2022
Recognised own shares that were reacquired to be held in investment\u00a0funds on behalf of customers \u00a0
\u2022
Recognised the resulting net differences in equity. \u00a0
The DKK\u00a01.4 billion decrease in the Group\u2019s equity from IFRS 17 implementation\u00a0and DKK 0.7 billion increase from the IAS 32 a\u00a0nd IFRS 9 accounting \u00a0
policy changes result in a net decrease in equity of DKK 0.7 billion as at\u00a01 January 2022, which is presented in the Statement\u00a0of changes in equity.\u00a0The \u00a0
impact of these changes increases the Group\u2019s 2022 result by DKK 0.5 billion.\u00a0The impact\u00a0on the\u00a0Group\u2019s equity as\u00a0at 31 Decem\u00a0ber 2022 is\u00a0a net \u00a0
decrease of DKK 40 million,\u00a0as result\u00a0of the increase in the Group\u2019s 2022 result and the direct impact on equity from the change in treatment\u00a0of own \u00a0
shares. \u00a0
Ratios for regulatory requirements in 2022 have not been restated as a result of the changes described above. The overall imp\u00a0act on equity at 31 \u00a0
December 2022 of\u00a0DKK 40 million is\u00a0immaterial, and\u00a0therefore the Group\u2019s total capital and capital ratios for\u00a02 022 will not be revised nor resubmitte\u00a0d \u00a0
to regulators, and remains as published in the Annual Report 2022. \u00a0
The table below shows the impact on the 2022 IFRS Income statement of IFRS 17 implementation, the\u00a0change in treatment\u00a0of the Group\u2019s\u00a0own shares, \u00a0
and the change in treatment\u00a0of the Group\u2019s own bonds. \u00a0
Adjustments \u00a0
IAS 32 \u2013 own \u00a0
IFRS 9 \u2013 own \u00a0
Restated \u00a0
(DKK millions) \u00a0
2022 \u00a0
IFRS 17 \u00a0
shares \u00a0
bonds \u00a0
2022 \u00a0
Interest income calculated using the effective interest method \u00a0
31,697 \u00a0
-
-
-
31,697 \u00a0
Other interest income \u00a0
47,570 \u00a0
-29,957 \u00a0
-
675 \u00a0
18,288 \u00a0
Interest expense \u00a0
51,241 \u00a0
-27,282 \u00a0
-
675 \u00a0
24,634 \u00a0
Net interest income from banking activities \u00a0
28,026 \u00a0
-2,675 \u00a0
-
-
25,351 \u00a0
Fee income \u00a0
17,305 \u00a0
-
-
-
17,305 \u00a0
Fee expenses \u00a0
5,993 \u00a0
-1,169 \u00a0
-
-
4,824 \u00a0
Net fee income \u00a0
11,312 \u00a0
1,169 \u00a0
-
-
12,481 \u00a0
Net trading income or loss \u00a0
-32,983 \u00a0
34,379 \u00a0
185 \u00a0
-
1,581 \u00a0
Insurance revenue \u00a0
-
5,126 \u00a0
-
-
5,126 \u00a0
Insurance service expenses \u00a0
-
3,604 \u00a0
-
-
3,604 \u00a0
Net return on investments backing insurance liabilities \u00a0
-
-60,302 \u00a0
-
-
-60,302 \u00a0
Net finance income or expense from insurance \u00a0
-
58,624 \u00a0
-
-
58,624 \u00a0
Other insurance related income \u00a0
-
21 \u00a0
-
-
21 \u00a0
Net insurance result \u00a0
-
-135 \u00a0
-
-
-135 \u00a0
Gain or loss on sale of disposal groups \u00a0
1,420 \u00a0
-
-
-
1,420 \u00a0
Other income \u00a0
5,476 \u00a0
-691 \u00a0
-
-
4,785 \u00a0
Total other income \u00a0
6,897 \u00a0
-691 \u00a0
-
-
6,206 \u00a0
Net premiums \u00a0
35,394 \u00a0
-35,394 \u00a0
-
-
-
Net insurance benefits \u00a0
2,750 \u00a0
-2,750 \u00a0
-
-
-
Total income \u00a0
45,896 \u00a0
-596 \u00a0
185 \u00a0
-
45,484 \u00a0
Operating expenses \u00a0
31,250 \u00a0
-998 \u00a0
-
-
30,252 \u00a0
Provision for Estonia matter \u00a0
13,800 \u00a0
-
-
-
13,800 \u00a0
Impairment charges on goodwill \u00a0
1,627 \u00a0
-
-
-
1,627 \u00a0
Profit before loan impairment charges \u00a0
-781 \u00a0
401 \u00a0
185 \u00a0
-
-195 \u00a0
Loan impairment charges \u00a0
1,502 \u00a0
-
-
-
1,502 \u00a0
Profit before tax \u00a0
-2,284 \u00a0
401 \u00a0
185 \u00a0
-
-1,697 \u00a0
Tax \u00a0
2,784 \u00a0
99 \u00a0
-
-
2,883 \u00a0
Net profit \u00a0
-5,067 \u00a0
303 \u00a0
185 \u00a0
-
-4,580 \u00a0
Portion attributable to \u00a0
Shareholders of Danske Bank A/S (the Parent Company) \u00a0
-5,154 \u00a0
303 \u00a0
185 \u00a0
-
-4,666 \u00a0
Additional Tier 1 capital holders \u00a0
86 \u00a0
-
-
-
86 \u00a0
Net profit \u00a0
-5,068 \u00a0
303 \u00a0
185 \u00a0
-
-4,580 \u00a0
Earnings per share (DKK) \u00a0
-6.1 \u00a0
-5.4 \u00a0
Diluted earnings per share (DKK) \u00a0
-6.0 \u00a0
-5.4 \u00a0
Dividend per share (DKK) \u00a0
-
-
G2. Changes and forthcoming changes to accounting policies and presentation\u00a0continued \u00a0
The table below shows\u00a0a reconciliation\u00a0of the Group\u2019s\u00a0balances between 31\u00a0December 2021 and 1 January 2022, showing the impac\u00a0t of IFRS 17 \u00a0
(including the reclassification of Danica\u2019s assets and liabilities),\u00a0the change in treatment of the Group\u2019s own shares, and the change in tr\u00a0eatment of\u00a0the \u00a0
Group\u2019s own bonds. \u00a0
Effect of changes in accounting policy\u00a0as at 1 January\u00a02022 \u00a0
Remeasurements \u00a0
31 December \u00a0
IAS 32 \u2013 \u00a0
IFRS 9 \u2013 \u00a0
1 January \u00a0
(DKK millions) \u00a0
2021 \u00a0
IFRS 17\u00a0own shares\u00a0own bonds \u00a0
2022 \u00a0
Assets \u00a0
Cash in hand and demand deposits with central banks \u00a0
293,386 \u00a0
-
-
-
293,386 \u00a0
Due from credit institutions\u00a0and central banks \u00a0
71,156 \u00a0
-7 \u00a0
-
-
71,149 \u00a0
Trading portfolio assets \u00a0
509,590 \u00a0
-164 \u00a0
-
-
509,426 \u00a0
Investment securities \u00a0
303,777 \u00a0
-22,835 \u00a0
-
-
280,942 \u00a0
Loans at amortised cost \u00a0
1,027,442 \u00a0
-
-
-
1,027,442 \u00a0
Loans at fair value \u00a0
1,024,461 \u00a0
-
-
-
1,024,461 \u00a0
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
76,654 \u00a0
-
151 \u00a0
-
76,805 \u00a0
Assets under insurance contracts \u00a0
547,806 \u00a0
29,731 \u00a0
507 \u00a0
44,590 \u00a0
622,634 \u00a0
Assets held for sale \u00a0
28,800 \u00a0
-
-
-
28,800 \u00a0
Intangible assets \u00a0
8,819 \u00a0
-2,628 \u00a0
-
-
6,191 \u00a0
Tax assets \u00a0
4,510 \u00a0
-
-
-
4,510 \u00a0
Other assets \u00a0
39,433 \u00a0
-4,097 \u00a0
-
-
35,336 \u00a0
Total assets \u00a0
3,935,834 \u00a0
-
658 \u00a0
44,590 3,981,082 \u00a0
Liabilities \u00a0
Due to credit institutions and central banks \u00a0
172,976 \u00a0
-
-
-
172,976 \u00a0
Trading portfolio liabilities \u00a0
374,959 \u00a0
-
-
-
374,959 \u00a0
Deposits \u00a0
1,292,030 \u00a0
-
-
-
1,292,030 \u00a0
Issued bonds at fair value \u00a0
794,909 \u00a0
-
-
44,426 \u00a0
839,335 \u00a0
Issued bonds at amortised cost \u00a0
223,854 \u00a0
-
-
-
223,854 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
76,982 \u00a0
-
-
-
76,982 \u00a0
Liabilities under insurance contracts \u00a0
588,736 \u00a0
2,247 \u00a0
-
-
590,983 \u00a0
Liabilities in disposal\u00a0groups held for sale \u00a0
29,577 \u00a0
-
-
-
29,577 \u00a0
Tax liabilities \u00a0
1,864 \u00a0
-460 \u00a0
-
-
1,404 \u00a0
Other liabilities \u00a0
56,268 \u00a0
-422 \u00a0
-
164 \u00a0
56,010 \u00a0
Non-preferred senior bonds \u00a0
107,654 \u00a0
-
-
-
107,654 \u00a0
Subordinated debt \u00a0
39,321 \u00a0
-
-
-
39,321 \u00a0
Total liabilities \u00a0
3,759,130 \u00a0
1,365 \u00a0
-
44,590 3,805,085 \u00a0
Equity \u00a0
Share capital \u00a0
8,622 \u00a0
-
-
-
8,622 \u00a0
Foreign currency translation reserve \u00a0
-612 \u00a0
-
-
-
-612 \u00a0
Reserve for bonds at fair value (OCI) \u00a0
34 \u00a0
-
-
-
34 \u00a0
Retained earnings \u00a0
161,439 \u00a0
-1,365 \u00a0
658 \u00a0
-
160,732 \u00a0
Proposed dividends \u00a0
1,724 \u00a0
-
-
-
1,724 \u00a0
Shareholders of Danske Bank A/S (the Parent Company) \u00a0
171,207 \u00a0
-1,365 \u00a0
658 \u00a0
-
170,500 \u00a0
Additional tier\u00a01 capital\u00a0holders \u00a0
5,497 \u00a0
-
-
-
5,497 \u00a0
Non-controlling interests \u00a0
-
-
-
-
-
Total equity \u00a0
176,704 \u00a0
-1,365 \u00a0
658 \u00a0
-
175,997 \u00a0
Total liabilities\u00a0and equity \u00a0
3,935,834 \u00a0
-
658 \u00a0
44,590 3,981,082 \u00a0
Amendment to\u00a0IAS 1, Presentation\u00a0of financial\u00a0statements \u00a0
The amendment to IAS 1 requires disclosure of material accounting policy information, rather than significant accounting poli\u00a0cies. Accounting \u00a0
policy information is considered to be material if users of the financial statements\u00a0need it to understand other material inf\u00a0ormation in the financial \u00a0
statements. If\u00a0immaterial accounting policy\u00a0information is\u00a0disclosed, it\u00a0should not obscure material acco\u00a0unting policy\u00a0information. \u00a0
The amendment has no\u00a0impact on\u00a0the financial statements. \u00a0
Amendment to\u00a0IAS 8, Accounting\u00a0policies, changes in\u00a0accounting estimates and\u00a0errors \u00a0
The amendment introduces a definition of accounting estimates \u2013 monetary amounts in\u00a0financial statements\u00a0that are subject to measurement uncertainty \u00a0
\u2013 and clarifies\u00a0that a change in accounting\u00a0estimate that\u00a0results from\u00a0new information or\u00a0new developments\u00a0is not the correctio n\u00a0of an error. Similarly, \u00a0
the effects of a change in an input or a measurement technique used to develop an accounting estimate are changes in accounti\u00a0ng estimates if they do \u00a0
not result from the correction of prior period errors. \u00a0
The amendment has no\u00a0impact on\u00a0the financial statements. \u00a0
Amendment to\u00a0IAS 12,\u00a0Income taxes \u00a0
The first amendment to IAS 12 clarifies how entities\u00a0should account for deferred tax on assets and liabilities\u00a0arising from a\u00a0single transaction such as \u00a0
Leases liabilities\u00a0and right-of-use assets or decommissioning obligations\u00a0and property,\u00a0plant and\u00a0equipment. \u00a0
The main change is that the initial recognition exemption\u00a0in IAS\u00a012 does not apply to transactions\u00a0in which equal amounts of\u00a0deductible and taxable \u00a0
temporary differences arise on\u00a0initial recognition.\u00a0This amendment has\u00a0no impact on\u00a0the financial statements. \u00a0
The second amendment introduces an\u00a0exception to the requirement of IAS 12 that an entity does not recognise and does not disc\u00a0lose information about \u00a0
deferred tax assets and liabilities\u00a0related to the OECD\u00a0Pillar Two income taxes. Pillar Two legislation\u00a0has been enacted\u00a0or substantively\u00a0enacted in most \u00a0
jurisdictions where\u00a0Danske Bank\u00a0Group operates.\u00a0The legislation\u00a0will be\u00a0effective for the Group\u2019s financial year beginning 1 January 2024. The Danske \u00a0
Bank Group\u00a0is in scope of the enacted\u00a0or substantively\u00a0enacted legislation and has performed an assessment of the potential\u00a0exposure to Pillar Two \u00a0
income taxes. No material exposure to Pillar Two income taxes affecting the income statement\u00a0for Danske\u00a0Bank Group are expect\u00a0ed. See note G21 for \u00a0
more detail. \u00a0
(b) Standards\u00a0and interpretations\u00a0not yet in force \u00a0
The International\u00a0Accounting Standards\u00a0Board (IASB) has issued amendments to existing international\u00a0accounting standards (IAS 1,\u00a0IAS 7,\u00a0IAS 21, IFRS \u00a0
7 and IFRS 16), that have not yet come into force. None of the amendments\u00a0is expected to\u00a0have a\u00a0significant impact on the Group\u2019s financial statements . \u00a0
Accounting policy \u00a0
Segment reporting\u00a0complies with the material accounting policies. The \u2018Reclassification\u2019 column shows\u00a0adjustments made\u00a0to the IFRS statements\u00a0in \u00a0
the calculation of the financial highlights. \u00a0
Internal income and expenses are allocated to the individual\u00a0segments on an arm\u2019s-length basis. Expenses incurred centrally, including\u00a0expenses \u00a0
incurred by\u00a0support, administrative\u00a0and back-office functions, are charged to the business units according to consumption\u00a0and activity.\u00a0Funding costs \u00a0
for lending\u00a0and deposit activities\u00a0(FTP) are allocated\u00a0on the basis of a maturity\u00a0analysis of\u00a0loans and deposits, interbank\u00a0rates and funding\u00a0spreads, and \u00a0
depend on market trends. \u00a0
Segment assets and liabilities\u00a0are assets and liabilities\u00a0that are used for maintaining\u00a0the operating activities\u00a0of a segment or have come into existenc\u00a0e \u00a0
as a result of such activities\u00a0and which are either directly attributable\u00a0or may be reasonably\u00a0allocated to a segment. A\u00a0calculated share of\u00a0shareholders\u2019 \u00a0
equity is\u00a0allocated to each segment. Other assets and liabilities\u00a0are recognised\u00a0under Group Functions. \u00a0
Capital (shareholders\u2019 equity) is\u00a0allocated to the business units based on the Group\u2019s capital allocation framework, with\u00a0goodwill allocated directly to \u00a0
the relevant business units. The framework is based on a regulatory approach and is calibrated to the Group\u2019s CET1 capital ratio target. Therefore, the \u00a0
capital consumption of\u00a0the individual\u00a0business units is closely aligned with the Group\u2019s total capital consumption. However, for\u00a0the Danica Pension and \u00a0
Northern Ireland business units, the capital allocated equals the legal entity\u2019s capital. \u00a0
A calculated\u00a0interest income equal to the risk-free return on its allocated capital is apportioned\u00a0to each business unit and offset by a corresponding \u00a0
interest expense at Group Functions. This income is\u00a0calculated on the basis of the short-term money market rate. \u00a0
Accounting policy \u00a0
Interest income and expenses \u00a0
Interest income and expenses arising from interest-bearing\u00a0financial instruments\u00a0measured at\u00a0amortised cost\u00a0or at fair value through Other \u00a0
comprehensive income are\u00a0recognised according to the effective interest method on\u00a0the basis of the cost of the individual\u00a0financial instrument.\u00a0Interes t \u00a0
includes amortised amounts of\u00a0fees that are an integral part of the effective yield on a financial\u00a0instrument, such\u00a0as origination\u00a0fees, and amortise\u00a0d \u00a0
differences between the cost and the redemption\u00a0price, if any. Interest\u00a0on financial instruments\u00a0included in\u00a0stage 3 (for the calculation\u00a0of expected credit \u00a0
losses) is recognised on the basis of the carrying amount (i.e. net of impairment charges). The interest rate risk on some financial portfolios\u00a0recognised \u00a0
at amortised\u00a0cost is hedged by derivatives\u00a0using fair value hedge accounting. Note G12 provides\u00a0more information\u00a0on hedge accounting.\u00a0Interest income \u00a0
calculated using\u00a0the effective interest method and\u00a0presented as\u00a0a separate line item in the income statement excludes the impact from hedge \u00a0
accounting. \u00a0
Further, interest income and expenses includes interest on financial instruments\u00a0measured at\u00a0fair value through profit or loss. Among others, this \u00a0
includes interest income on loans measured at fair value\u00a0for which interest on loans included in stage 3 is recognised on the basis of the gross carrying \u00a0
amount. However, interest on\u00a0assets and\u00a0deposits under pooled schemes is recognised under Net trading income or loss. In the income statement, \u00a0
interest income on financial assets measured at fair\u00a0value through profit\u00a0or loss is presented\u00a0under the line item Other interest income, while the line \u00a0
item Interest expenses includes all interest expenses. \u00a0
Net trading\u00a0income or loss \u00a0
Net trading income or\u00a0loss includes realised and\u00a0unrealised capital gains and losses\u00a0on financial assets and financial liabilities\u00a0recognised at fair value \u00a0
through profit or\u00a0loss as well as exchange\u00a0rate adjustments\u00a0and dividends.\u00a0However, the fair value adjustments\u00a0of the credit risk on loans granted by \u00a0
Realkredit Danmark are\u00a0presented under Loan impairment charges. Further, the fair value adjustment\u00a0of own credit risk on financial liabilities\u00a0in the \u00a0
Group\u2019s trading units Markets and Investment Banking & Securities part of\u00a0LC&I designated at fair value through profit or\u00a0loss is presented in Other \u00a0
comprehensive income. Net trading income or\u00a0loss includes the fair value adjustments of own credit risk on bonds issued by Realkredit Danmark,\u00a0as an \u00a0
accounting mismatch between the fair\u00a0value adjustment of the loans and\u00a0the bonds in Realkredit\u00a0Danmark would otherwise exist (see\u00a0further \u00a0
information in note G16). \u00a0
Realised gains and losses on financial assets at amortised cost,\u00a0e.g. loans, are recognised under Net trading income or loss when the financial asset is \u00a0
derecognised, unless the derecognition relates to a\u00a0credit risk event/forbearance\u00a0measure, in which case the gain or loss is presented under Loan \u00a0
impairment charges\u00a0(see note G15). Otherwise, the derecognition gain or loss on the financial asset is calculated\u00a0as the difference between the carrying \u00a0
amount (gross of expected credit losses) and the repayment\u00a0amount. For financial assets (bonds) at fair value through other comprehensive\u00a0income, \u00a0
gains or losses further include\u00a0amounts previously recognised in\u00a0other comprehensive income. For\u00a0financial liabilities\u00a0at amortised\u00a0cost, the gain or \u00a0
loss is the difference between the carrying\u00a0amount and the redemption price including cost related to\u00a0the redemption, if any. \u00a0
For financial\u00a0assets and liabilities\u00a0subject to fair value hedge accounting, the fair value adjustments\u00a0of the hedged financial instrument and the hedging \u00a0
instruments are\u00a0recognised in Net trading income or loss. Therefore, any hedge ineffectiveness\u00a0is presented\u00a0in Net trading income or loss. \u00a0
Returns (interest income and fair value changes) on assets under pooled schemes and the crediting of these returns to customer accounts are \u00a0
recognised under Net trading\u00a0income or loss. \u00a0
Accounting policy \u00a0
Fee income \u00a0
Fee income is recognised to reflect the transfer of services to customers at an\u00a0amount that reflects the consideration\u00a0that is\u00a0expected to be received \u00a0
in exchange\u00a0for such services. The\u00a0Group identifies\u00a0the performance obligation,\u00a0i.e. the services agreed with the customer, and the consideration, and \u00a0
recognises income in line with the transfer of services, the performance obligation, agreed with the customer. \u00a0
For each performance obligation\u00a0identified, the Group determines at contract inception\u00a0whether it satisfies\u00a0the performance obligation over time or\u00a0at \u00a0
a point\u00a0in time, and whether\u00a0the consideration is fixed or\u00a0variable, including whether consideration is\u00a0constrained by, for\u00a0instance, external\u00a0factors \u00a0
outside the Group\u2019s influence. The consideration is subsequently allocated to the identified performance obligation. \u00a0
When income\u00a0is highly\u00a0susceptible to\u00a0external factors, such as the development\u00a0in the financial markets, the income is recognised once the \u00a0
consideration to\u00a0be received is known and it is probable that a significant reversal of the consideration will not occur. \u00a0
For income\u00a0derived from the provision of agency services the consideration\u00a0is presented\u00a0on a net basis. \u00a0
Fee expense \u00a0
Fee expense for services provided\u00a0over a period of time, such as guarantee commissions\u00a0and investment\u00a0management fees, are accrued over the period. \u00a0
Transaction fees,\u00a0such as brokerage and custody fees, are recognised on settlement of the individual\u00a0transaction. Fees\u00a0that form\u00a0an integral part of the \u00a0
effective rates of interest on\u00a0financial liabilities\u00a0measured at\u00a0amortised cost, such as origination\u00a0fees, are carried under interest expense. Similar fees \u00a0
related to\u00a0financial liabilities\u00a0at fair value\u00a0through profit\u00a0or loss are recognised when the financial liability\u00a0is established\u00a0and are carried under fee \u00a0
expense. \u00a0
Accounting policy \u00a0
Insurance revenue \u00a0
The Group recognises insurance\u00a0revenue as it provides\u00a0insurance services. Insurance revenue reflects the amount of consideration\u00a0the Group expects \u00a0
to be entitled\u00a0to in exchange for those services provided.\u00a0For insurance contracts\u00a0under the Premium Allocation\u00a0Approach (PAA), insurance revenue\u00a0is \u00a0
based on the expected\u00a0premium for the period. \u00a0
The contractual service margin (CSM) is\u00a0recognised in insurance revenue as insurance contracts services are\u00a0provided. \u00a0
Insurance service expenses \u00a0
Insurance service expenses comprise incurred claims and other incurred insurance expenses. \u00a0
Net finance income or expense from insurance contracts \u00a0
Net investment\u00a0return for insurance comprises the return on assets backing insurance activities,\u00a0and Net finance income or expense from insurance, \u00a0
which comprises the change in carrying amount of groups of insurance contracts arising from the effect of time value of money\u00a0and the effect of financial \u00a0
risk of groups of insurance\u00a0contracts. \u00a0
Accounting policy \u00a0
Income from lease assets and investment\u00a0property \u00a0
Income from lease assets and\u00a0investment property includes income from assets let under operating leases. Lease\u00a0payments are recognised on a \u00a0
straight line basis over the period of the lease term. The accounting\u00a0policy for lease assets is further described in note G24. \u00a0
Income from holdings in\u00a0associates \u00a0
Associates are\u00a0accounted for\u00a0using the equity method. Further information is provided in note G38. \u00a0
Accounting policy \u00a0
Staff costs \u00a0
This item includes salaries, performance-based pay, expenses for share-based payments, holiday allowances, anniversary\u00a0bonuses, pension costs\u00a0and \u00a0
other remuneration. Salaries and other remuneration that\u00a0the Group expects to pay are expensed when the employees render the services. \u00a0
Performance-based remuneration\u00a0is expensed\u00a0as it is earned. \u00a0
Share-based payment \u00a0
Part of the performance-based remuneration\u00a0for the year is paid in the form of conditional\u00a0shares. Rights to conditional\u00a0shares vest up to four years \u00a0
after the grant date, provided that the employee, with the exception of retirement, has not resigned from the Group. In addition to this requirement, the \u00a0
vesting of rights is conditional\u00a0on certain targets being met. The fair value of share-based payments\u00a0at the\u00a0grant date\u00a0is expensed over the vesting period \u00a0
with the intrinsic\u00a0value expensed in the year in which the share-based payments are earned, and the time value\u00a0(if any) accrued over the remaining \u00a0
service period. Expenses are set off against shareholders\u2019 equity. Fair\u00a0value adjustments after\u00a0the grant\u00a0date are not recognised in the income \u00a0
statement. \u00a0
Pension obligations \u00a0
The Group\u2019s contributions to\u00a0defined contribution\u00a0pension plans are recognised in the income statement as they are earned by\u00a0the employees. For \u00a0
defined benefit pension plans, the Group expenses the standard cost.\u00a0Actuarial gains or losses as a result of the difference between expected trends in \u00a0
pension assets\u00a0and benefits\u00a0and actual\u00a0trends are recognised under Other comprehensive\u00a0income. \u00a0
Amortisation, depreciation and\u00a0impairment charges \u00a0
In addition to amortisation,\u00a0depreciation and\u00a0impairment charges for intangible, tangible and right-of-use assets,\u00a0the Group expenses the carrying \u00a0
amount of\u00a0lease assets sold at the expiry of a lease agreement. \u00a0
Accounting policy \u00a0
The accounting policy for\u00a0when a loan impairment\u00a0charge is recognised and how the charge is determined\u00a0is described under the relevant balance sheet \u00a0
line items. Notes G15, G16 and G24 provide more information. \u00a0
Accounting policy \u00a0
The trading\u00a0portfolio is recognised at fair value\u00a0through profit\u00a0or loss. Realised and unrealised\u00a0capital gains and losses and dividends\u00a0are recognised in \u00a0
the income statement\u00a0under Net trading\u00a0income or loss. Fair value\u00a0is the\u00a0amount for which a financial asset can be sold or a financial liability\u00a0be \u00a0
transferred to a knowledgeable,\u00a0willing third\u00a0party. Note G33 provides information\u00a0about fair value measurement and fair value adjustments. \u00a0
The Group uses the option in IFRS 9 to continue using the fair value hedge accounting model in IAS 39.\u00a0The derivatives used\u00a0as hedging instruments \u00a0
are presented\u00a0in the balance sheet together with other derivatives. \u00a0
(c) Explanation of derivatives \u00a0
The Group\u2019s activities in\u00a0the financial markets include trading in derivatives.\u00a0Derivatives are\u00a0financial instruments\u00a0whose value depends on the value of \u00a0
an underlying\u00a0instrument or index etc. Derivatives\u00a0can be used to manage market risk exposure, for example.\u00a0The Group trades a considerable\u00a0volume of \u00a0
the most commonly used interest rate, currency and\u00a0equity derivatives,\u00a0including \u00a0
\u2022
swaps \u00a0
\u2022
forwards and\u00a0futures \u00a0
\u2022
options \u00a0
The Group trades a\u00a0limited number of swaps\u00a0whose value depends on\u00a0developments in\u00a0specific credit or commodity\u00a0risks, or inflation\u00a0indices. \u00a0
The Group trades derivatives\u00a0as part of servicing\u00a0customers\u2019 needs as individual\u00a0transactions or as\u00a0integral parts of other services, such as the issuance \u00a0
of bonds with yields\u00a0that depend on developments\u00a0in equity\u00a0or currency indices. The Group also uses derivatives\u00a0to manage the Group\u2019s own exposure\u00a0to \u00a0
foreign exchange, interest rate, equity market and credit risks. Note G40 provide\u00a0additional information about\u00a0the Group\u2019s risk management policy.\u00a0Large \u00a0
Corporates &\u00a0Institutions is\u00a0responsible for\u00a0the day-to-day management and hedging of the Group\u2019s market risks. \u00a0
Derivatives are\u00a0recognised and measured at fair\u00a0value. Some of the Group\u2019s loans, deposits, issued bonds, etc. in the Group\u2019s banking units\u00a0and Group \u00a0
Treasury carry\u00a0fixed rates. Generally,\u00a0such fixed-rate items are recognised\u00a0at amortised\u00a0cost. Further,\u00a0the Group\u00a0classifies certain bonds as \u2018hold to \u00a0
collect and sell\u2019 financial assets. Unrealised value adjustments\u00a0of such bonds are recognised under Other comprehensive\u00a0income. The Group uses fair \u00a0
value hedge accounting\u00a0if the interest rate risk on fixed-rate financial assets and liabilities\u00a0or bonds measured at\u00a0fair value through other comprehensive \u00a0
income is hedged by derivatives. \u00a0
G13. Investment securities \u00a0
Investment securities\u00a0consist of bonds and shares held by non-trading\u00a0units in\u00a0the Group. It consists primarily\u00a0of the liquidity\u00a0portfolio managed by Group \u00a0
Treasury. The liquidity\u00a0portfolio includes different\u00a0portfolios with different\u00a0business models. Some portfolios are managed on a fair\u00a0value basis and \u00a0
mandatorily measured\u00a0at fair value\u00a0through profit\u00a0or loss under IFRS 9, whereas other portfolios\u00a0are either\u00a0\u2018hold to collect and sell\u2019 and measured at fair \u00a0
value through other comprehensive\u00a0income or \u2018hold to collect\u2019. \u00a0
Accounting policy \u00a0
Financial assets measured at fair value through profit or loss (FVPL) \u00a0
Financial assets measured at fair\u00a0value include securities that are\u00a0managed on a fair value basis with no short-term profit taking. Realised and unrealise\u00a0d \u00a0
capital gains and losses and dividends\u00a0are carried in the income statement under Net\u00a0trading income or loss. Further, all shares (including\u00a0unliste d \u00a0
shares) and bonds held in Group Treasury that do not have contractual\u00a0cash flows that are solely payments of principal and interest\u00a0on the principa\u00a0l \u00a0
amount outstanding (i.e. that does not pass the SPPI test in IFRS 9) are mandatorily\u00a0measured at FVPL and, consequently,\u00a0included in this category. \u00a0
Financial assets measured at fair value through other comprehensive income (FVOCI) \u00a0
This category comprises bonds only, and primarily bonds listed in a liquid market, as the Group does not use the option to designate equity instruments \u00a0
at FVOCI.\u00a0The bonds are held within\u00a0a business\u00a0model for the purpose of collecting contractual\u00a0cash flows\u00a0and selling\u00a0(hold to collect\u00a0and sell). The bonds \u00a0
have cash\u00a0flows that are solely payments of principal and interest on the principal\u00a0amount outstanding\u00a0(i.e. that pass the SPPI test in IFRS 9). FVOCI \u00a0
results in\u00a0the assets being recognised at\u00a0fair value in the balance sheet and at amortised cost in the income statement,\u00a0including the\u00a0recognition of \u00a0
expected credit losses as described in note G15. Gains and losses, except for expected credit losses and foreign exchanges gains and losses, are \u00a0
therefore recognised in\u00a0other comprehensive income until the bond is derecognised. When a\u00a0fixed interest rate risk is hedged in a hedge that qualifie\u00a0s \u00a0
for fair value\u00a0hedge accounting, the fair value changes of the hedged interest risk are presented in the income statement under Net trading income or \u00a0
loss. When bonds are sold unrealised value\u00a0adjustments recognised\u00a0under Other comprehensive\u00a0income are reclassified to the income statement and \u00a0
presented under Net trading income or loss.\u00a0The Group recognises interest income according to the effective interest method, including amortisatio\u00a0n \u00a0
of the difference between cost and the redemption value over the term to maturity\u00a0of the bonds. \u00a0
Financial assets measured at amortised cost (AMC) \u00a0
This category consists of\u00a0bonds held within\u00a0a business\u00a0model for the purpose of collecting the contractual\u00a0cash flows (hold to collect) and with cash \u00a0
flows that\u00a0are solely\u00a0payments of principal and interest on the principal amount outstanding (i.e. that pass the SPPI test in IFRS 9). The bonds are \u00a0
measured at\u00a0amortised cost.\u00a0Interest income is\u00a0recognised according to the effective interest method, including\u00a0amortisation of\u00a0the difference between \u00a0
cost and the redemption\u00a0value over the term to maturity of the bonds. A change in the contractual cash flows that is required by the Interest Rate \u00a0
Benchmark Reform is accounted for\u00a0by updating\u00a0the effective interest rate, without\u00a0recognising a gain or loss. This can only\u00a0be applied\u00a0if the change is \u00a0
necessary as a direct consequence of the reform, and the new basis for determining\u00a0the contractual\u00a0cash flows is economically equivalent\u00a0to the \u00a0
previous basis. The bonds are\u00a0subject to\u00a0the expected credit model in IFRS 9 as described in note G15. The interest rate risk on fixed-rate bonds is not \u00a0
hedged. \u00a0
Accounting policy \u00a0
For balances due from\u00a0credit institutions\u00a0in the Group\u2019s banking units (Personal & Business Customers, General Banking\u00a0in Large Corporates \u00a0
&
Institutions, Northern\u00a0Ireland and\u00a0Non-core), the business model is \u2018hold to collect\u2019. As the contractual cash flows represent basic lending\u00a0feature, these \u00a0
balances are measured at amortised cost. For further\u00a0information on the accounting policy etc., see\u00a0note G15. \u00a0
For balances due from credit institutions\u00a0and central banks in the Group\u2019s trading units (Markets and\u00a0Investment Banking &\u00a0Securities in\u00a0Large \u00a0
Corporates &\u00a0Institutions) the\u00a0business model\u00a0is neither\u00a0\u2018hold to collect\u2019 nor \u2018hold to collect and sell\u2019 and these balances are mandatorily\u00a0recognised at \u00a0
fair value through profit or loss. For further information\u00a0on the\u00a0accounting policy, see\u00a0note G16. \u00a0
Accounting policy \u00a0
At initial recognition, loans are measured at\u00a0fair value plus transaction\u00a0costs less origination\u00a0fees and other charges that are an integral part of the \u00a0
effective interest rate\u00a0on loans. This usually corresponds to the amount disbursed to the customer. Subsequently,\u00a0they are measured at amortise\u00a0d \u00a0
cost, using the effective interest method, less impairment charges for expected credit losses. The difference between the value at initial recognitio\u00a0n \u00a0
and the redemption\u00a0value is\u00a0amortised over the term to maturity\u00a0as part of the effective interest.\u00a0If fixed-rate loans are hedged effectively by derivative\u00a0s , \u00a0
the fair value\u00a0of the hedged interest rate risk is added to the carrying\u00a0amount of the hedged assets. \u00a0
Accounting policy \u00a0
Loans granted and bonds issued by Realkredit\u00a0Danmark \u00a0
Loans granted by Realkredit\u00a0Danmark have contractual cash\u00a0flows that are not solely payment of principal and interest on the principal amount \u00a0
outstanding. Therefore,\u00a0the loans are\u00a0mandatorily recognised at\u00a0fair value\u00a0through profit\u00a0or loss. The issued bonds that are\u00a0funding the loans are \u00a0
designated at\u00a0fair value through profit or loss in order not to create an accounting\u00a0mismatch. For\u00a0the issued bonds, changes in fair value attributable\u00a0to \u00a0
the Group\u2019s own credit risk is presented in the income\u00a0statement, as\u00a0an accounting\u00a0mismatch would otherwise be introduced. \u00a0
The fair value of the bonds issued by Realkredit Danmark is normally defined as their quoted market price. A small number of the issued bonds are \u00a0
illiquid, however, and\u00a0the fair value\u00a0of these bonds is calculated\u00a0on the basis of a discounted\u00a0cash flow valuation technique. The fair value of the loans is \u00a0
based on the fair value of the underlying\u00a0bonds which ensures that changes in the fair value of the interest rate risk on the loans are measured based \u00a0
on market implied\u00a0input. This fair value is adjusted for changes in the fair value of cash flows from the loans that differ from the cash flows from the \u00a0
issued bonds. The most important\u00a0component is\u00a0the credit risk on the borrowers (covered by the Group and\u00a0not by\u00a0the bond holders and therefore not \u00a0
priced into the price of the issued bonds). \u00a0
Changes in fair value of credit risk etc on the loans \u00a0
The IFRS 13 estimate\u00a0of the fair value of the credit risk on the loans is based on the expected credit losses estimated in the models developed in \u00a0
connection with the Group\u2019s implementation\u00a0of the expected\u00a0credit loss impairment model in IFRS 9, including\u00a0the allocation o\u00a0f loans\u00a0between stage 1, \u00a0
stage 2 and stage 3. The expected credit losses are calculated for all loans as a function of PD, EAD and LGD and incorporates forward looking \u00a0
information, see\u00a0further in note G15. The latter reflects management\u2019s expectations of\u00a0expected credit\u00a0losses and\u00a0involves multiple scenarios (base \u00a0
case, upside\u00a0and downside),\u00a0including an\u00a0assessment of\u00a0the probability\u00a0for each scenario. \u00a0
On top of the expected\u00a0credit losses, a collective\u00a0assessment determines\u00a0the need for further adjustments\u00a0to reflect other components\u00a0in the fair value \u00a0
measurement, such as an assessment of lifetime\u00a0expected credit\u00a0losses for\u00a0loans in\u00a0stage 1, an investors risk premium, compensation for \u00a0
administrative costs\u00a0related to the loans and the possibility\u00a0to increase the margin on the loans if the credit risk etc increases. It is acknowledged that \u00a0
the possibility to\u00a0increase the margin depends on the economic resources of the customers.\u00a0The possibility\u00a0to increase the margin is therefore only \u00a0
considered in\u00a0the measurement if it is very likely that the margin can be increased without\u00a0the customer defaulting. Further,\u00a0the possibility\u00a0to increase \u00a0
the margin is only relevant if it does not give the customer an incentive to \u201cmove\u201d to another mortgage institution.\u00a0Therefore, the possibility\u00a0to increase \u00a0
the margin is only relevant for the measurement of loans to customers with neither a relatively\u00a0high credit risk nor a relati\u00a0vely low\u00a0credit risk. \u00a0
The discount rate used to discount the cash flows represents the interest rate on the funding bonds. This is considered to be close to a risk-free interes\u00a0t \u00a0
rate. The risk premium is incorporated into the cash\u00a0flows. The risk premium is assumed to be higher for customers with high credit risk than for \u00a0
customers with low credit risk. Further, the adjustments\u00a0for changes in the fair value\u00a0of the credit risk and other components\u00a0cannot increase the value \u00a0
of a loan\u00a0(the adjustment\u00a0cannot be positive). \u00a0
Other loans and\u00a0issued bonds measured at fair value through profit or loss \u00a0
The loans in the Group\u2019s trading units (Markets and Investment Banking & Securities in LC&I) are managed and their performance reported on a fair \u00a0
value basis and the loans are under IFRS 9 mandatorily\u00a0measured at fair value\u00a0through profit or loss. In order not to introduce\u00a0an accounting mismatc\u00a0h \u00a0
by measuring the financial assets in the trading units at\u00a0fair value through profit or loss and the financial liabilities\u00a0at amortised cost, the\u00a0financia l \u00a0
liabilities in\u00a0the trading units are designated at\u00a0fair value through profit or\u00a0loss with fair value changes attributable\u00a0to the Group\u2019s own credit risk \u00a0
presented in\u00a0other comprehensive income. \u00a0
Accounting policy \u00a0
Assets earmarked for customer savings are measured at fair value and recognised under Assets under pooled schemes and unit-linked\u00a0investment \u00a0
contracts. Deposits made by customers are recognised under Deposits under pooled schemes and unit-linked investment contracts. These deposits are \u00a0
measured at the\u00a0value of savings, corresponding to the fair value of the assets. \u00a0
The Group has elected not to deduct own shares from equity that are held on behalf of customers. Therefore total assets under pooled schemes and unit- \u00a0
linked contracts includes these own shares that meet this criterion. \u00a0
Accounting policy \u00a0
Assets under insurance contracts \u00a0
Assets under insurance contracts are managed on a fair\u00a0value basis with\u00a0no short-term profit taking. The business model for managing the assets is \u00a0
therefore neither \u2018held to collect\u2019 nor\u00a0\u2018held to\u00a0collect and sell\u2019 and the financial assets are therefore man\u00a0datorily recognised\u00a0at fair value through profit \u00a0
or loss.\u00a0The valuation\u00a0technique used matches the Group\u2019s accounting policy for\u00a0similar assets\u00a0. \u00a0
The Group has\u00a0elected to\u00a0not deduct own\u00a0shares and own bonds\u00a0from equity\u00a0and liabilities\u00a0respectively that are underlying\u00a0items of insurance \u00a0
contracts with\u00a0direct participation\u00a0features. Therefore total Assets under insurance contracts includes these own shares and\u00a0own bonds. \u00a0
Liabilities under\u00a0insurance contracts \u00a0
The Group has\u00a0divided all\u00a0insurance contracts into portfolios and\u00a0groups and determined measurement methods for\u00a0the individua\u00a0l groups\u00a0of \u00a0
contracts. The classification of\u00a0insurance contracts in the four\u00a0portfolios is based on\u00a0an assessment of similar\u00a0risks and on an overall\u00a0management \u00a0
approach: \u00a0
-
An average-rate\u00a0portfolio \u00a0
-
A unit-linked\u00a0portfolio \u00a0
-
A portfolio\u00a0of legacy life insurance products\u00a0in run-off \u00a0
-
A portfolio\u00a0containing health and\u00a0accident insurance contracts. \u00a0
The Group applies the annual cohort exemption from\u00a0the EU to the average-rate portfolio. \u00a0
The Group measures liabilities\u00a0under insurance contracts using the General Measurement\u00a0Model (GMM),\u00a0Variable Fee\u00a0Approach (VFA) or Premium \u00a0
Allocation Approach (PAA). The majority\u00a0of the Group\u2019s life insurance contracts\u00a0are measured\u00a0using VFA because they meet the definition\u00a0of \u00a0
insurance contracts with direct participation\u00a0features. GMM is\u00a0used for legacy life insurance\u00a0products in run\u00a0-off. \u00a0
Insurance contracts measured using GMM\u00a0or VFA are initially\u00a0measured as the total of fulfilment cash flows (which comprise es\u00a0timated future cash \u00a0
flows, an adjustment\u00a0for time value\u00a0of money and effect of financial risks, and a risk adjustment\u00a0for non-financial\u00a0risk) and contractual service margin \u00a0
(CSM; unearned profit that will be recognised as the Group provides insurance contract services).\u00a0At each reporting\u00a0date, th\u00a0e group of insurance \u00a0
contracts is\u00a0subsequently measured\u00a0as the sum of the liability\u00a0for remaining\u00a0coverage (comprising fulfilment cash\u00a0flows relating to\u00a0future se\u00a0rvice and \u00a0
CSM) and liability\u00a0for incurred claims\u00a0(comprising fulfilment cash flows relating\u00a0to past service). \u00a0
PAA is\u00a0applied to the Health and accident insurance portfolio, which comprises only one\u00a0-year insurance contracts. \u00a0
Accounting policy \u00a0
Goodwill \u00a0
Goodwill arises\u00a0on the acquisition\u00a0of an undertaking\u00a0and is calculated\u00a0as the\u00a0difference between the cost (until 1 January\u00a02010 including\u00a0direct \u00a0
transaction costs) of\u00a0the undertaking and\u00a0the fair value of\u00a0its net assets, including\u00a0contingent liabilities, at\u00a0the time of acquisition. Goodwill\u00a0is allocate d \u00a0
to cash-generating\u00a0units at the level at which management monitors\u00a0the investment. \u00a0
Goodwill is\u00a0not amortised;\u00a0instead, each cash-generating unit is tested for impairment once a year, or more frequently if indications\u00a0of impairment\u00a0exist. \u00a0
Goodwill is written down\u00a0to its recoverable amount through profit and loss if the carrying amount of the net assets of the cash-generating\u00a0unit exceeds \u00a0
the higher of\u00a0the assets\u2019 fair value less costs to sell and their value in use, which equals the present value of the future cash flows expected from the \u00a0
unit. \u00a0
Goodwill on associates is recognised under Holdings in associates. \u00a0
Other intangible\u00a0assets \u00a0
Software acquired is measured\u00a0at cost,\u00a0including expenses incurred to make a\u00a0software application\u00a0ready for use. Software acquired is amortised\u00a0over \u00a0
its expected useful life, usually three years, according to the straight-line method. \u00a0
Software developed\u00a0by the Group is recognised as\u00a0an asset if the cost of development\u00a0is reliably\u00a0measurable and\u00a0analyses show that future earnings \u00a0
from using the individual\u00a0software applications\u00a0exceed the cost. Cost includes expenses incurred to make a\u00a0software application\u00a0ready for use. Once a \u00a0
software application\u00a0has been developed,\u00a0the cost\u00a0is amortised over its expected useful life, usually three years, according to the straight-line\u00a0method. \u00a0
The cost\u00a0of development\u00a0consists primarily of\u00a0direct remuneration\u00a0and other directly attributable\u00a0development costs.\u00a0Costs incurred in the planning \u00a0
phase are not included\u00a0but are expensed when incurred. \u00a0
Software is tested\u00a0for impairment\u00a0if indications of\u00a0impairment exist\u00a0and is written down to its value in use. \u00a0
Accounting policy \u00a0
Amounts due to credit institutions\u00a0and central banks and Deposits in the Group\u2019s trading units\u00a0(Markets and Investment Banking\u00a0& Securities\u00a0in LC&I) \u00a0
are designated at fair value through profit or loss. However, the amount of the change in fair value attributable\u00a0to the Group\u2019s own credit risk is \u00a0
recognised in other comprehensive\u00a0income. \u00a0
All other\u00a0balances are measured at amortised\u00a0cost. If fixed-rate\u00a0deposits are hedged effectively by derivatives,\u00a0the fair value\u00a0of the hedged interest rate \u00a0
risk is added to the amortised cost of the liabilities. \u00a0
Accounting policy \u00a0
Current tax \u00a0
Current tax assets and liabilities\u00a0are recognised\u00a0in the balance sheet as the estimated\u00a0tax payable\u00a0on the profit for the year adjusted\u00a0for prepaid tax and \u00a0
prior-year tax payables and receivables. Tax assets and liabilities\u00a0are offset\u00a0if the Group has a legally enforceable right to set off such assets and \u00a0
liabilities and\u00a0intends either to settle the assets and liabilities\u00a0on a net basis or to realise the assets and settle the liabilities\u00a0simultaneously. \u00a0
Deferred tax \u00a0
Deferred tax on all temporary differences between the tax base of assets and liabilities\u00a0and their carrying amounts is\u00a0accounted for\u00a0in accordance with \u00a0
the balance sheet liability method. Deferred tax is measured on the basis of enacted or substantially\u00a0enacted tax regulations and rates that are \u00a0
applicable in\u00a0the relevant countries at the time the deferred tax is expected to crystallise\u00a0as current tax. Changes in deferred tax as a result of changes \u00a0
in tax rates are recognised in the income statement on the basis of\u00a0expected cash\u00a0flows. The Group does not recognise deferred tax on temporar\u00a0y \u00a0
differences between the tax base and the carrying amounts of\u00a0goodwill not subject to amortisation\u00a0for tax\u00a0purposes and other items if the temporar\u00a0y \u00a0
differences arose at the time of acquisition without effect on\u00a0net profit or taxable income.\u00a0If the tax base may be calculated\u00a0according to several sets of \u00a0
tax regulations,\u00a0deferred tax is\u00a0measured in accordance with the regulations that apply to the use\u00a0of the asset or settlement\u00a0of the liability\u00a0as planne d \u00a0
by management.\u00a0Tax assets arising from unused tax losses are only recognised if it is expected that such tax losses can be offset against tax on future \u00a0
profit in the next five years. Deferred tax assets and liabilities\u00a0are offset when they relate to the same tax jurisdiction,\u00a0a legally enforceable right to offset \u00a0
exists and the Group intends to settle on\u00a0a net basis. \u00a0
Current and deferred tax is calculated\u00a0on the\u00a0profit for the year, and adjustments\u00a0of prior-year tax charges are recognised in the income statement.\u00a0Tax \u00a0
on items\u00a0recognised under Other comprehensive income is\u00a0recognised under Other comprehensive income. Similarly, tax on items recognised in\u00a0equity \u00a0
is recognised in equity. When uncertainty\u00a0over tax treatment\u00a0exists, the uncertainty\u00a0is reflected by using either\u00a0the most likely outcome (if the poss\u00a0ible \u00a0
outcomes are binary or are concentrated on one value)\u00a0or the expected value,\u00a0probability weighted\u00a0amounts in\u00a0a range of possible outcomes\u00a0(if there is \u00a0
a range of possible\u00a0outcomes that are\u00a0neither binary\u00a0nor concentrated on one value). \u00a0
Accounting policy \u00a0
Issued bonds, both senior, non-preferred senior and subordinated\u00a0bonds, are at initial\u00a0recognition measured at fair value less transaction\u00a0costs and \u00a0
subsequently measured\u00a0at amortised\u00a0cost plus\u00a0the fair value of\u00a0the hedged interest rate risk. Interest expense is recognised according to the effective \u00a0
interest rate method, including amortisation\u00a0of any difference between the amount received on\u00a0issue and the redemption amount. \u00a0
The Group issues perpetual bonds with discretionary\u00a0interest payments that fulfil the requirements\u00a0for additional\u00a0tier 1 capital under the Capital \u00a0
Requirements Regulation (CRR).\u00a0If a\u00a0trigger event occurs,\u00a0those bonds must be\u00a0either written down temporarily or converted into a variable number of \u00a0
ordinary shares, depending on the terms of the individual\u00a0bond issue. Bonds that convert into a\u00a0variable number of\u00a0ordinary shares are accounted for \u00a0
as liabilities,\u00a0while bonds that are temporarily written down are accounted for as equity. For liability\u00a0accounted bonds, the interest expense is recognised \u00a0
in the income statement, i.e. the bonds are accounted for as liabilities\u00a0in their entirety. \u00a0
Accounting policy \u00a0
Assets held for sale and Liabilities\u00a0in disposal groups \u00a0
Assets held\u00a0for sale are disposal groups of assets actively\u00a0marketed for\u00a0sale and for\u00a0which a sale is expected to occur withi\u00a0n 12 months. A disposal \u00a0
group is a group of assets that will be disposed of in a single transaction\u00a0and includes\u00a0any directly\u00a0associated liabilities.\u00a0A disposal group in\u00a0cludes for \u00a0
example companies (subsidiaries) or\u00a0properties taken\u00a0over under non-performing loan agreements. Further, loans that are marketed for sale are \u00a0
transferred to Assets held for sale. The loans\u00a0are written\u00a0down to their\u00a0expected selling\u00a0price. \u00a0
The net assets in the disposal group are remeasured at the lower of the carrying amount of the net assets in the disposal group at the time of \u00a0
reclassification and fair value less expected cost to sell. \u00a0
If a disposal group of assets and liabilities\u00a0represents a separate\u00a0major line of business (typically\u00a0a reportable\u00a0segment) o\u00a0r a geographical area of \u00a0
operation or\u00a0is a subsidiary\u00a0acquired exclusively with a\u00a0view of resale, it is presented as a discontinued\u00a0operation. For a discontinued\u00a0operation, net \u00a0
profit is presented as a single item \u2018Net profit from discontinued\u00a0operations\u2019 in\u00a0the income statement, i.e. no longer includ\u00a0ed as\u00a0income and expenses \u00a0
from the Group\u2019s\u00a0continuing operations. \u00a0
Accounting policy \u00a0
Defined benefit\u00a0pension plans \u00a0
When the Group has entered into defined benefit pension plans, the amounts payable are recognised on the basis of an actuarial computation\u00a0of the \u00a0
present value of expected benefits. The present value is calculated on the basis of expected future trends in salaries and interest rates, the time of \u00a0
retirement, mortality rates\u00a0and other factors. The present value of pension benefits less the fair value of pension assets is recognised as a pension \u00a0
obligation for\u00a0each plan under Other liabilities.\u00a0If the net amount of a defined benefit pension plan is positive\u00a0and may be repaid to the Group or reduce \u00a0
its future contributions\u00a0to the plan, the net amount is recognised under Other assets. The discount rate is determined by reference to yields on high- \u00a0
quality corporate bonds with terms matching the terms of\u00a0the pension obligations. \u00a0
Right of\u00a0use lease assets and lease liabilities \u00a0
The Group recognise a right-of-use asset and a lease liability\u00a0at the commencement\u00a0date, for all lease agreements,\u00a0that the Group has entered into as \u00a0
lessee, except short-term leases and leases of low value\u00a0asset. The lease liability\u00a0is initially\u00a0measured at the present value\u00a0of the future payme\u00a0nts from \u00a0
lease components, discounted using the\u00a0incremental borrowing\u00a0rate for the individual\u00a0lease. The lease liability\u00a0is subsequently measured\u00a0by increasing \u00a0
the carrying amount, to reflect interest and by reducing the carrying amount to reflect the lease payments\u00a0made. Fur\u00a0ther lease liabilities\u00a0are changed \u00a0
when remeasurements\u00a0are needed, corresponding adjustment is\u00a0the related right-of-use asset. Gain or\u00a0loss from a lease modification,\u00a0(excluding \u00a0
modifications that\u00a0change the basis for determining\u00a0future lease\u00a0payments as a\u00a0result of\u00a0the Interest Rate Benchmark Reform) that are\u00a0not accounte\u00a0d \u00a0
for as a separate lease, is recognised in profit and loss. If a lease modification\u00a0is necessary\u00a0as a direct consequence of the interest\u00a0rate benchmar\u00a0k \u00a0
reform, and the new basis for determining\u00a0the lease payments is\u00a0economically equivalent to the previous basis immediately\u00a0pre ceding\u00a0the modification, \u00a0
then the lease liability\u00a0shall be remeasured by discounting\u00a0the revised lease payments.\u00a0The initial\u00a0right-of-use asset comprise the amount of the initial \u00a0
measurement of the lease liability,\u00a0lease payments made at or before the commencement day,\u00a0initial direct costs and costs to restore the underlyin\u00a0g \u00a0
asset. The right-of-use asset are subsequently\u00a0measured at cost less accumulated\u00a0depreciation and impairment losses.\u00a0The right-of-use assets are \u00a0
depreciated over the shorter period of the lease term and the useful life of the underlying asset. When the Group is an inter\u00a0mediate lessor,\u00a0the Group \u00a0
accounts for the head lease and the sublease as two separate contracts.\u00a0The sublease is\u00a0classified as\u00a0a finance\u00a0or operating\u00a0lease by reference to the \u00a0
right-of-use asset arising from the head lease. \u00a0
Tangible assets \u00a0
Tangible assets include domicile property and plant and equipment.\u00a0Plant and equipment\u00a0cover equipment,\u00a0vehicles, furniture, fixtures and\u00a0leasehold \u00a0
improvements. Tangible assets\u00a0also include lease assets, i.e. assets let under operating leases, except real property. Lease assets includes cars, lorries \u00a0
and equipement.\u00a0Tangible assets\u00a0are measured\u00a0at cost and depreciated\u00a0over the estimated useful\u00a0life. The estimated useful life is 20-50 years for \u00a0
domicile property, 3-10 years for plant and equipment and three years for\u00a0lease assets. Depreciation\u00a0charges are recognised under Operating expenses. \u00a0
Tangible assets are\u00a0tested for\u00a0impairment if indications of impairment exist. An impaired asset is written down to its recoverable amount, which is\u00a0the \u00a0
higher of its fair value less costs to sell and its value in use. \u00a0
Loan commitments\u00a0and guarantees \u00a0
The Group issues a number of loan commitments and guarantees. Such exposures are subject to impairment for expected credit losses. Further \u00a0
information can be\u00a0found in note G15. \u00a0
Other provisions,\u00a0including litigations \u00a0
Provisions for\u00a0other obligations,\u00a0such as lawsuits,\u00a0are recognised\u00a0if the obligation\u00a0is likely to\u00a0result in\u00a0a payment obligat\u00a0ion and the amount can be \u00a0
measured reliably.\u00a0Liabilities are\u00a0recognised at\u00a0the present value of expected payments. \u00a0
Accounting policy \u00a0
Equity is the\u00a0residual interest in\u00a0recognised assets after deduction of recognised liabilities. In this context, the following items are of particular interest: \u00a0
Own shares \u00a0
Amounts received or\u00a0paid for the Group\u2019s sale or purchase of Danske\u00a0Bank shares that are neither held on behalf of customers or are underlying\u00a0items \u00a0
of insurance contracts with direct participation\u00a0features are\u00a0recognised directly in equity under transactions\u00a0with owners. The same applies to \u00a0
premiums received or paid for derivatives\u00a0entailing settlement in\u00a0own shares. A capital\u00a0reduction by\u00a0cancellation of\u00a0own shares will lower the share \u00a0
capital by an\u00a0amount equal to the nominal value of the shares at the time of registration\u00a0of the capital reduction. \u00a0
With effect\u00a0from 1 January 2023 the Group has\u00a0elected to not deduct from equity own shares that are\u00a0held on behalf of\u00a0customers or\u00a0those that are \u00a0
underlying items of\u00a0insurance contracts with direct participation\u00a0features. \u00a0
Additional tier\u00a01 capital \u00a0
The capital instruments accounted for\u00a0as equity\u00a0instruments include no\u00a0contractual obligation to deliver cash\u00a0or another\u00a0financial asset\u00a0to the holders, \u00a0
as Danske\u00a0Bank A/S may, at its sole discretion,\u00a0omit payment of\u00a0interest and principal payments to the bondholders. Therefore, the issue does not fall \u00a0
under the definition\u00a0of financial liabilities\u00a0under IAS 32. The net amount received at the time of issue is recognised as an increase in equity. Interes\u00a0t \u00a0
payments are\u00a0accounted for as dividends,\u00a0which are recognised directly in equity at the time the payment obligation arises. If Danske Bank A/S chooses \u00a0
to redeem the bonds, equity will be reduced by the redemption amount at the time of redemption. Amounts received or\u00a0paid for\u00a0the sale or acquisitio\u00a0n \u00a0
of own holdings of additional tier 1 capital instruments are recognised directly in equity, similarly\u00a0to holdings of own shares. \u00a0
Accounting policy \u00a0
The cash flow statement\u00a0is prepared\u00a0according to the indirect method. The statement is based on\u00a0pre -tax\u00a0profit for the year and shows the cash flows \u00a0
from operating,\u00a0investing and\u00a0financing activities\u00a0as well as the increase or decrease in cash and cash equ\u00a0ivalents during the\u00a0year. Cash and cash \u00a0
equivalents consists\u00a0of cash in hand and demand deposits with central banks\u00a0as well as amounts due from credit institutions\u00a0a nd\u00a0central banks with an \u00a0
original maturity shorter than three months. \u00a0
In the cash flow statement,\u00a0cash flows are divided into cash flows from operations,\u00a0investing activities\u00a0and financing\u00a0activi ties.\u00a0Investing activities includ\u00a0e \u00a0
cash flows from the sale or acquisition\u00a0of tangible\u00a0and intangible assets as\u00a0well as businesses.\u00a0Financing activities include cash\u00a0flows from the Group\u2019s \u00a0
issued non-preferred senior bonds, subordinated\u00a0debt, additional\u00a0tier 1 capital (both liability-\u00a0and equity-accounted\u00a0bonds) and\u00a0share capital. \u00a0
Accounting policy \u00a0
Guarantees and\u00a0loan commitments\u00a0are subject\u00a0to the expected\u00a0credit loss impairment model in IFRS 9. For further information,\u00a0see note\u00a0G15. \u00a0
Contingent liabilities\u00a0consist of possible\u00a0obligations arising from\u00a0past events. The existence of such obligations\u00a0will be confirmed\u00a0only by the occurrence \u00a0
or non-occurrence of one or more uncertain future events not wholly within the Group\u2019s control.\u00a0Further, contingent\u00a0liabilities consists of\u00a0present \u00a0
obligations arising from\u00a0past events, for which it is either not probable that the obligation will result in an outflow of financial resources, or it is not \u00a0
possible to\u00a0reliably estimate the amount of\u00a0the obligation. \u00a0
A contingent liability\u00a0is not recognised in the financial statement but disclosed, unless the possibility of an\u00a0outflow of\u00a0fi nancial\u00a0resources is remote. \u00a0
G30. Transferred financial\u00a0assets that are not derecognised \u00a0
The Group enters into transactions that transfer ownership of financial assets, such as bonds and shares, to a counterparty,\u00a0while the\u00a0Group retains the \u00a0
risks associated with the holding of the assets. If the Group retains all significant risks, the securities remain in the balance sheet, and the transaction\u00a0s \u00a0
are accounted for\u00a0as loans received against collateral.\u00a0Such transactions\u00a0are repo transactions and securities lending. The transactions\u00a0involve selling \u00a0
the securities to\u00a0be repurchased at a fixed price at a later\u00a0date. Counterparties are entitled to sell the securities or\u00a0deposit them as\u00a0collateral for\u00a0loans. \u00a0
Trading portfolio \u00a0
2023 \u00a0
2022 \u00a0
(DKK millions) \u00a0
Bonds \u00a0
Shares \u00a0
Bonds \u00a0
Shares \u00a0
Carrying amount\u00a0of transferred assets \u00a0
Repo transactions \u00a0
164,189 \u00a0
139,807 \u00a0
Securities lending \u00a0
1,047 \u00a0
2,008 \u00a0
Total transferred assets \u00a0
164,189 \u00a0
1,047 \u00a0
139,807 \u00a0
2,008 \u00a0
Repo transactions, own issued bonds \u00a0
33,693 \u00a0
31,064 \u00a0
Carrying amount\u00a0of associated liabilities \u00a0
197,140 \u00a0
1,099 \u00a0
171,384 \u00a0
2,109 \u00a0
Net positions \u00a0
-742 \u00a0
52 \u00a0
513 \u00a0
100 \u00a0
The Group has\u00a0not entered\u00a0into any agreements on the sale of assets that entail the Group\u2019s continuing involvement in\u00a0derecognised financial assets. \u00a0
G32. Offsetting of\u00a0financial assets and liabilities \u00a0
Offsetting of financial assets and liabilities\u00a0in the financial\u00a0statements requires\u00a0some criteria to be fulfilled.\u00a0In the event that the counterparty or the Group \u00a0
defaults, further offsetting will take place. This note shows the offsetting in the financial statements,\u00a0further netting according to\u00a0enforceable master \u00a0
netting agreements and similar agreements (i.e.\u00a0in the event of default) and collateral provided or received under such agreements. \u00a0
Accounting policy \u00a0
Assets and liabilities\u00a0are offset\u00a0when the Group and the counterparty\u00a0have a legally enforceable right to offset recognised amounts\u00a0and have agreed to \u00a0
settle the balances on a\u00a0net basis or to realise the asset and settle the liability\u00a0simultaneously. Positive and\u00a0negative fair values of\u00a0derivatives with\u00a0the \u00a0
same counterparty\u00a0are offset if the Group has agreed with the counterparty\u00a0to settle\u00a0contractual cash\u00a0flows net\u00a0and to make cash payments\u00a0or provid e \u00a0
collateral on a daily basis to cover changes in the fair value of the derivative\u00a0position. Master netting agreements or\u00a0similar agreements give the right \u00a0
to additional\u00a0offsetting in\u00a0the event of default. Such agreements reduce the exposure further in the event of\u00a0default, but do\u00a0not qualify for offsetting in \u00a0
accordance with IFRS. \u00a0
Net amount\u00a0Further offsetting, \u00a0
2023 \u00a0
presented in \u00a0
master netting \u00a0
(DKK millions) \u00a0
Gross amount \u00a0
Offsetting \u00a0
balance sheet \u00a0
agreements \u00a0
Collateral \u00a0
Net amount \u00a0
Financial assets \u00a0
Derivatives with\u00a0positive market\u00a0value \u00a0
892,840 \u00a0
541,118 \u00a0
351,722 \u00a0
262,273 \u00a0
80,713 \u00a0
8,736 \u00a0
Reverse transactions \u00a0
487,614 \u00a0
214,772 \u00a0
272,841 \u00a0
-
272,841 \u00a0
-
Other financial\u00a0assets \u00a0
69,447 \u00a0
62,241 \u00a0
7,206 \u00a0
-
-
7,206 \u00a0
Total \u00a0
1,449,901 \u00a0
818,132 \u00a0
631,769 \u00a0
262,273 \u00a0
353,555 \u00a0
15,942 \u00a0
Financial liabilities \u00a0
Derivatives with\u00a0negative market value \u00a0
882,036 \u00a0
541,118 \u00a0
340,918 \u00a0
262,273 \u00a0
58,337 \u00a0
20,308 \u00a0
Repo transactions \u00a0
411,912 \u00a0
214,772 \u00a0
197,140 \u00a0
-
197,882 \u00a0
-742 \u00a0
Other financial\u00a0liabilities \u00a0
134,011 \u00a0
62,241 \u00a0
71,770 \u00a0
-
-
71,770 \u00a0
Total \u00a0
1,427,959 \u00a0
818,132 \u00a0
609,828 \u00a0
262,273 \u00a0
256,219 \u00a0
91,336 \u00a0
2022 \u00a0
(DKK millions) \u00a0
Financial assets \u00a0
Derivatives with\u00a0positive market\u00a0value \u00a0
1,202,931 \u00a0
772,809 \u00a0
430,123 \u00a0
340,984 \u00a0
78,549 \u00a0
10,590 \u00a0
Reverse transactions \u00a0
442,430 \u00a0
194,678 \u00a0
247,752 \u00a0
-
247,752 \u00a0
-
Other financial\u00a0assets \u00a0
7,474 \u00a0
-4,686 \u00a0
12,160 \u00a0
-
-
12,160 \u00a0
Total \u00a0
1,652,836 \u00a0
962,801 \u00a0
690,034 \u00a0
340,984 \u00a0
326,302 \u00a0
22,749 \u00a0
Financial liabilities \u00a0
Derivatives with\u00a0negative market value \u00a0
1,207,950 \u00a0
772,809 \u00a0
435,141 \u00a0
340,984 \u00a0
63,486 \u00a0
30,671 \u00a0
Repo transactions \u00a0
366,063 \u00a0
194,678 \u00a0
171,384 \u00a0
-
170,871 \u00a0
513 \u00a0
Other financial\u00a0liabilities \u00a0
64,684 \u00a0
-4,686 \u00a0
69,370 \u00a0
-
-
69,370 \u00a0
Total \u00a0
1,638,696 \u00a0
962,801 \u00a0
675,895 \u00a0
340,984 \u00a0
234,357 \u00a0
100,554 \u00a0
(a) Financial\u00a0instruments at fair value \u00a0
The fair value is the amount for which a financial asset or a financial liability\u00a0can be exchanged\u00a0between knowledgeable,\u00a0willing parties. Fair value is \u00a0
measured on the basis of the following hierarchy: \u00a0
The fair value hierarchy \u00a0
\u2022
Quoted price\u00a0(level 1) consists of financial instruments\u00a0that are quoted in an active market.\u00a0The Group uses the price quoted in the principal market. \u00a0
\u2022
Valuation based\u00a0on observable input (level 2) consists of financial instruments\u00a0valued substantially\u00a0on the\u00a0basis of observable input other than a \u00a0
quoted price for the instrument\u00a0itself. If a financial instrument\u00a0is quoted\u00a0in a market\u00a0that is not active, the Group bases its measurement on the most \u00a0
recent transaction\u00a0price. Adjustment\u00a0is made for subsequent changes to market conditions,\u00a0for instance,\u00a0by including transactions\u00a0in similar \u00a0
financial instruments that are\u00a0assumed to be motivated by normal business considerations. For a\u00a0number of financial assets and liabilities,\u00a0no \u00a0
market exists. In such cases, the Group uses recent transactions\u00a0in similar instruments\u00a0and discounted cash flows or other generally accepted \u00a0
estimation and\u00a0valuation techniques\u00a0based on market conditions at the balance sheet date to calculate an estimated\u00a0value. This category covers \u00a0
instruments such\u00a0as derivatives\u00a0valued on\u00a0the basis of observable\u00a0yield curves and exchange rates and illiquid\u00a0mortgage bonds valued by reference \u00a0
to the value of similar\u00a0liquid bonds. \u00a0
\u2022
Valuation based on\u00a0significant non-observable input\u00a0(level 3): The valuation\u00a0of certain financial instruments\u00a0is based substantially\u00a0on non-observable \u00a0
input. Such\u00a0instruments include unlisted shares,\u00a0some unlisted bonds and a\u00a0limited portion of\u00a0the derivatives\u00a0portfolio (2%). \u00a0
If, at the balance sheet date, a financial instrument\u2019s classification differs\u00a0from its classification at the beginning of the year, the classification of the \u00a0
instrument changes.\u00a0Changes are\u00a0considered to have taken place at the balance sheet date. Developments\u00a0in the financial markets have resulted in \u00a0
reclassifications between\u00a0the categories. Some bonds have become illiquid and have therefore been\u00a0moved from\u00a0the Quoted\u00a0prices to\u00a0the Observable \u00a0
input category, while other bonds have instead become liquid and have been moved from the Observable input to the\u00a0Quoted prices category. \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
Valuation techniques \u00a0
The most frequently\u00a0used valuation\u00a0techniques include the pricing of transactions with future settlement and swap\u00a0models that apply present value \u00a0
calculations, credit\u00a0pricing models and options models, such as Black & Scholes models. As part of the Group\u2019s\u00a0control environment, valuation models are \u00a0
validated by\u00a0units that\u00a0are independent\u00a0of the business units\u00a0that develop\u00a0the models and trade in the products covered by\u00a0th e\u00a0models. Validation\u00a0is made \u00a0
to test the implementation,\u00a0quality and operating stability\u00a0of models\u00a0to ensure that the models can be used for pricing and risk management of financial \u00a0
products. \u00a0
Loans granted and bonds issued by Realkredit Danmark\u00a0are recognised at the fair value of the issued bonds (the quoted price in an active market). The \u00a0
Group adjusts\u00a0for changes to the fair value of the credit risk on borrowers\u00a0etc. The adjustment\u00a0is described further\u00a0in note\u00a0G16. \u00a0
The value of derivatives,\u00a0primarily long-term contracts, is determined on\u00a0observable yields extrapolated\u00a0to yield curves for the full duration of the contracts. \u00a0
Moreover, the very limited portfolio of\u00a0credit derivatives\u00a0is valued\u00a0on the basis of observable\u00a0input as\u00a0well as assumptions\u00a0about the probability\u00a0of default \u00a0
(recovery rate).\u00a0Unlisted shares\u00a0are measured at fair value in accordance with the International\u00a0Private Equity and Venture C\u00a0apital Valuation Guideline\u00a0s \u00a0
(IPEV) which are compliant with IFRS. IPEV guides the calculation of the estimated fair\u00a0value of\u00a0unlisted shares as the price\u00a0that would be received to sell \u00a0
an asset or paid to transfer a liability\u00a0in an orderly transaction between market participants\u00a0at the measurement\u00a0date. Valua\u00a0tion methods include \u00a0
discounted cash flow models and pricing based on a multiple\u00a0of earnings or equity. \u00a0
Fair value adjustments \u00a0
Management estimates underlie the\u00a0valuation of\u00a0financial instruments\u00a0for which the value is based on valuation\u00a0techniques. The Group makes fair value \u00a0
adjustments to\u00a0cover changes in counterparty\u00a0risk (CVA) on derivatives,\u00a0funding risk (FVA and ColVA),\u00a0bid-offer spreads on\u00a0the net\u00a0open position of \u00a0
portfolios with\u00a0offsetting market risk, and model risk on level 3 derivatives. \u00a0
Credit value\u00a0adjustment (CVA)\u00a0and funding value adjustment\u00a0(FVA and ColVA) \u00a0
The Group makes a\u00a0fair value adjustment to cover the counterparty credit risk on derivatives\u00a0with a positive fair value (CVA). For\u00a0a given counterparty\u2019 s \u00a0
portfolio of\u00a0derivatives, CVA\u00a0is calculated as\u00a0a function\u00a0of the probability\u00a0of default\u00a0(PD), the expected\u00a0positive exposure (EPE) and the loss given default in \u00a0
the event of bankruptcy\u00a0(LGD). The Group enters into derivatives\u00a0transactions mainly with counterparties\u00a0in the Scandinavian\u00a0market. \u00a0
The PDs used in the CVA model are derived\u00a0from single name liquid credit default swap (CDS). If this is not available,\u00a0the PDs are derived using proxy- \u00a0
mapping to a CDS index. For the calculation of EPE, the Group uses simulations\u00a0to estimate\u00a0the expected positive exposures to\u00a0the counterparty\u2019s portfolio \u00a0
over the term of\u00a0the derivatives.\u00a0The exposure model is\u00a0based fully on market-implied\u00a0data. For\u00a0the calculation\u00a0of LGD, the Group uses market compliant \u00a0
LGD. However, for customers classified in stage 3 in relation to the expected credit loss impairment, CVA is calculated\u00a0as if the\u00a0derivatives were\u00a0loans \u00a0
subject to\u00a0impairment because\u00a0of credit losses. \u00a0
A fair value adjustment\u00a0for derivatives\u00a0to cover expected funding costs (FVA\u00a0and ColVA) is calculated.\u00a0FVA primarily\u00a0arises from the cost or benefit of \u00a0
funding uncollateralised\u00a0derivatives. The adjustment is\u00a0a function\u00a0of the unsecured funding curve and expected future exposures. ColVA takes into account \u00a0
the funding cost and benefit on collateralised\u00a0derivatives. The ColVA adjustment is a function of expected collateral balance\u00a0s and cross-currency\u00a0basis \u00a0
and repo spreads. \u00a0
At the end of 2023, CVA, DVA,\u00a0FVA and ColVA came to a net amount of DKK\u00a0153 million (2022: DKK -94\u00a0million), including the adjustment for\u00a0credit risk \u00a0
on derivatives\u00a0in stage 3. \u00a0
Bid-offer spread \u00a0
For portfolios\u00a0of assets and liabilities\u00a0with offsetting market risk, the Group bases its measurement of the portfolios on mid-market prices and\u00a0makes fair \u00a0
value adjustments\u00a0to recognise net assets at the bid price and net liabilities\u00a0at the\u00a0offer price (exit prices). At the end of 2023, these fair value adjustmen\u00a0ts \u00a0
totalled DKK 138 million (2022: DKK 151 million). \u00a0
Model risk \u00a0
To account for the uncertainty\u00a0associated with measuring\u00a0the value of derivatives\u00a0on the basis of non-observable\u00a0input (level 3\u00a0in the fair value\u00a0hierarchy), \u00a0
the Group has established guidelines to quantify risk. The Group calculates and\u00a0monitors the reserve\u00a0on an ongoing basis. At the end of 2023, the reserve \u00a0
totalled DKK 1\u00a0million (2022: DKK 0\u00a0million). \u00a0
Accounting policy \u00a0
A related party to the Group\u00a0is either a party\u00a0over which the Group has control or significant influence or a party that has control or significant influence \u00a0
over the Group. All entities over which the Group has\u00a0control are\u00a0consolidated and\u00a0are therefore not considered a\u00a0related party to the Group. \u00a0
Entities that\u00a0are related\u00a0parties to the Group comprise shareholders that have a significant holding of shares (significant influence\u00a0over the Group), \u00a0
associates, joint venture partners or\u00a0defined benefit\u00a0pension plan providers (the Group has\u00a0significant influence over\u00a0the entity). Further, key \u00a0
management personnel, defined as\u00a0members of the Board of Directors\u00a0and the Executive\u00a0Leadership Team, are related parties to\u00a0the Group. \u00a0
Transactions with\u00a0related parties are settled on an arm\u2019s-length basis and recognised in the financial statements\u00a0according to the same accounting \u00a0
policy as\u00a0for similar\u00a0transactions with\u00a0unrelated parties. \u00a0
Accounting policy \u00a0
Joint ventures and associates are entities other than group undertakings in which the Group has holdings and joint\u00a0control with one\u00a0or more parties\u00a0or \u00a0
significant but not controlling\u00a0influence, respectively. The Group generally classifies entities as\u00a0joint ventures/associates if Danske Bank A/S, directly or \u00a0
indirectly, holds 20-50% of the share capital and has influence over management and operating policy decisions. Holdings in joint ventures and associates \u00a0
are recognised at cost at the\u00a0date of acquisition and are subsequently measured according to the equity method. The proportionate share of the net profit or \u00a0
loss of the individual\u00a0entity is\u00a0included under Income from holdings in associates. The share is calculated on the basis of data from financial statements with \u00a0
balance sheet\u00a0dates no earlier than three months before the Group\u2019s balance sheet date. If objective evidence of impairment exists, the investment is \u00a0
recognised at the\u00a0lower of carrying amount and the present value of future cash flows. \u00a0
The proportionate share of the profit or loss on transactions between associates/joint ventures and group undertakings\u00a0is eliminated. \u00a0
Ownership shares held by the Group\u2019s insurance business are treated as held by a venture capital organisation and are measured at fair value. \u00a0
Collateral \u00a0
The Group uses\u00a0a number\u00a0of measures to mitigate\u00a0credit risk, including\u00a0collateral, guarantees and\u00a0covenants. The main\u00a0method is\u00a0obtaining collateral. \u00a0
The value of collateral is monitored and reassessed by advisers, internal or external assessors, and automatic valuation mode ls to ensure it reflects current \u00a0
market prices. The Groups Collateral System supports this process by only accepting up-to-date values, thus ensuring that the Group complies with regulatory \u00a0
requirements. \u00a0
The validity of the internal and external inputs on which the valuation\u00a0models depend is assessed regularly and the performan ce of the models themselves is \u00a0
validated annually by\u00a0an independent unit, to assess their performance and highlight any deficiencies that need to be addressed. \u00a0
The market value of collateral is subject to a haircut to reflect the fact that the Group may not be able to obtain the estim ated market value upon the sale of \u00a0
the individual\u00a0asset in a distressed situation. Hence, the haircut includes a forced sale reduction, price volatility\u00a0during the sales period, realisation costs and \u00a0
maintenance costs. The haircut applied depends on the type of collateral. For regulatory purposes, the Group also applies mor e conservative haircuts in order \u00a0
to capture the risk of an economic downturn. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1586": {
"value": "G1. Basis of preparation \u00a0
(a) General \u00a0
Danske Bank\u00a0Group prepares its consolidated\u00a0financial statements in accordance with the IFRS Accounting\u00a0Standards (IFRSs)\u00a0and applicable \u00a0
interpretations (IFRIC)\u00a0issued by\u00a0the International\u00a0Accounting Standards Board\u00a0(IASB), as adopted by the EU. Furthermore,\u00a0the consolidated\u00a0financia l \u00a0
statements comply\u00a0with the Danish\u00a0FSA\u2019s Executive Order\u00a0No. 1306 dated 16 December 2008 on the use of IFRSs by undertakings\u00a0subject to the Danis\u00a0h \u00a0
Financial Business Act. \u00a0
On 1 January\u00a02023, the Group implemented IFRS 17,\u00a0and the amendments to\u00a0IAS 1, IAS 8 and IAS 12. Implementation\u00a0of IFRS 17 resulted\u00a0in a decrease \u00a0
of DKK\u00a00.7 billion in the Group\u2019s equity as\u00a0at the transition\u00a0date of 1 January 2022, and a net decrease of DKK 40\u00a0million in\u00a0the Group\u2019s equity as at 31 \u00a0
December 2022. \u00a0
As a result of IFRS 17 implementation,\u00a0the Group has changed the presentation\u00a0of the Income statement\u00a0to include material lin\u00a0e items as\u00a0required by \u00a0
IAS 1 and new sub-totals. \u00a0
In addition,\u00a0the Group has adopted\u00a0EU\u2019s carve out\u00a0to IAS 39 in 2023 to hedge the interest\u00a0rate risk on a portfolio\u00a0of non-maturing\u00a0core deposits at its \u00a0
subsidiary Northern Bank\u00a0Ltd. \u00a0
Further information on the changes to accounting policies\u00a0and presentation\u00a0in 2023 can be found in note G2. Except for these changes, the Group has \u00a0
not changed its material accounting policies from those applied in the Annual\u00a0Report 2022. \u00a0
For changes in the financial highlights and segment reporting, see note G3. \u00a0
Financial statement figures are\u00a0stated in\u00a0Danish kroner and whole millions, unless otherwise stated. As a\u00a0result, rounding discrepancies may occur \u00a0
because totals have been rounded off and the underlying\u00a0decimals are\u00a0not presented\u00a0to financial statement users. \u00a0
Monetary assets\u00a0and liabilities\u00a0in foreign currency are translated at the exchange rates at the balance sheet date. Exchange rate adjustments\u00a0of monetary \u00a0
assets and liabilities\u00a0arising as\u00a0a result of differences in the exchange rates at the transaction\u00a0date and at the balance sheet date are recognised in the \u00a0
income statement. Non-monetary assets and liabilities in foreign\u00a0currency that are subsequently\u00a0revalued at\u00a0fair value are translated at the exchange \u00a0
rates at the date of revaluation.\u00a0Exchange rate adjustments\u00a0are included\u00a0in the fair value\u00a0adjustment of an\u00a0asset or liability.\u00a0Other non-monetary items in \u00a0
foreign currency are translated at the exchange rates at the transaction\u00a0date. The accounting treatment of foreign\u00a0currency translation of\u00a0units outside \u00a0
Denmark is described in note G25. \u00a0
For the purpose\u00a0of clarity, the primary financial statements and the notes to the financial statements are prepared using the concepts of materiality\u00a0and \u00a0
relevance. This means that line items not considered material in terms of quantitative\u00a0and qualitative\u00a0measures or relevant to financial statement\u00a0users \u00a0
are aggregated and presented together with other items in the primary financial statements.\u00a0Similarly, information not considered material is not \u00a0
presented in\u00a0the notes. \u00a0
The material accounting policies are incorporated into the notes to which they relate. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1587": {
"value": "(a) General \u00a0
Danske Bank\u00a0Group prepares its consolidated\u00a0financial statements in accordance with the IFRS Accounting\u00a0Standards (IFRSs)\u00a0and applicable \u00a0
interpretations (IFRIC)\u00a0issued by\u00a0the International\u00a0Accounting Standards Board\u00a0(IASB), as adopted by the EU. Furthermore,\u00a0the consolidated\u00a0financia l \u00a0
statements comply\u00a0with the Danish\u00a0FSA\u2019s Executive Order\u00a0No. 1306 dated 16 December 2008 on the use of IFRSs by undertakings\u00a0subject to the Danis\u00a0h \u00a0
Financial Business Act. \u00a0
",
"dimensions": {
"concept": "ifrs-full:StatementOfIFRSCompliance",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1588": {
"value": "On 1 January\u00a02023, the Group implemented IFRS 17,\u00a0and the amendments to\u00a0IAS 1, IAS 8 and IAS 12. Implementation\u00a0of IFRS 17 resulted\u00a0in a decrease \u00a0
of DKK\u00a00.7 billion in the Group\u2019s equity as\u00a0at the transition\u00a0date of 1 January 2022, and a net decrease of DKK 40\u00a0million in\u00a0the Group\u2019s equity as at 31 \u00a0
December 2022. \u00a0
G2. Changes and forthcoming changes to accounting policies and presentation \u00a0
(a) Changes\u00a0to material accounting policies and presentation during\u00a0the year \u00a0
On 1 January\u00a02023, the Group implemented\u00a0a new standard, IFRS 17, and the amendments\u00a0to IAS 1, IAS 8\u00a0and IAS 12. \u00a0
As a result of IFRS 17 implementation,\u00a0the Group has changed the presentation\u00a0of the Income statement\u00a0to include material lin\u00a0e items as\u00a0required by \u00a0
IAS 1. At the same time, sub-totals\u00a0for Net fee income, Net insurance\u00a0result, Total other income and Total income have been included in\u00a0the Income \u00a0
statement. \u00a0
The subsidiary Northern Bank Ltd. has a portfolio\u00a0of non-maturing\u00a0core deposits where the interest rate risk is most efficiently hedged by using \u00a0
derivatives. To\u00a0avoid accounting mismatch between deposits at amortised cost and hedging derivatives\u00a0at fair\u00a0va lue, hedge accounting after EU\u2019s carve \u00a0
out to IAS 39 has been applied on this portfolio in the local reporting\u00a0for Northern Bank Ltd. To hedge the interest rate ris\u00a0k on this portfolio at group level \u00a0
and to simplify the group financial reporting process,\u00a0Danske Bank Group has\u00a0adopted EU\u2019s carve out to IAS 39 in 2023. Hedging of Northern Bank Ltd. \u00a0
core deposits at group level has only taken\u00a0place with prospective effect. The adoption of EU\u2019s carve out to IAS 39 has reduc\u00a0ed net profit for 2023 by \u00a0
DKK 1\u00a0million. \u00a0
The sections below explain in further details the changes to accounting policies. \u00a0
IFRS 17, Insurance contracts \u00a0
On 1 January 2023, the Group implemented\u00a0IFRS 17, Insurance Contracts.\u00a0IFRS 17 replaces IFRS 4, which was a provisional\u00a0accounting standard that \u00a0
did not explain the measurement of\u00a0insurance contracts but was based on pre-existing accounting\u00a0policies. IFRS 17 is a comprehensive\u00a0standard \u00a0
containing the principles for\u00a0recognition and measurement and presentation of\u00a0insurance contracts in the financial statements\u00a0. Disclosures required by \u00a0
IFRS 17 are in notes G7 and G18. \u00a0
The key impacts\u00a0of the implementation\u00a0of IFRS 17 are: \u00a0
\u2022
Life insurance products and Health and Accident products have been disaggregated, as they are subject to different risks and therefore cannot \u00a0
be grouped\u00a0together under IFRS 17. This resulted in\u00a0a decrease of DKK 1.4 billion in the Group\u2019s equity as at 1 January 2022\u00a0. \u00a0
\u2022
Premiums are no longer recognised in profit or loss at their due dates. Instead,\u00a0insurance revenue\u00a0comprises the expected claims and \u00a0
insurance service expenses in the period, the release of the risk adjustment\u00a0and the contractual service margin (C\u00a0SM), which\u00a0is recognised as \u00a0
services are provided over the expected coverage period of the group of insurance contracts. \u00a0
\u2022
Benefits are\u00a0no longer recognised in profit or loss when paid. Instead, insurance service expenses are recognised when incurr\u00a0ed, comprising \u00a0
incurred claims\u00a0and other\u00a0incurred insurance expenses. \u00a0
\u2022
Changes in\u00a0insurance obligations during the\u00a0year due to additional provisions for benefit guarantees and the tax on pension r\u00a0eturns are no \u00a0
longer under Net trading income or loss. \u00a0
\u2022
The return on\u00a0assets earmarked for\u00a0insurance contracts is\u00a0no longer carried under Net interest income and Net trading income\u00a0or loss. This \u00a0
is now presented\u00a0as Net return on investments\u00a0backing insurance liabilities. \u00a0
\u2022
The Group has simplified its reporting of Danica, and now reports the majority of Danica\u2019s assets and liabilities\u00a0under Asset\u00a0s under insurance \u00a0
contracts and Liabilities under\u00a0insurance contracts respectively in\u00a0the Balance sheet. Previously,\u00a0an allocation\u00a0of Danica\u2019s assets and liabilitie\u00a0s \u00a0
(equating to\u00a0Danica\u2019s equity) were\u00a0consolidated on\u00a0a line-by-line basis in the Balance sheet. \u00a0
\u2022
The presentation\u00a0of the IFRS Income\u00a0statement has\u00a0been changed: the line items Net\u00a0premiums and\u00a0Net insurance benefits\u00a0are removed, and \u00a0
new lines in relation to insurance are added: Insurance service result and other insurance income, Net return on investments\u00a0backing \u00a0
insurance liabilities\u00a0and Net finance income or expense from insurance.\u00a0The IFRS Income statement has thus been restated for\u00a02022. The \u00a0
restated IFRS\u00a0Income statement for\u00a02022 has been amended from that published in Interim report \u2013 first nine months 2023. \u00a0
The fair value approach has been applied on\u00a0transition to\u00a0IFRS 17, since the full retrospective\u00a0approach is\u00a0impracticable to\u00a0apply due to\u00a0relevant data \u00a0
not being available or high resource consumption. \u00a0
In addition,\u00a0the following changes have been\u00a0made to accounting policies as a\u00a0result of IFRS 17 implementation: \u00a0
\u2022
When, and only when, the Group reacquires its own equity instruments (i.e. own\u00a0shares) to be included in investment\u00a0funds tha\u00a0t provide\u00a0s \u00a0
investors with\u00a0benefits determined by\u00a0units in\u00a0the fund, and for which financial\u00a0liabilities are\u00a0recognised for the amou\u00a0nts to be paid to those \u00a0
investors, IAS 32\u00a0has been amended with an optional election not to deduct these shares from equity,\u00a0and account for them as financial assets \u00a0
held at fair\u00a0value through profit or loss. The Group has applied this election to its own shares in Pooled schemes and Unit-linked\u00a0investme nt \u00a0
contracts which\u00a0meet the\u00a0IAS 32\u00a0election criteria. The same\u00a0election applies to the Group\u2019s own shares that are included as u\u00a0nderlying items \u00a0
of direct participation\u00a0contracts (Assets under insurance contracts). \u00a0
\u2022
When, and only when the Group repurchases its own financial liabilities\u00a0to be included in investment\u00a0funds that provides investors\u00a0with benefits \u00a0
determined by\u00a0units in\u00a0the fund, and for which financial liabilities\u00a0are recognised for the amounts\u00a0to be paid to those inves\u00a0tors, or includes the \u00a0
own financial\u00a0liabilities as\u00a0underlying items of\u00a0direct participating\u00a0contracts, IFRS 9 has been amended with an optional ele\u00a0ction to\u00a0not \u00a0
derecognise the financial liabilities,\u00a0and to account for the repurchased instrume\u00a0nts as\u00a0financial assets\u00a0held at fair value through profit\u00a0or loss. \u00a0
The Group has\u00a0applied this election to own\u00a0bonds in Assets under insurance contracts which meet the IFRS 9\u00a0election criteria. \u00a0
The impact of the changes in IAS 32 and IFRS 9 accounting\u00a0policies resulted in an increase of DKK 0.7 billion\u00a0in the Group\u2019s\u00a0equity and the\u00a0Group\u2019s assets \u00a0
as at 1 January 2022. \u00a0
At the transition\u00a0date of 1 January\u00a02022, the Group: \u00a0
\u2022
Identified, recognised and measured each group of insurance contracts and reinsurance contracts according to\u00a0IFRS 17 \u00a0
\u2022
Derecognised previously reported\u00a0balances that would not have existed if IFRS 17 had always been applied \u00a0
\u2022
Reclassified Danica\u2019s assets and liabilities\u00a0to Assets under insurance contracts and Liabilities\u00a0under insurance contracts re\u00a0spectively where \u00a0
relevant \u00a0
\u2022
Recognised own shares and own bonds as assets that were underlying\u00a0items of direct participating\u00a0contracts at\u00a0fair value \u00a0
\u2022
Recognised own shares that were reacquired to be held in investment\u00a0funds on behalf of customers \u00a0
\u2022
Recognised the resulting net differences in equity. \u00a0
The DKK\u00a01.4 billion decrease in the Group\u2019s equity from IFRS 17 implementation\u00a0and DKK 0.7 billion increase from the IAS 32 a\u00a0nd IFRS 9 accounting \u00a0
policy changes result in a net decrease in equity of DKK 0.7 billion as at\u00a01 January 2022, which is presented in the Statement\u00a0of changes in equity.\u00a0The \u00a0
impact of these changes increases the Group\u2019s 2022 result by DKK 0.5 billion.\u00a0The impact\u00a0on the\u00a0Group\u2019s equity as\u00a0at 31 Decem\u00a0ber 2022 is\u00a0a net \u00a0
decrease of DKK 40 million,\u00a0as result\u00a0of the increase in the Group\u2019s 2022 result and the direct impact on equity from the change in treatment\u00a0of own \u00a0
shares. \u00a0
Ratios for regulatory requirements in 2022 have not been restated as a result of the changes described above. The overall imp\u00a0act on equity at 31 \u00a0
December 2022 of\u00a0DKK 40 million is\u00a0immaterial, and\u00a0therefore the Group\u2019s total capital and capital ratios for\u00a02 022 will not be revised nor resubmitte\u00a0d \u00a0
to regulators, and remains as published in the Annual Report 2022. \u00a0
The table below shows the impact on the 2022 IFRS Income statement of IFRS 17 implementation, the\u00a0change in treatment\u00a0of the Group\u2019s\u00a0own shares, \u00a0
and the change in treatment\u00a0of the Group\u2019s own bonds. \u00a0
Adjustments \u00a0
IAS 32 \u2013 own \u00a0
IFRS 9 \u2013 own \u00a0
Restated \u00a0
(DKK millions) \u00a0
2022 \u00a0
IFRS 17 \u00a0
shares \u00a0
bonds \u00a0
2022 \u00a0
Interest income calculated using the effective interest method \u00a0
31,697 \u00a0
-
-
-
31,697 \u00a0
Other interest income \u00a0
47,570 \u00a0
-29,957 \u00a0
-
675 \u00a0
18,288 \u00a0
Interest expense \u00a0
51,241 \u00a0
-27,282 \u00a0
-
675 \u00a0
24,634 \u00a0
Net interest income from banking activities \u00a0
28,026 \u00a0
-2,675 \u00a0
-
-
25,351 \u00a0
Fee income \u00a0
17,305 \u00a0
-
-
-
17,305 \u00a0
Fee expenses \u00a0
5,993 \u00a0
-1,169 \u00a0
-
-
4,824 \u00a0
Net fee income \u00a0
11,312 \u00a0
1,169 \u00a0
-
-
12,481 \u00a0
Net trading income or loss \u00a0
-32,983 \u00a0
34,379 \u00a0
185 \u00a0
-
1,581 \u00a0
Insurance revenue \u00a0
-
5,126 \u00a0
-
-
5,126 \u00a0
Insurance service expenses \u00a0
-
3,604 \u00a0
-
-
3,604 \u00a0
Net return on investments backing insurance liabilities \u00a0
-
-60,302 \u00a0
-
-
-60,302 \u00a0
Net finance income or expense from insurance \u00a0
-
58,624 \u00a0
-
-
58,624 \u00a0
Other insurance related income \u00a0
-
21 \u00a0
-
-
21 \u00a0
Net insurance result \u00a0
-
-135 \u00a0
-
-
-135 \u00a0
Gain or loss on sale of disposal groups \u00a0
1,420 \u00a0
-
-
-
1,420 \u00a0
Other income \u00a0
5,476 \u00a0
-691 \u00a0
-
-
4,785 \u00a0
Total other income \u00a0
6,897 \u00a0
-691 \u00a0
-
-
6,206 \u00a0
Net premiums \u00a0
35,394 \u00a0
-35,394 \u00a0
-
-
-
Net insurance benefits \u00a0
2,750 \u00a0
-2,750 \u00a0
-
-
-
Total income \u00a0
45,896 \u00a0
-596 \u00a0
185 \u00a0
-
45,484 \u00a0
Operating expenses \u00a0
31,250 \u00a0
-998 \u00a0
-
-
30,252 \u00a0
Provision for Estonia matter \u00a0
13,800 \u00a0
-
-
-
13,800 \u00a0
Impairment charges on goodwill \u00a0
1,627 \u00a0
-
-
-
1,627 \u00a0
Profit before loan impairment charges \u00a0
-781 \u00a0
401 \u00a0
185 \u00a0
-
-195 \u00a0
Loan impairment charges \u00a0
1,502 \u00a0
-
-
-
1,502 \u00a0
Profit before tax \u00a0
-2,284 \u00a0
401 \u00a0
185 \u00a0
-
-1,697 \u00a0
Tax \u00a0
2,784 \u00a0
99 \u00a0
-
-
2,883 \u00a0
Net profit \u00a0
-5,067 \u00a0
303 \u00a0
185 \u00a0
-
-4,580 \u00a0
Portion attributable to \u00a0
Shareholders of Danske Bank A/S (the Parent Company) \u00a0
-5,154 \u00a0
303 \u00a0
185 \u00a0
-
-4,666 \u00a0
Additional Tier 1 capital holders \u00a0
86 \u00a0
-
-
-
86 \u00a0
Net profit \u00a0
-5,068 \u00a0
303 \u00a0
185 \u00a0
-
-4,580 \u00a0
Earnings per share (DKK) \u00a0
-6.1 \u00a0
-5.4 \u00a0
Diluted earnings per share (DKK) \u00a0
-6.0 \u00a0
-5.4 \u00a0
Dividend per share (DKK) \u00a0
-
-
G2. Changes and forthcoming changes to accounting policies and presentation\u00a0continued \u00a0
The table below shows\u00a0a reconciliation\u00a0of the Group\u2019s\u00a0balances between 31\u00a0December 2021 and 1 January 2022, showing the impac\u00a0t of IFRS 17 \u00a0
(including the reclassification of Danica\u2019s assets and liabilities),\u00a0the change in treatment of the Group\u2019s own shares, and the change in tr\u00a0eatment of\u00a0the \u00a0
Group\u2019s own bonds. \u00a0
Effect of changes in accounting policy\u00a0as at 1 January\u00a02022 \u00a0
Remeasurements \u00a0
31 December \u00a0
IAS 32 \u2013 \u00a0
IFRS 9 \u2013 \u00a0
1 January \u00a0
(DKK millions) \u00a0
2021 \u00a0
IFRS 17\u00a0own shares\u00a0own bonds \u00a0
2022 \u00a0
Assets \u00a0
Cash in hand and demand deposits with central banks \u00a0
293,386 \u00a0
-
-
-
293,386 \u00a0
Due from credit institutions\u00a0and central banks \u00a0
71,156 \u00a0
-7 \u00a0
-
-
71,149 \u00a0
Trading portfolio assets \u00a0
509,590 \u00a0
-164 \u00a0
-
-
509,426 \u00a0
Investment securities \u00a0
303,777 \u00a0
-22,835 \u00a0
-
-
280,942 \u00a0
Loans at amortised cost \u00a0
1,027,442 \u00a0
-
-
-
1,027,442 \u00a0
Loans at fair value \u00a0
1,024,461 \u00a0
-
-
-
1,024,461 \u00a0
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
76,654 \u00a0
-
151 \u00a0
-
76,805 \u00a0
Assets under insurance contracts \u00a0
547,806 \u00a0
29,731 \u00a0
507 \u00a0
44,590 \u00a0
622,634 \u00a0
Assets held for sale \u00a0
28,800 \u00a0
-
-
-
28,800 \u00a0
Intangible assets \u00a0
8,819 \u00a0
-2,628 \u00a0
-
-
6,191 \u00a0
Tax assets \u00a0
4,510 \u00a0
-
-
-
4,510 \u00a0
Other assets \u00a0
39,433 \u00a0
-4,097 \u00a0
-
-
35,336 \u00a0
Total assets \u00a0
3,935,834 \u00a0
-
658 \u00a0
44,590 3,981,082 \u00a0
Liabilities \u00a0
Due to credit institutions and central banks \u00a0
172,976 \u00a0
-
-
-
172,976 \u00a0
Trading portfolio liabilities \u00a0
374,959 \u00a0
-
-
-
374,959 \u00a0
Deposits \u00a0
1,292,030 \u00a0
-
-
-
1,292,030 \u00a0
Issued bonds at fair value \u00a0
794,909 \u00a0
-
-
44,426 \u00a0
839,335 \u00a0
Issued bonds at amortised cost \u00a0
223,854 \u00a0
-
-
-
223,854 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
76,982 \u00a0
-
-
-
76,982 \u00a0
Liabilities under insurance contracts \u00a0
588,736 \u00a0
2,247 \u00a0
-
-
590,983 \u00a0
Liabilities in disposal\u00a0groups held for sale \u00a0
29,577 \u00a0
-
-
-
29,577 \u00a0
Tax liabilities \u00a0
1,864 \u00a0
-460 \u00a0
-
-
1,404 \u00a0
Other liabilities \u00a0
56,268 \u00a0
-422 \u00a0
-
164 \u00a0
56,010 \u00a0
Non-preferred senior bonds \u00a0
107,654 \u00a0
-
-
-
107,654 \u00a0
Subordinated debt \u00a0
39,321 \u00a0
-
-
-
39,321 \u00a0
Total liabilities \u00a0
3,759,130 \u00a0
1,365 \u00a0
-
44,590 3,805,085 \u00a0
Equity \u00a0
Share capital \u00a0
8,622 \u00a0
-
-
-
8,622 \u00a0
Foreign currency translation reserve \u00a0
-612 \u00a0
-
-
-
-612 \u00a0
Reserve for bonds at fair value (OCI) \u00a0
34 \u00a0
-
-
-
34 \u00a0
Retained earnings \u00a0
161,439 \u00a0
-1,365 \u00a0
658 \u00a0
-
160,732 \u00a0
Proposed dividends \u00a0
1,724 \u00a0
-
-
-
1,724 \u00a0
Shareholders of Danske Bank A/S (the Parent Company) \u00a0
171,207 \u00a0
-1,365 \u00a0
658 \u00a0
-
170,500 \u00a0
Additional tier\u00a01 capital\u00a0holders \u00a0
5,497 \u00a0
-
-
-
5,497 \u00a0
Non-controlling interests \u00a0
-
-
-
-
-
Total equity \u00a0
176,704 \u00a0
-1,365 \u00a0
658 \u00a0
-
175,997 \u00a0
Total liabilities\u00a0and equity \u00a0
3,935,834 \u00a0
-
658 \u00a0
44,590 3,981,082 \u00a0
Amendment to\u00a0IAS 1, Presentation\u00a0of financial\u00a0statements \u00a0
The amendment to IAS 1 requires disclosure of material accounting policy information, rather than significant accounting poli\u00a0cies. Accounting \u00a0
policy information is considered to be material if users of the financial statements\u00a0need it to understand other material inf\u00a0ormation in the financial \u00a0
statements. If\u00a0immaterial accounting policy\u00a0information is\u00a0disclosed, it\u00a0should not obscure material acco\u00a0unting policy\u00a0information. \u00a0
The amendment has no\u00a0impact on\u00a0the financial statements. \u00a0
Amendment to\u00a0IAS 8, Accounting\u00a0policies, changes in\u00a0accounting estimates and\u00a0errors \u00a0
The amendment introduces a definition of accounting estimates \u2013 monetary amounts in\u00a0financial statements\u00a0that are subject to measurement uncertainty \u00a0
\u2013 and clarifies\u00a0that a change in accounting\u00a0estimate that\u00a0results from\u00a0new information or\u00a0new developments\u00a0is not the correctio n\u00a0of an error. Similarly, \u00a0
the effects of a change in an input or a measurement technique used to develop an accounting estimate are changes in accounti\u00a0ng estimates if they do \u00a0
not result from the correction of prior period errors. \u00a0
The amendment has no\u00a0impact on\u00a0the financial statements. \u00a0
Amendment to\u00a0IAS 12,\u00a0Income taxes \u00a0
The first amendment to IAS 12 clarifies how entities\u00a0should account for deferred tax on assets and liabilities\u00a0arising from a\u00a0single transaction such as \u00a0
Leases liabilities\u00a0and right-of-use assets or decommissioning obligations\u00a0and property,\u00a0plant and\u00a0equipment. \u00a0
The main change is that the initial recognition exemption\u00a0in IAS\u00a012 does not apply to transactions\u00a0in which equal amounts of\u00a0deductible and taxable \u00a0
temporary differences arise on\u00a0initial recognition.\u00a0This amendment has\u00a0no impact on\u00a0the financial statements. \u00a0
The second amendment introduces an\u00a0exception to the requirement of IAS 12 that an entity does not recognise and does not disc\u00a0lose information about \u00a0
deferred tax assets and liabilities\u00a0related to the OECD\u00a0Pillar Two income taxes. Pillar Two legislation\u00a0has been enacted\u00a0or substantively\u00a0enacted in most \u00a0
jurisdictions where\u00a0Danske Bank\u00a0Group operates.\u00a0The legislation\u00a0will be\u00a0effective for the Group\u2019s financial year beginning 1 January 2024. The Danske \u00a0
Bank Group\u00a0is in scope of the enacted\u00a0or substantively\u00a0enacted legislation and has performed an assessment of the potential\u00a0exposure to Pillar Two \u00a0
income taxes. No material exposure to Pillar Two income taxes affecting the income statement\u00a0for Danske\u00a0Bank Group are expect\u00a0ed. See note G21 for \u00a0
more detail. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1589": {
"value": "Financial statement figures are\u00a0stated in\u00a0Danish kroner and whole millions, unless otherwise stated. As a\u00a0result, rounding discrepancies may occur \u00a0
because totals have been rounded off and the underlying\u00a0decimals are\u00a0not presented\u00a0to financial statement users. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1590": {
"value": "Monetary assets\u00a0and liabilities\u00a0in foreign currency are translated at the exchange rates at the balance sheet date. Exchange rate adjustments\u00a0of monetary \u00a0
assets and liabilities\u00a0arising as\u00a0a result of differences in the exchange rates at the transaction\u00a0date and at the balance sheet date are recognised in the \u00a0
income statement. Non-monetary assets and liabilities in foreign\u00a0currency that are subsequently\u00a0revalued at\u00a0fair value are translated at the exchange \u00a0
rates at the date of revaluation.\u00a0Exchange rate adjustments\u00a0are included\u00a0in the fair value\u00a0adjustment of an\u00a0asset or liability.\u00a0Other non-monetary items in \u00a0
foreign currency are translated at the exchange rates at the transaction\u00a0date. The accounting treatment of foreign\u00a0currency translation of\u00a0units outside \u00a0
Denmark is described in note G25. \u00a0
Foreign currency translation\u00a0reserve \u00a0
Assets and liabilities\u00a0of units outside\u00a0Denmark are\u00a0translated into\u00a0DKK at the applicable\u00a0exchange rates at\u00a0the balance sheet date. Income and expenses \u00a0
are translated\u00a0at the applicable\u00a0exchange rates at the transaction date. Gains and losses arising at the translation\u00a0of net investments\u00a0in units outside \u00a0
Denmark are recognised under Other comprehensive\u00a0income and recognised in the foreign currency translation reserve in\u00a0equity. Net\u00a0investments \u00a0
include the net\u00a0assets and goodwill of\u00a0the units as well as holdings in the form of\u00a0subordinated loan\u00a0capital and other loans to the units\u00a0for which\u00a0settlement \u00a0
is neither planned nor likely to occur in the foreseeable future. Exchange rate adjustments\u00a0of financial\u00a0liabilities used\u00a0for hedging the Group\u2019s net \u00a0
investments are\u00a0also recognised under Other comprehensive\u00a0income and in the foreign currency translation\u00a0reserve. Further information\u00a0can be found \u00a0
in Note G12(d). \u00a0
If the net investment\u00a0in \u00a0
a
unit outside Denmark is sold, translation\u00a0differences, including\u00a0the impact from hedge,\u00a0are reclassified from Other \u00a0
comprehensive income to\u00a0the income statement. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1592": {
"value": "(b) Significant\u00a0accounting estimates and judgements \u00a0
The preparation of financial information requires, in some cases,\u00a0the use of judgements\u00a0and estimates\u00a0by management.\u00a0This includes judgements made \u00a0
when applying\u00a0accounting policies.\u00a0The most significant\u00a0judgements made when\u00a0applying accounting policies relate\u00a0to the classification\u00a0of financial assets \u00a0
and financial liabilities\u00a0under IFRS 9,\u00a0especially related to the business model assessment, and the solely payments of\u00a0principal and interest (SPPI) test \u00a0
(further explained\u00a0in note\u00a0G15) and the designation\u00a0of financial\u00a0liabilities at\u00a0fair value through profit or loss to eliminate or significantly\u00a0reduce an \u00a0
accounting mismatch (further\u00a0explained in\u00a0note G16). An overview\u00a0of the classification\u00a0and measurement\u00a0basis for financial instruments\u00a0can be found in \u00a0
section (c) of this\u00a0note. \u00a0
Further, the determination\u00a0of the carrying amounts\u00a0of some assets and liabilities\u00a0requires the estimation of the effects of uncertain future events\u00a0on \u00a0
those assets and liabilities.\u00a0The estimates are based on premises that management\u00a0finds reasonable but which are inherently uncertain and \u00a0
unpredictable. The\u00a0premises may\u00a0be incomplete,\u00a0unexpected future events or situations may occur,\u00a0and other parties may arrive at other estimate\u00a0d \u00a0
values. In\u00a0view of the inherent uncertainties\u00a0and the high level of subjectivity\u00a0and judgement\u00a0involved in\u00a0the recognition and measurement of the items \u00a0
listed below,\u00a0it is possible that the outcomes in the next financial year could differ from those on which management\u2019s estimates are based. \u00a0
Measurement of\u00a0expected credit\u00a0losses on\u00a0loans, financial guarantees\u00a0and loan commitments,\u00a0and bonds\u00a0measured at amortised\u00a0cost or fair\u00a0value \u00a0
through other comprehensive income \u00a0
The three-stage expected credit loss impairment model in IFRS 9\u00a0depends on whether the credit risk has increased significantly\u00a0since initial recognition. \u00a0
If the credit risk has not increased significantly,\u00a0the impairment charge equals the expected credit losses resulting from default events that are possible \u00a0
within the\u00a0next 12 months (stage 1). If the credit risk has increased significantly,\u00a0the loan is more than 30 days past due, or the loan is in default or \u00a0
otherwise impaired, the\u00a0impairment charge equals the\u00a0lifetime expected credit losses (stages 2 and 3). In determining\u00a0the impairment for\u00a0expected credit \u00a0
losses, management exercises judgement and uses estimates and assumptions as\u00a0explained below. \u00a0
G1. Basis of preparation continued \u00a0
(b) Significant\u00a0accounting estimates and judgements \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as\u00a0a function of probability\u00a0of default (PD), exposure\u00a0a t default (EAD)\u00a0and loss given default \u00a0
(LGD) and incorporates forward-looking information. The estimation\u00a0of expected credit losses involves\u00a0forecasting future economic conditions over a \u00a0
number of\u00a0years. Such forecasts are subject to management\u00a0judgement and those judgements may be sources of measurement uncert\u00a0ainty that have \u00a0
significant risk of resulting in a material adjustment\u00a0to a carrying amount\u00a0in future periods.\u00a0The incorporation of\u00a0forward-looking elements reflects\u00a0the \u00a0
expectations of\u00a0the Group\u2019s senior management and involves the creation of scenarios (base case, upside and downside), includ\u00a0ing an\u00a0assessment of the \u00a0
probability for\u00a0each scenario.\u00a0The purpose of using multiple scenarios is to model the non-linear impact of assumptions\u00a0about macroeconomic factors on \u00a0
the expected credit losses. \u00a0
The base case scenario enters with a probability\u00a0of 60% (2022: 70%), the upside scenario with a probability of 20% (2022: 10%) and the downside \u00a0
scenario with a\u00a0probability of 20%\u00a0(2022: 20%). On the basis of these assessments, the allowance account at the end of 2023 amounted to DKK 20.1 \u00a0
billion (2022:\u00a0DKK 19.6 billion). If the base case scenario was\u00a0assigned a probability\u00a0of 100%,\u00a0the allowance account would decrease DKK\u00a02.0 billio\u00a0n \u00a0
(2022: 2.1 billion).\u00a0Compared to the base case scenario, the allowance account would increase DKK 10.2 billion (2022: DKK 10.9 billion),\u00a0if the downside \u00a0
scenario was assigned a probability\u00a0of 100%. The increase reflects primarily\u00a0the transfer of exposures from stage 1 to stage 2 an\u00a0d increased expected \u00a0
credit losses within stage 2. If instead the upside scenario was assigned a probability\u00a0of 100%, the allowance account would decrease DKK 0.2 billio\u00a0n \u00a0
(2022: DKK 0.4 billion)\u00a0compared to the base case scenario. \u00a0
In determining\u00a0the expected credit losses, management is required to exercise judgement in defining what is considered a\u00a0sign ificant\u00a0increase in credit \u00a0
risk. According to the Group\u2019s definition of a significant increase in credit risk, i.e. when a loan is transferred from stage 1 to stage 2, facilities with an \u00a0
initial PD\u00a0below 1% are transferred to stage 2 if the facility\u2019s 12-month PD has\u00a0increased by\u00a0at least 0.5 of a percentage point and the facility\u2019s\u00a0lifetim e \u00a0
PD has doubled since origination. The allowance account is\u00a0relatively stable in\u00a0terms of changes to the definition\u00a0of significant\u00a0increase in credit risk. At \u00a0
the end of 2023, the allowance account would increase by DKK 0.3 billion (2022: DKK 0.3 billion), if instead an increase in the facility\u2019s 12-month PD by \u00a0
at least 0.25 of a percentage\u00a0point combined\u00a0with a doubling\u00a0of the lifetime\u00a0PD was considered a significant increase\u00a0in cred it\u00a0risk. \u00a0
Management applies judgement when\u00a0determining the need for post-model adjustments.\u00a0At the end of 2023, the post-model adjustments\u00a0amounted to \u00a0
DKK 6.7\u00a0billion (2022: DKK 6.6 billion). They mainly cover the increasing macroeconomic risk due to the\u00a0uncertainty related to\u00a0the elevated inflation and \u00a0
severity of\u00a0an economic downturn as well as the global tension uncertainty.\u00a0See further in the separate sections\u00a0below. Further information on the types \u00a0
of risks\u00a0covered by\u00a0post-model adjustments\u00a0and the allocation\u00a0of post-model adjustments\u00a0to the underlying\u00a0exposures can be found in the section \u00a0
Forward-looking information in\u00a0note G40. \u00a0
Loan impairment charges for 2023 amounted to DKK 262 million (2022: DKK 1,502 million).\u00a0Low impairments\u00a0were driven by robust credit quality \u00a0
driven by successful restructurings within oil and\u00a0offshore and post-pandemic recoveries. \u00a0
The applied macroeconomic scenarios in 2023 differ from those used at 31 December\u00a02022. The downside scenario continues to capture the severe \u00a0
recession scenario with high interest rates (reflecting a stagflation scenario)\u00a0applied in the Group\u2019s Internal Capital Adequacy Assessment Process 8 \u00a0
(ICAAP) processes and\u00a0is similar in nature to\u00a0regulatory stress tests. The severe recession scenario reflects negative growth\u00a0, increasing interest rates, \u00a0
and falling\u00a0property prices\u00a0for a longer\u00a0period. The use of the downside scenario has been made to better capture the increasing risk from\u00a0high interes\u00a0t \u00a0
rates and high inflation,\u00a0and in order for the ECL calculation\u00a0to include potential\u00a0downside risks due to the elevated asset prices across the Nordics. \u00a0
Except as\u00a0described above, all other policies and principles remain in place. Staging criteria are unchanged, including the 3\u00a00 days past due criteria and \u00a0
PD-based criteria for\u00a0transfer to stage 2. \u00a0
Sustainability risk \u00a0
The Group may be exposed to sustainability\u00a0risk as a result of current or future environmental,\u00a0social and governance\u00a0(ESG) events or conditions,\u00a0and are \u00a0
considered external factors that can\u00a0impact existing risks. Sustainability\u00a0risk is therefore considered a cross\u00a0-cutting driver of existing risks as outline\u00a0d \u00a0
in the Group\u2019s risk taxonomy,\u00a0which can further exacerbate\u00a0the risks the Group is already facing. \u00a0
G1. Basis of preparation continued \u00a0
(b) Significant\u00a0accounting estimates and judgements \u00a0
Sustainability risk\u00a0continued \u00a0
Credit risk is deemed to be the risk type most materially\u00a0affected by\u00a0sustainability drivers\u00a0in the long term, of which clima\u00a0te risk is currently the most \u00a0
urgent of\u00a0all ESG-related drivers capable\u00a0of affecting the Group\u2019s credit risk. From a financial\u00a0significance perspective, climate-related risks have\u00a0been \u00a0
deemed most\u00a0relevant for\u00a0the Group\u2019s lending activities. Climate risk pertains to transition\u00a0risks, which are the risks assoc\u00a0iated with shifting to a low- \u00a0
carbon economy,\u00a0and to physical risks arising from\u00a0projected climate changes,\u00a0including both\u00a0long-term shifts (chronic changes) and event-driven\u00a0changes \u00a0
(acute changes) to weather patterns.\u00a0Credit risk will be affected by both\u00a0of these climate\u00a0-related risks in the medium and long term, and\u00a0efforts are being \u00a0
made to obtain improved climate data to refine the long\u00a0- term view of climate\u00a0risk across sectors. \u00a0
The Group takes a risk-based approach in prioritising\u00a0risk management\u00a0efforts for credit portfolios that are likely to be most exposed to transition\u00a0and \u00a0
physical risks. For that purpose, the Group applies a mix of qualitative\u00a0and quantitative\u00a0input to define the credit exposures most exposed to transition \u00a0
and physical risks. \u00a0
High transition-risk\u00a0exposures are identified\u00a0using a mix of insights, including financed emissions estimates, findings from conducting clima\u00a0te scenario \u00a0
analysis as\u00a0well as qualitative\u00a0judgment to account for, e.g., credible transition\u00a0plans, potential\u00a0future technology\u00a0and demand risks to a given sector. Most \u00a0
of the emissions\u00a0are attributable\u00a0to only a few sectors, e.g., Shipping,\u00a0Oil and Gas, which the Group actively monitors and m\u00a0anages. From the initia\u00a0l \u00a0
assessment of customers subject to high transition\u00a0risk, the exposure to the lagging transition category remains limited but will be monitored on an \u00a0
ongoing basis. \u00a0
The Group has identified flooding risk (river and coastal flooding) as the key physical\u00a0hazard applicable to the portfolio on the basis of\u00a0the report on high \u00a0
confidence of hazard\u00a0increase in Northern\u00a0Europe issued by the Intergovernmental\u00a0Panel on Climate\u00a0Change. The current analyses on\u00a0flooding risk\u00a0focus \u00a0
on residential and commercial property and the risk is assessed to be limited. \u00a0
Moreover, the\u00a0Group performs\u00a0ad-hoc climate stress tests to assess physical and transition\u00a0risks of climate changes. Stress tests in relation to physical \u00a0
risks cover collateral-related\u00a0exposures and are based on river and coastal flooding.\u00a0Stress tests in relation to transition\u00a0risks consider an introductio\u00a0n \u00a0
of carbon taxes. \u00a0
The Group will continue to refine its assessment methodology as more climate risk data becomes available to support the ident\u00a0ification of\u00a0both transitio\u00a0n \u00a0
and physical\u00a0risks for the purpose of determining\u00a0financial significance, however, conclusions have no\u00a0t led to adjustments\u00a0to staging or modelled\u00a0expected \u00a0
credit losses, as the impacts either manifest over a longer time period than loan maturities,\u00a0or as transition\u00a0risks are conc\u00a0entrated on\u00a0a few sectors with \u00a0
downside risks already recognised in the Group\u2019s modelled expected credit losses. Both transition and physical risks are\u00a0either managed through risk \u00a0
tolerances or\u00a0strategic targets, or\u00a0already have post model adjustments/management\u00a0overlays allocated covering the climate re\u00a0lated risks. \u00a0
For more detail on Sustainability\u00a0risk, see note G40. \u00a0
Fair value measurement\u00a0of financial\u00a0instruments \u00a0
At the\u00a0end of 2023, no unusual challenges in obtaining reliable pricing apart from\u00a0insignificant parts\u00a0of the portfolio remain\u00a0ed. The majority of\u00a0valuation \u00a0
techniques continues to employ only observable market data, and there has been no\u00a0significant increase in financial instruments\u00a0measured on the basis \u00a0
of valuation\u00a0techniques that are\u00a0based on one or more significant\u00a0unobservable inputs. The latter continues to include only u\u00a0nlisted shares,\u00a0certain bonds \u00a0
and some long-dated\u00a0derivatives for\u00a0which there is no active market. On the derivatives\u00a0portfolio, the Group makes fair value adjustments\u00a0to cover changes \u00a0
in counterparty risk (CVA and DVA) and to cover expected funding costs (FVA and ColVA)\u00a0on derivatives,\u00a0bid-offer spreads on the net open position\u00a0of the \u00a0
portfolio of assets and liabilities\u00a0with offsetting market risk recognised at mid-market prices, and model risk on level 3 derivatives.\u00a0With effect from 2023, \u00a0
FVA is calculated\u00a0including both\u00a0funding cost and funding benefit. To avoid double-counting\u00a0between DVA and\u00a0the funding benefit, DVA is offset\u00a0in the \u00a0
financial statements. At\u00a031 December\u00a02023, the adjustments\u00a0totalled DKK 0.4 billion (2022:\u00a0DKK 0.2\u00a0billion), including the adjustment for\u00a0credit risk on \u00a0
derivatives that\u00a0are credit impaired.\u00a0Note G33(a) provides more\u00a0details on\u00a0the fair value measurement of financial instrument\u00a0s. \u00a0
The Group uses derivatives\u00a0to hedge the fixed interest rate on some financial\u00a0assets and liabilities,\u00a0thus converting the fix\u00a0ed interest\u00a0rates on the financial \u00a0
instruments to\u00a0variable interest rates by the use\u00a0of swaps. \u00a0
Measurement of\u00a0goodwill \u00a0
Goodwill is\u00a0tested for\u00a0impairment once\u00a0a year or more frequently if indications\u00a0of impairment\u00a0exist. Impairment\u00a0testing requi\u00a0res management to\u00a0estimate \u00a0
the present value of future cash flows. A number of factors affect the value\u00a0of such cash flows, including\u00a0discount rates, changes in the economic outlook, \u00a0
customer behaviour\u00a0and competition.\u00a0As at 31 December\u00a02023, goodwill amounted to DKK 4.4\u00a0billion (31\u00a0December 2022: DKK 4.4 billion). \u00a0
In connection with the quarterly reporting, management performs an\u00a0impairment review\u00a0to assess whether there are\u00a0indications that\u00a0goodwill might be \u00a0
impaired. This includes a\u00a0review of decline in income, increase in loan impairment charges, decline\u00a0in the\u00a0m arket\u00a0value of assets under management, \u00a0
major restructurings, macroeconomic developments\u00a0etc. The impairment\u00a0test conducted in 2023 did not reveal any impairment loss. During\u00a02022, \u00a0
goodwill in Danica Pension amounting to DKK 1.6\u00a0billion was\u00a0assessed to be impaired due to increasing discount rates and lower financial outlook. \u00a0
Following the impairment charges on goodwill, goodwill in Danica Pension amounts to DKK 0.0 billion as at 31 December\u00a02023 (31 December\u00a02022: \u00a0
DKK 0.0\u00a0billion). \u00a0
The remaining goodwill mainly consists of DKK 2.1 billion (2022: DKK 2.1 billion)\u00a0in Markets,\u00a0DKK 1.8 billion\u00a0(2022: DKK 1.8 billion)\u00a0in Asset Management \u00a0
and DKK\u00a00.5 billion\u00a0(2022: DKK\u00a00.5 billion) in General Banking\u00a0(all part of the business segment Large Corporates\u00a0& Institutions)\u00a0showing significant \u00a0
amounts of\u00a0excess value\u00a0in the impairment tests in 2023 and 2022. \u00a0
Note G19 provides more information about the impairment\u00a0test in 2023 and 2022 including\u00a0sensitivity to\u00a0changes in assumptions. \u00a0
Measurement of\u00a0liabilities under\u00a0insurance contracts \u00a0
Liabilities under\u00a0insurance contracts are measured using either the General Measurement Model (GMM), Variable Fee\u00a0Approach (V\u00a0FA) or Premium \u00a0
Allocation Approach (PAA).\u00a0GMM and\u00a0VFA both comprise fulfilment cash flows, which are estimates of the present value of future cash flows for \u00a0
insurance contracts, adjusted for\u00a0time value of money and effect\u00a0of financial\u00a0risk including\u00a0a risk adjustment\u00a0for non-financial\u00a0risk, and a contractua\u00a0l \u00a0
service margin (CSM). \u00a0
Estimates of\u00a0future cash flows include\u00a0actuarial computations\u00a0that rely on estimates\u00a0of a number of variables\u00a0such as mortali ty\u00a0rates and disability rates. \u00a0
Mortality rates\u00a0are based on the Danish FSA\u2019s benchmark, whilst others are estimated based on data f\u00a0rom the Group\u2019s own\u00a0portfolio of insurance \u00a0
contracts. \u00a0
The discount rate is fixed on the basis of a zero-coupon yield curve, which is adjusted by a currency and credit risk deduction and a volatility\u00a0adjustment. \u00a0
The yield curve is calculated according to principles and based on data that results in a curve bas\u00a0ed on European\u00a0Insurance and Occupational\u00a0Pension \u00a0
Authority (EIOPA) discount yield curve, which can\u00a0be found at www.eiopa.europa.eu/tools-and-data/risk-free-interest-ra\u00a0te-term-structures_en. \u00a0
For life insurance contracts, risk adjustment\u00a0for non-financial\u00a0risks is calculated based on a safety margin on applied\u00a0actuarial assumptions, such as \u00a0
mortality rates\u00a0and longevity. \u00a0
The confidence level used to determine the risk adjustment is at least 85%. \u00a0
For insurance contracts measured using VFA, CSM is\u00a0calculated on\u00a0the basis of\u00a0stochastic models, whereas a deterministic\u00a0mode l\u00a0is used for life \u00a0
insurance contracts measured using GMM. \u00a0
For health\u00a0and accident insurance\u00a0contracts, the loss element includes\u00a0expectations about\u00a0mortality, reactivation, reinstatem\u00a0ent and\u00a0repurchase, as well \u00a0
as expected\u00a0costs offset by premiums\u00a0not yet due. Risk adjustment for non-financial risk is calculated\u00a0based on a safety margin on applied actuarial \u00a0
assumptions. The confidence level used to determine the risk adjustment is at least 85%. \u00a0
Note G18 provides further information on the measurement of insurance liabilities.\u00a0Note G40 contains a\u00a0sensitivity analysis for\u00a0li fe\u00a0insurance. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1593": {
"value": "(b) Significant\u00a0accounting estimates and judgements \u00a0
The preparation of financial information requires, in some cases,\u00a0the use of judgements\u00a0and estimates\u00a0by management.\u00a0This includes judgements made \u00a0
when applying\u00a0accounting policies.\u00a0The most significant\u00a0judgements made when\u00a0applying accounting policies relate\u00a0to the classification\u00a0of financial assets \u00a0
and financial liabilities\u00a0under IFRS 9,\u00a0especially related to the business model assessment, and the solely payments of\u00a0principal and interest (SPPI) test \u00a0
(further explained\u00a0in note\u00a0G15) and the designation\u00a0of financial\u00a0liabilities at\u00a0fair value through profit or loss to eliminate or significantly\u00a0reduce an \u00a0
accounting mismatch (further\u00a0explained in\u00a0note G16). An overview\u00a0of the classification\u00a0and measurement\u00a0basis for financial instruments\u00a0can be found in \u00a0
section (c) of this\u00a0note. \u00a0
Further, the determination\u00a0of the carrying amounts\u00a0of some assets and liabilities\u00a0requires the estimation of the effects of uncertain future events\u00a0on \u00a0
those assets and liabilities.\u00a0The estimates are based on premises that management\u00a0finds reasonable but which are inherently uncertain and \u00a0
unpredictable. The\u00a0premises may\u00a0be incomplete,\u00a0unexpected future events or situations may occur,\u00a0and other parties may arrive at other estimate\u00a0d \u00a0
values. In\u00a0view of the inherent uncertainties\u00a0and the high level of subjectivity\u00a0and judgement\u00a0involved in\u00a0the recognition and measurement of the items \u00a0
listed below,\u00a0it is possible that the outcomes in the next financial year could differ from those on which management\u2019s estimates are based. \u00a0
Measurement of\u00a0expected credit\u00a0losses on\u00a0loans, financial guarantees\u00a0and loan commitments,\u00a0and bonds\u00a0measured at amortised\u00a0cost or fair\u00a0value \u00a0
through other comprehensive income \u00a0
The three-stage expected credit loss impairment model in IFRS 9\u00a0depends on whether the credit risk has increased significantly\u00a0since initial recognition. \u00a0
If the credit risk has not increased significantly,\u00a0the impairment charge equals the expected credit losses resulting from default events that are possible \u00a0
within the\u00a0next 12 months (stage 1). If the credit risk has increased significantly,\u00a0the loan is more than 30 days past due, or the loan is in default or \u00a0
otherwise impaired, the\u00a0impairment charge equals the\u00a0lifetime expected credit losses (stages 2 and 3). In determining\u00a0the impairment for\u00a0expected credit \u00a0
losses, management exercises judgement and uses estimates and assumptions as\u00a0explained below. \u00a0
G1. Basis of preparation continued \u00a0
(b) Significant\u00a0accounting estimates and judgements \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as\u00a0a function of probability\u00a0of default (PD), exposure\u00a0a t default (EAD)\u00a0and loss given default \u00a0
(LGD) and incorporates forward-looking information. The estimation\u00a0of expected credit losses involves\u00a0forecasting future economic conditions over a \u00a0
number of\u00a0years. Such forecasts are subject to management\u00a0judgement and those judgements may be sources of measurement uncert\u00a0ainty that have \u00a0
significant risk of resulting in a material adjustment\u00a0to a carrying amount\u00a0in future periods.\u00a0The incorporation of\u00a0forward-looking elements reflects\u00a0the \u00a0
expectations of\u00a0the Group\u2019s senior management and involves the creation of scenarios (base case, upside and downside), includ\u00a0ing an\u00a0assessment of the \u00a0
probability for\u00a0each scenario.\u00a0The purpose of using multiple scenarios is to model the non-linear impact of assumptions\u00a0about macroeconomic factors on \u00a0
the expected credit losses. \u00a0
The base case scenario enters with a probability\u00a0of 60% (2022: 70%), the upside scenario with a probability of 20% (2022: 10%) and the downside \u00a0
scenario with a\u00a0probability of 20%\u00a0(2022: 20%). On the basis of these assessments, the allowance account at the end of 2023 amounted to DKK 20.1 \u00a0
billion (2022:\u00a0DKK 19.6 billion). If the base case scenario was\u00a0assigned a probability\u00a0of 100%,\u00a0the allowance account would decrease DKK\u00a02.0 billio\u00a0n \u00a0
(2022: 2.1 billion).\u00a0Compared to the base case scenario, the allowance account would increase DKK 10.2 billion (2022: DKK 10.9 billion),\u00a0if the downside \u00a0
scenario was assigned a probability\u00a0of 100%. The increase reflects primarily\u00a0the transfer of exposures from stage 1 to stage 2 an\u00a0d increased expected \u00a0
credit losses within stage 2. If instead the upside scenario was assigned a probability\u00a0of 100%, the allowance account would decrease DKK 0.2 billio\u00a0n \u00a0
(2022: DKK 0.4 billion)\u00a0compared to the base case scenario. \u00a0
In determining\u00a0the expected credit losses, management is required to exercise judgement in defining what is considered a\u00a0sign ificant\u00a0increase in credit \u00a0
risk. According to the Group\u2019s definition of a significant increase in credit risk, i.e. when a loan is transferred from stage 1 to stage 2, facilities with an \u00a0
initial PD\u00a0below 1% are transferred to stage 2 if the facility\u2019s 12-month PD has\u00a0increased by\u00a0at least 0.5 of a percentage point and the facility\u2019s\u00a0lifetim e \u00a0
PD has doubled since origination. The allowance account is\u00a0relatively stable in\u00a0terms of changes to the definition\u00a0of significant\u00a0increase in credit risk. At \u00a0
the end of 2023, the allowance account would increase by DKK 0.3 billion (2022: DKK 0.3 billion), if instead an increase in the facility\u2019s 12-month PD by \u00a0
at least 0.25 of a percentage\u00a0point combined\u00a0with a doubling\u00a0of the lifetime\u00a0PD was considered a significant increase\u00a0in cred it\u00a0risk. \u00a0
Management applies judgement when\u00a0determining the need for post-model adjustments.\u00a0At the end of 2023, the post-model adjustments\u00a0amounted to \u00a0
DKK 6.7\u00a0billion (2022: DKK 6.6 billion). They mainly cover the increasing macroeconomic risk due to the\u00a0uncertainty related to\u00a0the elevated inflation and \u00a0
severity of\u00a0an economic downturn as well as the global tension uncertainty.\u00a0See further in the separate sections\u00a0below. Further information on the types \u00a0
of risks\u00a0covered by\u00a0post-model adjustments\u00a0and the allocation\u00a0of post-model adjustments\u00a0to the underlying\u00a0exposures can be found in the section \u00a0
Forward-looking information in\u00a0note G40. \u00a0
Loan impairment charges for 2023 amounted to DKK 262 million (2022: DKK 1,502 million).\u00a0Low impairments\u00a0were driven by robust credit quality \u00a0
driven by successful restructurings within oil and\u00a0offshore and post-pandemic recoveries. \u00a0
The applied macroeconomic scenarios in 2023 differ from those used at 31 December\u00a02022. The downside scenario continues to capture the severe \u00a0
recession scenario with high interest rates (reflecting a stagflation scenario)\u00a0applied in the Group\u2019s Internal Capital Adequacy Assessment Process 8 \u00a0
(ICAAP) processes and\u00a0is similar in nature to\u00a0regulatory stress tests. The severe recession scenario reflects negative growth\u00a0, increasing interest rates, \u00a0
and falling\u00a0property prices\u00a0for a longer\u00a0period. The use of the downside scenario has been made to better capture the increasing risk from\u00a0high interes\u00a0t \u00a0
rates and high inflation,\u00a0and in order for the ECL calculation\u00a0to include potential\u00a0downside risks due to the elevated asset prices across the Nordics. \u00a0
Except as\u00a0described above, all other policies and principles remain in place. Staging criteria are unchanged, including the 3\u00a00 days past due criteria and \u00a0
PD-based criteria for\u00a0transfer to stage 2. \u00a0
Sustainability risk \u00a0
The Group may be exposed to sustainability\u00a0risk as a result of current or future environmental,\u00a0social and governance\u00a0(ESG) events or conditions,\u00a0and are \u00a0
considered external factors that can\u00a0impact existing risks. Sustainability\u00a0risk is therefore considered a cross\u00a0-cutting driver of existing risks as outline\u00a0d \u00a0
in the Group\u2019s risk taxonomy,\u00a0which can further exacerbate\u00a0the risks the Group is already facing. \u00a0
G1. Basis of preparation continued \u00a0
(b) Significant\u00a0accounting estimates and judgements \u00a0
Sustainability risk\u00a0continued \u00a0
Credit risk is deemed to be the risk type most materially\u00a0affected by\u00a0sustainability drivers\u00a0in the long term, of which clima\u00a0te risk is currently the most \u00a0
urgent of\u00a0all ESG-related drivers capable\u00a0of affecting the Group\u2019s credit risk. From a financial\u00a0significance perspective, climate-related risks have\u00a0been \u00a0
deemed most\u00a0relevant for\u00a0the Group\u2019s lending activities. Climate risk pertains to transition\u00a0risks, which are the risks assoc\u00a0iated with shifting to a low- \u00a0
carbon economy,\u00a0and to physical risks arising from\u00a0projected climate changes,\u00a0including both\u00a0long-term shifts (chronic changes) and event-driven\u00a0changes \u00a0
(acute changes) to weather patterns.\u00a0Credit risk will be affected by both\u00a0of these climate\u00a0-related risks in the medium and long term, and\u00a0efforts are being \u00a0
made to obtain improved climate data to refine the long\u00a0- term view of climate\u00a0risk across sectors. \u00a0
The Group takes a risk-based approach in prioritising\u00a0risk management\u00a0efforts for credit portfolios that are likely to be most exposed to transition\u00a0and \u00a0
physical risks. For that purpose, the Group applies a mix of qualitative\u00a0and quantitative\u00a0input to define the credit exposures most exposed to transition \u00a0
and physical risks. \u00a0
High transition-risk\u00a0exposures are identified\u00a0using a mix of insights, including financed emissions estimates, findings from conducting clima\u00a0te scenario \u00a0
analysis as\u00a0well as qualitative\u00a0judgment to account for, e.g., credible transition\u00a0plans, potential\u00a0future technology\u00a0and demand risks to a given sector. Most \u00a0
of the emissions\u00a0are attributable\u00a0to only a few sectors, e.g., Shipping,\u00a0Oil and Gas, which the Group actively monitors and m\u00a0anages. From the initia\u00a0l \u00a0
assessment of customers subject to high transition\u00a0risk, the exposure to the lagging transition category remains limited but will be monitored on an \u00a0
ongoing basis. \u00a0
The Group has identified flooding risk (river and coastal flooding) as the key physical\u00a0hazard applicable to the portfolio on the basis of\u00a0the report on high \u00a0
confidence of hazard\u00a0increase in Northern\u00a0Europe issued by the Intergovernmental\u00a0Panel on Climate\u00a0Change. The current analyses on\u00a0flooding risk\u00a0focus \u00a0
on residential and commercial property and the risk is assessed to be limited. \u00a0
Moreover, the\u00a0Group performs\u00a0ad-hoc climate stress tests to assess physical and transition\u00a0risks of climate changes. Stress tests in relation to physical \u00a0
risks cover collateral-related\u00a0exposures and are based on river and coastal flooding.\u00a0Stress tests in relation to transition\u00a0risks consider an introductio\u00a0n \u00a0
of carbon taxes. \u00a0
The Group will continue to refine its assessment methodology as more climate risk data becomes available to support the ident\u00a0ification of\u00a0both transitio\u00a0n \u00a0
and physical\u00a0risks for the purpose of determining\u00a0financial significance, however, conclusions have no\u00a0t led to adjustments\u00a0to staging or modelled\u00a0expected \u00a0
credit losses, as the impacts either manifest over a longer time period than loan maturities,\u00a0or as transition\u00a0risks are conc\u00a0entrated on\u00a0a few sectors with \u00a0
downside risks already recognised in the Group\u2019s modelled expected credit losses. Both transition and physical risks are\u00a0either managed through risk \u00a0
tolerances or\u00a0strategic targets, or\u00a0already have post model adjustments/management\u00a0overlays allocated covering the climate re\u00a0lated risks. \u00a0
For more detail on Sustainability\u00a0risk, see note G40. \u00a0
Fair value measurement\u00a0of financial\u00a0instruments \u00a0
At the\u00a0end of 2023, no unusual challenges in obtaining reliable pricing apart from\u00a0insignificant parts\u00a0of the portfolio remain\u00a0ed. The majority of\u00a0valuation \u00a0
techniques continues to employ only observable market data, and there has been no\u00a0significant increase in financial instruments\u00a0measured on the basis \u00a0
of valuation\u00a0techniques that are\u00a0based on one or more significant\u00a0unobservable inputs. The latter continues to include only u\u00a0nlisted shares,\u00a0certain bonds \u00a0
and some long-dated\u00a0derivatives for\u00a0which there is no active market. On the derivatives\u00a0portfolio, the Group makes fair value adjustments\u00a0to cover changes \u00a0
in counterparty risk (CVA and DVA) and to cover expected funding costs (FVA and ColVA)\u00a0on derivatives,\u00a0bid-offer spreads on the net open position\u00a0of the \u00a0
portfolio of assets and liabilities\u00a0with offsetting market risk recognised at mid-market prices, and model risk on level 3 derivatives.\u00a0With effect from 2023, \u00a0
FVA is calculated\u00a0including both\u00a0funding cost and funding benefit. To avoid double-counting\u00a0between DVA and\u00a0the funding benefit, DVA is offset\u00a0in the \u00a0
financial statements. At\u00a031 December\u00a02023, the adjustments\u00a0totalled DKK 0.4 billion (2022:\u00a0DKK 0.2\u00a0billion), including the adjustment for\u00a0credit risk on \u00a0
derivatives that\u00a0are credit impaired.\u00a0Note G33(a) provides more\u00a0details on\u00a0the fair value measurement of financial instrument\u00a0s. \u00a0
The Group uses derivatives\u00a0to hedge the fixed interest rate on some financial\u00a0assets and liabilities,\u00a0thus converting the fix\u00a0ed interest\u00a0rates on the financial \u00a0
instruments to\u00a0variable interest rates by the use\u00a0of swaps. \u00a0
Measurement of\u00a0goodwill \u00a0
Goodwill is\u00a0tested for\u00a0impairment once\u00a0a year or more frequently if indications\u00a0of impairment\u00a0exist. Impairment\u00a0testing requi\u00a0res management to\u00a0estimate \u00a0
the present value of future cash flows. A number of factors affect the value\u00a0of such cash flows, including\u00a0discount rates, changes in the economic outlook, \u00a0
customer behaviour\u00a0and competition.\u00a0As at 31 December\u00a02023, goodwill amounted to DKK 4.4\u00a0billion (31\u00a0December 2022: DKK 4.4 billion). \u00a0
In connection with the quarterly reporting, management performs an\u00a0impairment review\u00a0to assess whether there are\u00a0indications that\u00a0goodwill might be \u00a0
impaired. This includes a\u00a0review of decline in income, increase in loan impairment charges, decline\u00a0in the\u00a0m arket\u00a0value of assets under management, \u00a0
major restructurings, macroeconomic developments\u00a0etc. The impairment\u00a0test conducted in 2023 did not reveal any impairment loss. During\u00a02022, \u00a0
goodwill in Danica Pension amounting to DKK 1.6\u00a0billion was\u00a0assessed to be impaired due to increasing discount rates and lower financial outlook. \u00a0
Following the impairment charges on goodwill, goodwill in Danica Pension amounts to DKK 0.0 billion as at 31 December\u00a02023 (31 December\u00a02022: \u00a0
DKK 0.0\u00a0billion). \u00a0
The remaining goodwill mainly consists of DKK 2.1 billion (2022: DKK 2.1 billion)\u00a0in Markets,\u00a0DKK 1.8 billion\u00a0(2022: DKK 1.8 billion)\u00a0in Asset Management \u00a0
and DKK\u00a00.5 billion\u00a0(2022: DKK\u00a00.5 billion) in General Banking\u00a0(all part of the business segment Large Corporates\u00a0& Institutions)\u00a0showing significant \u00a0
amounts of\u00a0excess value\u00a0in the impairment tests in 2023 and 2022. \u00a0
Note G19 provides more information about the impairment\u00a0test in 2023 and 2022 including\u00a0sensitivity to\u00a0changes in assumptions. \u00a0
Measurement of\u00a0liabilities under\u00a0insurance contracts \u00a0
Liabilities under\u00a0insurance contracts are measured using either the General Measurement Model (GMM), Variable Fee\u00a0Approach (V\u00a0FA) or Premium \u00a0
Allocation Approach (PAA).\u00a0GMM and\u00a0VFA both comprise fulfilment cash flows, which are estimates of the present value of future cash flows for \u00a0
insurance contracts, adjusted for\u00a0time value of money and effect\u00a0of financial\u00a0risk including\u00a0a risk adjustment\u00a0for non-financial\u00a0risk, and a contractua\u00a0l \u00a0
service margin (CSM). \u00a0
Estimates of\u00a0future cash flows include\u00a0actuarial computations\u00a0that rely on estimates\u00a0of a number of variables\u00a0such as mortali ty\u00a0rates and disability rates. \u00a0
Mortality rates\u00a0are based on the Danish FSA\u2019s benchmark, whilst others are estimated based on data f\u00a0rom the Group\u2019s own\u00a0portfolio of insurance \u00a0
contracts. \u00a0
The discount rate is fixed on the basis of a zero-coupon yield curve, which is adjusted by a currency and credit risk deduction and a volatility\u00a0adjustment. \u00a0
The yield curve is calculated according to principles and based on data that results in a curve bas\u00a0ed on European\u00a0Insurance and Occupational\u00a0Pension \u00a0
Authority (EIOPA) discount yield curve, which can\u00a0be found at www.eiopa.europa.eu/tools-and-data/risk-free-interest-ra\u00a0te-term-structures_en. \u00a0
For life insurance contracts, risk adjustment\u00a0for non-financial\u00a0risks is calculated based on a safety margin on applied\u00a0actuarial assumptions, such as \u00a0
mortality rates\u00a0and longevity. \u00a0
The confidence level used to determine the risk adjustment is at least 85%. \u00a0
For insurance contracts measured using VFA, CSM is\u00a0calculated on\u00a0the basis of\u00a0stochastic models, whereas a deterministic\u00a0mode l\u00a0is used for life \u00a0
insurance contracts measured using GMM. \u00a0
For health\u00a0and accident insurance\u00a0contracts, the loss element includes\u00a0expectations about\u00a0mortality, reactivation, reinstatem\u00a0ent and\u00a0repurchase, as well \u00a0
as expected\u00a0costs offset by premiums\u00a0not yet due. Risk adjustment for non-financial risk is calculated\u00a0based on a safety margin on applied actuarial \u00a0
assumptions. The confidence level used to determine the risk adjustment is at least 85%. \u00a0
Note G18 provides further information on the measurement of insurance liabilities.\u00a0Note G40 contains a\u00a0sensitivity analysis for\u00a0li fe\u00a0insurance. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1741": {
"value": "(b) Significant\u00a0accounting estimates and judgements \u00a0
The preparation of financial information requires, in some cases,\u00a0the use of judgements\u00a0and estimates\u00a0by management.\u00a0This includes judgements made \u00a0
when applying\u00a0accounting policies.\u00a0The most significant\u00a0judgements made when\u00a0applying accounting policies relate\u00a0to the classification\u00a0of financial assets \u00a0
and financial liabilities\u00a0under IFRS 9,\u00a0especially related to the business model assessment, and the solely payments of\u00a0principal and interest (SPPI) test \u00a0
(further explained\u00a0in note\u00a0G15) and the designation\u00a0of financial\u00a0liabilities at\u00a0fair value through profit or loss to eliminate or significantly\u00a0reduce an \u00a0
accounting mismatch (further\u00a0explained in\u00a0note G16). An overview\u00a0of the classification\u00a0and measurement\u00a0basis for financial instruments\u00a0can be found in \u00a0
section (c) of this\u00a0note. \u00a0
Further, the determination\u00a0of the carrying amounts\u00a0of some assets and liabilities\u00a0requires the estimation of the effects of uncertain future events\u00a0on \u00a0
those assets and liabilities.\u00a0The estimates are based on premises that management\u00a0finds reasonable but which are inherently uncertain and \u00a0
unpredictable. The\u00a0premises may\u00a0be incomplete,\u00a0unexpected future events or situations may occur,\u00a0and other parties may arrive at other estimate\u00a0d \u00a0
values. In\u00a0view of the inherent uncertainties\u00a0and the high level of subjectivity\u00a0and judgement\u00a0involved in\u00a0the recognition and measurement of the items \u00a0
listed below,\u00a0it is possible that the outcomes in the next financial year could differ from those on which management\u2019s estimates are based. \u00a0
Measurement of\u00a0expected credit\u00a0losses on\u00a0loans, financial guarantees\u00a0and loan commitments,\u00a0and bonds\u00a0measured at amortised\u00a0cost or fair\u00a0value \u00a0
through other comprehensive income \u00a0
The three-stage expected credit loss impairment model in IFRS 9\u00a0depends on whether the credit risk has increased significantly\u00a0since initial recognition. \u00a0
If the credit risk has not increased significantly,\u00a0the impairment charge equals the expected credit losses resulting from default events that are possible \u00a0
within the\u00a0next 12 months (stage 1). If the credit risk has increased significantly,\u00a0the loan is more than 30 days past due, or the loan is in default or \u00a0
otherwise impaired, the\u00a0impairment charge equals the\u00a0lifetime expected credit losses (stages 2 and 3). In determining\u00a0the impairment for\u00a0expected credit \u00a0
losses, management exercises judgement and uses estimates and assumptions as\u00a0explained below. \u00a0
G1. Basis of preparation continued \u00a0
(b) Significant\u00a0accounting estimates and judgements \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as\u00a0a function of probability\u00a0of default (PD), exposure\u00a0a t default (EAD)\u00a0and loss given default \u00a0
(LGD) and incorporates forward-looking information. The estimation\u00a0of expected credit losses involves\u00a0forecasting future economic conditions over a \u00a0
number of\u00a0years. Such forecasts are subject to management\u00a0judgement and those judgements may be sources of measurement uncert\u00a0ainty that have \u00a0
significant risk of resulting in a material adjustment\u00a0to a carrying amount\u00a0in future periods.\u00a0The incorporation of\u00a0forward-looking elements reflects\u00a0the \u00a0
expectations of\u00a0the Group\u2019s senior management and involves the creation of scenarios (base case, upside and downside), includ\u00a0ing an\u00a0assessment of the \u00a0
probability for\u00a0each scenario.\u00a0The purpose of using multiple scenarios is to model the non-linear impact of assumptions\u00a0about macroeconomic factors on \u00a0
the expected credit losses. \u00a0
The base case scenario enters with a probability\u00a0of 60% (2022: 70%), the upside scenario with a probability of 20% (2022: 10%) and the downside \u00a0
scenario with a\u00a0probability of 20%\u00a0(2022: 20%). On the basis of these assessments, the allowance account at the end of 2023 amounted to DKK 20.1 \u00a0
billion (2022:\u00a0DKK 19.6 billion). If the base case scenario was\u00a0assigned a probability\u00a0of 100%,\u00a0the allowance account would decrease DKK\u00a02.0 billio\u00a0n \u00a0
(2022: 2.1 billion).\u00a0Compared to the base case scenario, the allowance account would increase DKK 10.2 billion (2022: DKK 10.9 billion),\u00a0if the downside \u00a0
scenario was assigned a probability\u00a0of 100%. The increase reflects primarily\u00a0the transfer of exposures from stage 1 to stage 2 an\u00a0d increased expected \u00a0
credit losses within stage 2. If instead the upside scenario was assigned a probability\u00a0of 100%, the allowance account would decrease DKK 0.2 billio\u00a0n \u00a0
(2022: DKK 0.4 billion)\u00a0compared to the base case scenario. \u00a0
In determining\u00a0the expected credit losses, management is required to exercise judgement in defining what is considered a\u00a0sign ificant\u00a0increase in credit \u00a0
risk. According to the Group\u2019s definition of a significant increase in credit risk, i.e. when a loan is transferred from stage 1 to stage 2, facilities with an \u00a0
initial PD\u00a0below 1% are transferred to stage 2 if the facility\u2019s 12-month PD has\u00a0increased by\u00a0at least 0.5 of a percentage point and the facility\u2019s\u00a0lifetim e \u00a0
PD has doubled since origination. The allowance account is\u00a0relatively stable in\u00a0terms of changes to the definition\u00a0of significant\u00a0increase in credit risk. At \u00a0
the end of 2023, the allowance account would increase by DKK 0.3 billion (2022: DKK 0.3 billion), if instead an increase in the facility\u2019s 12-month PD by \u00a0
at least 0.25 of a percentage\u00a0point combined\u00a0with a doubling\u00a0of the lifetime\u00a0PD was considered a significant increase\u00a0in cred it\u00a0risk. \u00a0
Management applies judgement when\u00a0determining the need for post-model adjustments.\u00a0At the end of 2023, the post-model adjustments\u00a0amounted to \u00a0
DKK 6.7\u00a0billion (2022: DKK 6.6 billion). They mainly cover the increasing macroeconomic risk due to the\u00a0uncertainty related to\u00a0the elevated inflation and \u00a0
severity of\u00a0an economic downturn as well as the global tension uncertainty.\u00a0See further in the separate sections\u00a0below. Further information on the types \u00a0
of risks\u00a0covered by\u00a0post-model adjustments\u00a0and the allocation\u00a0of post-model adjustments\u00a0to the underlying\u00a0exposures can be found in the section \u00a0
Forward-looking information in\u00a0note G40. \u00a0
Loan impairment charges for 2023 amounted to DKK 262 million (2022: DKK 1,502 million).\u00a0Low impairments\u00a0were driven by robust credit quality \u00a0
driven by successful restructurings within oil and\u00a0offshore and post-pandemic recoveries. \u00a0
The applied macroeconomic scenarios in 2023 differ from those used at 31 December\u00a02022. The downside scenario continues to capture the severe \u00a0
recession scenario with high interest rates (reflecting a stagflation scenario)\u00a0applied in the Group\u2019s Internal Capital Adequacy Assessment Process 8 \u00a0
(ICAAP) processes and\u00a0is similar in nature to\u00a0regulatory stress tests. The severe recession scenario reflects negative growth\u00a0, increasing interest rates, \u00a0
and falling\u00a0property prices\u00a0for a longer\u00a0period. The use of the downside scenario has been made to better capture the increasing risk from\u00a0high interes\u00a0t \u00a0
rates and high inflation,\u00a0and in order for the ECL calculation\u00a0to include potential\u00a0downside risks due to the elevated asset prices across the Nordics. \u00a0
Except as\u00a0described above, all other policies and principles remain in place. Staging criteria are unchanged, including the 3\u00a00 days past due criteria and \u00a0
PD-based criteria for\u00a0transfer to stage 2. \u00a0
Sustainability risk \u00a0
The Group may be exposed to sustainability\u00a0risk as a result of current or future environmental,\u00a0social and governance\u00a0(ESG) events or conditions,\u00a0and are \u00a0
considered external factors that can\u00a0impact existing risks. Sustainability\u00a0risk is therefore considered a cross\u00a0-cutting driver of existing risks as outline\u00a0d \u00a0
in the Group\u2019s risk taxonomy,\u00a0which can further exacerbate\u00a0the risks the Group is already facing. \u00a0
G1. Basis of preparation continued \u00a0
(b) Significant\u00a0accounting estimates and judgements \u00a0
Sustainability risk\u00a0continued \u00a0
Credit risk is deemed to be the risk type most materially\u00a0affected by\u00a0sustainability drivers\u00a0in the long term, of which clima\u00a0te risk is currently the most \u00a0
urgent of\u00a0all ESG-related drivers capable\u00a0of affecting the Group\u2019s credit risk. From a financial\u00a0significance perspective, climate-related risks have\u00a0been \u00a0
deemed most\u00a0relevant for\u00a0the Group\u2019s lending activities. Climate risk pertains to transition\u00a0risks, which are the risks assoc\u00a0iated with shifting to a low- \u00a0
carbon economy,\u00a0and to physical risks arising from\u00a0projected climate changes,\u00a0including both\u00a0long-term shifts (chronic changes) and event-driven\u00a0changes \u00a0
(acute changes) to weather patterns.\u00a0Credit risk will be affected by both\u00a0of these climate\u00a0-related risks in the medium and long term, and\u00a0efforts are being \u00a0
made to obtain improved climate data to refine the long\u00a0- term view of climate\u00a0risk across sectors. \u00a0
The Group takes a risk-based approach in prioritising\u00a0risk management\u00a0efforts for credit portfolios that are likely to be most exposed to transition\u00a0and \u00a0
physical risks. For that purpose, the Group applies a mix of qualitative\u00a0and quantitative\u00a0input to define the credit exposures most exposed to transition \u00a0
and physical risks. \u00a0
High transition-risk\u00a0exposures are identified\u00a0using a mix of insights, including financed emissions estimates, findings from conducting clima\u00a0te scenario \u00a0
analysis as\u00a0well as qualitative\u00a0judgment to account for, e.g., credible transition\u00a0plans, potential\u00a0future technology\u00a0and demand risks to a given sector. Most \u00a0
of the emissions\u00a0are attributable\u00a0to only a few sectors, e.g., Shipping,\u00a0Oil and Gas, which the Group actively monitors and m\u00a0anages. From the initia\u00a0l \u00a0
assessment of customers subject to high transition\u00a0risk, the exposure to the lagging transition category remains limited but will be monitored on an \u00a0
ongoing basis. \u00a0
The Group has identified flooding risk (river and coastal flooding) as the key physical\u00a0hazard applicable to the portfolio on the basis of\u00a0the report on high \u00a0
confidence of hazard\u00a0increase in Northern\u00a0Europe issued by the Intergovernmental\u00a0Panel on Climate\u00a0Change. The current analyses on\u00a0flooding risk\u00a0focus \u00a0
on residential and commercial property and the risk is assessed to be limited. \u00a0
Moreover, the\u00a0Group performs\u00a0ad-hoc climate stress tests to assess physical and transition\u00a0risks of climate changes. Stress tests in relation to physical \u00a0
risks cover collateral-related\u00a0exposures and are based on river and coastal flooding.\u00a0Stress tests in relation to transition\u00a0risks consider an introductio\u00a0n \u00a0
of carbon taxes. \u00a0
The Group will continue to refine its assessment methodology as more climate risk data becomes available to support the ident\u00a0ification of\u00a0both transitio\u00a0n \u00a0
and physical\u00a0risks for the purpose of determining\u00a0financial significance, however, conclusions have no\u00a0t led to adjustments\u00a0to staging or modelled\u00a0expected \u00a0
credit losses, as the impacts either manifest over a longer time period than loan maturities,\u00a0or as transition\u00a0risks are conc\u00a0entrated on\u00a0a few sectors with \u00a0
downside risks already recognised in the Group\u2019s modelled expected credit losses. Both transition and physical risks are\u00a0either managed through risk \u00a0
tolerances or\u00a0strategic targets, or\u00a0already have post model adjustments/management\u00a0overlays allocated covering the climate re\u00a0lated risks. \u00a0
For more detail on Sustainability\u00a0risk, see note G40. \u00a0
Fair value measurement\u00a0of financial\u00a0instruments \u00a0
At the\u00a0end of 2023, no unusual challenges in obtaining reliable pricing apart from\u00a0insignificant parts\u00a0of the portfolio remain\u00a0ed. The majority of\u00a0valuation \u00a0
techniques continues to employ only observable market data, and there has been no\u00a0significant increase in financial instruments\u00a0measured on the basis \u00a0
of valuation\u00a0techniques that are\u00a0based on one or more significant\u00a0unobservable inputs. The latter continues to include only u\u00a0nlisted shares,\u00a0certain bonds \u00a0
and some long-dated\u00a0derivatives for\u00a0which there is no active market. On the derivatives\u00a0portfolio, the Group makes fair value adjustments\u00a0to cover changes \u00a0
in counterparty risk (CVA and DVA) and to cover expected funding costs (FVA and ColVA)\u00a0on derivatives,\u00a0bid-offer spreads on the net open position\u00a0of the \u00a0
portfolio of assets and liabilities\u00a0with offsetting market risk recognised at mid-market prices, and model risk on level 3 derivatives.\u00a0With effect from 2023, \u00a0
FVA is calculated\u00a0including both\u00a0funding cost and funding benefit. To avoid double-counting\u00a0between DVA and\u00a0the funding benefit, DVA is offset\u00a0in the \u00a0
financial statements. At\u00a031 December\u00a02023, the adjustments\u00a0totalled DKK 0.4 billion (2022:\u00a0DKK 0.2\u00a0billion), including the adjustment for\u00a0credit risk on \u00a0
derivatives that\u00a0are credit impaired.\u00a0Note G33(a) provides more\u00a0details on\u00a0the fair value measurement of financial instrument\u00a0s. \u00a0
The Group uses derivatives\u00a0to hedge the fixed interest rate on some financial\u00a0assets and liabilities,\u00a0thus converting the fix\u00a0ed interest\u00a0rates on the financial \u00a0
instruments to\u00a0variable interest rates by the use\u00a0of swaps. \u00a0
Measurement of\u00a0goodwill \u00a0
Goodwill is\u00a0tested for\u00a0impairment once\u00a0a year or more frequently if indications\u00a0of impairment\u00a0exist. Impairment\u00a0testing requi\u00a0res management to\u00a0estimate \u00a0
the present value of future cash flows. A number of factors affect the value\u00a0of such cash flows, including\u00a0discount rates, changes in the economic outlook, \u00a0
customer behaviour\u00a0and competition.\u00a0As at 31 December\u00a02023, goodwill amounted to DKK 4.4\u00a0billion (31\u00a0December 2022: DKK 4.4 billion). \u00a0
In connection with the quarterly reporting, management performs an\u00a0impairment review\u00a0to assess whether there are\u00a0indications that\u00a0goodwill might be \u00a0
impaired. This includes a\u00a0review of decline in income, increase in loan impairment charges, decline\u00a0in the\u00a0m arket\u00a0value of assets under management, \u00a0
major restructurings, macroeconomic developments\u00a0etc. The impairment\u00a0test conducted in 2023 did not reveal any impairment loss. During\u00a02022, \u00a0
goodwill in Danica Pension amounting to DKK 1.6\u00a0billion was\u00a0assessed to be impaired due to increasing discount rates and lower financial outlook. \u00a0
Following the impairment charges on goodwill, goodwill in Danica Pension amounts to DKK 0.0 billion as at 31 December\u00a02023 (31 December\u00a02022: \u00a0
DKK 0.0\u00a0billion). \u00a0
The remaining goodwill mainly consists of DKK 2.1 billion (2022: DKK 2.1 billion)\u00a0in Markets,\u00a0DKK 1.8 billion\u00a0(2022: DKK 1.8 billion)\u00a0in Asset Management \u00a0
and DKK\u00a00.5 billion\u00a0(2022: DKK\u00a00.5 billion) in General Banking\u00a0(all part of the business segment Large Corporates\u00a0& Institutions)\u00a0showing significant \u00a0
amounts of\u00a0excess value\u00a0in the impairment tests in 2023 and 2022. \u00a0
Note G19 provides more information about the impairment\u00a0test in 2023 and 2022 including\u00a0sensitivity to\u00a0changes in assumptions. \u00a0
Measurement of\u00a0liabilities under\u00a0insurance contracts \u00a0
Liabilities under\u00a0insurance contracts are measured using either the General Measurement Model (GMM), Variable Fee\u00a0Approach (V\u00a0FA) or Premium \u00a0
Allocation Approach (PAA).\u00a0GMM and\u00a0VFA both comprise fulfilment cash flows, which are estimates of the present value of future cash flows for \u00a0
insurance contracts, adjusted for\u00a0time value of money and effect\u00a0of financial\u00a0risk including\u00a0a risk adjustment\u00a0for non-financial\u00a0risk, and a contractua\u00a0l \u00a0
service margin (CSM). \u00a0
Estimates of\u00a0future cash flows include\u00a0actuarial computations\u00a0that rely on estimates\u00a0of a number of variables\u00a0such as mortali ty\u00a0rates and disability rates. \u00a0
Mortality rates\u00a0are based on the Danish FSA\u2019s benchmark, whilst others are estimated based on data f\u00a0rom the Group\u2019s own\u00a0portfolio of insurance \u00a0
contracts. \u00a0
The discount rate is fixed on the basis of a zero-coupon yield curve, which is adjusted by a currency and credit risk deduction and a volatility\u00a0adjustment. \u00a0
The yield curve is calculated according to principles and based on data that results in a curve bas\u00a0ed on European\u00a0Insurance and Occupational\u00a0Pension \u00a0
Authority (EIOPA) discount yield curve, which can\u00a0be found at www.eiopa.europa.eu/tools-and-data/risk-free-interest-ra\u00a0te-term-structures_en. \u00a0
For life insurance contracts, risk adjustment\u00a0for non-financial\u00a0risks is calculated based on a safety margin on applied\u00a0actuarial assumptions, such as \u00a0
mortality rates\u00a0and longevity. \u00a0
The confidence level used to determine the risk adjustment is at least 85%. \u00a0
For insurance contracts measured using VFA, CSM is\u00a0calculated on\u00a0the basis of\u00a0stochastic models, whereas a deterministic\u00a0mode l\u00a0is used for life \u00a0
insurance contracts measured using GMM. \u00a0
For health\u00a0and accident insurance\u00a0contracts, the loss element includes\u00a0expectations about\u00a0mortality, reactivation, reinstatem\u00a0ent and\u00a0repurchase, as well \u00a0
as expected\u00a0costs offset by premiums\u00a0not yet due. Risk adjustment for non-financial risk is calculated\u00a0based on a safety margin on applied actuarial \u00a0
assumptions. The confidence level used to determine the risk adjustment is at least 85%. \u00a0
Note G18 provides further information on the measurement of insurance liabilities.\u00a0Note G40 contains a\u00a0sensitivity analysis for\u00a0li fe\u00a0insurance. \u00a0
Financial instruments\u00a0\u2013 general \u00a0
The Group recognises financial assets and liabilities\u00a0when it\u00a0becomes a party to the terms of the contract. A financial asset, or a portion of a\u00a0financia l \u00a0
asset, is derecognised if the contractual\u00a0rights to cash flows from the asset have expired, or have been transferred, usually\u00a0by sale, leading\u00a0to substantially \u00a0
all the risks and rewards of the asset or significant risks and rewards being transferred. Financial liabilities\u00a0are derecognised\u00a0when the liability\u00a0has been \u00a0
settled, has\u00a0expired or\u00a0has been extinguished. \u00a0
Regular way purchases\u00a0and sales of financial instruments\u00a0are recognised\u00a0and derecognised at the settlement\u00a0date. Fair value adjustments\u00a0of unsettle d \u00a0
financial instruments\u00a0are recognised from\u00a0the trade date to the settlement\u00a0date if the financial\u00a0asset is classified at fair value through profit or loss or \u00a0
through other comprehensive income. The classification\u00a0is shown in the table below. \u00a0
G1. Basis of preparation\u00a0continued \u00a0
Financial instruments\u00a0and obligations\u00a0under insurance contracts, classification\u00a0and measurement\u00a0end of 2023 \u00a0
Amortised \u00a0
Fair value \u00a0
cost \u00a0
OCI \u00a0
Fair value through profit or loss \u00a0
Held to collect \u00a0
Held to collect \u00a0
and sell \u00a0
assets/ \u00a0
financial \u00a0
Held for\u00a0Managed at\u00a0FVPL due to \u00a0
Interest rate\u00a0Own shares / \u00a0
(DKK billions) \u00a0
Liabilities \u00a0
assets* \u00a0
trading \u00a0
fair value \u00a0
SPPI test\u00a0Designated \u00a0
hedge ** \u00a0
bonds \u00a0
Total \u00a0
Assets \u00a0
Cash in hand and demand \u00a0
deposits with central banks \u00a0
259 \u00a0
-
-
-
-
-
-
-
259 \u00a0
Due from credit institutions\u00a0and \u00a0
central banks \u00a0
22 \u00a0
-
-
93 \u00a0
-
-
-
-
115 \u00a0
Derivatives \u00a0
-
-
346 \u00a0
-
-
-
6
-
352 \u00a0
Bonds \u00a0
155 \u00a0
107 \u00a0
178 \u00a0
21 \u00a0
-
-
-
-
461 \u00a0
Shares \u00a0
-
-
19 \u00a0
-
-
-
-
-
19 \u00a0
Loans *** \u00a0
919 \u00a0
-
-
175 \u00a0
753 \u00a0
-
-1 \u00a0
-
1,847 \u00a0
Assets under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
43 \u00a0
-
-
-
28 \u00a0
71 \u00a0
Assets under insurance \u00a0
contracts \u00a0
-
-
-
460 \u00a0
-
-
-
1
461 \u00a0
Total financial assets, \u00a0
1,356 \u00a0
107 \u00a0
542 \u00a0
792 \u00a0
753 \u00a0
-
6
29 \u00a0
3,585 \u00a0
31 December\u00a02023 \u00a0
Total financial assets, \u00a0
1,433 \u00a0
116 \u00a0
635 \u00a0
771 \u00a0
724 \u00a0
-
3
28 \u00a0
3,710 \u00a0
31 December\u00a02022**** \u00a0
Liabilities \u00a0
Due to credit institutions and \u00a0
central banks \u00a0
69 \u00a0
-
-
-
-
86 \u00a0
-
-
155 \u00a0
Trading portfolio liabilities \u00a0
-
-
442 \u00a0
-
-
-
13 \u00a0
-
454 \u00a0
Deposits *** \u00a0
1,102 \u00a0
-
-
-
-
120 \u00a0
-
-
1,222 \u00a0
Issued bonds at fair value \u00a0
-
-
-
-
-
749 \u00a0
-
-
749 \u00a0
Issued bonds at amortised cost \u00a0
*** \u00a0
219 \u00a0
-
-
-
-
-
-5 \u00a0
-
214 \u00a0
Deposits under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
-
-
71 \u00a0
-
-
71 \u00a0
Liabilities under insurance \u00a0
contracts ***** \u00a0
-
-
-
-
-
483 \u00a0
-
-
483 \u00a0
Non-preferred senior bonds \u00a0
96 \u00a0
-
-
-
-
-
-3 \u00a0
-
93 \u00a0
Subordinated debt \u00a0
39 \u00a0
-
-
-
-
-
-
-
39 \u00a0
Loan commitments\u00a0and \u00a0
guarantees \u00a0
3
-
-
-
-
-
-
-
3
Total financial liabilities, \u00a0
1,528 \u00a0
-
442 \u00a0
-
-
1,508 \u00a0
5
-
3,483 \u00a0
31 December\u00a02023 \u00a0
Total financial liabilities, \u00a0
1,599 \u00a0
-
533 \u00a0
-
-
1,402 \u00a0
-
27 \u00a0
3,562 \u00a0
31 December\u00a02022**** \u00a0
* Unrealised fair value gains and losses are presented in Other comprehensive income, and realised fair value gains and losses are recycled to the income statement . \u00a0
**The interest rate risk on some fixed-rate financial assets and liabilities is hedged by derivatives (fair value hedging). The interest rate risk on some fixed-rate bonds 'hold to collect and sell' \u00a0
is also hedged by derivatives. The fair value represents changes in the fair value of the interest rate risk on the hedged items, i.e. not a full fair value of the hedged items. \u00a0
*** Loans (amortised cost), Deposits (amortised cost) and Issued bonds at amortised cost include Assets held for sale and Liabilities i n disposal groups held for sale which are measured in \u00a0
accordance with\u00a0IFRS 9. These are presented separately on the Balance sheet. \u00a0
**** Comparative information has been restated, as described in note G2(a). \u00a0
***** Liabilities under insurance contracts comprise the liability for remaining coverage and liability for incurred claims, which includes estimates of present value of future cash flows, risk \u00a0
adjustment for non-financial\u00a0risk and contractual service margin. \u00a0
.
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
Classification and\u00a0measurement of\u00a0financial assets\u00a0and financial\u00a0liabilities \u2013 general \u00a0
Financial assets are classified on the basis of the business model adopted for\u00a0managing the assets and on their contractual\u00a0cash flow characteristic\u00a0s \u00a0
(including embedded\u00a0derivatives, if\u00a0any) are grouped into one of the following\u00a0measurement categories: \u00a0
\u2022
Amortised cost\u00a0(AMC) \u00a0
\u2022
Fair value through other comprehensive income (FVOCI) \u00a0
\u2022
Fair value through profit or loss (FVPL) \u00a0
Financial assets are measured at AMC if they are held within a business model for the purpose of collecting contractual\u00a0cash flows\u00a0(hold to collect) and \u00a0
if cash flows are solely payments\u00a0of principal\u00a0and interest\u00a0on the principal amount outstanding. \u00a0
Financial assets\u00a0are measured at FVOCI\u00a0if they are held within\u00a0a business model for\u00a0the purpose of both collecting\u00a0contractual cash\u00a0flows and selling \u00a0
(hold to collect and sell) and if cash flows are solely payments of principal and interest on the principal amount outstanding.\u00a0FVOCI results in the assets \u00a0
being recognised at fair value in the balance sheet and at AMC in\u00a0the income statement. Gains and\u00a0losses, except for expected credit losses and\u00a0foreign \u00a0
exchanges gains and losses, are therefore recognised in other comprehensive\u00a0income until the financial asset is derecognised. When the financial asset \u00a0
is derecognised the cumulative\u00a0gains and losses previously\u00a0recognised in other comprehensive\u00a0income are reclassified\u00a0to the income\u00a0statement. \u00a0
All other financial assets are mandatorily\u00a0measured at FVPL including\u00a0financial assets held within other business models, such as\u00a0financial assets \u00a0
managed at\u00a0fair value or held for trading and financial\u00a0assets with contractual cash flows that are not solely payments of principal and interest on the \u00a0
principal amount outstanding. \u00a0
Generally, financial liabilities\u00a0are measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities measured at\u00a0fair value comprise the trading portfolio (derivatives and\u00a0obligations to repurchase securities) and\u00a0liabilitie s \u00a0
designated at\u00a0fair value through profit or loss under the fair value option.\u00a0Value adjustments relating to the inherent credit risk of financial liabilitie\u00a0s \u00a0
designated at\u00a0fair value\u00a0are recognised in other comprehensive\u00a0income unless this leads to an accounting\u00a0mismatch. \u00a0
The business\u00a0model assessment \u00a0
The business model assessment in Danske Bank Group has been applied separately for\u00a0each business\u00a0unit represented\u00a0by the Group\u2019s reportable \u00a0
segments, and\u00a0it is based on observable\u00a0factors for the different portfolios, such as (1) how the performance of the business model and the financia\u00a0l \u00a0
assets held within that business model are evaluated and reported to the Executive\u00a0Board and the Board of Directors,\u00a0(2) the\u00a0risks that affect\u00a0the \u00a0
performance of the business\u00a0model and the way such risks are managed and (3) past and expected frequency, value and timing of sales from the portfolio. \u00a0
In general, the business model assessment of the Group can be summarised as follows: \u00a0
\u2022
The Group\u2019s banking units, comprising Personal Customers, Business Customers, General Banking at Large\u00a0Corporates &Institutes\u00a0(LC&I) and \u00a0
Northern Ireland, have a \u201chold to\u00a0collect\u201d business model. The financial assets consist primarily of loans. The management and reporting\u00a0of \u00a0
performance are based on collecting\u00a0the contractual cash flows,\u00a0and loans are only very infrequently\u00a0sold. \u00a0
\u2022
The trading units at LC&I (Markets and Investment\u00a0Banking & Securities) and the financial assets related to the Group\u2019s insurance activities\u00a0at \u00a0
Danica Pension have a\u00a0business model that is neither \u201chold to collect\u201d nor \u201chold to collect and sell\u201d and the financial assets are mandatorily \u00a0
recognised at FVPL. The assets consist of bonds, shares, repo transactions\u00a0and short-term loans.\u00a0Some of the financial assets are included in \u00a0
portfolios with a trading pattern that falls under the definition of \u201cheld for trading\u201d while other portfolios are managed and their performance reported \u00a0
on a fair value\u00a0basis. \u00a0
\u2022
Group Treasury has portfolios\u00a0of bonds\u00a0within the \u201chold to collect\u201d business model, the \u201chold to collect and sell\u201d business models and\u00a0the \u201cother\u201d \u00a0
business model. \u00a0
\u2022
The remaining portfolio of\u00a0Non-core is \u201chold to\u00a0collect\u201d. The financial assets consist primarily of loans. \u00a0
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
The SPPI test (solely\u00a0payment of\u00a0principal and\u00a0interest on\u00a0the principal\u00a0amount outstanding) \u00a0
The second step in the classification of the financial assets in portfolios being \u201chold to collect\u201d and \u201chold to collect and sell\u201d relates to\u00a0the assessment of \u00a0
whether the contractual\u00a0cash flows are consistent\u00a0with the\u00a0SPPI test.\u00a0The principal\u00a0amount reflects the fair value at initial\u00a0recognition less\u00a0any subsequent \u00a0
changes, e.g. due to repayment. The interest must represent only consideration\u00a0for the\u00a0time value of money, credit risk, other basic lending risks and a \u00a0
margin consistent\u00a0with basic lending\u00a0features. If the cash flows introduce more than de minimis exposure to risk or volatility\u00a0that is\u00a0not consistent with \u00a0
basic lending features, the financial asset is mandatorily recognised at\u00a0FVPL. \u00a0
In general, the Group\u2019s portfolios of\u00a0financial assets that are \u201chold to collect\u201d or \u201chold to collect and sell\u201d (loans and bonds)\u00a0have contractual\u00a0cash flows \u00a0
that are consistent with the SPPI test, i.e. they have basic lending features. \u00a0
However, loans granted under Danish mortgage finance law are funded by issuing listed mortgage bonds with matching terms. Such loans are granted \u00a0
by the Realkredit\u00a0Danmark subsidiary only. Borrowers may repay such loans by delivering the underlying bonds. This represents an option to prepay at \u00a0
fair value that can be both above and below the principal amount plus accrued interest. Changes in the fair value of\u00a0the underlying bonds\u00a0include other \u00a0
elements than\u00a0the effect of changes in the relevant benchmark interest rate and the prepayment option is therefore not consistent with the SPPI test in \u00a0
IFRS 9\u00a0and are mandatorily\u00a0measured at FVPL. \u00a0
All equity instruments\u00a0have contractual cash flows that do not pass the SPPI test. All such holdings\u00a0are recognised at FVPL since the Group has decided \u00a0
not to use the option to designate equity instruments\u00a0at FVOCI. \u00a0
Financial liabilities \u00a0
Financial liabilities\u00a0are generally measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities\u00a0measured at fair value comprise derivatives,\u00a0the trading portfolio and liabilities\u00a0designated at\u00a0FVPL under the fair value \u00a0
option. Value adjustments relating to\u00a0the inherent\u00a0own credit risk of financial\u00a0liabilities designated at fair value are, however, recognised in Other \u00a0
comprehensive income unless this leads to an\u00a0accounting mismatch. \u00a0
IFRS 9 allows the designation\u00a0of financial\u00a0liabilities at\u00a0FVPL when doing so results in more relevant\u00a0information, because either (1)\u00a0it eliminates\u00a0or \u00a0
significantly reduces\u00a0an accounting\u00a0mismatch that\u00a0would otherwise arise, or\u00a0(2) is part of a portfolio\u00a0of financial\u00a0instruments that are\u00a0managed and their \u00a0
performance reported on\u00a0a fair value\u00a0basis to management. \u00a0
The Group designates the following financial liabilities\u00a0at FVPL: \u00a0
\u2022
Mortgage bonds issued by Realkredit Danmark.\u00a0The bonds fund the loans granted by Realkredit Danmark, i.e. loans that due to the SPPI test are \u00a0
mandatorily recognised at\u00a0FVPL. The\u00a0fair value of the loans is based on the fair value of the issued bonds (the loans and the issued bonds that are \u00a0
funding the loans have matching\u00a0contractual terms) adjusted for\u00a0changes in the fair value of the credit risk of borrowers. To eliminate\u00a0the accounting \u00a0
mismatch that exists if the loans are measured at FVPL and the issued bonds at AMC, the issued bonds are designated at FVPL, and fair value \u00a0
changes of the issued bonds (including fair value changes related to own credit risk) are offset by the fair value changes of the loans. Hence, changes \u00a0
in the fair value attributable\u00a0to the Group\u2019s own credit risk on the issued bonds are also recognised in the income statement\u00a0since an accounting \u00a0
mismatch would otherwise arise. \u00a0
\u2022
Financial liabilities\u00a0in Markets\u00a0and Investment\u00a0Banking &\u00a0Securities at\u00a0LC&I. These financial liabilities\u00a0are part of a portfolio\u00a0of financial\u00a0assets and \u00a0
liabilities that\u00a0is managed\u00a0and performance reported to\u00a0the Management on a\u00a0fair value basis. The financial liabilities\u00a0consist of repo transactions\u00a0, \u00a0
deposits and\u00a0commercial papers. Changes, if any, in the fair value attributable\u00a0to the Group\u2019s own credit risk is, however,\u00a0recognised in other \u00a0
comprehensive income. \u00a0
Hedge accounting \u00a0
The Group uses derivatives\u00a0to hedge the interest rate risk on some fixed-rate assets and fixed-rate liabilities\u00a0measured at\u00a0amortised cost\u00a0and on some \u00a0
bonds measured at fair value through other comprehensive income. Hedged risks that meet the criteria for\u00a0fair value hedge accounting\u00a0are treated \u00a0
accordingly. The interest rate risk on the hedged assets and liabilities\u00a0is measured at fair value through profit or loss. At the end of 2023, hedging \u00a0
derivatives measured\u00a0at fair value\u00a0accounted for about 0.2% of total assets and about 0.4% of total\u00a0liabilities (31\u00a0December 2022: 0.1% and 0.6%, \u00a0
respectively). For further information on hedge accounting, see\u00a0note G12(d). \u00a0
Accounting policy \u00a0
Segment reporting\u00a0complies with the material accounting policies. The \u2018Reclassification\u2019 column shows\u00a0adjustments made\u00a0to the IFRS statements\u00a0in \u00a0
the calculation of the financial highlights. \u00a0
Internal income and expenses are allocated to the individual\u00a0segments on an arm\u2019s-length basis. Expenses incurred centrally, including\u00a0expenses \u00a0
incurred by\u00a0support, administrative\u00a0and back-office functions, are charged to the business units according to consumption\u00a0and activity.\u00a0Funding costs \u00a0
for lending\u00a0and deposit activities\u00a0(FTP) are allocated\u00a0on the basis of a maturity\u00a0analysis of\u00a0loans and deposits, interbank\u00a0rates and funding\u00a0spreads, and \u00a0
depend on market trends. \u00a0
Segment assets and liabilities\u00a0are assets and liabilities\u00a0that are used for maintaining\u00a0the operating activities\u00a0of a segment or have come into existenc\u00a0e \u00a0
as a result of such activities\u00a0and which are either directly attributable\u00a0or may be reasonably\u00a0allocated to a segment. A\u00a0calculated share of\u00a0shareholders\u2019 \u00a0
equity is\u00a0allocated to each segment. Other assets and liabilities\u00a0are recognised\u00a0under Group Functions. \u00a0
Capital (shareholders\u2019 equity) is\u00a0allocated to the business units based on the Group\u2019s capital allocation framework, with\u00a0goodwill allocated directly to \u00a0
the relevant business units. The framework is based on a regulatory approach and is calibrated to the Group\u2019s CET1 capital ratio target. Therefore, the \u00a0
capital consumption of\u00a0the individual\u00a0business units is closely aligned with the Group\u2019s total capital consumption. However, for\u00a0the Danica Pension and \u00a0
Northern Ireland business units, the capital allocated equals the legal entity\u2019s capital. \u00a0
A calculated\u00a0interest income equal to the risk-free return on its allocated capital is apportioned\u00a0to each business unit and offset by a corresponding \u00a0
interest expense at Group Functions. This income is\u00a0calculated on the basis of the short-term money market rate. \u00a0
Accounting policy \u00a0
Interest income and expenses \u00a0
Interest income and expenses arising from interest-bearing\u00a0financial instruments\u00a0measured at\u00a0amortised cost\u00a0or at fair value through Other \u00a0
comprehensive income are\u00a0recognised according to the effective interest method on\u00a0the basis of the cost of the individual\u00a0financial instrument.\u00a0Interes t \u00a0
includes amortised amounts of\u00a0fees that are an integral part of the effective yield on a financial\u00a0instrument, such\u00a0as origination\u00a0fees, and amortise\u00a0d \u00a0
differences between the cost and the redemption\u00a0price, if any. Interest\u00a0on financial instruments\u00a0included in\u00a0stage 3 (for the calculation\u00a0of expected credit \u00a0
losses) is recognised on the basis of the carrying amount (i.e. net of impairment charges). The interest rate risk on some financial portfolios\u00a0recognised \u00a0
at amortised\u00a0cost is hedged by derivatives\u00a0using fair value hedge accounting. Note G12 provides\u00a0more information\u00a0on hedge accounting.\u00a0Interest income \u00a0
calculated using\u00a0the effective interest method and\u00a0presented as\u00a0a separate line item in the income statement excludes the impact from hedge \u00a0
accounting. \u00a0
Further, interest income and expenses includes interest on financial instruments\u00a0measured at\u00a0fair value through profit or loss. Among others, this \u00a0
includes interest income on loans measured at fair value\u00a0for which interest on loans included in stage 3 is recognised on the basis of the gross carrying \u00a0
amount. However, interest on\u00a0assets and\u00a0deposits under pooled schemes is recognised under Net trading income or loss. In the income statement, \u00a0
interest income on financial assets measured at fair\u00a0value through profit\u00a0or loss is presented\u00a0under the line item Other interest income, while the line \u00a0
item Interest expenses includes all interest expenses. \u00a0
Net trading\u00a0income or loss \u00a0
Net trading income or\u00a0loss includes realised and\u00a0unrealised capital gains and losses\u00a0on financial assets and financial liabilities\u00a0recognised at fair value \u00a0
through profit or\u00a0loss as well as exchange\u00a0rate adjustments\u00a0and dividends.\u00a0However, the fair value adjustments\u00a0of the credit risk on loans granted by \u00a0
Realkredit Danmark are\u00a0presented under Loan impairment charges. Further, the fair value adjustment\u00a0of own credit risk on financial liabilities\u00a0in the \u00a0
Group\u2019s trading units Markets and Investment Banking & Securities part of\u00a0LC&I designated at fair value through profit or\u00a0loss is presented in Other \u00a0
comprehensive income. Net trading income or\u00a0loss includes the fair value adjustments of own credit risk on bonds issued by Realkredit Danmark,\u00a0as an \u00a0
accounting mismatch between the fair\u00a0value adjustment of the loans and\u00a0the bonds in Realkredit\u00a0Danmark would otherwise exist (see\u00a0further \u00a0
information in note G16). \u00a0
Realised gains and losses on financial assets at amortised cost,\u00a0e.g. loans, are recognised under Net trading income or loss when the financial asset is \u00a0
derecognised, unless the derecognition relates to a\u00a0credit risk event/forbearance\u00a0measure, in which case the gain or loss is presented under Loan \u00a0
impairment charges\u00a0(see note G15). Otherwise, the derecognition gain or loss on the financial asset is calculated\u00a0as the difference between the carrying \u00a0
amount (gross of expected credit losses) and the repayment\u00a0amount. For financial assets (bonds) at fair value through other comprehensive\u00a0income, \u00a0
gains or losses further include\u00a0amounts previously recognised in\u00a0other comprehensive income. For\u00a0financial liabilities\u00a0at amortised\u00a0cost, the gain or \u00a0
loss is the difference between the carrying\u00a0amount and the redemption price including cost related to\u00a0the redemption, if any. \u00a0
For financial\u00a0assets and liabilities\u00a0subject to fair value hedge accounting, the fair value adjustments\u00a0of the hedged financial instrument and the hedging \u00a0
instruments are\u00a0recognised in Net trading income or loss. Therefore, any hedge ineffectiveness\u00a0is presented\u00a0in Net trading income or loss. \u00a0
Returns (interest income and fair value changes) on assets under pooled schemes and the crediting of these returns to customer accounts are \u00a0
recognised under Net trading\u00a0income or loss. \u00a0
Accounting policy \u00a0
Fee income \u00a0
Fee income is recognised to reflect the transfer of services to customers at an\u00a0amount that reflects the consideration\u00a0that is\u00a0expected to be received \u00a0
in exchange\u00a0for such services. The\u00a0Group identifies\u00a0the performance obligation,\u00a0i.e. the services agreed with the customer, and the consideration, and \u00a0
recognises income in line with the transfer of services, the performance obligation, agreed with the customer. \u00a0
For each performance obligation\u00a0identified, the Group determines at contract inception\u00a0whether it satisfies\u00a0the performance obligation over time or\u00a0at \u00a0
a point\u00a0in time, and whether\u00a0the consideration is fixed or\u00a0variable, including whether consideration is\u00a0constrained by, for\u00a0instance, external\u00a0factors \u00a0
outside the Group\u2019s influence. The consideration is subsequently allocated to the identified performance obligation. \u00a0
When income\u00a0is highly\u00a0susceptible to\u00a0external factors, such as the development\u00a0in the financial markets, the income is recognised once the \u00a0
consideration to\u00a0be received is known and it is probable that a significant reversal of the consideration will not occur. \u00a0
For income\u00a0derived from the provision of agency services the consideration\u00a0is presented\u00a0on a net basis. \u00a0
Fee expense \u00a0
Fee expense for services provided\u00a0over a period of time, such as guarantee commissions\u00a0and investment\u00a0management fees, are accrued over the period. \u00a0
Transaction fees,\u00a0such as brokerage and custody fees, are recognised on settlement of the individual\u00a0transaction. Fees\u00a0that form\u00a0an integral part of the \u00a0
effective rates of interest on\u00a0financial liabilities\u00a0measured at\u00a0amortised cost, such as origination\u00a0fees, are carried under interest expense. Similar fees \u00a0
related to\u00a0financial liabilities\u00a0at fair value\u00a0through profit\u00a0or loss are recognised when the financial liability\u00a0is established\u00a0and are carried under fee \u00a0
expense. \u00a0
Accounting policy \u00a0
Income from lease assets and investment\u00a0property \u00a0
Income from lease assets and\u00a0investment property includes income from assets let under operating leases. Lease\u00a0payments are recognised on a \u00a0
straight line basis over the period of the lease term. The accounting\u00a0policy for lease assets is further described in note G24. \u00a0
Income from holdings in\u00a0associates \u00a0
Associates are\u00a0accounted for\u00a0using the equity method. Further information is provided in note G38. \u00a0
Accounting policy \u00a0
Staff costs \u00a0
This item includes salaries, performance-based pay, expenses for share-based payments, holiday allowances, anniversary\u00a0bonuses, pension costs\u00a0and \u00a0
other remuneration. Salaries and other remuneration that\u00a0the Group expects to pay are expensed when the employees render the services. \u00a0
Performance-based remuneration\u00a0is expensed\u00a0as it is earned. \u00a0
Share-based payment \u00a0
Part of the performance-based remuneration\u00a0for the year is paid in the form of conditional\u00a0shares. Rights to conditional\u00a0shares vest up to four years \u00a0
after the grant date, provided that the employee, with the exception of retirement, has not resigned from the Group. In addition to this requirement, the \u00a0
vesting of rights is conditional\u00a0on certain targets being met. The fair value of share-based payments\u00a0at the\u00a0grant date\u00a0is expensed over the vesting period \u00a0
with the intrinsic\u00a0value expensed in the year in which the share-based payments are earned, and the time value\u00a0(if any) accrued over the remaining \u00a0
service period. Expenses are set off against shareholders\u2019 equity. Fair\u00a0value adjustments after\u00a0the grant\u00a0date are not recognised in the income \u00a0
statement. \u00a0
Pension obligations \u00a0
The Group\u2019s contributions to\u00a0defined contribution\u00a0pension plans are recognised in the income statement as they are earned by\u00a0the employees. For \u00a0
defined benefit pension plans, the Group expenses the standard cost.\u00a0Actuarial gains or losses as a result of the difference between expected trends in \u00a0
pension assets\u00a0and benefits\u00a0and actual\u00a0trends are recognised under Other comprehensive\u00a0income. \u00a0
Amortisation, depreciation and\u00a0impairment charges \u00a0
In addition to amortisation,\u00a0depreciation and\u00a0impairment charges for intangible, tangible and right-of-use assets,\u00a0the Group expenses the carrying \u00a0
amount of\u00a0lease assets sold at the expiry of a lease agreement. \u00a0
Accounting policy \u00a0
The accounting policy for\u00a0when a loan impairment\u00a0charge is recognised and how the charge is determined\u00a0is described under the relevant balance sheet \u00a0
line items. Notes G15, G16 and G24 provide more information. \u00a0
Accounting policy \u00a0
The trading\u00a0portfolio is recognised at fair value\u00a0through profit\u00a0or loss. Realised and unrealised\u00a0capital gains and losses and dividends\u00a0are recognised in \u00a0
the income statement\u00a0under Net trading\u00a0income or loss. Fair value\u00a0is the\u00a0amount for which a financial asset can be sold or a financial liability\u00a0be \u00a0
transferred to a knowledgeable,\u00a0willing third\u00a0party. Note G33 provides information\u00a0about fair value measurement and fair value adjustments. \u00a0
The Group uses the option in IFRS 9 to continue using the fair value hedge accounting model in IAS 39.\u00a0The derivatives used\u00a0as hedging instruments \u00a0
are presented\u00a0in the balance sheet together with other derivatives. \u00a0
G13. Investment securities \u00a0
Investment securities\u00a0consist of bonds and shares held by non-trading\u00a0units in\u00a0the Group. It consists primarily\u00a0of the liquidity\u00a0portfolio managed by Group \u00a0
Treasury. The liquidity\u00a0portfolio includes different\u00a0portfolios with different\u00a0business models. Some portfolios are managed on a fair\u00a0value basis and \u00a0
mandatorily measured\u00a0at fair value\u00a0through profit\u00a0or loss under IFRS 9, whereas other portfolios\u00a0are either\u00a0\u2018hold to collect and sell\u2019 and measured at fair \u00a0
value through other comprehensive\u00a0income or \u2018hold to collect\u2019. \u00a0
Accounting policy \u00a0
Financial assets measured at fair value through profit or loss (FVPL) \u00a0
Financial assets measured at fair\u00a0value include securities that are\u00a0managed on a fair value basis with no short-term profit taking. Realised and unrealise\u00a0d \u00a0
capital gains and losses and dividends\u00a0are carried in the income statement under Net\u00a0trading income or loss. Further, all shares (including\u00a0unliste d \u00a0
shares) and bonds held in Group Treasury that do not have contractual\u00a0cash flows that are solely payments of principal and interest\u00a0on the principa\u00a0l \u00a0
amount outstanding (i.e. that does not pass the SPPI test in IFRS 9) are mandatorily\u00a0measured at FVPL and, consequently,\u00a0included in this category. \u00a0
Financial assets measured at fair value through other comprehensive income (FVOCI) \u00a0
This category comprises bonds only, and primarily bonds listed in a liquid market, as the Group does not use the option to designate equity instruments \u00a0
at FVOCI.\u00a0The bonds are held within\u00a0a business\u00a0model for the purpose of collecting contractual\u00a0cash flows\u00a0and selling\u00a0(hold to collect\u00a0and sell). The bonds \u00a0
have cash\u00a0flows that are solely payments of principal and interest on the principal\u00a0amount outstanding\u00a0(i.e. that pass the SPPI test in IFRS 9). FVOCI \u00a0
results in\u00a0the assets being recognised at\u00a0fair value in the balance sheet and at amortised cost in the income statement,\u00a0including the\u00a0recognition of \u00a0
expected credit losses as described in note G15. Gains and losses, except for expected credit losses and foreign exchanges gains and losses, are \u00a0
therefore recognised in\u00a0other comprehensive income until the bond is derecognised. When a\u00a0fixed interest rate risk is hedged in a hedge that qualifie\u00a0s \u00a0
for fair value\u00a0hedge accounting, the fair value changes of the hedged interest risk are presented in the income statement under Net trading income or \u00a0
loss. When bonds are sold unrealised value\u00a0adjustments recognised\u00a0under Other comprehensive\u00a0income are reclassified to the income statement and \u00a0
presented under Net trading income or loss.\u00a0The Group recognises interest income according to the effective interest method, including amortisatio\u00a0n \u00a0
of the difference between cost and the redemption value over the term to maturity\u00a0of the bonds. \u00a0
Financial assets measured at amortised cost (AMC) \u00a0
This category consists of\u00a0bonds held within\u00a0a business\u00a0model for the purpose of collecting the contractual\u00a0cash flows (hold to collect) and with cash \u00a0
flows that\u00a0are solely\u00a0payments of principal and interest on the principal amount outstanding (i.e. that pass the SPPI test in IFRS 9). The bonds are \u00a0
measured at\u00a0amortised cost.\u00a0Interest income is\u00a0recognised according to the effective interest method, including\u00a0amortisation of\u00a0the difference between \u00a0
cost and the redemption\u00a0value over the term to maturity of the bonds. A change in the contractual cash flows that is required by the Interest Rate \u00a0
Benchmark Reform is accounted for\u00a0by updating\u00a0the effective interest rate, without\u00a0recognising a gain or loss. This can only\u00a0be applied\u00a0if the change is \u00a0
necessary as a direct consequence of the reform, and the new basis for determining\u00a0the contractual\u00a0cash flows is economically equivalent\u00a0to the \u00a0
previous basis. The bonds are\u00a0subject to\u00a0the expected credit model in IFRS 9 as described in note G15. The interest rate risk on fixed-rate bonds is not \u00a0
hedged. \u00a0
Accounting policy \u00a0
For balances due from\u00a0credit institutions\u00a0in the Group\u2019s banking units (Personal & Business Customers, General Banking\u00a0in Large Corporates \u00a0
&
Institutions, Northern\u00a0Ireland and\u00a0Non-core), the business model is \u2018hold to collect\u2019. As the contractual cash flows represent basic lending\u00a0feature, these \u00a0
balances are measured at amortised cost. For further\u00a0information on the accounting policy etc., see\u00a0note G15. \u00a0
For balances due from credit institutions\u00a0and central banks in the Group\u2019s trading units (Markets and\u00a0Investment Banking &\u00a0Securities in\u00a0Large \u00a0
Corporates &\u00a0Institutions) the\u00a0business model\u00a0is neither\u00a0\u2018hold to collect\u2019 nor \u2018hold to collect and sell\u2019 and these balances are mandatorily\u00a0recognised at \u00a0
fair value through profit or loss. For further information\u00a0on the\u00a0accounting policy, see\u00a0note G16. \u00a0
Accounting policy \u00a0
At initial recognition, loans are measured at\u00a0fair value plus transaction\u00a0costs less origination\u00a0fees and other charges that are an integral part of the \u00a0
effective interest rate\u00a0on loans. This usually corresponds to the amount disbursed to the customer. Subsequently,\u00a0they are measured at amortise\u00a0d \u00a0
cost, using the effective interest method, less impairment charges for expected credit losses. The difference between the value at initial recognitio\u00a0n \u00a0
and the redemption\u00a0value is\u00a0amortised over the term to maturity\u00a0as part of the effective interest.\u00a0If fixed-rate loans are hedged effectively by derivative\u00a0s , \u00a0
the fair value\u00a0of the hedged interest rate risk is added to the carrying\u00a0amount of the hedged assets. \u00a0
Accounting policy \u00a0
Loans granted and bonds issued by Realkredit\u00a0Danmark \u00a0
Loans granted by Realkredit\u00a0Danmark have contractual cash\u00a0flows that are not solely payment of principal and interest on the principal amount \u00a0
outstanding. Therefore,\u00a0the loans are\u00a0mandatorily recognised at\u00a0fair value\u00a0through profit\u00a0or loss. The issued bonds that are\u00a0funding the loans are \u00a0
designated at\u00a0fair value through profit or loss in order not to create an accounting\u00a0mismatch. For\u00a0the issued bonds, changes in fair value attributable\u00a0to \u00a0
the Group\u2019s own credit risk is presented in the income\u00a0statement, as\u00a0an accounting\u00a0mismatch would otherwise be introduced. \u00a0
The fair value of the bonds issued by Realkredit Danmark is normally defined as their quoted market price. A small number of the issued bonds are \u00a0
illiquid, however, and\u00a0the fair value\u00a0of these bonds is calculated\u00a0on the basis of a discounted\u00a0cash flow valuation technique. The fair value of the loans is \u00a0
based on the fair value of the underlying\u00a0bonds which ensures that changes in the fair value of the interest rate risk on the loans are measured based \u00a0
on market implied\u00a0input. This fair value is adjusted for changes in the fair value of cash flows from the loans that differ from the cash flows from the \u00a0
issued bonds. The most important\u00a0component is\u00a0the credit risk on the borrowers (covered by the Group and\u00a0not by\u00a0the bond holders and therefore not \u00a0
priced into the price of the issued bonds). \u00a0
Changes in fair value of credit risk etc on the loans \u00a0
The IFRS 13 estimate\u00a0of the fair value of the credit risk on the loans is based on the expected credit losses estimated in the models developed in \u00a0
connection with the Group\u2019s implementation\u00a0of the expected\u00a0credit loss impairment model in IFRS 9, including\u00a0the allocation o\u00a0f loans\u00a0between stage 1, \u00a0
stage 2 and stage 3. The expected credit losses are calculated for all loans as a function of PD, EAD and LGD and incorporates forward looking \u00a0
information, see\u00a0further in note G15. The latter reflects management\u2019s expectations of\u00a0expected credit\u00a0losses and\u00a0involves multiple scenarios (base \u00a0
case, upside\u00a0and downside),\u00a0including an\u00a0assessment of\u00a0the probability\u00a0for each scenario. \u00a0
On top of the expected\u00a0credit losses, a collective\u00a0assessment determines\u00a0the need for further adjustments\u00a0to reflect other components\u00a0in the fair value \u00a0
measurement, such as an assessment of lifetime\u00a0expected credit\u00a0losses for\u00a0loans in\u00a0stage 1, an investors risk premium, compensation for \u00a0
administrative costs\u00a0related to the loans and the possibility\u00a0to increase the margin on the loans if the credit risk etc increases. It is acknowledged that \u00a0
the possibility to\u00a0increase the margin depends on the economic resources of the customers.\u00a0The possibility\u00a0to increase the margin is therefore only \u00a0
considered in\u00a0the measurement if it is very likely that the margin can be increased without\u00a0the customer defaulting. Further,\u00a0the possibility\u00a0to increase \u00a0
the margin is only relevant if it does not give the customer an incentive to \u201cmove\u201d to another mortgage institution.\u00a0Therefore, the possibility\u00a0to increase \u00a0
the margin is only relevant for the measurement of loans to customers with neither a relatively\u00a0high credit risk nor a relati\u00a0vely low\u00a0credit risk. \u00a0
The discount rate used to discount the cash flows represents the interest rate on the funding bonds. This is considered to be close to a risk-free interes\u00a0t \u00a0
rate. The risk premium is incorporated into the cash\u00a0flows. The risk premium is assumed to be higher for customers with high credit risk than for \u00a0
customers with low credit risk. Further, the adjustments\u00a0for changes in the fair value\u00a0of the credit risk and other components\u00a0cannot increase the value \u00a0
of a loan\u00a0(the adjustment\u00a0cannot be positive). \u00a0
Other loans and\u00a0issued bonds measured at fair value through profit or loss \u00a0
The loans in the Group\u2019s trading units (Markets and Investment Banking & Securities in LC&I) are managed and their performance reported on a fair \u00a0
value basis and the loans are under IFRS 9 mandatorily\u00a0measured at fair value\u00a0through profit or loss. In order not to introduce\u00a0an accounting mismatc\u00a0h \u00a0
by measuring the financial assets in the trading units at\u00a0fair value through profit or loss and the financial liabilities\u00a0at amortised cost, the\u00a0financia l \u00a0
liabilities in\u00a0the trading units are designated at\u00a0fair value through profit or\u00a0loss with fair value changes attributable\u00a0to the Group\u2019s own credit risk \u00a0
presented in\u00a0other comprehensive income. \u00a0
Accounting policy \u00a0
Assets earmarked for customer savings are measured at fair value and recognised under Assets under pooled schemes and unit-linked\u00a0investment \u00a0
contracts. Deposits made by customers are recognised under Deposits under pooled schemes and unit-linked investment contracts. These deposits are \u00a0
measured at the\u00a0value of savings, corresponding to the fair value of the assets. \u00a0
The Group has elected not to deduct own shares from equity that are held on behalf of customers. Therefore total assets under pooled schemes and unit- \u00a0
linked contracts includes these own shares that meet this criterion. \u00a0
Accounting policy \u00a0
Assets under insurance contracts \u00a0
Assets under insurance contracts are managed on a fair\u00a0value basis with\u00a0no short-term profit taking. The business model for managing the assets is \u00a0
therefore neither \u2018held to collect\u2019 nor\u00a0\u2018held to\u00a0collect and sell\u2019 and the financial assets are therefore man\u00a0datorily recognised\u00a0at fair value through profit \u00a0
or loss.\u00a0The valuation\u00a0technique used matches the Group\u2019s accounting policy for\u00a0similar assets\u00a0. \u00a0
The Group has\u00a0elected to\u00a0not deduct own\u00a0shares and own bonds\u00a0from equity\u00a0and liabilities\u00a0respectively that are underlying\u00a0items of insurance \u00a0
contracts with\u00a0direct participation\u00a0features. Therefore total Assets under insurance contracts includes these own shares and\u00a0own bonds. \u00a0
Liabilities under\u00a0insurance contracts \u00a0
The Group has\u00a0divided all\u00a0insurance contracts into portfolios and\u00a0groups and determined measurement methods for\u00a0the individua\u00a0l groups\u00a0of \u00a0
contracts. The classification of\u00a0insurance contracts in the four\u00a0portfolios is based on\u00a0an assessment of similar\u00a0risks and on an overall\u00a0management \u00a0
approach: \u00a0
-
An average-rate\u00a0portfolio \u00a0
-
A unit-linked\u00a0portfolio \u00a0
-
A portfolio\u00a0of legacy life insurance products\u00a0in run-off \u00a0
-
A portfolio\u00a0containing health and\u00a0accident insurance contracts. \u00a0
The Group applies the annual cohort exemption from\u00a0the EU to the average-rate portfolio. \u00a0
The Group measures liabilities\u00a0under insurance contracts using the General Measurement\u00a0Model (GMM),\u00a0Variable Fee\u00a0Approach (VFA) or Premium \u00a0
Allocation Approach (PAA). The majority\u00a0of the Group\u2019s life insurance contracts\u00a0are measured\u00a0using VFA because they meet the definition\u00a0of \u00a0
insurance contracts with direct participation\u00a0features. GMM is\u00a0used for legacy life insurance\u00a0products in run\u00a0-off. \u00a0
Insurance contracts measured using GMM\u00a0or VFA are initially\u00a0measured as the total of fulfilment cash flows (which comprise es\u00a0timated future cash \u00a0
flows, an adjustment\u00a0for time value\u00a0of money and effect of financial risks, and a risk adjustment\u00a0for non-financial\u00a0risk) and contractual service margin \u00a0
(CSM; unearned profit that will be recognised as the Group provides insurance contract services).\u00a0At each reporting\u00a0date, th\u00a0e group of insurance \u00a0
contracts is\u00a0subsequently measured\u00a0as the sum of the liability\u00a0for remaining\u00a0coverage (comprising fulfilment cash\u00a0flows relating to\u00a0future se\u00a0rvice and \u00a0
CSM) and liability\u00a0for incurred claims\u00a0(comprising fulfilment cash flows relating\u00a0to past service). \u00a0
PAA is\u00a0applied to the Health and accident insurance portfolio, which comprises only one\u00a0-year insurance contracts. \u00a0
Accounting policy \u00a0
Goodwill \u00a0
Goodwill arises\u00a0on the acquisition\u00a0of an undertaking\u00a0and is calculated\u00a0as the\u00a0difference between the cost (until 1 January\u00a02010 including\u00a0direct \u00a0
transaction costs) of\u00a0the undertaking and\u00a0the fair value of\u00a0its net assets, including\u00a0contingent liabilities, at\u00a0the time of acquisition. Goodwill\u00a0is allocate d \u00a0
to cash-generating\u00a0units at the level at which management monitors\u00a0the investment. \u00a0
Goodwill is\u00a0not amortised;\u00a0instead, each cash-generating unit is tested for impairment once a year, or more frequently if indications\u00a0of impairment\u00a0exist. \u00a0
Goodwill is written down\u00a0to its recoverable amount through profit and loss if the carrying amount of the net assets of the cash-generating\u00a0unit exceeds \u00a0
the higher of\u00a0the assets\u2019 fair value less costs to sell and their value in use, which equals the present value of the future cash flows expected from the \u00a0
unit. \u00a0
Goodwill on associates is recognised under Holdings in associates. \u00a0
Other intangible\u00a0assets \u00a0
Software acquired is measured\u00a0at cost,\u00a0including expenses incurred to make a\u00a0software application\u00a0ready for use. Software acquired is amortised\u00a0over \u00a0
its expected useful life, usually three years, according to the straight-line method. \u00a0
Software developed\u00a0by the Group is recognised as\u00a0an asset if the cost of development\u00a0is reliably\u00a0measurable and\u00a0analyses show that future earnings \u00a0
from using the individual\u00a0software applications\u00a0exceed the cost. Cost includes expenses incurred to make a\u00a0software application\u00a0ready for use. Once a \u00a0
software application\u00a0has been developed,\u00a0the cost\u00a0is amortised over its expected useful life, usually three years, according to the straight-line\u00a0method. \u00a0
The cost\u00a0of development\u00a0consists primarily of\u00a0direct remuneration\u00a0and other directly attributable\u00a0development costs.\u00a0Costs incurred in the planning \u00a0
phase are not included\u00a0but are expensed when incurred. \u00a0
Software is tested\u00a0for impairment\u00a0if indications of\u00a0impairment exist\u00a0and is written down to its value in use. \u00a0
Accounting policy \u00a0
Amounts due to credit institutions\u00a0and central banks and Deposits in the Group\u2019s trading units\u00a0(Markets and Investment Banking\u00a0& Securities\u00a0in LC&I) \u00a0
are designated at fair value through profit or loss. However, the amount of the change in fair value attributable\u00a0to the Group\u2019s own credit risk is \u00a0
recognised in other comprehensive\u00a0income. \u00a0
All other\u00a0balances are measured at amortised\u00a0cost. If fixed-rate\u00a0deposits are hedged effectively by derivatives,\u00a0the fair value\u00a0of the hedged interest rate \u00a0
risk is added to the amortised cost of the liabilities. \u00a0
Accounting policy \u00a0
Current tax \u00a0
Current tax assets and liabilities\u00a0are recognised\u00a0in the balance sheet as the estimated\u00a0tax payable\u00a0on the profit for the year adjusted\u00a0for prepaid tax and \u00a0
prior-year tax payables and receivables. Tax assets and liabilities\u00a0are offset\u00a0if the Group has a legally enforceable right to set off such assets and \u00a0
liabilities and\u00a0intends either to settle the assets and liabilities\u00a0on a net basis or to realise the assets and settle the liabilities\u00a0simultaneously. \u00a0
Deferred tax \u00a0
Deferred tax on all temporary differences between the tax base of assets and liabilities\u00a0and their carrying amounts is\u00a0accounted for\u00a0in accordance with \u00a0
the balance sheet liability method. Deferred tax is measured on the basis of enacted or substantially\u00a0enacted tax regulations and rates that are \u00a0
applicable in\u00a0the relevant countries at the time the deferred tax is expected to crystallise\u00a0as current tax. Changes in deferred tax as a result of changes \u00a0
in tax rates are recognised in the income statement on the basis of\u00a0expected cash\u00a0flows. The Group does not recognise deferred tax on temporar\u00a0y \u00a0
differences between the tax base and the carrying amounts of\u00a0goodwill not subject to amortisation\u00a0for tax\u00a0purposes and other items if the temporar\u00a0y \u00a0
differences arose at the time of acquisition without effect on\u00a0net profit or taxable income.\u00a0If the tax base may be calculated\u00a0according to several sets of \u00a0
tax regulations,\u00a0deferred tax is\u00a0measured in accordance with the regulations that apply to the use\u00a0of the asset or settlement\u00a0of the liability\u00a0as planne d \u00a0
by management.\u00a0Tax assets arising from unused tax losses are only recognised if it is expected that such tax losses can be offset against tax on future \u00a0
profit in the next five years. Deferred tax assets and liabilities\u00a0are offset when they relate to the same tax jurisdiction,\u00a0a legally enforceable right to offset \u00a0
exists and the Group intends to settle on\u00a0a net basis. \u00a0
Current and deferred tax is calculated\u00a0on the\u00a0profit for the year, and adjustments\u00a0of prior-year tax charges are recognised in the income statement.\u00a0Tax \u00a0
on items\u00a0recognised under Other comprehensive income is\u00a0recognised under Other comprehensive income. Similarly, tax on items recognised in\u00a0equity \u00a0
is recognised in equity. When uncertainty\u00a0over tax treatment\u00a0exists, the uncertainty\u00a0is reflected by using either\u00a0the most likely outcome (if the poss\u00a0ible \u00a0
outcomes are binary or are concentrated on one value)\u00a0or the expected value,\u00a0probability weighted\u00a0amounts in\u00a0a range of possible outcomes\u00a0(if there is \u00a0
a range of possible\u00a0outcomes that are\u00a0neither binary\u00a0nor concentrated on one value). \u00a0
Accounting policy \u00a0
Issued bonds, both senior, non-preferred senior and subordinated\u00a0bonds, are at initial\u00a0recognition measured at fair value less transaction\u00a0costs and \u00a0
subsequently measured\u00a0at amortised\u00a0cost plus\u00a0the fair value of\u00a0the hedged interest rate risk. Interest expense is recognised according to the effective \u00a0
interest rate method, including amortisation\u00a0of any difference between the amount received on\u00a0issue and the redemption amount. \u00a0
The Group issues perpetual bonds with discretionary\u00a0interest payments that fulfil the requirements\u00a0for additional\u00a0tier 1 capital under the Capital \u00a0
Requirements Regulation (CRR).\u00a0If a\u00a0trigger event occurs,\u00a0those bonds must be\u00a0either written down temporarily or converted into a variable number of \u00a0
ordinary shares, depending on the terms of the individual\u00a0bond issue. Bonds that convert into a\u00a0variable number of\u00a0ordinary shares are accounted for \u00a0
as liabilities,\u00a0while bonds that are temporarily written down are accounted for as equity. For liability\u00a0accounted bonds, the interest expense is recognised \u00a0
in the income statement, i.e. the bonds are accounted for as liabilities\u00a0in their entirety. \u00a0
Accounting policy \u00a0
Assets held for sale and Liabilities\u00a0in disposal groups \u00a0
Assets held\u00a0for sale are disposal groups of assets actively\u00a0marketed for\u00a0sale and for\u00a0which a sale is expected to occur withi\u00a0n 12 months. A disposal \u00a0
group is a group of assets that will be disposed of in a single transaction\u00a0and includes\u00a0any directly\u00a0associated liabilities.\u00a0A disposal group in\u00a0cludes for \u00a0
example companies (subsidiaries) or\u00a0properties taken\u00a0over under non-performing loan agreements. Further, loans that are marketed for sale are \u00a0
transferred to Assets held for sale. The loans\u00a0are written\u00a0down to their\u00a0expected selling\u00a0price. \u00a0
The net assets in the disposal group are remeasured at the lower of the carrying amount of the net assets in the disposal group at the time of \u00a0
reclassification and fair value less expected cost to sell. \u00a0
If a disposal group of assets and liabilities\u00a0represents a separate\u00a0major line of business (typically\u00a0a reportable\u00a0segment) o\u00a0r a geographical area of \u00a0
operation or\u00a0is a subsidiary\u00a0acquired exclusively with a\u00a0view of resale, it is presented as a discontinued\u00a0operation. For a discontinued\u00a0operation, net \u00a0
profit is presented as a single item \u2018Net profit from discontinued\u00a0operations\u2019 in\u00a0the income statement, i.e. no longer includ\u00a0ed as\u00a0income and expenses \u00a0
from the Group\u2019s\u00a0continuing operations. \u00a0
Accounting policy \u00a0
Defined benefit\u00a0pension plans \u00a0
When the Group has entered into defined benefit pension plans, the amounts payable are recognised on the basis of an actuarial computation\u00a0of the \u00a0
present value of expected benefits. The present value is calculated on the basis of expected future trends in salaries and interest rates, the time of \u00a0
retirement, mortality rates\u00a0and other factors. The present value of pension benefits less the fair value of pension assets is recognised as a pension \u00a0
obligation for\u00a0each plan under Other liabilities.\u00a0If the net amount of a defined benefit pension plan is positive\u00a0and may be repaid to the Group or reduce \u00a0
its future contributions\u00a0to the plan, the net amount is recognised under Other assets. The discount rate is determined by reference to yields on high- \u00a0
quality corporate bonds with terms matching the terms of\u00a0the pension obligations. \u00a0
Right of\u00a0use lease assets and lease liabilities \u00a0
The Group recognise a right-of-use asset and a lease liability\u00a0at the commencement\u00a0date, for all lease agreements,\u00a0that the Group has entered into as \u00a0
lessee, except short-term leases and leases of low value\u00a0asset. The lease liability\u00a0is initially\u00a0measured at the present value\u00a0of the future payme\u00a0nts from \u00a0
lease components, discounted using the\u00a0incremental borrowing\u00a0rate for the individual\u00a0lease. The lease liability\u00a0is subsequently measured\u00a0by increasing \u00a0
the carrying amount, to reflect interest and by reducing the carrying amount to reflect the lease payments\u00a0made. Fur\u00a0ther lease liabilities\u00a0are changed \u00a0
when remeasurements\u00a0are needed, corresponding adjustment is\u00a0the related right-of-use asset. Gain or\u00a0loss from a lease modification,\u00a0(excluding \u00a0
modifications that\u00a0change the basis for determining\u00a0future lease\u00a0payments as a\u00a0result of\u00a0the Interest Rate Benchmark Reform) that are\u00a0not accounte\u00a0d \u00a0
for as a separate lease, is recognised in profit and loss. If a lease modification\u00a0is necessary\u00a0as a direct consequence of the interest\u00a0rate benchmar\u00a0k \u00a0
reform, and the new basis for determining\u00a0the lease payments is\u00a0economically equivalent to the previous basis immediately\u00a0pre ceding\u00a0the modification, \u00a0
then the lease liability\u00a0shall be remeasured by discounting\u00a0the revised lease payments.\u00a0The initial\u00a0right-of-use asset comprise the amount of the initial \u00a0
measurement of the lease liability,\u00a0lease payments made at or before the commencement day,\u00a0initial direct costs and costs to restore the underlyin\u00a0g \u00a0
asset. The right-of-use asset are subsequently\u00a0measured at cost less accumulated\u00a0depreciation and impairment losses.\u00a0The right-of-use assets are \u00a0
depreciated over the shorter period of the lease term and the useful life of the underlying asset. When the Group is an inter\u00a0mediate lessor,\u00a0the Group \u00a0
accounts for the head lease and the sublease as two separate contracts.\u00a0The sublease is\u00a0classified as\u00a0a finance\u00a0or operating\u00a0lease by reference to the \u00a0
right-of-use asset arising from the head lease. \u00a0
Tangible assets \u00a0
Tangible assets include domicile property and plant and equipment.\u00a0Plant and equipment\u00a0cover equipment,\u00a0vehicles, furniture, fixtures and\u00a0leasehold \u00a0
improvements. Tangible assets\u00a0also include lease assets, i.e. assets let under operating leases, except real property. Lease assets includes cars, lorries \u00a0
and equipement.\u00a0Tangible assets\u00a0are measured\u00a0at cost and depreciated\u00a0over the estimated useful\u00a0life. The estimated useful life is 20-50 years for \u00a0
domicile property, 3-10 years for plant and equipment and three years for\u00a0lease assets. Depreciation\u00a0charges are recognised under Operating expenses. \u00a0
Tangible assets are\u00a0tested for\u00a0impairment if indications of impairment exist. An impaired asset is written down to its recoverable amount, which is\u00a0the \u00a0
higher of its fair value less costs to sell and its value in use. \u00a0
Loan commitments\u00a0and guarantees \u00a0
The Group issues a number of loan commitments and guarantees. Such exposures are subject to impairment for expected credit losses. Further \u00a0
information can be\u00a0found in note G15. \u00a0
Other provisions,\u00a0including litigations \u00a0
Provisions for\u00a0other obligations,\u00a0such as lawsuits,\u00a0are recognised\u00a0if the obligation\u00a0is likely to\u00a0result in\u00a0a payment obligat\u00a0ion and the amount can be \u00a0
measured reliably.\u00a0Liabilities are\u00a0recognised at\u00a0the present value of expected payments. \u00a0
Accounting policy \u00a0
Equity is the\u00a0residual interest in\u00a0recognised assets after deduction of recognised liabilities. In this context, the following items are of particular interest: \u00a0
Own shares \u00a0
Amounts received or\u00a0paid for the Group\u2019s sale or purchase of Danske\u00a0Bank shares that are neither held on behalf of customers or are underlying\u00a0items \u00a0
of insurance contracts with direct participation\u00a0features are\u00a0recognised directly in equity under transactions\u00a0with owners. The same applies to \u00a0
premiums received or paid for derivatives\u00a0entailing settlement in\u00a0own shares. A capital\u00a0reduction by\u00a0cancellation of\u00a0own shares will lower the share \u00a0
capital by an\u00a0amount equal to the nominal value of the shares at the time of registration\u00a0of the capital reduction. \u00a0
With effect\u00a0from 1 January 2023 the Group has\u00a0elected to not deduct from equity own shares that are\u00a0held on behalf of\u00a0customers or\u00a0those that are \u00a0
underlying items of\u00a0insurance contracts with direct participation\u00a0features. \u00a0
Additional tier\u00a01 capital \u00a0
The capital instruments accounted for\u00a0as equity\u00a0instruments include no\u00a0contractual obligation to deliver cash\u00a0or another\u00a0financial asset\u00a0to the holders, \u00a0
as Danske\u00a0Bank A/S may, at its sole discretion,\u00a0omit payment of\u00a0interest and principal payments to the bondholders. Therefore, the issue does not fall \u00a0
under the definition\u00a0of financial liabilities\u00a0under IAS 32. The net amount received at the time of issue is recognised as an increase in equity. Interes\u00a0t \u00a0
payments are\u00a0accounted for as dividends,\u00a0which are recognised directly in equity at the time the payment obligation arises. If Danske Bank A/S chooses \u00a0
to redeem the bonds, equity will be reduced by the redemption amount at the time of redemption. Amounts received or\u00a0paid for\u00a0the sale or acquisitio\u00a0n \u00a0
of own holdings of additional tier 1 capital instruments are recognised directly in equity, similarly\u00a0to holdings of own shares. \u00a0
Accounting policy \u00a0
The cash flow statement\u00a0is prepared\u00a0according to the indirect method. The statement is based on\u00a0pre -tax\u00a0profit for the year and shows the cash flows \u00a0
from operating,\u00a0investing and\u00a0financing activities\u00a0as well as the increase or decrease in cash and cash equ\u00a0ivalents during the\u00a0year. Cash and cash \u00a0
equivalents consists\u00a0of cash in hand and demand deposits with central banks\u00a0as well as amounts due from credit institutions\u00a0a nd\u00a0central banks with an \u00a0
original maturity shorter than three months. \u00a0
In the cash flow statement,\u00a0cash flows are divided into cash flows from operations,\u00a0investing activities\u00a0and financing\u00a0activi ties.\u00a0Investing activities includ\u00a0e \u00a0
cash flows from the sale or acquisition\u00a0of tangible\u00a0and intangible assets as\u00a0well as businesses.\u00a0Financing activities include cash\u00a0flows from the Group\u2019s \u00a0
issued non-preferred senior bonds, subordinated\u00a0debt, additional\u00a0tier 1 capital (both liability-\u00a0and equity-accounted\u00a0bonds) and\u00a0share capital. \u00a0
Accounting policy \u00a0
Guarantees and\u00a0loan commitments\u00a0are subject\u00a0to the expected\u00a0credit loss impairment model in IFRS 9. For further information,\u00a0see note\u00a0G15. \u00a0
Contingent liabilities\u00a0consist of possible\u00a0obligations arising from\u00a0past events. The existence of such obligations\u00a0will be confirmed\u00a0only by the occurrence \u00a0
or non-occurrence of one or more uncertain future events not wholly within the Group\u2019s control.\u00a0Further, contingent\u00a0liabilities consists of\u00a0present \u00a0
obligations arising from\u00a0past events, for which it is either not probable that the obligation will result in an outflow of financial resources, or it is not \u00a0
possible to\u00a0reliably estimate the amount of\u00a0the obligation. \u00a0
A contingent liability\u00a0is not recognised in the financial statement but disclosed, unless the possibility of an\u00a0outflow of\u00a0fi nancial\u00a0resources is remote. \u00a0
Accounting policy \u00a0
Assets and liabilities\u00a0are offset\u00a0when the Group and the counterparty\u00a0have a legally enforceable right to offset recognised amounts\u00a0and have agreed to \u00a0
settle the balances on a\u00a0net basis or to realise the asset and settle the liability\u00a0simultaneously. Positive and\u00a0negative fair values of\u00a0derivatives with\u00a0the \u00a0
same counterparty\u00a0are offset if the Group has agreed with the counterparty\u00a0to settle\u00a0contractual cash\u00a0flows net\u00a0and to make cash payments\u00a0or provid e \u00a0
collateral on a daily basis to cover changes in the fair value of the derivative\u00a0position. Master netting agreements or\u00a0similar agreements give the right \u00a0
to additional\u00a0offsetting in\u00a0the event of default. Such agreements reduce the exposure further in the event of\u00a0default, but do\u00a0not qualify for offsetting in \u00a0
accordance with IFRS. \u00a0
(a) Financial\u00a0instruments at fair value \u00a0
The fair value is the amount for which a financial asset or a financial liability\u00a0can be exchanged\u00a0between knowledgeable,\u00a0willing parties. Fair value is \u00a0
measured on the basis of the following hierarchy: \u00a0
The fair value hierarchy \u00a0
\u2022
Quoted price\u00a0(level 1) consists of financial instruments\u00a0that are quoted in an active market.\u00a0The Group uses the price quoted in the principal market. \u00a0
\u2022
Valuation based\u00a0on observable input (level 2) consists of financial instruments\u00a0valued substantially\u00a0on the\u00a0basis of observable input other than a \u00a0
quoted price for the instrument\u00a0itself. If a financial instrument\u00a0is quoted\u00a0in a market\u00a0that is not active, the Group bases its measurement on the most \u00a0
recent transaction\u00a0price. Adjustment\u00a0is made for subsequent changes to market conditions,\u00a0for instance,\u00a0by including transactions\u00a0in similar \u00a0
financial instruments that are\u00a0assumed to be motivated by normal business considerations. For a\u00a0number of financial assets and liabilities,\u00a0no \u00a0
market exists. In such cases, the Group uses recent transactions\u00a0in similar instruments\u00a0and discounted cash flows or other generally accepted \u00a0
estimation and\u00a0valuation techniques\u00a0based on market conditions at the balance sheet date to calculate an estimated\u00a0value. This category covers \u00a0
instruments such\u00a0as derivatives\u00a0valued on\u00a0the basis of observable\u00a0yield curves and exchange rates and illiquid\u00a0mortgage bonds valued by reference \u00a0
to the value of similar\u00a0liquid bonds. \u00a0
\u2022
Valuation based on\u00a0significant non-observable input\u00a0(level 3): The valuation\u00a0of certain financial instruments\u00a0is based substantially\u00a0on non-observable \u00a0
input. Such\u00a0instruments include unlisted shares,\u00a0some unlisted bonds and a\u00a0limited portion of\u00a0the derivatives\u00a0portfolio (2%). \u00a0
If, at the balance sheet date, a financial instrument\u2019s classification differs\u00a0from its classification at the beginning of the year, the classification of the \u00a0
instrument changes.\u00a0Changes are\u00a0considered to have taken place at the balance sheet date. Developments\u00a0in the financial markets have resulted in \u00a0
reclassifications between\u00a0the categories. Some bonds have become illiquid and have therefore been\u00a0moved from\u00a0the Quoted\u00a0prices to\u00a0the Observable \u00a0
input category, while other bonds have instead become liquid and have been moved from the Observable input to the\u00a0Quoted prices category. \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
Valuation techniques \u00a0
The most frequently\u00a0used valuation\u00a0techniques include the pricing of transactions with future settlement and swap\u00a0models that apply present value \u00a0
calculations, credit\u00a0pricing models and options models, such as Black & Scholes models. As part of the Group\u2019s\u00a0control environment, valuation models are \u00a0
validated by\u00a0units that\u00a0are independent\u00a0of the business units\u00a0that develop\u00a0the models and trade in the products covered by\u00a0th e\u00a0models. Validation\u00a0is made \u00a0
to test the implementation,\u00a0quality and operating stability\u00a0of models\u00a0to ensure that the models can be used for pricing and risk management of financial \u00a0
products. \u00a0
Loans granted and bonds issued by Realkredit Danmark\u00a0are recognised at the fair value of the issued bonds (the quoted price in an active market). The \u00a0
Group adjusts\u00a0for changes to the fair value of the credit risk on borrowers\u00a0etc. The adjustment\u00a0is described further\u00a0in note\u00a0G16. \u00a0
The value of derivatives,\u00a0primarily long-term contracts, is determined on\u00a0observable yields extrapolated\u00a0to yield curves for the full duration of the contracts. \u00a0
Moreover, the very limited portfolio of\u00a0credit derivatives\u00a0is valued\u00a0on the basis of observable\u00a0input as\u00a0well as assumptions\u00a0about the probability\u00a0of default \u00a0
(recovery rate).\u00a0Unlisted shares\u00a0are measured at fair value in accordance with the International\u00a0Private Equity and Venture C\u00a0apital Valuation Guideline\u00a0s \u00a0
(IPEV) which are compliant with IFRS. IPEV guides the calculation of the estimated fair\u00a0value of\u00a0unlisted shares as the price\u00a0that would be received to sell \u00a0
an asset or paid to transfer a liability\u00a0in an orderly transaction between market participants\u00a0at the measurement\u00a0date. Valua\u00a0tion methods include \u00a0
discounted cash flow models and pricing based on a multiple\u00a0of earnings or equity. \u00a0
Fair value adjustments \u00a0
Management estimates underlie the\u00a0valuation of\u00a0financial instruments\u00a0for which the value is based on valuation\u00a0techniques. The Group makes fair value \u00a0
adjustments to\u00a0cover changes in counterparty\u00a0risk (CVA) on derivatives,\u00a0funding risk (FVA and ColVA),\u00a0bid-offer spreads on\u00a0the net\u00a0open position of \u00a0
portfolios with\u00a0offsetting market risk, and model risk on level 3 derivatives. \u00a0
Credit value\u00a0adjustment (CVA)\u00a0and funding value adjustment\u00a0(FVA and ColVA) \u00a0
The Group makes a\u00a0fair value adjustment to cover the counterparty credit risk on derivatives\u00a0with a positive fair value (CVA). For\u00a0a given counterparty\u2019 s \u00a0
portfolio of\u00a0derivatives, CVA\u00a0is calculated as\u00a0a function\u00a0of the probability\u00a0of default\u00a0(PD), the expected\u00a0positive exposure (EPE) and the loss given default in \u00a0
the event of bankruptcy\u00a0(LGD). The Group enters into derivatives\u00a0transactions mainly with counterparties\u00a0in the Scandinavian\u00a0market. \u00a0
The PDs used in the CVA model are derived\u00a0from single name liquid credit default swap (CDS). If this is not available,\u00a0the PDs are derived using proxy- \u00a0
mapping to a CDS index. For the calculation of EPE, the Group uses simulations\u00a0to estimate\u00a0the expected positive exposures to\u00a0the counterparty\u2019s portfolio \u00a0
over the term of\u00a0the derivatives.\u00a0The exposure model is\u00a0based fully on market-implied\u00a0data. For\u00a0the calculation\u00a0of LGD, the Group uses market compliant \u00a0
LGD. However, for customers classified in stage 3 in relation to the expected credit loss impairment, CVA is calculated\u00a0as if the\u00a0derivatives were\u00a0loans \u00a0
subject to\u00a0impairment because\u00a0of credit losses. \u00a0
A fair value adjustment\u00a0for derivatives\u00a0to cover expected funding costs (FVA\u00a0and ColVA) is calculated.\u00a0FVA primarily\u00a0arises from the cost or benefit of \u00a0
funding uncollateralised\u00a0derivatives. The adjustment is\u00a0a function\u00a0of the unsecured funding curve and expected future exposures. ColVA takes into account \u00a0
the funding cost and benefit on collateralised\u00a0derivatives. The ColVA adjustment is a function of expected collateral balance\u00a0s and cross-currency\u00a0basis \u00a0
and repo spreads. \u00a0
At the end of 2023, CVA, DVA,\u00a0FVA and ColVA came to a net amount of DKK\u00a0153 million (2022: DKK -94\u00a0million), including the adjustment for\u00a0credit risk \u00a0
on derivatives\u00a0in stage 3. \u00a0
Bid-offer spread \u00a0
For portfolios\u00a0of assets and liabilities\u00a0with offsetting market risk, the Group bases its measurement of the portfolios on mid-market prices and\u00a0makes fair \u00a0
value adjustments\u00a0to recognise net assets at the bid price and net liabilities\u00a0at the\u00a0offer price (exit prices). At the end of 2023, these fair value adjustmen\u00a0ts \u00a0
totalled DKK 138 million (2022: DKK 151 million). \u00a0
Model risk \u00a0
To account for the uncertainty\u00a0associated with measuring\u00a0the value of derivatives\u00a0on the basis of non-observable\u00a0input (level 3\u00a0in the fair value\u00a0hierarchy), \u00a0
the Group has established guidelines to quantify risk. The Group calculates and\u00a0monitors the reserve\u00a0on an ongoing basis. At the end of 2023, the reserve \u00a0
totalled DKK 1\u00a0million (2022: DKK 0\u00a0million). \u00a0
Accounting policy \u00a0
A related party to the Group\u00a0is either a party\u00a0over which the Group has control or significant influence or a party that has control or significant influence \u00a0
over the Group. All entities over which the Group has\u00a0control are\u00a0consolidated and\u00a0are therefore not considered a\u00a0related party to the Group. \u00a0
Entities that\u00a0are related\u00a0parties to the Group comprise shareholders that have a significant holding of shares (significant influence\u00a0over the Group), \u00a0
associates, joint venture partners or\u00a0defined benefit\u00a0pension plan providers (the Group has\u00a0significant influence over\u00a0the entity). Further, key \u00a0
management personnel, defined as\u00a0members of the Board of Directors\u00a0and the Executive\u00a0Leadership Team, are related parties to\u00a0the Group. \u00a0
Transactions with\u00a0related parties are settled on an arm\u2019s-length basis and recognised in the financial statements\u00a0according to the same accounting \u00a0
policy as\u00a0for similar\u00a0transactions with\u00a0unrelated parties. \u00a0
Accounting policy \u00a0
The financial\u00a0statements consolidate Danske Bank A/S and group undertakings\u00a0in which the Group has control over financial and operating\u00a0policy \u00a0
decisions. Control is said to exist if Danske\u00a0Bank A/S, directly or indirectly,\u00a0is exposed, or\u00a0has rights, to variable\u00a0returns from the involvement\u00a0with the \u00a0
entity and\u00a0has the ability to affect these returns through the power over the entity.\u00a0Power exists if\u00a0Danske Bank\u00a0A/S, directly\u00a0or indirectly,\u00a0holds more \u00a0
than half of\u00a0the voting rights in\u00a0an undertaking\u00a0or otherwise has power to control management and operating policy decisions. Operating\u00a0policy control \u00a0
may be exercised through agreements about the undertaking\u2019s activities. In\u00a0the rare situations\u00a0where potential\u00a0voting rights exist, these are taken into \u00a0
account if Danske Bank has the practical ability to exercise these rights. \u00a0
When assessing whether to consolidate investment\u00a0funds, the Group reviews all\u00a0facts and circumstances\u00a0to determine\u00a0whether the Group, as\u00a0fund \u00a0
manager, is acting as agent or principal. The Group is deemed to be a principal,\u00a0and the Group controls\u00a0and consolidates\u00a0a fund when it acts as fund \u00a0
manager and cannot be removed without\u00a0cause (i.e. when kick-out rights are weak), has variable returns through significant holdings, and is able to \u00a0
influence the returns of\u00a0the funds by exercising its power. Holdings\u00a0where all returns\u00a0belong to customers (pooled schemes and unit-linked\u00a0investme n t \u00a0
contracts) are\u00a0not considered\u00a0as exposure to variable\u00a0returns, whereas holdings where the majority of the returns belong to customers (holdings related \u00a0
to insurance contracts)\u00a0are considered\u00a0only limited\u00a0exposure to variable returns. \u00a0
The consolidated financial statements are\u00a0prepared by consolidating\u00a0items of\u00a0the same nature and eliminating\u00a0intra-group transactions, balances\u00a0and \u00a0
trading profits and losses. \u00a0
Undertakings acquired\u00a0are included\u00a0in the financial\u00a0statements at\u00a0the time of acquisition.\u00a0The net\u00a0assets of such undertakings\u00a0(assets, including \u00a0
identifiable intangible assets,\u00a0less liabilities\u00a0and contingent\u00a0liabilities) are\u00a0measured at\u00a0fair value at the date of acquisition\u00a0according to\u00a0the acquisitio\u00a0n \u00a0
method. \u00a0
If the cost of acquisition\u00a0(until 1 January 2010 including direct transaction costs) exceeds the fair value of\u00a0the net\u00a0assets acquired, the excess amount \u00a0
is recognised\u00a0as goodwill. Goodwill\u00a0is recognised in the functional currency of the undertaking\u00a0acquired. The portion of the acquisition that is attributab\u00a0le \u00a0
to non-controlling\u00a0interests does not include goodwill. \u00a0
Divested undertakings are\u00a0included in the financial statements until the transfer date. Changes in\u00a0the ownership share in a\u00a0subsidiary that\u00a0do not result \u00a0
in loss\u00a0of control are accounted for as equity\u00a0transactions. This\u00a0implies that\u00a0the carrying amounts of the controlling\u00a0and non-controlling\u00a0interests are \u00a0
adjusted to reflect the changes in the relative interest in the subsidiary, and\u00a0any difference between the fair value of the consideration paid/received and \u00a0
the adjustment made to non-controlling interests is\u00a0attributed to\u00a0the shareholders\u00a0of Danske\u00a0Bank A/S. If changes in the ownership\u00a0share in a subsidiar\u00a0y \u00a0
result in the loss of control, any investment\u00a0retained in the former subsidiary is recognised at fair value,\u00a0and amounts recognised under Other \u00a0
comprehensive income are reclassified to\u00a0the income statement or\u00a0transferred directly\u00a0to retained earnings if so required by other IFRSs. The difference \u00a0
between the fair\u00a0value of the consideration received plus any investment retained in the former subsidiary and the carrying amount of\u00a0the net assets in \u00a0
the subsidiary less the carrying amounts of any non-controlling\u00a0interests is\u00a0recognised in the income statement. \u00a0
Held-for-sale group undertakings \u00a0
Companies taken over by the Group under non-performing loan agreements and actively marketed for sale\u00a0and expected to be sold within 12\u00a0months of \u00a0
classification are\u00a0recognised as held-for-sale. Assets and liabilities\u00a0in such companies\u00a0are presented under Assets held for sale and Liabilities\u00a0in disposal \u00a0
groups held for sale. The assets are recognised at the lower of cost and fair value\u00a0less expected\u00a0costs to sell. \u00a0
Accounting policy \u00a0
Joint ventures and associates are entities other than group undertakings in which the Group has holdings and joint\u00a0control with one\u00a0or more parties\u00a0or \u00a0
significant but not controlling\u00a0influence, respectively. The Group generally classifies entities as\u00a0joint ventures/associates if Danske Bank A/S, directly or \u00a0
indirectly, holds 20-50% of the share capital and has influence over management and operating policy decisions. Holdings in joint ventures and associates \u00a0
are recognised at cost at the\u00a0date of acquisition and are subsequently measured according to the equity method. The proportionate share of the net profit or \u00a0
loss of the individual\u00a0entity is\u00a0included under Income from holdings in associates. The share is calculated on the basis of data from financial statements with \u00a0
balance sheet\u00a0dates no earlier than three months before the Group\u2019s balance sheet date. If objective evidence of impairment exists, the investment is \u00a0
recognised at the\u00a0lower of carrying amount and the present value of future cash flows. \u00a0
The proportionate share of the profit or loss on transactions between associates/joint ventures and group undertakings\u00a0is eliminated. \u00a0
Ownership shares held by the Group\u2019s insurance business are treated as held by a venture capital organisation and are measured at fair value. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1594": {
"value": "(b) Significant\u00a0accounting estimates and judgements \u00a0The preparation of financial information requires, in some cases,\u00a0the use of judgements\u00a0and estimates\u00a0by management.\u00a0This includes judgements made \u00a0when applying\u00a0accounting policies.\u00a0The most significant\u00a0judgements made when\u00a0applying accounting policies relate\u00a0to the classification\u00a0of financial assets \u00a0and financial liabilities\u00a0under IFRS 9,\u00a0especially related to the business model assessment, and the solely payments of\u00a0principal and interest (SPPI) test \u00a0(further explained\u00a0in note\u00a0G15) and the designation\u00a0of financial\u00a0liabilities at\u00a0fair value through profit or loss to eliminate or significantly\u00a0reduce an \u00a0accounting mismatch (further\u00a0explained in\u00a0note G16). An overview\u00a0of the classification\u00a0and measurement\u00a0basis for financial instruments\u00a0can be found in \u00a0section (c) of this\u00a0note. \u00a0Further, the determination\u00a0of the carrying amounts\u00a0of some assets and liabilities\u00a0requires the estimation of the effects of uncertain future events\u00a0on \u00a0those assets and liabilities.\u00a0The estimates are based on premises that management\u00a0finds reasonable but which are inherently uncertain and \u00a0unpredictable. The\u00a0premises may\u00a0be incomplete,\u00a0unexpected future events or situations may occur,\u00a0and other parties may arrive at other estimate\u00a0d \u00a0values. In\u00a0view of the inherent uncertainties\u00a0and the high level of subjectivity\u00a0and judgement\u00a0involved in\u00a0the recognition and measurement of the items \u00a0listed below,\u00a0it is possible that the outcomes in the next financial year could differ from those on which management\u2019s estimates are based. \u00a0Measurement of\u00a0expected credit\u00a0losses on\u00a0loans, financial guarantees\u00a0and loan commitments,\u00a0and bonds\u00a0measured at amortised\u00a0cost or fair\u00a0value \u00a0through other comprehensive income \u00a0The three-stage expected credit loss impairment model in IFRS 9\u00a0depends on whether the credit risk has increased significantly\u00a0since initial recognition. \u00a0If the credit risk has not increased significantly,\u00a0the impairment charge equals the expected credit losses resulting from default events that are possible \u00a0within the\u00a0next 12 months (stage 1). If the credit risk has increased significantly,\u00a0the loan is more than 30 days past due, or the loan is in default or \u00a0otherwise impaired, the\u00a0impairment charge equals the\u00a0lifetime expected credit losses (stages 2 and 3). In determining\u00a0the impairment for\u00a0expected credit \u00a0losses, management exercises judgement and uses estimates and assumptions as\u00a0explained below. \u00a0G1. Basis of preparation continued \u00a0(b) Significant\u00a0accounting estimates and judgements \u00a0The expected credit loss is calculated for all individual\u00a0facilities as\u00a0a function of probability\u00a0of default (PD), exposure\u00a0a t default (EAD)\u00a0and loss given default \u00a0(LGD) and incorporates forward-looking information. The estimation\u00a0of expected credit losses involves\u00a0forecasting future economic conditions over a \u00a0number of\u00a0years. Such forecasts are subject to management\u00a0judgement and those judgements may be sources of measurement uncert\u00a0ainty that have \u00a0significant risk of resulting in a material adjustment\u00a0to a carrying amount\u00a0in future periods.\u00a0The incorporation of\u00a0forward-looking elements reflects\u00a0the \u00a0expectations of\u00a0the Group\u2019s senior management and involves the creation of scenarios (base case, upside and downside), includ\u00a0ing an\u00a0assessment of the \u00a0probability for\u00a0each scenario.\u00a0The purpose of using multiple scenarios is to model the non-linear impact of assumptions\u00a0about macroeconomic factors on \u00a0the expected credit losses. \u00a0The base case scenario enters with a probability\u00a0of 60% (2022: 70%), the upside scenario with a probability of 20% (2022: 10%) and the downside \u00a0scenario with a\u00a0probability of 20%\u00a0(2022: 20%). On the basis of these assessments, the allowance account at the end of 2023 amounted to DKK 20.1 \u00a0billion (2022:\u00a0DKK 19.6 billion). If the base case scenario was\u00a0assigned a probability\u00a0of 100%,\u00a0the allowance account would decrease DKK\u00a02.0 billio\u00a0n \u00a0(2022: 2.1 billion).\u00a0Compared to the base case scenario, the allowance account would increase DKK 10.2 billion (2022: DKK 10.9 billion),\u00a0if the downside \u00a0scenario was assigned a probability\u00a0of 100%. The increase reflects primarily\u00a0the transfer of exposures from stage 1 to stage 2 an\u00a0d increased expected \u00a0credit losses within stage 2. If instead the upside scenario was assigned a probability\u00a0of 100%, the allowance account would decrease DKK 0.2 billio\u00a0n \u00a0(2022: DKK 0.4 billion)\u00a0compared to the base case scenario. \u00a0In determining\u00a0the expected credit losses, management is required to exercise judgement in defining what is considered a\u00a0sign ificant\u00a0increase in credit \u00a0risk. According to the Group\u2019s definition of a significant increase in credit risk, i.e. when a loan is transferred from stage 1 to stage 2, facilities with an \u00a0initial PD\u00a0below 1% are transferred to stage 2 if the facility\u2019s 12-month PD has\u00a0increased by\u00a0at least 0.5 of a percentage point and the facility\u2019s\u00a0lifetim e \u00a0PD has doubled since origination. The allowance account is\u00a0relatively stable in\u00a0terms of changes to the definition\u00a0of significant\u00a0increase in credit risk. At \u00a0the end of 2023, the allowance account would increase by DKK 0.3 billion (2022: DKK 0.3 billion), if instead an increase in the facility\u2019s 12-month PD by \u00a0at least 0.25 of a percentage\u00a0point combined\u00a0with a doubling\u00a0of the lifetime\u00a0PD was considered a significant increase\u00a0in cred it\u00a0risk. \u00a0Management applies judgement when\u00a0determining the need for post-model adjustments.\u00a0At the end of 2023, the post-model adjustments\u00a0amounted to \u00a0DKK 6.7\u00a0billion (2022: DKK 6.6 billion). They mainly cover the increasing macroeconomic risk due to the\u00a0uncertainty related to\u00a0the elevated inflation and \u00a0severity of\u00a0an economic downturn as well as the global tension uncertainty.\u00a0See further in the separate sections\u00a0below. Further information on the types \u00a0of risks\u00a0covered by\u00a0post-model adjustments\u00a0and the allocation\u00a0of post-model adjustments\u00a0to the underlying\u00a0exposures can be found in the section \u00a0Forward-looking information in\u00a0note G40. \u00a0Loan impairment charges for 2023 amounted to DKK 262 million (2022: DKK 1,502 million).\u00a0Low impairments\u00a0were driven by robust credit quality \u00a0driven by successful restructurings within oil and\u00a0offshore and post-pandemic recoveries. \u00a0The applied macroeconomic scenarios in 2023 differ from those used at 31 December\u00a02022. The downside scenario continues to capture the severe \u00a0recession scenario with high interest rates (reflecting a stagflation scenario)\u00a0applied in the Group\u2019s Internal Capital Adequacy Assessment Process 8 \u00a0(ICAAP) processes and\u00a0is similar in nature to\u00a0regulatory stress tests. The severe recession scenario reflects negative growth\u00a0, increasing interest rates, \u00a0and falling\u00a0property prices\u00a0for a longer\u00a0period. The use of the downside scenario has been made to better capture the increasing risk from\u00a0high interes\u00a0t \u00a0rates and high inflation,\u00a0and in order for the ECL calculation\u00a0to include potential\u00a0downside risks due to the elevated asset prices across the Nordics. \u00a0Except as\u00a0described above, all other policies and principles remain in place. Staging criteria are unchanged, including the 3\u00a00 days past due criteria and \u00a0PD-based criteria for\u00a0transfer to stage 2. \u00a0Sustainability risk \u00a0The Group may be exposed to sustainability\u00a0risk as a result of current or future environmental,\u00a0social and governance\u00a0(ESG) events or conditions,\u00a0and are \u00a0considered external factors that can\u00a0impact existing risks. Sustainability\u00a0risk is therefore considered a cross\u00a0-cutting driver of existing risks as outline\u00a0d \u00a0in the Group\u2019s risk taxonomy,\u00a0which can further exacerbate\u00a0the risks the Group is already facing. \u00a0G1. Basis of preparation continued \u00a0(b) Significant\u00a0accounting estimates and judgements \u00a0Sustainability risk\u00a0continued \u00a0Credit risk is deemed to be the risk type most materially\u00a0affected by\u00a0sustainability drivers\u00a0in the long term, of which clima\u00a0te risk is currently the most \u00a0urgent of\u00a0all ESG-related drivers capable\u00a0of affecting the Group\u2019s credit risk. From a financial\u00a0significance perspective, climate-related risks have\u00a0been \u00a0deemed most\u00a0relevant for\u00a0the Group\u2019s lending activities. Climate risk pertains to transition\u00a0risks, which are the risks assoc\u00a0iated with shifting to a low- \u00a0carbon economy,\u00a0and to physical risks arising from\u00a0projected climate changes,\u00a0including both\u00a0long-term shifts (chronic changes) and event-driven\u00a0changes \u00a0(acute changes) to weather patterns.\u00a0Credit risk will be affected by both\u00a0of these climate\u00a0-related risks in the medium and long term, and\u00a0efforts are being \u00a0made to obtain improved climate data to refine the long\u00a0- term view of climate\u00a0risk across sectors. \u00a0The Group takes a risk-based approach in prioritising\u00a0risk management\u00a0efforts for credit portfolios that are likely to be most exposed to transition\u00a0and \u00a0physical risks. For that purpose, the Group applies a mix of qualitative\u00a0and quantitative\u00a0input to define the credit exposures most exposed to transition \u00a0and physical risks. \u00a0High transition-risk\u00a0exposures are identified\u00a0using a mix of insights, including financed emissions estimates, findings from conducting clima\u00a0te scenario \u00a0analysis as\u00a0well as qualitative\u00a0judgment to account for, e.g., credible transition\u00a0plans, potential\u00a0future technology\u00a0and demand risks to a given sector. Most \u00a0of the emissions\u00a0are attributable\u00a0to only a few sectors, e.g., Shipping,\u00a0Oil and Gas, which the Group actively monitors and m\u00a0anages. From the initia\u00a0l \u00a0assessment of customers subject to high transition\u00a0risk, the exposure to the lagging transition category remains limited but will be monitored on an \u00a0ongoing basis. \u00a0The Group has identified flooding risk (river and coastal flooding) as the key physical\u00a0hazard applicable to the portfolio on the basis of\u00a0the report on high \u00a0confidence of hazard\u00a0increase in Northern\u00a0Europe issued by the Intergovernmental\u00a0Panel on Climate\u00a0Change. The current analyses on\u00a0flooding risk\u00a0focus \u00a0on residential and commercial property and the risk is assessed to be limited. \u00a0Moreover, the\u00a0Group performs\u00a0ad-hoc climate stress tests to assess physical and transition\u00a0risks of climate changes. Stress tests in relation to physical \u00a0risks cover collateral-related\u00a0exposures and are based on river and coastal flooding.\u00a0Stress tests in relation to transition\u00a0risks consider an introductio\u00a0n \u00a0of carbon taxes. \u00a0The Group will continue to refine its assessment methodology as more climate risk data becomes available to support the ident\u00a0ification of\u00a0both transitio\u00a0n \u00a0and physical\u00a0risks for the purpose of determining\u00a0financial significance, however, conclusions have no\u00a0t led to adjustments\u00a0to staging or modelled\u00a0expected \u00a0credit losses, as the impacts either manifest over a longer time period than loan maturities,\u00a0or as transition\u00a0risks are conc\u00a0entrated on\u00a0a few sectors with \u00a0downside risks already recognised in the Group\u2019s modelled expected credit losses. Both transition and physical risks are\u00a0either managed through risk \u00a0tolerances or\u00a0strategic targets, or\u00a0already have post model adjustments/management\u00a0overlays allocated covering the climate re\u00a0lated risks. \u00a0For more detail on Sustainability\u00a0risk, see note G40. \u00a0Fair value measurement\u00a0of financial\u00a0instruments \u00a0At the\u00a0end of 2023, no unusual challenges in obtaining reliable pricing apart from\u00a0insignificant parts\u00a0of the portfolio remain\u00a0ed. The majority of\u00a0valuation \u00a0techniques continues to employ only observable market data, and there has been no\u00a0significant increase in financial instruments\u00a0measured on the basis \u00a0of valuation\u00a0techniques that are\u00a0based on one or more significant\u00a0unobservable inputs. The latter continues to include only u\u00a0nlisted shares,\u00a0certain bonds \u00a0and some long-dated\u00a0derivatives for\u00a0which there is no active market. On the derivatives\u00a0portfolio, the Group makes fair value adjustments\u00a0to cover changes \u00a0in counterparty risk (CVA and DVA) and to cover expected funding costs (FVA and ColVA)\u00a0on derivatives,\u00a0bid-offer spreads on the net open position\u00a0of the \u00a0portfolio of assets and liabilities\u00a0with offsetting market risk recognised at mid-market prices, and model risk on level 3 derivatives.\u00a0With effect from 2023, \u00a0FVA is calculated\u00a0including both\u00a0funding cost and funding benefit. To avoid double-counting\u00a0between DVA and\u00a0the funding benefit, DVA is offset\u00a0in the \u00a0financial statements. At\u00a031 December\u00a02023, the adjustments\u00a0totalled DKK 0.4 billion (2022:\u00a0DKK 0.2\u00a0billion), including the adjustment for\u00a0credit risk on \u00a0derivatives that\u00a0are credit impaired.\u00a0Note G33(a) provides more\u00a0details on\u00a0the fair value measurement of financial instrument\u00a0s. \u00a0The Group uses derivatives\u00a0to hedge the fixed interest rate on some financial\u00a0assets and liabilities,\u00a0thus converting the fix\u00a0ed interest\u00a0rates on the financial \u00a0instruments to\u00a0variable interest rates by the use\u00a0of swaps. \u00a0Measurement of\u00a0goodwill \u00a0Goodwill is\u00a0tested for\u00a0impairment once\u00a0a year or more frequently if indications\u00a0of impairment\u00a0exist. Impairment\u00a0testing requi\u00a0res management to\u00a0estimate \u00a0the present value of future cash flows. A number of factors affect the value\u00a0of such cash flows, including\u00a0discount rates, changes in the economic outlook, \u00a0customer behaviour\u00a0and competition.\u00a0As at 31 December\u00a02023, goodwill amounted to DKK 4.4\u00a0billion (31\u00a0December 2022: DKK 4.4 billion). \u00a0In connection with the quarterly reporting, management performs an\u00a0impairment review\u00a0to assess whether there are\u00a0indications that\u00a0goodwill might be \u00a0impaired. This includes a\u00a0review of decline in income, increase in loan impairment charges, decline\u00a0in the\u00a0m arket\u00a0value of assets under management, \u00a0major restructurings, macroeconomic developments\u00a0etc. The impairment\u00a0test conducted in 2023 did not reveal any impairment loss. During\u00a02022, \u00a0goodwill in Danica Pension amounting to DKK 1.6\u00a0billion was\u00a0assessed to be impaired due to increasing discount rates and lower financial outlook. \u00a0Following the impairment charges on goodwill, goodwill in Danica Pension amounts to DKK 0.0 billion as at 31 December\u00a02023 (31 December\u00a02022: \u00a0DKK 0.0\u00a0billion). \u00a0The remaining goodwill mainly consists of DKK 2.1 billion (2022: DKK 2.1 billion)\u00a0in Markets,\u00a0DKK 1.8 billion\u00a0(2022: DKK 1.8 billion)\u00a0in Asset Management \u00a0and DKK\u00a00.5 billion\u00a0(2022: DKK\u00a00.5 billion) in General Banking\u00a0(all part of the business segment Large Corporates\u00a0& Institutions)\u00a0showing significant \u00a0amounts of\u00a0excess value\u00a0in the impairment tests in 2023 and 2022. \u00a0Note G19 provides more information about the impairment\u00a0test in 2023 and 2022 including\u00a0sensitivity to\u00a0changes in assumptions. \u00a0Measurement of\u00a0liabilities under\u00a0insurance contracts \u00a0Liabilities under\u00a0insurance contracts are measured using either the General Measurement Model (GMM), Variable Fee\u00a0Approach (V\u00a0FA) or Premium \u00a0Allocation Approach (PAA).\u00a0GMM and\u00a0VFA both comprise fulfilment cash flows, which are estimates of the present value of future cash flows for \u00a0insurance contracts, adjusted for\u00a0time value of money and effect\u00a0of financial\u00a0risk including\u00a0a risk adjustment\u00a0for non-financial\u00a0risk, and a contractua\u00a0l \u00a0service margin (CSM). \u00a0Estimates of\u00a0future cash flows include\u00a0actuarial computations\u00a0that rely on estimates\u00a0of a number of variables\u00a0such as mortali ty\u00a0rates and disability rates. \u00a0Mortality rates\u00a0are based on the Danish FSA\u2019s benchmark, whilst others are estimated based on data f\u00a0rom the Group\u2019s own\u00a0portfolio of insurance \u00a0contracts. \u00a0The discount rate is fixed on the basis of a zero-coupon yield curve, which is adjusted by a currency and credit risk deduction and a volatility\u00a0adjustment. \u00a0The yield curve is calculated according to principles and based on data that results in a curve bas\u00a0ed on European\u00a0Insurance and Occupational\u00a0Pension \u00a0Authority (EIOPA) discount yield curve, which can\u00a0be found at www.eiopa.europa.eu/tools-and-data/risk-free-interest-ra\u00a0te-term-structures_en. \u00a0For life insurance contracts, risk adjustment\u00a0for non-financial\u00a0risks is calculated based on a safety margin on applied\u00a0actuarial assumptions, such as \u00a0mortality rates\u00a0and longevity. \u00a0The confidence level used to determine the risk adjustment is at least 85%. \u00a0For insurance contracts measured using VFA, CSM is\u00a0calculated on\u00a0the basis of\u00a0stochastic models, whereas a deterministic\u00a0mode l\u00a0is used for life \u00a0insurance contracts measured using GMM. \u00a0For health\u00a0and accident insurance\u00a0contracts, the loss element includes\u00a0expectations about\u00a0mortality, reactivation, reinstatem\u00a0ent and\u00a0repurchase, as well \u00a0as expected\u00a0costs offset by premiums\u00a0not yet due. Risk adjustment for non-financial risk is calculated\u00a0based on a safety margin on applied actuarial \u00a0assumptions. The confidence level used to determine the risk adjustment is at least 85%. \u00a0Note G18 provides further information on the measurement of insurance liabilities.\u00a0Note G40 contains a\u00a0sensitivity analysis for\u00a0li fe\u00a0insurance. \u00a0",
"dimensions": {
"concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2572": {
"value": "Measurement of\u00a0liabilities under\u00a0insurance contracts \u00a0
Liabilities under\u00a0insurance contracts are measured using either the General Measurement Model (GMM), Variable Fee\u00a0Approach (V\u00a0FA) or Premium \u00a0
Allocation Approach (PAA).\u00a0GMM and\u00a0VFA both comprise fulfilment cash flows, which are estimates of the present value of future cash flows for \u00a0
insurance contracts, adjusted for\u00a0time value of money and effect\u00a0of financial\u00a0risk including\u00a0a risk adjustment\u00a0for non-financial\u00a0risk, and a contractua\u00a0l \u00a0
service margin (CSM). \u00a0
Estimates of\u00a0future cash flows include\u00a0actuarial computations\u00a0that rely on estimates\u00a0of a number of variables\u00a0such as mortali ty\u00a0rates and disability rates. \u00a0
Mortality rates\u00a0are based on the Danish FSA\u2019s benchmark, whilst others are estimated based on data f\u00a0rom the Group\u2019s own\u00a0portfolio of insurance \u00a0
contracts. \u00a0
The discount rate is fixed on the basis of a zero-coupon yield curve, which is adjusted by a currency and credit risk deduction and a volatility\u00a0adjustment. \u00a0
The yield curve is calculated according to principles and based on data that results in a curve bas\u00a0ed on European\u00a0Insurance and Occupational\u00a0Pension \u00a0
Authority (EIOPA) discount yield curve, which can\u00a0be found at www.eiopa.europa.eu/tools-and-data/risk-free-interest-ra\u00a0te-term-structures_en. \u00a0
For life insurance contracts, risk adjustment\u00a0for non-financial\u00a0risks is calculated based on a safety margin on applied\u00a0actuarial assumptions, such as \u00a0
mortality rates\u00a0and longevity. \u00a0
The confidence level used to determine the risk adjustment is at least 85%. \u00a0
For insurance contracts measured using VFA, CSM is\u00a0calculated on\u00a0the basis of\u00a0stochastic models, whereas a deterministic\u00a0mode l\u00a0is used for life \u00a0
insurance contracts measured using GMM. \u00a0
For health\u00a0and accident insurance\u00a0contracts, the loss element includes\u00a0expectations about\u00a0mortality, reactivation, reinstatem\u00a0ent and\u00a0repurchase, as well \u00a0
as expected\u00a0costs offset by premiums\u00a0not yet due. Risk adjustment for non-financial risk is calculated\u00a0based on a safety margin on applied actuarial \u00a0
assumptions. The confidence level used to determine the risk adjustment is at least 85%. \u00a0
Note G18 provides further information on the measurement of insurance liabilities.\u00a0Note G40 contains a\u00a0sensitivity analysis for\u00a0li fe\u00a0insurance. \u00a0
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
Insurance activities\u00a0\u2013 general \u00a0
The Group issues contracts for\u00a0life insurance and health and accident insurance, which are divided into insurance and investment\u00a0contracts. Insurance \u00a0
contracts are contracts under which the Group accepts significant insurance risk from a\u00a0policyholder, by\u00a0agreeing to compensate\u00a0the poli\u00a0cyholder if\u00a0a \u00a0
specified uncertain\u00a0future event adversely affects the policyholder. Investment\u00a0contracts are contracts that entail no significant insurance risk and \u00a0
comprise unit-linked\u00a0contracts under which the investment\u00a0risk lies with the policyholder. \u00a0
Insurance contracts \u00a0
With effect from 1 January\u00a02023, the Group\u2019s insurance contracts are\u00a0measured in\u00a0line with\u00a0IFRS 17, Insurance\u00a0contracts. Unde\u00a0r IFRS\u00a017, the majority \u00a0
of liabilities\u00a0under insurance contracts are\u00a0measured based on estimates\u00a0of the present value\u00a0of future cas\u00a0h flows, risk adjustment\u00a0for non-financial\u00a0risk, \u00a0
and contractual\u00a0service margin. Most of these insurance\u00a0contracts are with direct participating\u00a0features, which\u00a0means that th\u00a0at the policyholde\u00a0r \u00a0
participates in\u00a0a share of a pool of underlying\u00a0items, the return of which accrues to the policyholder.\u00a0The underlying items are\u00a0measured at fair value, and \u00a0
are classified\u00a0as Assets\u00a0under insurance contacts in the Balance sheet. \u00a0
Insurance contracts with one-year duration are\u00a0measured using an estimate of expected benefits payable but not yet disbursed. \u00a0
Investment contracts \u00a0
Investment contracts are\u00a0recognised as financial liabilities,\u00a0and, consequently,\u00a0contributions and\u00a0benefits under such contracts are recognised directly \u00a0
in the balance sheet. Deposits are measured at the value of the savings under Deposits under pooled schemes and unit-linked\u00a0investment contracts. \u00a0
Savings under unit-linked investment\u00a0contracts are measured at fair value under Assets under pooled schemes and unit-linked\u00a0investment contracts. \u00a0
The return on the assets and the crediting of the amounts\u00a0to policyholders\u2019 accounts are\u00a0recognised under Net\u00a0return on investments\u00a0backing insurance. \u00a0
Net income\u00a0from insurance\u00a0business \u00a0
Insurance activities are\u00a0presented in the Income statement under Net insurance result. Net insurance result comprises Insuran\u00a0ce revenue, Insurance \u00a0
service expenses, Net return on\u00a0investments backing insurance\u00a0liabilities and\u00a0Net finance income or expenses from insurance. \u00a0
Accounting policy \u00a0
Insurance revenue \u00a0
The Group recognises insurance\u00a0revenue as it provides\u00a0insurance services. Insurance revenue reflects the amount of consideration\u00a0the Group expects \u00a0
to be entitled\u00a0to in exchange for those services provided.\u00a0For insurance contracts\u00a0under the Premium Allocation\u00a0Approach (PAA), insurance revenue\u00a0is \u00a0
based on the expected\u00a0premium for the period. \u00a0
The contractual service margin (CSM) is\u00a0recognised in insurance revenue as insurance contracts services are\u00a0provided. \u00a0
Insurance service expenses \u00a0
Insurance service expenses comprise incurred claims and other incurred insurance expenses. \u00a0
Net finance income or expense from insurance contracts \u00a0
Net investment\u00a0return for insurance comprises the return on assets backing insurance activities,\u00a0and Net finance income or expense from insurance, \u00a0
which comprises the change in carrying amount of groups of insurance contracts arising from the effect of time value of money\u00a0and the effect of financial \u00a0
risk of groups of insurance\u00a0contracts. \u00a0
Accounting policy \u00a0
Assets under insurance contracts \u00a0
Assets under insurance contracts are managed on a fair\u00a0value basis with\u00a0no short-term profit taking. The business model for managing the assets is \u00a0
therefore neither \u2018held to collect\u2019 nor\u00a0\u2018held to\u00a0collect and sell\u2019 and the financial assets are therefore man\u00a0datorily recognised\u00a0at fair value through profit \u00a0
or loss.\u00a0The valuation\u00a0technique used matches the Group\u2019s accounting policy for\u00a0similar assets\u00a0. \u00a0
The Group has\u00a0elected to\u00a0not deduct own\u00a0shares and own bonds\u00a0from equity\u00a0and liabilities\u00a0respectively that are underlying\u00a0items of insurance \u00a0
contracts with\u00a0direct participation\u00a0features. Therefore total Assets under insurance contracts includes these own shares and\u00a0own bonds. \u00a0
Liabilities under\u00a0insurance contracts \u00a0
The Group has\u00a0divided all\u00a0insurance contracts into portfolios and\u00a0groups and determined measurement methods for\u00a0the individua\u00a0l groups\u00a0of \u00a0
contracts. The classification of\u00a0insurance contracts in the four\u00a0portfolios is based on\u00a0an assessment of similar\u00a0risks and on an overall\u00a0management \u00a0
approach: \u00a0
-
An average-rate\u00a0portfolio \u00a0
-
A unit-linked\u00a0portfolio \u00a0
-
A portfolio\u00a0of legacy life insurance products\u00a0in run-off \u00a0
-
A portfolio\u00a0containing health and\u00a0accident insurance contracts. \u00a0
The Group applies the annual cohort exemption from\u00a0the EU to the average-rate portfolio. \u00a0
The Group measures liabilities\u00a0under insurance contracts using the General Measurement\u00a0Model (GMM),\u00a0Variable Fee\u00a0Approach (VFA) or Premium \u00a0
Allocation Approach (PAA). The majority\u00a0of the Group\u2019s life insurance contracts\u00a0are measured\u00a0using VFA because they meet the definition\u00a0of \u00a0
insurance contracts with direct participation\u00a0features. GMM is\u00a0used for legacy life insurance\u00a0products in run\u00a0-off. \u00a0
Insurance contracts measured using GMM\u00a0or VFA are initially\u00a0measured as the total of fulfilment cash flows (which comprise es\u00a0timated future cash \u00a0
flows, an adjustment\u00a0for time value\u00a0of money and effect of financial risks, and a risk adjustment\u00a0for non-financial\u00a0risk) and contractual service margin \u00a0
(CSM; unearned profit that will be recognised as the Group provides insurance contract services).\u00a0At each reporting\u00a0date, th\u00a0e group of insurance \u00a0
contracts is\u00a0subsequently measured\u00a0as the sum of the liability\u00a0for remaining\u00a0coverage (comprising fulfilment cash\u00a0flows relating to\u00a0future se\u00a0rvice and \u00a0
CSM) and liability\u00a0for incurred claims\u00a0(comprising fulfilment cash flows relating\u00a0to past service). \u00a0
PAA is\u00a0applied to the Health and accident insurance portfolio, which comprises only one\u00a0-year insurance contracts. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInsuranceContracts",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2574": {
"value": "(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
Financial instruments\u00a0account for around 98% of total\u00a0assets and liabilities.\u00a0A portion of\u00a0financial assets\u00a0relate to investments\u00a0made under insurance \u00a0
contracts. The following sections provide a general description of the classification\u00a0and measurement\u00a0of financial\u00a0instruments and\u00a0obligations under \u00a0
insurance contracts. \u00a0
Financial instruments\u00a0\u2013 general \u00a0
The Group recognises financial assets and liabilities\u00a0when it\u00a0becomes a party to the terms of the contract. A financial asset, or a portion of a\u00a0financia l \u00a0
asset, is derecognised if the contractual\u00a0rights to cash flows from the asset have expired, or have been transferred, usually\u00a0by sale, leading\u00a0to substantially \u00a0
all the risks and rewards of the asset or significant risks and rewards being transferred. Financial liabilities\u00a0are derecognised\u00a0when the liability\u00a0has been \u00a0
settled, has\u00a0expired or\u00a0has been extinguished. \u00a0
Regular way purchases\u00a0and sales of financial instruments\u00a0are recognised\u00a0and derecognised at the settlement\u00a0date. Fair value adjustments\u00a0of unsettle d \u00a0
financial instruments\u00a0are recognised from\u00a0the trade date to the settlement\u00a0date if the financial\u00a0asset is classified at fair value through profit or loss or \u00a0
through other comprehensive income. The classification\u00a0is shown in the table below. \u00a0
G1. Basis of preparation\u00a0continued \u00a0
Financial instruments\u00a0and obligations\u00a0under insurance contracts, classification\u00a0and measurement\u00a0end of 2023 \u00a0
Amortised \u00a0
Fair value \u00a0
cost \u00a0
OCI \u00a0
Fair value through profit or loss \u00a0
Held to collect \u00a0
Held to collect \u00a0
and sell \u00a0
assets/ \u00a0
financial \u00a0
Held for\u00a0Managed at\u00a0FVPL due to \u00a0
Interest rate\u00a0Own shares / \u00a0
(DKK billions) \u00a0
Liabilities \u00a0
assets* \u00a0
trading \u00a0
fair value \u00a0
SPPI test\u00a0Designated \u00a0
hedge ** \u00a0
bonds \u00a0
Total \u00a0
Assets \u00a0
Cash in hand and demand \u00a0
deposits with central banks \u00a0
259 \u00a0
-
-
-
-
-
-
-
259 \u00a0
Due from credit institutions\u00a0and \u00a0
central banks \u00a0
22 \u00a0
-
-
93 \u00a0
-
-
-
-
115 \u00a0
Derivatives \u00a0
-
-
346 \u00a0
-
-
-
6
-
352 \u00a0
Bonds \u00a0
155 \u00a0
107 \u00a0
178 \u00a0
21 \u00a0
-
-
-
-
461 \u00a0
Shares \u00a0
-
-
19 \u00a0
-
-
-
-
-
19 \u00a0
Loans *** \u00a0
919 \u00a0
-
-
175 \u00a0
753 \u00a0
-
-1 \u00a0
-
1,847 \u00a0
Assets under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
43 \u00a0
-
-
-
28 \u00a0
71 \u00a0
Assets under insurance \u00a0
contracts \u00a0
-
-
-
460 \u00a0
-
-
-
1
461 \u00a0
Total financial assets, \u00a0
1,356 \u00a0
107 \u00a0
542 \u00a0
792 \u00a0
753 \u00a0
-
6
29 \u00a0
3,585 \u00a0
31 December\u00a02023 \u00a0
Total financial assets, \u00a0
1,433 \u00a0
116 \u00a0
635 \u00a0
771 \u00a0
724 \u00a0
-
3
28 \u00a0
3,710 \u00a0
31 December\u00a02022**** \u00a0
Liabilities \u00a0
Due to credit institutions and \u00a0
central banks \u00a0
69 \u00a0
-
-
-
-
86 \u00a0
-
-
155 \u00a0
Trading portfolio liabilities \u00a0
-
-
442 \u00a0
-
-
-
13 \u00a0
-
454 \u00a0
Deposits *** \u00a0
1,102 \u00a0
-
-
-
-
120 \u00a0
-
-
1,222 \u00a0
Issued bonds at fair value \u00a0
-
-
-
-
-
749 \u00a0
-
-
749 \u00a0
Issued bonds at amortised cost \u00a0
*** \u00a0
219 \u00a0
-
-
-
-
-
-5 \u00a0
-
214 \u00a0
Deposits under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
-
-
71 \u00a0
-
-
71 \u00a0
Liabilities under insurance \u00a0
contracts ***** \u00a0
-
-
-
-
-
483 \u00a0
-
-
483 \u00a0
Non-preferred senior bonds \u00a0
96 \u00a0
-
-
-
-
-
-3 \u00a0
-
93 \u00a0
Subordinated debt \u00a0
39 \u00a0
-
-
-
-
-
-
-
39 \u00a0
Loan commitments\u00a0and \u00a0
guarantees \u00a0
3
-
-
-
-
-
-
-
3
Total financial liabilities, \u00a0
1,528 \u00a0
-
442 \u00a0
-
-
1,508 \u00a0
5
-
3,483 \u00a0
31 December\u00a02023 \u00a0
Total financial liabilities, \u00a0
1,599 \u00a0
-
533 \u00a0
-
-
1,402 \u00a0
-
27 \u00a0
3,562 \u00a0
31 December\u00a02022**** \u00a0
* Unrealised fair value gains and losses are presented in Other comprehensive income, and realised fair value gains and losses are recycled to the income statement . \u00a0
**The interest rate risk on some fixed-rate financial assets and liabilities is hedged by derivatives (fair value hedging). The interest rate risk on some fixed-rate bonds 'hold to collect and sell' \u00a0
is also hedged by derivatives. The fair value represents changes in the fair value of the interest rate risk on the hedged items, i.e. not a full fair value of the hedged items. \u00a0
*** Loans (amortised cost), Deposits (amortised cost) and Issued bonds at amortised cost include Assets held for sale and Liabilities i n disposal groups held for sale which are measured in \u00a0
accordance with\u00a0IFRS 9. These are presented separately on the Balance sheet. \u00a0
**** Comparative information has been restated, as described in note G2(a). \u00a0
***** Liabilities under insurance contracts comprise the liability for remaining coverage and liability for incurred claims, which includes estimates of present value of future cash flows, risk \u00a0
adjustment for non-financial\u00a0risk and contractual service margin. \u00a0
.
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
Classification and\u00a0measurement of\u00a0financial assets\u00a0and financial\u00a0liabilities \u2013 general \u00a0
Financial assets are classified on the basis of the business model adopted for\u00a0managing the assets and on their contractual\u00a0cash flow characteristic\u00a0s \u00a0
(including embedded\u00a0derivatives, if\u00a0any) are grouped into one of the following\u00a0measurement categories: \u00a0
\u2022
Amortised cost\u00a0(AMC) \u00a0
\u2022
Fair value through other comprehensive income (FVOCI) \u00a0
\u2022
Fair value through profit or loss (FVPL) \u00a0
Financial assets are measured at AMC if they are held within a business model for the purpose of collecting contractual\u00a0cash flows\u00a0(hold to collect) and \u00a0
if cash flows are solely payments\u00a0of principal\u00a0and interest\u00a0on the principal amount outstanding. \u00a0
Financial assets\u00a0are measured at FVOCI\u00a0if they are held within\u00a0a business model for\u00a0the purpose of both collecting\u00a0contractual cash\u00a0flows and selling \u00a0
(hold to collect and sell) and if cash flows are solely payments of principal and interest on the principal amount outstanding.\u00a0FVOCI results in the assets \u00a0
being recognised at fair value in the balance sheet and at AMC in\u00a0the income statement. Gains and\u00a0losses, except for expected credit losses and\u00a0foreign \u00a0
exchanges gains and losses, are therefore recognised in other comprehensive\u00a0income until the financial asset is derecognised. When the financial asset \u00a0
is derecognised the cumulative\u00a0gains and losses previously\u00a0recognised in other comprehensive\u00a0income are reclassified\u00a0to the income\u00a0statement. \u00a0
All other financial assets are mandatorily\u00a0measured at FVPL including\u00a0financial assets held within other business models, such as\u00a0financial assets \u00a0
managed at\u00a0fair value or held for trading and financial\u00a0assets with contractual cash flows that are not solely payments of principal and interest on the \u00a0
principal amount outstanding. \u00a0
Generally, financial liabilities\u00a0are measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities measured at\u00a0fair value comprise the trading portfolio (derivatives and\u00a0obligations to repurchase securities) and\u00a0liabilitie s \u00a0
designated at\u00a0fair value through profit or loss under the fair value option.\u00a0Value adjustments relating to the inherent credit risk of financial liabilitie\u00a0s \u00a0
designated at\u00a0fair value\u00a0are recognised in other comprehensive\u00a0income unless this leads to an accounting\u00a0mismatch. \u00a0
The business\u00a0model assessment \u00a0
The business model assessment in Danske Bank Group has been applied separately for\u00a0each business\u00a0unit represented\u00a0by the Group\u2019s reportable \u00a0
segments, and\u00a0it is based on observable\u00a0factors for the different portfolios, such as (1) how the performance of the business model and the financia\u00a0l \u00a0
assets held within that business model are evaluated and reported to the Executive\u00a0Board and the Board of Directors,\u00a0(2) the\u00a0risks that affect\u00a0the \u00a0
performance of the business\u00a0model and the way such risks are managed and (3) past and expected frequency, value and timing of sales from the portfolio. \u00a0
In general, the business model assessment of the Group can be summarised as follows: \u00a0
\u2022
The Group\u2019s banking units, comprising Personal Customers, Business Customers, General Banking at Large\u00a0Corporates &Institutes\u00a0(LC&I) and \u00a0
Northern Ireland, have a \u201chold to\u00a0collect\u201d business model. The financial assets consist primarily of loans. The management and reporting\u00a0of \u00a0
performance are based on collecting\u00a0the contractual cash flows,\u00a0and loans are only very infrequently\u00a0sold. \u00a0
\u2022
The trading units at LC&I (Markets and Investment\u00a0Banking & Securities) and the financial assets related to the Group\u2019s insurance activities\u00a0at \u00a0
Danica Pension have a\u00a0business model that is neither \u201chold to collect\u201d nor \u201chold to collect and sell\u201d and the financial assets are mandatorily \u00a0
recognised at FVPL. The assets consist of bonds, shares, repo transactions\u00a0and short-term loans.\u00a0Some of the financial assets are included in \u00a0
portfolios with a trading pattern that falls under the definition of \u201cheld for trading\u201d while other portfolios are managed and their performance reported \u00a0
on a fair value\u00a0basis. \u00a0
\u2022
Group Treasury has portfolios\u00a0of bonds\u00a0within the \u201chold to collect\u201d business model, the \u201chold to collect and sell\u201d business models and\u00a0the \u201cother\u201d \u00a0
business model. \u00a0
\u2022
The remaining portfolio of\u00a0Non-core is \u201chold to\u00a0collect\u201d. The financial assets consist primarily of loans. \u00a0
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
The SPPI test (solely\u00a0payment of\u00a0principal and\u00a0interest on\u00a0the principal\u00a0amount outstanding) \u00a0
The second step in the classification of the financial assets in portfolios being \u201chold to collect\u201d and \u201chold to collect and sell\u201d relates to\u00a0the assessment of \u00a0
whether the contractual\u00a0cash flows are consistent\u00a0with the\u00a0SPPI test.\u00a0The principal\u00a0amount reflects the fair value at initial\u00a0recognition less\u00a0any subsequent \u00a0
changes, e.g. due to repayment. The interest must represent only consideration\u00a0for the\u00a0time value of money, credit risk, other basic lending risks and a \u00a0
margin consistent\u00a0with basic lending\u00a0features. If the cash flows introduce more than de minimis exposure to risk or volatility\u00a0that is\u00a0not consistent with \u00a0
basic lending features, the financial asset is mandatorily recognised at\u00a0FVPL. \u00a0
In general, the Group\u2019s portfolios of\u00a0financial assets that are \u201chold to collect\u201d or \u201chold to collect and sell\u201d (loans and bonds)\u00a0have contractual\u00a0cash flows \u00a0
that are consistent with the SPPI test, i.e. they have basic lending features. \u00a0
However, loans granted under Danish mortgage finance law are funded by issuing listed mortgage bonds with matching terms. Such loans are granted \u00a0
by the Realkredit\u00a0Danmark subsidiary only. Borrowers may repay such loans by delivering the underlying bonds. This represents an option to prepay at \u00a0
fair value that can be both above and below the principal amount plus accrued interest. Changes in the fair value of\u00a0the underlying bonds\u00a0include other \u00a0
elements than\u00a0the effect of changes in the relevant benchmark interest rate and the prepayment option is therefore not consistent with the SPPI test in \u00a0
IFRS 9\u00a0and are mandatorily\u00a0measured at FVPL. \u00a0
All equity instruments\u00a0have contractual cash flows that do not pass the SPPI test. All such holdings\u00a0are recognised at FVPL since the Group has decided \u00a0
not to use the option to designate equity instruments\u00a0at FVOCI. \u00a0
Financial liabilities \u00a0
Financial liabilities\u00a0are generally measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities\u00a0measured at fair value comprise derivatives,\u00a0the trading portfolio and liabilities\u00a0designated at\u00a0FVPL under the fair value \u00a0
option. Value adjustments relating to\u00a0the inherent\u00a0own credit risk of financial\u00a0liabilities designated at fair value are, however, recognised in Other \u00a0
comprehensive income unless this leads to an\u00a0accounting mismatch. \u00a0
IFRS 9 allows the designation\u00a0of financial\u00a0liabilities at\u00a0FVPL when doing so results in more relevant\u00a0information, because either (1)\u00a0it eliminates\u00a0or \u00a0
significantly reduces\u00a0an accounting\u00a0mismatch that\u00a0would otherwise arise, or\u00a0(2) is part of a portfolio\u00a0of financial\u00a0instruments that are\u00a0managed and their \u00a0
performance reported on\u00a0a fair value\u00a0basis to management. \u00a0
The Group designates the following financial liabilities\u00a0at FVPL: \u00a0
\u2022
Mortgage bonds issued by Realkredit Danmark.\u00a0The bonds fund the loans granted by Realkredit Danmark, i.e. loans that due to the SPPI test are \u00a0
mandatorily recognised at\u00a0FVPL. The\u00a0fair value of the loans is based on the fair value of the issued bonds (the loans and the issued bonds that are \u00a0
funding the loans have matching\u00a0contractual terms) adjusted for\u00a0changes in the fair value of the credit risk of borrowers. To eliminate\u00a0the accounting \u00a0
mismatch that exists if the loans are measured at FVPL and the issued bonds at AMC, the issued bonds are designated at FVPL, and fair value \u00a0
changes of the issued bonds (including fair value changes related to own credit risk) are offset by the fair value changes of the loans. Hence, changes \u00a0
in the fair value attributable\u00a0to the Group\u2019s own credit risk on the issued bonds are also recognised in the income statement\u00a0since an accounting \u00a0
mismatch would otherwise arise. \u00a0
\u2022
Financial liabilities\u00a0in Markets\u00a0and Investment\u00a0Banking &\u00a0Securities at\u00a0LC&I. These financial liabilities\u00a0are part of a portfolio\u00a0of financial\u00a0assets and \u00a0
liabilities that\u00a0is managed\u00a0and performance reported to\u00a0the Management on a\u00a0fair value basis. The financial liabilities\u00a0consist of repo transactions\u00a0, \u00a0
deposits and\u00a0commercial papers. Changes, if any, in the fair value attributable\u00a0to the Group\u2019s own credit risk is, however,\u00a0recognised in other \u00a0
comprehensive income. \u00a0
Hedge accounting \u00a0
The Group uses derivatives\u00a0to hedge the interest rate risk on some fixed-rate assets and fixed-rate liabilities\u00a0measured at\u00a0amortised cost\u00a0and on some \u00a0
bonds measured at fair value through other comprehensive income. Hedged risks that meet the criteria for\u00a0fair value hedge accounting\u00a0are treated \u00a0
accordingly. The interest rate risk on the hedged assets and liabilities\u00a0is measured at fair value through profit or loss. At the end of 2023, hedging \u00a0
derivatives measured\u00a0at fair value\u00a0accounted for about 0.2% of total assets and about 0.4% of total\u00a0liabilities (31\u00a0December 2022: 0.1% and 0.6%, \u00a0
respectively). For further information on hedge accounting, see\u00a0note G12(d). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2575": {
"value": "(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
Financial instruments\u00a0account for around 98% of total\u00a0assets and liabilities.\u00a0A portion of\u00a0financial assets\u00a0relate to investments\u00a0made under insurance \u00a0
contracts. The following sections provide a general description of the classification\u00a0and measurement\u00a0of financial\u00a0instruments and\u00a0obligations under \u00a0
insurance contracts. \u00a0
Financial instruments\u00a0\u2013 general \u00a0
The Group recognises financial assets and liabilities\u00a0when it\u00a0becomes a party to the terms of the contract. A financial asset, or a portion of a\u00a0financia l \u00a0
asset, is derecognised if the contractual\u00a0rights to cash flows from the asset have expired, or have been transferred, usually\u00a0by sale, leading\u00a0to substantially \u00a0
all the risks and rewards of the asset or significant risks and rewards being transferred. Financial liabilities\u00a0are derecognised\u00a0when the liability\u00a0has been \u00a0
settled, has\u00a0expired or\u00a0has been extinguished. \u00a0
Regular way purchases\u00a0and sales of financial instruments\u00a0are recognised\u00a0and derecognised at the settlement\u00a0date. Fair value adjustments\u00a0of unsettle d \u00a0
financial instruments\u00a0are recognised from\u00a0the trade date to the settlement\u00a0date if the financial\u00a0asset is classified at fair value through profit or loss or \u00a0
through other comprehensive income. The classification\u00a0is shown in the table below. \u00a0
G1. Basis of preparation\u00a0continued \u00a0
Financial instruments\u00a0and obligations\u00a0under insurance contracts, classification\u00a0and measurement\u00a0end of 2023 \u00a0
Amortised \u00a0
Fair value \u00a0
cost \u00a0
OCI \u00a0
Fair value through profit or loss \u00a0
Held to collect \u00a0
Held to collect \u00a0
and sell \u00a0
assets/ \u00a0
financial \u00a0
Held for\u00a0Managed at\u00a0FVPL due to \u00a0
Interest rate\u00a0Own shares / \u00a0
(DKK billions) \u00a0
Liabilities \u00a0
assets* \u00a0
trading \u00a0
fair value \u00a0
SPPI test\u00a0Designated \u00a0
hedge ** \u00a0
bonds \u00a0
Total \u00a0
Assets \u00a0
Cash in hand and demand \u00a0
deposits with central banks \u00a0
259 \u00a0
-
-
-
-
-
-
-
259 \u00a0
Due from credit institutions\u00a0and \u00a0
central banks \u00a0
22 \u00a0
-
-
93 \u00a0
-
-
-
-
115 \u00a0
Derivatives \u00a0
-
-
346 \u00a0
-
-
-
6
-
352 \u00a0
Bonds \u00a0
155 \u00a0
107 \u00a0
178 \u00a0
21 \u00a0
-
-
-
-
461 \u00a0
Shares \u00a0
-
-
19 \u00a0
-
-
-
-
-
19 \u00a0
Loans *** \u00a0
919 \u00a0
-
-
175 \u00a0
753 \u00a0
-
-1 \u00a0
-
1,847 \u00a0
Assets under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
43 \u00a0
-
-
-
28 \u00a0
71 \u00a0
Assets under insurance \u00a0
contracts \u00a0
-
-
-
460 \u00a0
-
-
-
1
461 \u00a0
Total financial assets, \u00a0
1,356 \u00a0
107 \u00a0
542 \u00a0
792 \u00a0
753 \u00a0
-
6
29 \u00a0
3,585 \u00a0
31 December\u00a02023 \u00a0
Total financial assets, \u00a0
1,433 \u00a0
116 \u00a0
635 \u00a0
771 \u00a0
724 \u00a0
-
3
28 \u00a0
3,710 \u00a0
31 December\u00a02022**** \u00a0
Liabilities \u00a0
Due to credit institutions and \u00a0
central banks \u00a0
69 \u00a0
-
-
-
-
86 \u00a0
-
-
155 \u00a0
Trading portfolio liabilities \u00a0
-
-
442 \u00a0
-
-
-
13 \u00a0
-
454 \u00a0
Deposits *** \u00a0
1,102 \u00a0
-
-
-
-
120 \u00a0
-
-
1,222 \u00a0
Issued bonds at fair value \u00a0
-
-
-
-
-
749 \u00a0
-
-
749 \u00a0
Issued bonds at amortised cost \u00a0
*** \u00a0
219 \u00a0
-
-
-
-
-
-5 \u00a0
-
214 \u00a0
Deposits under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
-
-
71 \u00a0
-
-
71 \u00a0
Liabilities under insurance \u00a0
contracts ***** \u00a0
-
-
-
-
-
483 \u00a0
-
-
483 \u00a0
Non-preferred senior bonds \u00a0
96 \u00a0
-
-
-
-
-
-3 \u00a0
-
93 \u00a0
Subordinated debt \u00a0
39 \u00a0
-
-
-
-
-
-
-
39 \u00a0
Loan commitments\u00a0and \u00a0
guarantees \u00a0
3
-
-
-
-
-
-
-
3
Total financial liabilities, \u00a0
1,528 \u00a0
-
442 \u00a0
-
-
1,508 \u00a0
5
-
3,483 \u00a0
31 December\u00a02023 \u00a0
Total financial liabilities, \u00a0
1,599 \u00a0
-
533 \u00a0
-
-
1,402 \u00a0
-
27 \u00a0
3,562 \u00a0
31 December\u00a02022**** \u00a0
* Unrealised fair value gains and losses are presented in Other comprehensive income, and realised fair value gains and losses are recycled to the income statement . \u00a0
**The interest rate risk on some fixed-rate financial assets and liabilities is hedged by derivatives (fair value hedging). The interest rate risk on some fixed-rate bonds 'hold to collect and sell' \u00a0
is also hedged by derivatives. The fair value represents changes in the fair value of the interest rate risk on the hedged items, i.e. not a full fair value of the hedged items. \u00a0
*** Loans (amortised cost), Deposits (amortised cost) and Issued bonds at amortised cost include Assets held for sale and Liabilities i n disposal groups held for sale which are measured in \u00a0
accordance with\u00a0IFRS 9. These are presented separately on the Balance sheet. \u00a0
**** Comparative information has been restated, as described in note G2(a). \u00a0
***** Liabilities under insurance contracts comprise the liability for remaining coverage and liability for incurred claims, which includes estimates of present value of future cash flows, risk \u00a0
adjustment for non-financial\u00a0risk and contractual service margin. \u00a0
.
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
Classification and\u00a0measurement of\u00a0financial assets\u00a0and financial\u00a0liabilities \u2013 general \u00a0
Financial assets are classified on the basis of the business model adopted for\u00a0managing the assets and on their contractual\u00a0cash flow characteristic\u00a0s \u00a0
(including embedded\u00a0derivatives, if\u00a0any) are grouped into one of the following\u00a0measurement categories: \u00a0
\u2022
Amortised cost\u00a0(AMC) \u00a0
\u2022
Fair value through other comprehensive income (FVOCI) \u00a0
\u2022
Fair value through profit or loss (FVPL) \u00a0
Financial assets are measured at AMC if they are held within a business model for the purpose of collecting contractual\u00a0cash flows\u00a0(hold to collect) and \u00a0
if cash flows are solely payments\u00a0of principal\u00a0and interest\u00a0on the principal amount outstanding. \u00a0
Financial assets\u00a0are measured at FVOCI\u00a0if they are held within\u00a0a business model for\u00a0the purpose of both collecting\u00a0contractual cash\u00a0flows and selling \u00a0
(hold to collect and sell) and if cash flows are solely payments of principal and interest on the principal amount outstanding.\u00a0FVOCI results in the assets \u00a0
being recognised at fair value in the balance sheet and at AMC in\u00a0the income statement. Gains and\u00a0losses, except for expected credit losses and\u00a0foreign \u00a0
exchanges gains and losses, are therefore recognised in other comprehensive\u00a0income until the financial asset is derecognised. When the financial asset \u00a0
is derecognised the cumulative\u00a0gains and losses previously\u00a0recognised in other comprehensive\u00a0income are reclassified\u00a0to the income\u00a0statement. \u00a0
All other financial assets are mandatorily\u00a0measured at FVPL including\u00a0financial assets held within other business models, such as\u00a0financial assets \u00a0
managed at\u00a0fair value or held for trading and financial\u00a0assets with contractual cash flows that are not solely payments of principal and interest on the \u00a0
principal amount outstanding. \u00a0
Generally, financial liabilities\u00a0are measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities measured at\u00a0fair value comprise the trading portfolio (derivatives and\u00a0obligations to repurchase securities) and\u00a0liabilitie s \u00a0
designated at\u00a0fair value through profit or loss under the fair value option.\u00a0Value adjustments relating to the inherent credit risk of financial liabilitie\u00a0s \u00a0
designated at\u00a0fair value\u00a0are recognised in other comprehensive\u00a0income unless this leads to an accounting\u00a0mismatch. \u00a0
The business\u00a0model assessment \u00a0
The business model assessment in Danske Bank Group has been applied separately for\u00a0each business\u00a0unit represented\u00a0by the Group\u2019s reportable \u00a0
segments, and\u00a0it is based on observable\u00a0factors for the different portfolios, such as (1) how the performance of the business model and the financia\u00a0l \u00a0
assets held within that business model are evaluated and reported to the Executive\u00a0Board and the Board of Directors,\u00a0(2) the\u00a0risks that affect\u00a0the \u00a0
performance of the business\u00a0model and the way such risks are managed and (3) past and expected frequency, value and timing of sales from the portfolio. \u00a0
In general, the business model assessment of the Group can be summarised as follows: \u00a0
\u2022
The Group\u2019s banking units, comprising Personal Customers, Business Customers, General Banking at Large\u00a0Corporates &Institutes\u00a0(LC&I) and \u00a0
Northern Ireland, have a \u201chold to\u00a0collect\u201d business model. The financial assets consist primarily of loans. The management and reporting\u00a0of \u00a0
performance are based on collecting\u00a0the contractual cash flows,\u00a0and loans are only very infrequently\u00a0sold. \u00a0
\u2022
The trading units at LC&I (Markets and Investment\u00a0Banking & Securities) and the financial assets related to the Group\u2019s insurance activities\u00a0at \u00a0
Danica Pension have a\u00a0business model that is neither \u201chold to collect\u201d nor \u201chold to collect and sell\u201d and the financial assets are mandatorily \u00a0
recognised at FVPL. The assets consist of bonds, shares, repo transactions\u00a0and short-term loans.\u00a0Some of the financial assets are included in \u00a0
portfolios with a trading pattern that falls under the definition of \u201cheld for trading\u201d while other portfolios are managed and their performance reported \u00a0
on a fair value\u00a0basis. \u00a0
\u2022
Group Treasury has portfolios\u00a0of bonds\u00a0within the \u201chold to collect\u201d business model, the \u201chold to collect and sell\u201d business models and\u00a0the \u201cother\u201d \u00a0
business model. \u00a0
\u2022
The remaining portfolio of\u00a0Non-core is \u201chold to\u00a0collect\u201d. The financial assets consist primarily of loans. \u00a0
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
The SPPI test (solely\u00a0payment of\u00a0principal and\u00a0interest on\u00a0the principal\u00a0amount outstanding) \u00a0
The second step in the classification of the financial assets in portfolios being \u201chold to collect\u201d and \u201chold to collect and sell\u201d relates to\u00a0the assessment of \u00a0
whether the contractual\u00a0cash flows are consistent\u00a0with the\u00a0SPPI test.\u00a0The principal\u00a0amount reflects the fair value at initial\u00a0recognition less\u00a0any subsequent \u00a0
changes, e.g. due to repayment. The interest must represent only consideration\u00a0for the\u00a0time value of money, credit risk, other basic lending risks and a \u00a0
margin consistent\u00a0with basic lending\u00a0features. If the cash flows introduce more than de minimis exposure to risk or volatility\u00a0that is\u00a0not consistent with \u00a0
basic lending features, the financial asset is mandatorily recognised at\u00a0FVPL. \u00a0
In general, the Group\u2019s portfolios of\u00a0financial assets that are \u201chold to collect\u201d or \u201chold to collect and sell\u201d (loans and bonds)\u00a0have contractual\u00a0cash flows \u00a0
that are consistent with the SPPI test, i.e. they have basic lending features. \u00a0
However, loans granted under Danish mortgage finance law are funded by issuing listed mortgage bonds with matching terms. Such loans are granted \u00a0
by the Realkredit\u00a0Danmark subsidiary only. Borrowers may repay such loans by delivering the underlying bonds. This represents an option to prepay at \u00a0
fair value that can be both above and below the principal amount plus accrued interest. Changes in the fair value of\u00a0the underlying bonds\u00a0include other \u00a0
elements than\u00a0the effect of changes in the relevant benchmark interest rate and the prepayment option is therefore not consistent with the SPPI test in \u00a0
IFRS 9\u00a0and are mandatorily\u00a0measured at FVPL. \u00a0
All equity instruments\u00a0have contractual cash flows that do not pass the SPPI test. All such holdings\u00a0are recognised at FVPL since the Group has decided \u00a0
not to use the option to designate equity instruments\u00a0at FVOCI. \u00a0
Financial liabilities \u00a0
Financial liabilities\u00a0are generally measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities\u00a0measured at fair value comprise derivatives,\u00a0the trading portfolio and liabilities\u00a0designated at\u00a0FVPL under the fair value \u00a0
option. Value adjustments relating to\u00a0the inherent\u00a0own credit risk of financial\u00a0liabilities designated at fair value are, however, recognised in Other \u00a0
comprehensive income unless this leads to an\u00a0accounting mismatch. \u00a0
IFRS 9 allows the designation\u00a0of financial\u00a0liabilities at\u00a0FVPL when doing so results in more relevant\u00a0information, because either (1)\u00a0it eliminates\u00a0or \u00a0
significantly reduces\u00a0an accounting\u00a0mismatch that\u00a0would otherwise arise, or\u00a0(2) is part of a portfolio\u00a0of financial\u00a0instruments that are\u00a0managed and their \u00a0
performance reported on\u00a0a fair value\u00a0basis to management. \u00a0
The Group designates the following financial liabilities\u00a0at FVPL: \u00a0
\u2022
Mortgage bonds issued by Realkredit Danmark.\u00a0The bonds fund the loans granted by Realkredit Danmark, i.e. loans that due to the SPPI test are \u00a0
mandatorily recognised at\u00a0FVPL. The\u00a0fair value of the loans is based on the fair value of the issued bonds (the loans and the issued bonds that are \u00a0
funding the loans have matching\u00a0contractual terms) adjusted for\u00a0changes in the fair value of the credit risk of borrowers. To eliminate\u00a0the accounting \u00a0
mismatch that exists if the loans are measured at FVPL and the issued bonds at AMC, the issued bonds are designated at FVPL, and fair value \u00a0
changes of the issued bonds (including fair value changes related to own credit risk) are offset by the fair value changes of the loans. Hence, changes \u00a0
in the fair value attributable\u00a0to the Group\u2019s own credit risk on the issued bonds are also recognised in the income statement\u00a0since an accounting \u00a0
mismatch would otherwise arise. \u00a0
\u2022
Financial liabilities\u00a0in Markets\u00a0and Investment\u00a0Banking &\u00a0Securities at\u00a0LC&I. These financial liabilities\u00a0are part of a portfolio\u00a0of financial\u00a0assets and \u00a0
liabilities that\u00a0is managed\u00a0and performance reported to\u00a0the Management on a\u00a0fair value basis. The financial liabilities\u00a0consist of repo transactions\u00a0, \u00a0
deposits and\u00a0commercial papers. Changes, if any, in the fair value attributable\u00a0to the Group\u2019s own credit risk is, however,\u00a0recognised in other \u00a0
comprehensive income. \u00a0
Hedge accounting \u00a0
The Group uses derivatives\u00a0to hedge the interest rate risk on some fixed-rate assets and fixed-rate liabilities\u00a0measured at\u00a0amortised cost\u00a0and on some \u00a0
bonds measured at fair value through other comprehensive income. Hedged risks that meet the criteria for\u00a0fair value hedge accounting\u00a0are treated \u00a0
accordingly. The interest rate risk on the hedged assets and liabilities\u00a0is measured at fair value through profit or loss. At the end of 2023, hedging \u00a0
derivatives measured\u00a0at fair value\u00a0accounted for about 0.2% of total assets and about 0.4% of total\u00a0liabilities (31\u00a0December 2022: 0.1% and 0.6%, \u00a0
respectively). For further information on hedge accounting, see\u00a0note G12(d). \u00a0
Accounting policy \u00a0
Financial assets measured at fair value through profit or loss (FVPL) \u00a0
Financial assets measured at fair\u00a0value include securities that are\u00a0managed on a fair value basis with no short-term profit taking. Realised and unrealise\u00a0d \u00a0
capital gains and losses and dividends\u00a0are carried in the income statement under Net\u00a0trading income or loss. Further, all shares (including\u00a0unliste d \u00a0
shares) and bonds held in Group Treasury that do not have contractual\u00a0cash flows that are solely payments of principal and interest\u00a0on the principa\u00a0l \u00a0
amount outstanding (i.e. that does not pass the SPPI test in IFRS 9) are mandatorily\u00a0measured at FVPL and, consequently,\u00a0included in this category. \u00a0
Accounting policy \u00a0
Loans granted and bonds issued by Realkredit\u00a0Danmark \u00a0
Loans granted by Realkredit\u00a0Danmark have contractual cash\u00a0flows that are not solely payment of principal and interest on the principal amount \u00a0
outstanding. Therefore,\u00a0the loans are\u00a0mandatorily recognised at\u00a0fair value\u00a0through profit\u00a0or loss. The issued bonds that are\u00a0funding the loans are \u00a0
designated at\u00a0fair value through profit or loss in order not to create an accounting\u00a0mismatch. For\u00a0the issued bonds, changes in fair value attributable\u00a0to \u00a0
the Group\u2019s own credit risk is presented in the income\u00a0statement, as\u00a0an accounting\u00a0mismatch would otherwise be introduced. \u00a0
The fair value of the bonds issued by Realkredit Danmark is normally defined as their quoted market price. A small number of the issued bonds are \u00a0
illiquid, however, and\u00a0the fair value\u00a0of these bonds is calculated\u00a0on the basis of a discounted\u00a0cash flow valuation technique. The fair value of the loans is \u00a0
based on the fair value of the underlying\u00a0bonds which ensures that changes in the fair value of the interest rate risk on the loans are measured based \u00a0
on market implied\u00a0input. This fair value is adjusted for changes in the fair value of cash flows from the loans that differ from the cash flows from the \u00a0
issued bonds. The most important\u00a0component is\u00a0the credit risk on the borrowers (covered by the Group and\u00a0not by\u00a0the bond holders and therefore not \u00a0
priced into the price of the issued bonds). \u00a0
Changes in fair value of credit risk etc on the loans \u00a0
The IFRS 13 estimate\u00a0of the fair value of the credit risk on the loans is based on the expected credit losses estimated in the models developed in \u00a0
connection with the Group\u2019s implementation\u00a0of the expected\u00a0credit loss impairment model in IFRS 9, including\u00a0the allocation o\u00a0f loans\u00a0between stage 1, \u00a0
stage 2 and stage 3. The expected credit losses are calculated for all loans as a function of PD, EAD and LGD and incorporates forward looking \u00a0
information, see\u00a0further in note G15. The latter reflects management\u2019s expectations of\u00a0expected credit\u00a0losses and\u00a0involves multiple scenarios (base \u00a0
case, upside\u00a0and downside),\u00a0including an\u00a0assessment of\u00a0the probability\u00a0for each scenario. \u00a0
On top of the expected\u00a0credit losses, a collective\u00a0assessment determines\u00a0the need for further adjustments\u00a0to reflect other components\u00a0in the fair value \u00a0
measurement, such as an assessment of lifetime\u00a0expected credit\u00a0losses for\u00a0loans in\u00a0stage 1, an investors risk premium, compensation for \u00a0
administrative costs\u00a0related to the loans and the possibility\u00a0to increase the margin on the loans if the credit risk etc increases. It is acknowledged that \u00a0
the possibility to\u00a0increase the margin depends on the economic resources of the customers.\u00a0The possibility\u00a0to increase the margin is therefore only \u00a0
considered in\u00a0the measurement if it is very likely that the margin can be increased without\u00a0the customer defaulting. Further,\u00a0the possibility\u00a0to increase \u00a0
the margin is only relevant if it does not give the customer an incentive to \u201cmove\u201d to another mortgage institution.\u00a0Therefore, the possibility\u00a0to increase \u00a0
the margin is only relevant for the measurement of loans to customers with neither a relatively\u00a0high credit risk nor a relati\u00a0vely low\u00a0credit risk. \u00a0
The discount rate used to discount the cash flows represents the interest rate on the funding bonds. This is considered to be close to a risk-free interes\u00a0t \u00a0
rate. The risk premium is incorporated into the cash\u00a0flows. The risk premium is assumed to be higher for customers with high credit risk than for \u00a0
customers with low credit risk. Further, the adjustments\u00a0for changes in the fair value\u00a0of the credit risk and other components\u00a0cannot increase the value \u00a0
of a loan\u00a0(the adjustment\u00a0cannot be positive). \u00a0
Other loans and\u00a0issued bonds measured at fair value through profit or loss \u00a0
The loans in the Group\u2019s trading units (Markets and Investment Banking & Securities in LC&I) are managed and their performance reported on a fair \u00a0
value basis and the loans are under IFRS 9 mandatorily\u00a0measured at fair value\u00a0through profit or loss. In order not to introduce\u00a0an accounting mismatc\u00a0h \u00a0
by measuring the financial assets in the trading units at\u00a0fair value through profit or loss and the financial liabilities\u00a0at amortised cost, the\u00a0financia l \u00a0
liabilities in\u00a0the trading units are designated at\u00a0fair value through profit or\u00a0loss with fair value changes attributable\u00a0to the Group\u2019s own credit risk \u00a0
presented in\u00a0other comprehensive income. \u00a0
Accounting policy \u00a0
Assets earmarked for customer savings are measured at fair value and recognised under Assets under pooled schemes and unit-linked\u00a0investment \u00a0
contracts. Deposits made by customers are recognised under Deposits under pooled schemes and unit-linked investment contracts. These deposits are \u00a0
measured at the\u00a0value of savings, corresponding to the fair value of the assets. \u00a0
The Group has elected not to deduct own shares from equity that are held on behalf of customers. Therefore total assets under pooled schemes and unit- \u00a0
linked contracts includes these own shares that meet this criterion. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2576": {
"value": "(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
Financial instruments\u00a0account for around 98% of total\u00a0assets and liabilities.\u00a0A portion of\u00a0financial assets\u00a0relate to investments\u00a0made under insurance \u00a0
contracts. The following sections provide a general description of the classification\u00a0and measurement\u00a0of financial\u00a0instruments and\u00a0obligations under \u00a0
insurance contracts. \u00a0
Financial instruments\u00a0\u2013 general \u00a0
The Group recognises financial assets and liabilities\u00a0when it\u00a0becomes a party to the terms of the contract. A financial asset, or a portion of a\u00a0financia l \u00a0
asset, is derecognised if the contractual\u00a0rights to cash flows from the asset have expired, or have been transferred, usually\u00a0by sale, leading\u00a0to substantially \u00a0
all the risks and rewards of the asset or significant risks and rewards being transferred. Financial liabilities\u00a0are derecognised\u00a0when the liability\u00a0has been \u00a0
settled, has\u00a0expired or\u00a0has been extinguished. \u00a0
Regular way purchases\u00a0and sales of financial instruments\u00a0are recognised\u00a0and derecognised at the settlement\u00a0date. Fair value adjustments\u00a0of unsettle d \u00a0
financial instruments\u00a0are recognised from\u00a0the trade date to the settlement\u00a0date if the financial\u00a0asset is classified at fair value through profit or loss or \u00a0
through other comprehensive income. The classification\u00a0is shown in the table below. \u00a0
G1. Basis of preparation\u00a0continued \u00a0
Financial instruments\u00a0and obligations\u00a0under insurance contracts, classification\u00a0and measurement\u00a0end of 2023 \u00a0
Amortised \u00a0
Fair value \u00a0
cost \u00a0
OCI \u00a0
Fair value through profit or loss \u00a0
Held to collect \u00a0
Held to collect \u00a0
and sell \u00a0
assets/ \u00a0
financial \u00a0
Held for\u00a0Managed at\u00a0FVPL due to \u00a0
Interest rate\u00a0Own shares / \u00a0
(DKK billions) \u00a0
Liabilities \u00a0
assets* \u00a0
trading \u00a0
fair value \u00a0
SPPI test\u00a0Designated \u00a0
hedge ** \u00a0
bonds \u00a0
Total \u00a0
Assets \u00a0
Cash in hand and demand \u00a0
deposits with central banks \u00a0
259 \u00a0
-
-
-
-
-
-
-
259 \u00a0
Due from credit institutions\u00a0and \u00a0
central banks \u00a0
22 \u00a0
-
-
93 \u00a0
-
-
-
-
115 \u00a0
Derivatives \u00a0
-
-
346 \u00a0
-
-
-
6
-
352 \u00a0
Bonds \u00a0
155 \u00a0
107 \u00a0
178 \u00a0
21 \u00a0
-
-
-
-
461 \u00a0
Shares \u00a0
-
-
19 \u00a0
-
-
-
-
-
19 \u00a0
Loans *** \u00a0
919 \u00a0
-
-
175 \u00a0
753 \u00a0
-
-1 \u00a0
-
1,847 \u00a0
Assets under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
43 \u00a0
-
-
-
28 \u00a0
71 \u00a0
Assets under insurance \u00a0
contracts \u00a0
-
-
-
460 \u00a0
-
-
-
1
461 \u00a0
Total financial assets, \u00a0
1,356 \u00a0
107 \u00a0
542 \u00a0
792 \u00a0
753 \u00a0
-
6
29 \u00a0
3,585 \u00a0
31 December\u00a02023 \u00a0
Total financial assets, \u00a0
1,433 \u00a0
116 \u00a0
635 \u00a0
771 \u00a0
724 \u00a0
-
3
28 \u00a0
3,710 \u00a0
31 December\u00a02022**** \u00a0
Liabilities \u00a0
Due to credit institutions and \u00a0
central banks \u00a0
69 \u00a0
-
-
-
-
86 \u00a0
-
-
155 \u00a0
Trading portfolio liabilities \u00a0
-
-
442 \u00a0
-
-
-
13 \u00a0
-
454 \u00a0
Deposits *** \u00a0
1,102 \u00a0
-
-
-
-
120 \u00a0
-
-
1,222 \u00a0
Issued bonds at fair value \u00a0
-
-
-
-
-
749 \u00a0
-
-
749 \u00a0
Issued bonds at amortised cost \u00a0
*** \u00a0
219 \u00a0
-
-
-
-
-
-5 \u00a0
-
214 \u00a0
Deposits under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
-
-
71 \u00a0
-
-
71 \u00a0
Liabilities under insurance \u00a0
contracts ***** \u00a0
-
-
-
-
-
483 \u00a0
-
-
483 \u00a0
Non-preferred senior bonds \u00a0
96 \u00a0
-
-
-
-
-
-3 \u00a0
-
93 \u00a0
Subordinated debt \u00a0
39 \u00a0
-
-
-
-
-
-
-
39 \u00a0
Loan commitments\u00a0and \u00a0
guarantees \u00a0
3
-
-
-
-
-
-
-
3
Total financial liabilities, \u00a0
1,528 \u00a0
-
442 \u00a0
-
-
1,508 \u00a0
5
-
3,483 \u00a0
31 December\u00a02023 \u00a0
Total financial liabilities, \u00a0
1,599 \u00a0
-
533 \u00a0
-
-
1,402 \u00a0
-
27 \u00a0
3,562 \u00a0
31 December\u00a02022**** \u00a0
* Unrealised fair value gains and losses are presented in Other comprehensive income, and realised fair value gains and losses are recycled to the income statement . \u00a0
**The interest rate risk on some fixed-rate financial assets and liabilities is hedged by derivatives (fair value hedging). The interest rate risk on some fixed-rate bonds 'hold to collect and sell' \u00a0
is also hedged by derivatives. The fair value represents changes in the fair value of the interest rate risk on the hedged items, i.e. not a full fair value of the hedged items. \u00a0
*** Loans (amortised cost), Deposits (amortised cost) and Issued bonds at amortised cost include Assets held for sale and Liabilities i n disposal groups held for sale which are measured in \u00a0
accordance with\u00a0IFRS 9. These are presented separately on the Balance sheet. \u00a0
**** Comparative information has been restated, as described in note G2(a). \u00a0
***** Liabilities under insurance contracts comprise the liability for remaining coverage and liability for incurred claims, which includes estimates of present value of future cash flows, risk \u00a0
adjustment for non-financial\u00a0risk and contractual service margin. \u00a0
.
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
Classification and\u00a0measurement of\u00a0financial assets\u00a0and financial\u00a0liabilities \u2013 general \u00a0
Financial assets are classified on the basis of the business model adopted for\u00a0managing the assets and on their contractual\u00a0cash flow characteristic\u00a0s \u00a0
(including embedded\u00a0derivatives, if\u00a0any) are grouped into one of the following\u00a0measurement categories: \u00a0
\u2022
Amortised cost\u00a0(AMC) \u00a0
\u2022
Fair value through other comprehensive income (FVOCI) \u00a0
\u2022
Fair value through profit or loss (FVPL) \u00a0
Financial assets are measured at AMC if they are held within a business model for the purpose of collecting contractual\u00a0cash flows\u00a0(hold to collect) and \u00a0
if cash flows are solely payments\u00a0of principal\u00a0and interest\u00a0on the principal amount outstanding. \u00a0
Financial assets\u00a0are measured at FVOCI\u00a0if they are held within\u00a0a business model for\u00a0the purpose of both collecting\u00a0contractual cash\u00a0flows and selling \u00a0
(hold to collect and sell) and if cash flows are solely payments of principal and interest on the principal amount outstanding.\u00a0FVOCI results in the assets \u00a0
being recognised at fair value in the balance sheet and at AMC in\u00a0the income statement. Gains and\u00a0losses, except for expected credit losses and\u00a0foreign \u00a0
exchanges gains and losses, are therefore recognised in other comprehensive\u00a0income until the financial asset is derecognised. When the financial asset \u00a0
is derecognised the cumulative\u00a0gains and losses previously\u00a0recognised in other comprehensive\u00a0income are reclassified\u00a0to the income\u00a0statement. \u00a0
All other financial assets are mandatorily\u00a0measured at FVPL including\u00a0financial assets held within other business models, such as\u00a0financial assets \u00a0
managed at\u00a0fair value or held for trading and financial\u00a0assets with contractual cash flows that are not solely payments of principal and interest on the \u00a0
principal amount outstanding. \u00a0
Generally, financial liabilities\u00a0are measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities measured at\u00a0fair value comprise the trading portfolio (derivatives and\u00a0obligations to repurchase securities) and\u00a0liabilitie s \u00a0
designated at\u00a0fair value through profit or loss under the fair value option.\u00a0Value adjustments relating to the inherent credit risk of financial liabilitie\u00a0s \u00a0
designated at\u00a0fair value\u00a0are recognised in other comprehensive\u00a0income unless this leads to an accounting\u00a0mismatch. \u00a0
The business\u00a0model assessment \u00a0
The business model assessment in Danske Bank Group has been applied separately for\u00a0each business\u00a0unit represented\u00a0by the Group\u2019s reportable \u00a0
segments, and\u00a0it is based on observable\u00a0factors for the different portfolios, such as (1) how the performance of the business model and the financia\u00a0l \u00a0
assets held within that business model are evaluated and reported to the Executive\u00a0Board and the Board of Directors,\u00a0(2) the\u00a0risks that affect\u00a0the \u00a0
performance of the business\u00a0model and the way such risks are managed and (3) past and expected frequency, value and timing of sales from the portfolio. \u00a0
In general, the business model assessment of the Group can be summarised as follows: \u00a0
\u2022
The Group\u2019s banking units, comprising Personal Customers, Business Customers, General Banking at Large\u00a0Corporates &Institutes\u00a0(LC&I) and \u00a0
Northern Ireland, have a \u201chold to\u00a0collect\u201d business model. The financial assets consist primarily of loans. The management and reporting\u00a0of \u00a0
performance are based on collecting\u00a0the contractual cash flows,\u00a0and loans are only very infrequently\u00a0sold. \u00a0
\u2022
The trading units at LC&I (Markets and Investment\u00a0Banking & Securities) and the financial assets related to the Group\u2019s insurance activities\u00a0at \u00a0
Danica Pension have a\u00a0business model that is neither \u201chold to collect\u201d nor \u201chold to collect and sell\u201d and the financial assets are mandatorily \u00a0
recognised at FVPL. The assets consist of bonds, shares, repo transactions\u00a0and short-term loans.\u00a0Some of the financial assets are included in \u00a0
portfolios with a trading pattern that falls under the definition of \u201cheld for trading\u201d while other portfolios are managed and their performance reported \u00a0
on a fair value\u00a0basis. \u00a0
\u2022
Group Treasury has portfolios\u00a0of bonds\u00a0within the \u201chold to collect\u201d business model, the \u201chold to collect and sell\u201d business models and\u00a0the \u201cother\u201d \u00a0
business model. \u00a0
\u2022
The remaining portfolio of\u00a0Non-core is \u201chold to\u00a0collect\u201d. The financial assets consist primarily of loans. \u00a0
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
The SPPI test (solely\u00a0payment of\u00a0principal and\u00a0interest on\u00a0the principal\u00a0amount outstanding) \u00a0
The second step in the classification of the financial assets in portfolios being \u201chold to collect\u201d and \u201chold to collect and sell\u201d relates to\u00a0the assessment of \u00a0
whether the contractual\u00a0cash flows are consistent\u00a0with the\u00a0SPPI test.\u00a0The principal\u00a0amount reflects the fair value at initial\u00a0recognition less\u00a0any subsequent \u00a0
changes, e.g. due to repayment. The interest must represent only consideration\u00a0for the\u00a0time value of money, credit risk, other basic lending risks and a \u00a0
margin consistent\u00a0with basic lending\u00a0features. If the cash flows introduce more than de minimis exposure to risk or volatility\u00a0that is\u00a0not consistent with \u00a0
basic lending features, the financial asset is mandatorily recognised at\u00a0FVPL. \u00a0
In general, the Group\u2019s portfolios of\u00a0financial assets that are \u201chold to collect\u201d or \u201chold to collect and sell\u201d (loans and bonds)\u00a0have contractual\u00a0cash flows \u00a0
that are consistent with the SPPI test, i.e. they have basic lending features. \u00a0
However, loans granted under Danish mortgage finance law are funded by issuing listed mortgage bonds with matching terms. Such loans are granted \u00a0
by the Realkredit\u00a0Danmark subsidiary only. Borrowers may repay such loans by delivering the underlying bonds. This represents an option to prepay at \u00a0
fair value that can be both above and below the principal amount plus accrued interest. Changes in the fair value of\u00a0the underlying bonds\u00a0include other \u00a0
elements than\u00a0the effect of changes in the relevant benchmark interest rate and the prepayment option is therefore not consistent with the SPPI test in \u00a0
IFRS 9\u00a0and are mandatorily\u00a0measured at FVPL. \u00a0
All equity instruments\u00a0have contractual cash flows that do not pass the SPPI test. All such holdings\u00a0are recognised at FVPL since the Group has decided \u00a0
not to use the option to designate equity instruments\u00a0at FVOCI. \u00a0
Financial liabilities \u00a0
Financial liabilities\u00a0are generally measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities\u00a0measured at fair value comprise derivatives,\u00a0the trading portfolio and liabilities\u00a0designated at\u00a0FVPL under the fair value \u00a0
option. Value adjustments relating to\u00a0the inherent\u00a0own credit risk of financial\u00a0liabilities designated at fair value are, however, recognised in Other \u00a0
comprehensive income unless this leads to an\u00a0accounting mismatch. \u00a0
IFRS 9 allows the designation\u00a0of financial\u00a0liabilities at\u00a0FVPL when doing so results in more relevant\u00a0information, because either (1)\u00a0it eliminates\u00a0or \u00a0
significantly reduces\u00a0an accounting\u00a0mismatch that\u00a0would otherwise arise, or\u00a0(2) is part of a portfolio\u00a0of financial\u00a0instruments that are\u00a0managed and their \u00a0
performance reported on\u00a0a fair value\u00a0basis to management. \u00a0
The Group designates the following financial liabilities\u00a0at FVPL: \u00a0
\u2022
Mortgage bonds issued by Realkredit Danmark.\u00a0The bonds fund the loans granted by Realkredit Danmark, i.e. loans that due to the SPPI test are \u00a0
mandatorily recognised at\u00a0FVPL. The\u00a0fair value of the loans is based on the fair value of the issued bonds (the loans and the issued bonds that are \u00a0
funding the loans have matching\u00a0contractual terms) adjusted for\u00a0changes in the fair value of the credit risk of borrowers. To eliminate\u00a0the accounting \u00a0
mismatch that exists if the loans are measured at FVPL and the issued bonds at AMC, the issued bonds are designated at FVPL, and fair value \u00a0
changes of the issued bonds (including fair value changes related to own credit risk) are offset by the fair value changes of the loans. Hence, changes \u00a0
in the fair value attributable\u00a0to the Group\u2019s own credit risk on the issued bonds are also recognised in the income statement\u00a0since an accounting \u00a0
mismatch would otherwise arise. \u00a0
\u2022
Financial liabilities\u00a0in Markets\u00a0and Investment\u00a0Banking &\u00a0Securities at\u00a0LC&I. These financial liabilities\u00a0are part of a portfolio\u00a0of financial\u00a0assets and \u00a0
liabilities that\u00a0is managed\u00a0and performance reported to\u00a0the Management on a\u00a0fair value basis. The financial liabilities\u00a0consist of repo transactions\u00a0, \u00a0
deposits and\u00a0commercial papers. Changes, if any, in the fair value attributable\u00a0to the Group\u2019s own credit risk is, however,\u00a0recognised in other \u00a0
comprehensive income. \u00a0
Hedge accounting \u00a0
The Group uses derivatives\u00a0to hedge the interest rate risk on some fixed-rate assets and fixed-rate liabilities\u00a0measured at\u00a0amortised cost\u00a0and on some \u00a0
bonds measured at fair value through other comprehensive income. Hedged risks that meet the criteria for\u00a0fair value hedge accounting\u00a0are treated \u00a0
accordingly. The interest rate risk on the hedged assets and liabilities\u00a0is measured at fair value through profit or loss. At the end of 2023, hedging \u00a0
derivatives measured\u00a0at fair value\u00a0accounted for about 0.2% of total assets and about 0.4% of total\u00a0liabilities (31\u00a0December 2022: 0.1% and 0.6%, \u00a0
respectively). For further information on hedge accounting, see\u00a0note G12(d). \u00a0
Accounting policy \u00a0
Amounts due to credit institutions\u00a0and central banks and Deposits in the Group\u2019s trading units\u00a0(Markets and Investment Banking\u00a0& Securities\u00a0in LC&I) \u00a0
are designated at fair value through profit or loss. However, the amount of the change in fair value attributable\u00a0to the Group\u2019s own credit risk is \u00a0
recognised in other comprehensive\u00a0income. \u00a0
All other\u00a0balances are measured at amortised\u00a0cost. If fixed-rate\u00a0deposits are hedged effectively by derivatives,\u00a0the fair value\u00a0of the hedged interest rate \u00a0
risk is added to the amortised cost of the liabilities. \u00a0
Accounting policy \u00a0
Issued bonds, both senior, non-preferred senior and subordinated\u00a0bonds, are at initial\u00a0recognition measured at fair value less transaction\u00a0costs and \u00a0
subsequently measured\u00a0at amortised\u00a0cost plus\u00a0the fair value of\u00a0the hedged interest rate risk. Interest expense is recognised according to the effective \u00a0
interest rate method, including amortisation\u00a0of any difference between the amount received on\u00a0issue and the redemption amount. \u00a0
The Group issues perpetual bonds with discretionary\u00a0interest payments that fulfil the requirements\u00a0for additional\u00a0tier 1 capital under the Capital \u00a0
Requirements Regulation (CRR).\u00a0If a\u00a0trigger event occurs,\u00a0those bonds must be\u00a0either written down temporarily or converted into a variable number of \u00a0
ordinary shares, depending on the terms of the individual\u00a0bond issue. Bonds that convert into a\u00a0variable number of\u00a0ordinary shares are accounted for \u00a0
as liabilities,\u00a0while bonds that are temporarily written down are accounted for as equity. For liability\u00a0accounted bonds, the interest expense is recognised \u00a0
in the income statement, i.e. the bonds are accounted for as liabilities\u00a0in their entirety. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2577": {
"value": "Financial instruments\u00a0\u2013 general \u00a0
The Group recognises financial assets and liabilities\u00a0when it\u00a0becomes a party to the terms of the contract. A financial asset, or a portion of a\u00a0financia l \u00a0
asset, is derecognised if the contractual\u00a0rights to cash flows from the asset have expired, or have been transferred, usually\u00a0by sale, leading\u00a0to substantially \u00a0
all the risks and rewards of the asset or significant risks and rewards being transferred. Financial liabilities\u00a0are derecognised\u00a0when the liability\u00a0has been \u00a0
settled, has\u00a0expired or\u00a0has been extinguished. \u00a0
Regular way purchases\u00a0and sales of financial instruments\u00a0are recognised\u00a0and derecognised at the settlement\u00a0date. Fair value adjustments\u00a0of unsettle d \u00a0
financial instruments\u00a0are recognised from\u00a0the trade date to the settlement\u00a0date if the financial\u00a0asset is classified at fair value through profit or loss or \u00a0
through other comprehensive income. The classification\u00a0is shown in the table below. \u00a0
G1. Basis of preparation\u00a0continued \u00a0
Financial instruments\u00a0and obligations\u00a0under insurance contracts, classification\u00a0and measurement\u00a0end of 2023 \u00a0
Amortised \u00a0
Fair value \u00a0
cost \u00a0
OCI \u00a0
Fair value through profit or loss \u00a0
Held to collect \u00a0
Held to collect \u00a0
and sell \u00a0
assets/ \u00a0
financial \u00a0
Held for\u00a0Managed at\u00a0FVPL due to \u00a0
Interest rate\u00a0Own shares / \u00a0
(DKK billions) \u00a0
Liabilities \u00a0
assets* \u00a0
trading \u00a0
fair value \u00a0
SPPI test\u00a0Designated \u00a0
hedge ** \u00a0
bonds \u00a0
Total \u00a0
Assets \u00a0
Cash in hand and demand \u00a0
deposits with central banks \u00a0
259 \u00a0
-
-
-
-
-
-
-
259 \u00a0
Due from credit institutions\u00a0and \u00a0
central banks \u00a0
22 \u00a0
-
-
93 \u00a0
-
-
-
-
115 \u00a0
Derivatives \u00a0
-
-
346 \u00a0
-
-
-
6
-
352 \u00a0
Bonds \u00a0
155 \u00a0
107 \u00a0
178 \u00a0
21 \u00a0
-
-
-
-
461 \u00a0
Shares \u00a0
-
-
19 \u00a0
-
-
-
-
-
19 \u00a0
Loans *** \u00a0
919 \u00a0
-
-
175 \u00a0
753 \u00a0
-
-1 \u00a0
-
1,847 \u00a0
Assets under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
43 \u00a0
-
-
-
28 \u00a0
71 \u00a0
Assets under insurance \u00a0
contracts \u00a0
-
-
-
460 \u00a0
-
-
-
1
461 \u00a0
Total financial assets, \u00a0
1,356 \u00a0
107 \u00a0
542 \u00a0
792 \u00a0
753 \u00a0
-
6
29 \u00a0
3,585 \u00a0
31 December\u00a02023 \u00a0
Total financial assets, \u00a0
1,433 \u00a0
116 \u00a0
635 \u00a0
771 \u00a0
724 \u00a0
-
3
28 \u00a0
3,710 \u00a0
31 December\u00a02022**** \u00a0
Liabilities \u00a0
Due to credit institutions and \u00a0
central banks \u00a0
69 \u00a0
-
-
-
-
86 \u00a0
-
-
155 \u00a0
Trading portfolio liabilities \u00a0
-
-
442 \u00a0
-
-
-
13 \u00a0
-
454 \u00a0
Deposits *** \u00a0
1,102 \u00a0
-
-
-
-
120 \u00a0
-
-
1,222 \u00a0
Issued bonds at fair value \u00a0
-
-
-
-
-
749 \u00a0
-
-
749 \u00a0
Issued bonds at amortised cost \u00a0
*** \u00a0
219 \u00a0
-
-
-
-
-
-5 \u00a0
-
214 \u00a0
Deposits under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
-
-
71 \u00a0
-
-
71 \u00a0
Liabilities under insurance \u00a0
contracts ***** \u00a0
-
-
-
-
-
483 \u00a0
-
-
483 \u00a0
Non-preferred senior bonds \u00a0
96 \u00a0
-
-
-
-
-
-3 \u00a0
-
93 \u00a0
Subordinated debt \u00a0
39 \u00a0
-
-
-
-
-
-
-
39 \u00a0
Loan commitments\u00a0and \u00a0
guarantees \u00a0
3
-
-
-
-
-
-
-
3
Total financial liabilities, \u00a0
1,528 \u00a0
-
442 \u00a0
-
-
1,508 \u00a0
5
-
3,483 \u00a0
31 December\u00a02023 \u00a0
Total financial liabilities, \u00a0
1,599 \u00a0
-
533 \u00a0
-
-
1,402 \u00a0
-
27 \u00a0
3,562 \u00a0
31 December\u00a02022**** \u00a0
* Unrealised fair value gains and losses are presented in Other comprehensive income, and realised fair value gains and losses are recycled to the income statement . \u00a0
**The interest rate risk on some fixed-rate financial assets and liabilities is hedged by derivatives (fair value hedging). The interest rate risk on some fixed-rate bonds 'hold to collect and sell' \u00a0
is also hedged by derivatives. The fair value represents changes in the fair value of the interest rate risk on the hedged items, i.e. not a full fair value of the hedged items. \u00a0
*** Loans (amortised cost), Deposits (amortised cost) and Issued bonds at amortised cost include Assets held for sale and Liabilities i n disposal groups held for sale which are measured in \u00a0
accordance with\u00a0IFRS 9. These are presented separately on the Balance sheet. \u00a0
**** Comparative information has been restated, as described in note G2(a). \u00a0
***** Liabilities under insurance contracts comprise the liability for remaining coverage and liability for incurred claims, which includes estimates of present value of future cash flows, risk \u00a0
adjustment for non-financial\u00a0risk and contractual service margin. \u00a0
.
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
Classification and\u00a0measurement of\u00a0financial assets\u00a0and financial\u00a0liabilities \u2013 general \u00a0
Financial assets are classified on the basis of the business model adopted for\u00a0managing the assets and on their contractual\u00a0cash flow characteristic\u00a0s \u00a0
(including embedded\u00a0derivatives, if\u00a0any) are grouped into one of the following\u00a0measurement categories: \u00a0
\u2022
Amortised cost\u00a0(AMC) \u00a0
\u2022
Fair value through other comprehensive income (FVOCI) \u00a0
\u2022
Fair value through profit or loss (FVPL) \u00a0
Financial assets are measured at AMC if they are held within a business model for the purpose of collecting contractual\u00a0cash flows\u00a0(hold to collect) and \u00a0
if cash flows are solely payments\u00a0of principal\u00a0and interest\u00a0on the principal amount outstanding. \u00a0
Financial assets\u00a0are measured at FVOCI\u00a0if they are held within\u00a0a business model for\u00a0the purpose of both collecting\u00a0contractual cash\u00a0flows and selling \u00a0
(hold to collect and sell) and if cash flows are solely payments of principal and interest on the principal amount outstanding.\u00a0FVOCI results in the assets \u00a0
being recognised at fair value in the balance sheet and at AMC in\u00a0the income statement. Gains and\u00a0losses, except for expected credit losses and\u00a0foreign \u00a0
exchanges gains and losses, are therefore recognised in other comprehensive\u00a0income until the financial asset is derecognised. When the financial asset \u00a0
is derecognised the cumulative\u00a0gains and losses previously\u00a0recognised in other comprehensive\u00a0income are reclassified\u00a0to the income\u00a0statement. \u00a0
All other financial assets are mandatorily\u00a0measured at FVPL including\u00a0financial assets held within other business models, such as\u00a0financial assets \u00a0
managed at\u00a0fair value or held for trading and financial\u00a0assets with contractual cash flows that are not solely payments of principal and interest on the \u00a0
principal amount outstanding. \u00a0
Generally, financial liabilities\u00a0are measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities measured at\u00a0fair value comprise the trading portfolio (derivatives and\u00a0obligations to repurchase securities) and\u00a0liabilitie s \u00a0
designated at\u00a0fair value through profit or loss under the fair value option.\u00a0Value adjustments relating to the inherent credit risk of financial liabilitie\u00a0s \u00a0
designated at\u00a0fair value\u00a0are recognised in other comprehensive\u00a0income unless this leads to an accounting\u00a0mismatch. \u00a0
The business\u00a0model assessment \u00a0
The business model assessment in Danske Bank Group has been applied separately for\u00a0each business\u00a0unit represented\u00a0by the Group\u2019s reportable \u00a0
segments, and\u00a0it is based on observable\u00a0factors for the different portfolios, such as (1) how the performance of the business model and the financia\u00a0l \u00a0
assets held within that business model are evaluated and reported to the Executive\u00a0Board and the Board of Directors,\u00a0(2) the\u00a0risks that affect\u00a0the \u00a0
performance of the business\u00a0model and the way such risks are managed and (3) past and expected frequency, value and timing of sales from the portfolio. \u00a0
In general, the business model assessment of the Group can be summarised as follows: \u00a0
\u2022
The Group\u2019s banking units, comprising Personal Customers, Business Customers, General Banking at Large\u00a0Corporates &Institutes\u00a0(LC&I) and \u00a0
Northern Ireland, have a \u201chold to\u00a0collect\u201d business model. The financial assets consist primarily of loans. The management and reporting\u00a0of \u00a0
performance are based on collecting\u00a0the contractual cash flows,\u00a0and loans are only very infrequently\u00a0sold. \u00a0
\u2022
The trading units at LC&I (Markets and Investment\u00a0Banking & Securities) and the financial assets related to the Group\u2019s insurance activities\u00a0at \u00a0
Danica Pension have a\u00a0business model that is neither \u201chold to collect\u201d nor \u201chold to collect and sell\u201d and the financial assets are mandatorily \u00a0
recognised at FVPL. The assets consist of bonds, shares, repo transactions\u00a0and short-term loans.\u00a0Some of the financial assets are included in \u00a0
portfolios with a trading pattern that falls under the definition of \u201cheld for trading\u201d while other portfolios are managed and their performance reported \u00a0
on a fair value\u00a0basis. \u00a0
\u2022
Group Treasury has portfolios\u00a0of bonds\u00a0within the \u201chold to collect\u201d business model, the \u201chold to collect and sell\u201d business models and\u00a0the \u201cother\u201d \u00a0
business model. \u00a0
\u2022
The remaining portfolio of\u00a0Non-core is \u201chold to\u00a0collect\u201d. The financial assets consist primarily of loans. \u00a0
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
The SPPI test (solely\u00a0payment of\u00a0principal and\u00a0interest on\u00a0the principal\u00a0amount outstanding) \u00a0
The second step in the classification of the financial assets in portfolios being \u201chold to collect\u201d and \u201chold to collect and sell\u201d relates to\u00a0the assessment of \u00a0
whether the contractual\u00a0cash flows are consistent\u00a0with the\u00a0SPPI test.\u00a0The principal\u00a0amount reflects the fair value at initial\u00a0recognition less\u00a0any subsequent \u00a0
changes, e.g. due to repayment. The interest must represent only consideration\u00a0for the\u00a0time value of money, credit risk, other basic lending risks and a \u00a0
margin consistent\u00a0with basic lending\u00a0features. If the cash flows introduce more than de minimis exposure to risk or volatility\u00a0that is\u00a0not consistent with \u00a0
basic lending features, the financial asset is mandatorily recognised at\u00a0FVPL. \u00a0
In general, the Group\u2019s portfolios of\u00a0financial assets that are \u201chold to collect\u201d or \u201chold to collect and sell\u201d (loans and bonds)\u00a0have contractual\u00a0cash flows \u00a0
that are consistent with the SPPI test, i.e. they have basic lending features. \u00a0
However, loans granted under Danish mortgage finance law are funded by issuing listed mortgage bonds with matching terms. Such loans are granted \u00a0
by the Realkredit\u00a0Danmark subsidiary only. Borrowers may repay such loans by delivering the underlying bonds. This represents an option to prepay at \u00a0
fair value that can be both above and below the principal amount plus accrued interest. Changes in the fair value of\u00a0the underlying bonds\u00a0include other \u00a0
elements than\u00a0the effect of changes in the relevant benchmark interest rate and the prepayment option is therefore not consistent with the SPPI test in \u00a0
IFRS 9\u00a0and are mandatorily\u00a0measured at FVPL. \u00a0
All equity instruments\u00a0have contractual cash flows that do not pass the SPPI test. All such holdings\u00a0are recognised at FVPL since the Group has decided \u00a0
not to use the option to designate equity instruments\u00a0at FVOCI. \u00a0
Financial liabilities \u00a0
Financial liabilities\u00a0are generally measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities\u00a0measured at fair value comprise derivatives,\u00a0the trading portfolio and liabilities\u00a0designated at\u00a0FVPL under the fair value \u00a0
option. Value adjustments relating to\u00a0the inherent\u00a0own credit risk of financial\u00a0liabilities designated at fair value are, however, recognised in Other \u00a0
comprehensive income unless this leads to an\u00a0accounting mismatch. \u00a0
IFRS 9 allows the designation\u00a0of financial\u00a0liabilities at\u00a0FVPL when doing so results in more relevant\u00a0information, because either (1)\u00a0it eliminates\u00a0or \u00a0
significantly reduces\u00a0an accounting\u00a0mismatch that\u00a0would otherwise arise, or\u00a0(2) is part of a portfolio\u00a0of financial\u00a0instruments that are\u00a0managed and their \u00a0
performance reported on\u00a0a fair value\u00a0basis to management. \u00a0
The Group designates the following financial liabilities\u00a0at FVPL: \u00a0
\u2022
Mortgage bonds issued by Realkredit Danmark.\u00a0The bonds fund the loans granted by Realkredit Danmark, i.e. loans that due to the SPPI test are \u00a0
mandatorily recognised at\u00a0FVPL. The\u00a0fair value of the loans is based on the fair value of the issued bonds (the loans and the issued bonds that are \u00a0
funding the loans have matching\u00a0contractual terms) adjusted for\u00a0changes in the fair value of the credit risk of borrowers. To eliminate\u00a0the accounting \u00a0
mismatch that exists if the loans are measured at FVPL and the issued bonds at AMC, the issued bonds are designated at FVPL, and fair value \u00a0
changes of the issued bonds (including fair value changes related to own credit risk) are offset by the fair value changes of the loans. Hence, changes \u00a0
in the fair value attributable\u00a0to the Group\u2019s own credit risk on the issued bonds are also recognised in the income statement\u00a0since an accounting \u00a0
mismatch would otherwise arise. \u00a0
\u2022
Financial liabilities\u00a0in Markets\u00a0and Investment\u00a0Banking &\u00a0Securities at\u00a0LC&I. These financial liabilities\u00a0are part of a portfolio\u00a0of financial\u00a0assets and \u00a0
liabilities that\u00a0is managed\u00a0and performance reported to\u00a0the Management on a\u00a0fair value basis. The financial liabilities\u00a0consist of repo transactions\u00a0, \u00a0
deposits and\u00a0commercial papers. Changes, if any, in the fair value attributable\u00a0to the Group\u2019s own credit risk is, however,\u00a0recognised in other \u00a0
comprehensive income. \u00a0
Hedge accounting \u00a0
The Group uses derivatives\u00a0to hedge the interest rate risk on some fixed-rate assets and fixed-rate liabilities\u00a0measured at\u00a0amortised cost\u00a0and on some \u00a0
bonds measured at fair value through other comprehensive income. Hedged risks that meet the criteria for\u00a0fair value hedge accounting\u00a0are treated \u00a0
accordingly. The interest rate risk on the hedged assets and liabilities\u00a0is measured at fair value through profit or loss. At the end of 2023, hedging \u00a0
derivatives measured\u00a0at fair value\u00a0accounted for about 0.2% of total assets and about 0.4% of total\u00a0liabilities (31\u00a0December 2022: 0.1% and 0.6%, \u00a0
respectively). For further information on hedge accounting, see\u00a0note G12(d). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2578": {
"value": "Financial instruments\u00a0\u2013 general \u00a0
The Group recognises financial assets and liabilities\u00a0when it\u00a0becomes a party to the terms of the contract. A financial asset, or a portion of a\u00a0financia l \u00a0
asset, is derecognised if the contractual\u00a0rights to cash flows from the asset have expired, or have been transferred, usually\u00a0by sale, leading\u00a0to substantially \u00a0
all the risks and rewards of the asset or significant risks and rewards being transferred. Financial liabilities\u00a0are derecognised\u00a0when the liability\u00a0has been \u00a0
settled, has\u00a0expired or\u00a0has been extinguished. \u00a0
Regular way purchases\u00a0and sales of financial instruments\u00a0are recognised\u00a0and derecognised at the settlement\u00a0date. Fair value adjustments\u00a0of unsettle d \u00a0
financial instruments\u00a0are recognised from\u00a0the trade date to the settlement\u00a0date if the financial\u00a0asset is classified at fair value through profit or loss or \u00a0
through other comprehensive income. The classification\u00a0is shown in the table below. \u00a0
G1. Basis of preparation\u00a0continued \u00a0
Financial instruments\u00a0and obligations\u00a0under insurance contracts, classification\u00a0and measurement\u00a0end of 2023 \u00a0
Amortised \u00a0
Fair value \u00a0
cost \u00a0
OCI \u00a0
Fair value through profit or loss \u00a0
Held to collect \u00a0
Held to collect \u00a0
and sell \u00a0
assets/ \u00a0
financial \u00a0
Held for\u00a0Managed at\u00a0FVPL due to \u00a0
Interest rate\u00a0Own shares / \u00a0
(DKK billions) \u00a0
Liabilities \u00a0
assets* \u00a0
trading \u00a0
fair value \u00a0
SPPI test\u00a0Designated \u00a0
hedge ** \u00a0
bonds \u00a0
Total \u00a0
Assets \u00a0
Cash in hand and demand \u00a0
deposits with central banks \u00a0
259 \u00a0
-
-
-
-
-
-
-
259 \u00a0
Due from credit institutions\u00a0and \u00a0
central banks \u00a0
22 \u00a0
-
-
93 \u00a0
-
-
-
-
115 \u00a0
Derivatives \u00a0
-
-
346 \u00a0
-
-
-
6
-
352 \u00a0
Bonds \u00a0
155 \u00a0
107 \u00a0
178 \u00a0
21 \u00a0
-
-
-
-
461 \u00a0
Shares \u00a0
-
-
19 \u00a0
-
-
-
-
-
19 \u00a0
Loans *** \u00a0
919 \u00a0
-
-
175 \u00a0
753 \u00a0
-
-1 \u00a0
-
1,847 \u00a0
Assets under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
43 \u00a0
-
-
-
28 \u00a0
71 \u00a0
Assets under insurance \u00a0
contracts \u00a0
-
-
-
460 \u00a0
-
-
-
1
461 \u00a0
Total financial assets, \u00a0
1,356 \u00a0
107 \u00a0
542 \u00a0
792 \u00a0
753 \u00a0
-
6
29 \u00a0
3,585 \u00a0
31 December\u00a02023 \u00a0
Total financial assets, \u00a0
1,433 \u00a0
116 \u00a0
635 \u00a0
771 \u00a0
724 \u00a0
-
3
28 \u00a0
3,710 \u00a0
31 December\u00a02022**** \u00a0
Liabilities \u00a0
Due to credit institutions and \u00a0
central banks \u00a0
69 \u00a0
-
-
-
-
86 \u00a0
-
-
155 \u00a0
Trading portfolio liabilities \u00a0
-
-
442 \u00a0
-
-
-
13 \u00a0
-
454 \u00a0
Deposits *** \u00a0
1,102 \u00a0
-
-
-
-
120 \u00a0
-
-
1,222 \u00a0
Issued bonds at fair value \u00a0
-
-
-
-
-
749 \u00a0
-
-
749 \u00a0
Issued bonds at amortised cost \u00a0
*** \u00a0
219 \u00a0
-
-
-
-
-
-5 \u00a0
-
214 \u00a0
Deposits under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
-
-
71 \u00a0
-
-
71 \u00a0
Liabilities under insurance \u00a0
contracts ***** \u00a0
-
-
-
-
-
483 \u00a0
-
-
483 \u00a0
Non-preferred senior bonds \u00a0
96 \u00a0
-
-
-
-
-
-3 \u00a0
-
93 \u00a0
Subordinated debt \u00a0
39 \u00a0
-
-
-
-
-
-
-
39 \u00a0
Loan commitments\u00a0and \u00a0
guarantees \u00a0
3
-
-
-
-
-
-
-
3
Total financial liabilities, \u00a0
1,528 \u00a0
-
442 \u00a0
-
-
1,508 \u00a0
5
-
3,483 \u00a0
31 December\u00a02023 \u00a0
Total financial liabilities, \u00a0
1,599 \u00a0
-
533 \u00a0
-
-
1,402 \u00a0
-
27 \u00a0
3,562 \u00a0
31 December\u00a02022**** \u00a0
* Unrealised fair value gains and losses are presented in Other comprehensive income, and realised fair value gains and losses are recycled to the income statement . \u00a0
**The interest rate risk on some fixed-rate financial assets and liabilities is hedged by derivatives (fair value hedging). The interest rate risk on some fixed-rate bonds 'hold to collect and sell' \u00a0
is also hedged by derivatives. The fair value represents changes in the fair value of the interest rate risk on the hedged items, i.e. not a full fair value of the hedged items. \u00a0
*** Loans (amortised cost), Deposits (amortised cost) and Issued bonds at amortised cost include Assets held for sale and Liabilities i n disposal groups held for sale which are measured in \u00a0
accordance with\u00a0IFRS 9. These are presented separately on the Balance sheet. \u00a0
**** Comparative information has been restated, as described in note G2(a). \u00a0
***** Liabilities under insurance contracts comprise the liability for remaining coverage and liability for incurred claims, which includes estimates of present value of future cash flows, risk \u00a0
adjustment for non-financial\u00a0risk and contractual service margin. \u00a0
.
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
Classification and\u00a0measurement of\u00a0financial assets\u00a0and financial\u00a0liabilities \u2013 general \u00a0
Financial assets are classified on the basis of the business model adopted for\u00a0managing the assets and on their contractual\u00a0cash flow characteristic\u00a0s \u00a0
(including embedded\u00a0derivatives, if\u00a0any) are grouped into one of the following\u00a0measurement categories: \u00a0
\u2022
Amortised cost\u00a0(AMC) \u00a0
\u2022
Fair value through other comprehensive income (FVOCI) \u00a0
\u2022
Fair value through profit or loss (FVPL) \u00a0
Financial assets are measured at AMC if they are held within a business model for the purpose of collecting contractual\u00a0cash flows\u00a0(hold to collect) and \u00a0
if cash flows are solely payments\u00a0of principal\u00a0and interest\u00a0on the principal amount outstanding. \u00a0
Financial assets\u00a0are measured at FVOCI\u00a0if they are held within\u00a0a business model for\u00a0the purpose of both collecting\u00a0contractual cash\u00a0flows and selling \u00a0
(hold to collect and sell) and if cash flows are solely payments of principal and interest on the principal amount outstanding.\u00a0FVOCI results in the assets \u00a0
being recognised at fair value in the balance sheet and at AMC in\u00a0the income statement. Gains and\u00a0losses, except for expected credit losses and\u00a0foreign \u00a0
exchanges gains and losses, are therefore recognised in other comprehensive\u00a0income until the financial asset is derecognised. When the financial asset \u00a0
is derecognised the cumulative\u00a0gains and losses previously\u00a0recognised in other comprehensive\u00a0income are reclassified\u00a0to the income\u00a0statement. \u00a0
All other financial assets are mandatorily\u00a0measured at FVPL including\u00a0financial assets held within other business models, such as\u00a0financial assets \u00a0
managed at\u00a0fair value or held for trading and financial\u00a0assets with contractual cash flows that are not solely payments of principal and interest on the \u00a0
principal amount outstanding. \u00a0
Generally, financial liabilities\u00a0are measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities measured at\u00a0fair value comprise the trading portfolio (derivatives and\u00a0obligations to repurchase securities) and\u00a0liabilitie s \u00a0
designated at\u00a0fair value through profit or loss under the fair value option.\u00a0Value adjustments relating to the inherent credit risk of financial liabilitie\u00a0s \u00a0
designated at\u00a0fair value\u00a0are recognised in other comprehensive\u00a0income unless this leads to an accounting\u00a0mismatch. \u00a0
The business\u00a0model assessment \u00a0
The business model assessment in Danske Bank Group has been applied separately for\u00a0each business\u00a0unit represented\u00a0by the Group\u2019s reportable \u00a0
segments, and\u00a0it is based on observable\u00a0factors for the different portfolios, such as (1) how the performance of the business model and the financia\u00a0l \u00a0
assets held within that business model are evaluated and reported to the Executive\u00a0Board and the Board of Directors,\u00a0(2) the\u00a0risks that affect\u00a0the \u00a0
performance of the business\u00a0model and the way such risks are managed and (3) past and expected frequency, value and timing of sales from the portfolio. \u00a0
In general, the business model assessment of the Group can be summarised as follows: \u00a0
\u2022
The Group\u2019s banking units, comprising Personal Customers, Business Customers, General Banking at Large\u00a0Corporates &Institutes\u00a0(LC&I) and \u00a0
Northern Ireland, have a \u201chold to\u00a0collect\u201d business model. The financial assets consist primarily of loans. The management and reporting\u00a0of \u00a0
performance are based on collecting\u00a0the contractual cash flows,\u00a0and loans are only very infrequently\u00a0sold. \u00a0
\u2022
The trading units at LC&I (Markets and Investment\u00a0Banking & Securities) and the financial assets related to the Group\u2019s insurance activities\u00a0at \u00a0
Danica Pension have a\u00a0business model that is neither \u201chold to collect\u201d nor \u201chold to collect and sell\u201d and the financial assets are mandatorily \u00a0
recognised at FVPL. The assets consist of bonds, shares, repo transactions\u00a0and short-term loans.\u00a0Some of the financial assets are included in \u00a0
portfolios with a trading pattern that falls under the definition of \u201cheld for trading\u201d while other portfolios are managed and their performance reported \u00a0
on a fair value\u00a0basis. \u00a0
\u2022
Group Treasury has portfolios\u00a0of bonds\u00a0within the \u201chold to collect\u201d business model, the \u201chold to collect and sell\u201d business models and\u00a0the \u201cother\u201d \u00a0
business model. \u00a0
\u2022
The remaining portfolio of\u00a0Non-core is \u201chold to\u00a0collect\u201d. The financial assets consist primarily of loans. \u00a0
G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
The SPPI test (solely\u00a0payment of\u00a0principal and\u00a0interest on\u00a0the principal\u00a0amount outstanding) \u00a0
The second step in the classification of the financial assets in portfolios being \u201chold to collect\u201d and \u201chold to collect and sell\u201d relates to\u00a0the assessment of \u00a0
whether the contractual\u00a0cash flows are consistent\u00a0with the\u00a0SPPI test.\u00a0The principal\u00a0amount reflects the fair value at initial\u00a0recognition less\u00a0any subsequent \u00a0
changes, e.g. due to repayment. The interest must represent only consideration\u00a0for the\u00a0time value of money, credit risk, other basic lending risks and a \u00a0
margin consistent\u00a0with basic lending\u00a0features. If the cash flows introduce more than de minimis exposure to risk or volatility\u00a0that is\u00a0not consistent with \u00a0
basic lending features, the financial asset is mandatorily recognised at\u00a0FVPL. \u00a0
In general, the Group\u2019s portfolios of\u00a0financial assets that are \u201chold to collect\u201d or \u201chold to collect and sell\u201d (loans and bonds)\u00a0have contractual\u00a0cash flows \u00a0
that are consistent with the SPPI test, i.e. they have basic lending features. \u00a0
However, loans granted under Danish mortgage finance law are funded by issuing listed mortgage bonds with matching terms. Such loans are granted \u00a0
by the Realkredit\u00a0Danmark subsidiary only. Borrowers may repay such loans by delivering the underlying bonds. This represents an option to prepay at \u00a0
fair value that can be both above and below the principal amount plus accrued interest. Changes in the fair value of\u00a0the underlying bonds\u00a0include other \u00a0
elements than\u00a0the effect of changes in the relevant benchmark interest rate and the prepayment option is therefore not consistent with the SPPI test in \u00a0
IFRS 9\u00a0and are mandatorily\u00a0measured at FVPL. \u00a0
All equity instruments\u00a0have contractual cash flows that do not pass the SPPI test. All such holdings\u00a0are recognised at FVPL since the Group has decided \u00a0
not to use the option to designate equity instruments\u00a0at FVOCI. \u00a0
Financial liabilities \u00a0
Financial liabilities\u00a0are generally measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities\u00a0measured at fair value comprise derivatives,\u00a0the trading portfolio and liabilities\u00a0designated at\u00a0FVPL under the fair value \u00a0
option. Value adjustments relating to\u00a0the inherent\u00a0own credit risk of financial\u00a0liabilities designated at fair value are, however, recognised in Other \u00a0
comprehensive income unless this leads to an\u00a0accounting mismatch. \u00a0
IFRS 9 allows the designation\u00a0of financial\u00a0liabilities at\u00a0FVPL when doing so results in more relevant\u00a0information, because either (1)\u00a0it eliminates\u00a0or \u00a0
significantly reduces\u00a0an accounting\u00a0mismatch that\u00a0would otherwise arise, or\u00a0(2) is part of a portfolio\u00a0of financial\u00a0instruments that are\u00a0managed and their \u00a0
performance reported on\u00a0a fair value\u00a0basis to management. \u00a0
The Group designates the following financial liabilities\u00a0at FVPL: \u00a0
\u2022
Mortgage bonds issued by Realkredit Danmark.\u00a0The bonds fund the loans granted by Realkredit Danmark, i.e. loans that due to the SPPI test are \u00a0
mandatorily recognised at\u00a0FVPL. The\u00a0fair value of the loans is based on the fair value of the issued bonds (the loans and the issued bonds that are \u00a0
funding the loans have matching\u00a0contractual terms) adjusted for\u00a0changes in the fair value of the credit risk of borrowers. To eliminate\u00a0the accounting \u00a0
mismatch that exists if the loans are measured at FVPL and the issued bonds at AMC, the issued bonds are designated at FVPL, and fair value \u00a0
changes of the issued bonds (including fair value changes related to own credit risk) are offset by the fair value changes of the loans. Hence, changes \u00a0
in the fair value attributable\u00a0to the Group\u2019s own credit risk on the issued bonds are also recognised in the income statement\u00a0since an accounting \u00a0
mismatch would otherwise arise. \u00a0
\u2022
Financial liabilities\u00a0in Markets\u00a0and Investment\u00a0Banking &\u00a0Securities at\u00a0LC&I. These financial liabilities\u00a0are part of a portfolio\u00a0of financial\u00a0assets and \u00a0
liabilities that\u00a0is managed\u00a0and performance reported to\u00a0the Management on a\u00a0fair value basis. The financial liabilities\u00a0consist of repo transactions\u00a0, \u00a0
deposits and\u00a0commercial papers. Changes, if any, in the fair value attributable\u00a0to the Group\u2019s own credit risk is, however,\u00a0recognised in other \u00a0
comprehensive income. \u00a0
Hedge accounting \u00a0
The Group uses derivatives\u00a0to hedge the interest rate risk on some fixed-rate assets and fixed-rate liabilities\u00a0measured at\u00a0amortised cost\u00a0and on some \u00a0
bonds measured at fair value through other comprehensive income. Hedged risks that meet the criteria for\u00a0fair value hedge accounting\u00a0are treated \u00a0
accordingly. The interest rate risk on the hedged assets and liabilities\u00a0is measured at fair value through profit or loss. At the end of 2023, hedging \u00a0
derivatives measured\u00a0at fair value\u00a0accounted for about 0.2% of total assets and about 0.4% of total\u00a0liabilities (31\u00a0December 2022: 0.1% and 0.6%, \u00a0
respectively). For further information on hedge accounting, see\u00a0note G12(d). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2587": {
"value": "G1. Basis of preparation\u00a0continued \u00a0
Financial instruments\u00a0and obligations\u00a0under insurance contracts, classification\u00a0and measurement\u00a0end of 2023 \u00a0
Amortised \u00a0
Fair value \u00a0
cost \u00a0
OCI \u00a0
Fair value through profit or loss \u00a0
Held to collect \u00a0
Held to collect \u00a0
and sell \u00a0
assets/ \u00a0
financial \u00a0
Held for\u00a0Managed at\u00a0FVPL due to \u00a0
Interest rate\u00a0Own shares / \u00a0
(DKK billions) \u00a0
Liabilities \u00a0
assets* \u00a0
trading \u00a0
fair value \u00a0
SPPI test\u00a0Designated \u00a0
hedge ** \u00a0
bonds \u00a0
Total \u00a0
Assets \u00a0
Cash in hand and demand \u00a0
deposits with central banks \u00a0
259 \u00a0
-
-
-
-
-
-
-
259 \u00a0
Due from credit institutions\u00a0and \u00a0
central banks \u00a0
22 \u00a0
-
-
93 \u00a0
-
-
-
-
115 \u00a0
Derivatives \u00a0
-
-
346 \u00a0
-
-
-
6
-
352 \u00a0
Bonds \u00a0
155 \u00a0
107 \u00a0
178 \u00a0
21 \u00a0
-
-
-
-
461 \u00a0
Shares \u00a0
-
-
19 \u00a0
-
-
-
-
-
19 \u00a0
Loans *** \u00a0
919 \u00a0
-
-
175 \u00a0
753 \u00a0
-
-1 \u00a0
-
1,847 \u00a0
Assets under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
43 \u00a0
-
-
-
28 \u00a0
71 \u00a0
Assets under insurance \u00a0
contracts \u00a0
-
-
-
460 \u00a0
-
-
-
1
461 \u00a0
Total financial assets, \u00a0
1,356 \u00a0
107 \u00a0
542 \u00a0
792 \u00a0
753 \u00a0
-
6
29 \u00a0
3,585 \u00a0
31 December\u00a02023 \u00a0
Total financial assets, \u00a0
1,433 \u00a0
116 \u00a0
635 \u00a0
771 \u00a0
724 \u00a0
-
3
28 \u00a0
3,710 \u00a0
31 December\u00a02022**** \u00a0
Liabilities \u00a0
Due to credit institutions and \u00a0
central banks \u00a0
69 \u00a0
-
-
-
-
86 \u00a0
-
-
155 \u00a0
Trading portfolio liabilities \u00a0
-
-
442 \u00a0
-
-
-
13 \u00a0
-
454 \u00a0
Deposits *** \u00a0
1,102 \u00a0
-
-
-
-
120 \u00a0
-
-
1,222 \u00a0
Issued bonds at fair value \u00a0
-
-
-
-
-
749 \u00a0
-
-
749 \u00a0
Issued bonds at amortised cost \u00a0
*** \u00a0
219 \u00a0
-
-
-
-
-
-5 \u00a0
-
214 \u00a0
Deposits under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
-
-
71 \u00a0
-
-
71 \u00a0
Liabilities under insurance \u00a0
contracts ***** \u00a0
-
-
-
-
-
483 \u00a0
-
-
483 \u00a0
Non-preferred senior bonds \u00a0
96 \u00a0
-
-
-
-
-
-3 \u00a0
-
93 \u00a0
Subordinated debt \u00a0
39 \u00a0
-
-
-
-
-
-
-
39 \u00a0
Loan commitments\u00a0and \u00a0
guarantees \u00a0
3
-
-
-
-
-
-
-
3
Total financial liabilities, \u00a0
1,528 \u00a0
-
442 \u00a0
-
-
1,508 \u00a0
5
-
3,483 \u00a0
31 December\u00a02023 \u00a0
Total financial liabilities, \u00a0
1,599 \u00a0
-
533 \u00a0
-
-
1,402 \u00a0
-
27 \u00a0
3,562 \u00a0
31 December\u00a02022**** \u00a0
* Unrealised fair value gains and losses are presented in Other comprehensive income, and realised fair value gains and losses are recycled to the income statement . \u00a0
**The interest rate risk on some fixed-rate financial assets and liabilities is hedged by derivatives (fair value hedging). The interest rate risk on some fixed-rate bonds 'hold to collect and sell' \u00a0
is also hedged by derivatives. The fair value represents changes in the fair value of the interest rate risk on the hedged items, i.e. not a full fair value of the hedged items. \u00a0
*** Loans (amortised cost), Deposits (amortised cost) and Issued bonds at amortised cost include Assets held for sale and Liabilities i n disposal groups held for sale which are measured in \u00a0
accordance with\u00a0IFRS 9. These are presented separately on the Balance sheet. \u00a0
**** Comparative information has been restated, as described in note G2(a). \u00a0
***** Liabilities under insurance contracts comprise the liability for remaining coverage and liability for incurred claims, which includes estimates of present value of future cash flows, risk \u00a0
adjustment for non-financial\u00a0risk and contractual service margin. \u00a0
.
G5. Net interest and net trading income or loss \u00a0
This note shows interest income, interest expense and net trading income or loss broken down by balance sheet item and by portfolios of financial instruments \u00a0
measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss. \u00a0
Accounting policy \u00a0
Interest income and expenses \u00a0
Interest income and expenses arising from interest-bearing\u00a0financial instruments\u00a0measured at\u00a0amortised cost\u00a0or at fair value through Other \u00a0
comprehensive income are\u00a0recognised according to the effective interest method on\u00a0the basis of the cost of the individual\u00a0financial instrument.\u00a0Interes t \u00a0
includes amortised amounts of\u00a0fees that are an integral part of the effective yield on a financial\u00a0instrument, such\u00a0as origination\u00a0fees, and amortise\u00a0d \u00a0
differences between the cost and the redemption\u00a0price, if any. Interest\u00a0on financial instruments\u00a0included in\u00a0stage 3 (for the calculation\u00a0of expected credit \u00a0
losses) is recognised on the basis of the carrying amount (i.e. net of impairment charges). The interest rate risk on some financial portfolios\u00a0recognised \u00a0
at amortised\u00a0cost is hedged by derivatives\u00a0using fair value hedge accounting. Note G12 provides\u00a0more information\u00a0on hedge accounting.\u00a0Interest income \u00a0
calculated using\u00a0the effective interest method and\u00a0presented as\u00a0a separate line item in the income statement excludes the impact from hedge \u00a0
accounting. \u00a0
Further, interest income and expenses includes interest on financial instruments\u00a0measured at\u00a0fair value through profit or loss. Among others, this \u00a0
includes interest income on loans measured at fair value\u00a0for which interest on loans included in stage 3 is recognised on the basis of the gross carrying \u00a0
amount. However, interest on\u00a0assets and\u00a0deposits under pooled schemes is recognised under Net trading income or loss. In the income statement, \u00a0
interest income on financial assets measured at fair\u00a0value through profit\u00a0or loss is presented\u00a0under the line item Other interest income, while the line \u00a0
item Interest expenses includes all interest expenses. \u00a0
Net trading\u00a0income or loss \u00a0
Net trading income or\u00a0loss includes realised and\u00a0unrealised capital gains and losses\u00a0on financial assets and financial liabilities\u00a0recognised at fair value \u00a0
through profit or\u00a0loss as well as exchange\u00a0rate adjustments\u00a0and dividends.\u00a0However, the fair value adjustments\u00a0of the credit risk on loans granted by \u00a0
Realkredit Danmark are\u00a0presented under Loan impairment charges. Further, the fair value adjustment\u00a0of own credit risk on financial liabilities\u00a0in the \u00a0
Group\u2019s trading units Markets and Investment Banking & Securities part of\u00a0LC&I designated at fair value through profit or\u00a0loss is presented in Other \u00a0
comprehensive income. Net trading income or\u00a0loss includes the fair value adjustments of own credit risk on bonds issued by Realkredit Danmark,\u00a0as an \u00a0
accounting mismatch between the fair\u00a0value adjustment of the loans and\u00a0the bonds in Realkredit\u00a0Danmark would otherwise exist (see\u00a0further \u00a0
information in note G16). \u00a0
Realised gains and losses on financial assets at amortised cost,\u00a0e.g. loans, are recognised under Net trading income or loss when the financial asset is \u00a0
derecognised, unless the derecognition relates to a\u00a0credit risk event/forbearance\u00a0measure, in which case the gain or loss is presented under Loan \u00a0
impairment charges\u00a0(see note G15). Otherwise, the derecognition gain or loss on the financial asset is calculated\u00a0as the difference between the carrying \u00a0
amount (gross of expected credit losses) and the repayment\u00a0amount. For financial assets (bonds) at fair value through other comprehensive\u00a0income, \u00a0
gains or losses further include\u00a0amounts previously recognised in\u00a0other comprehensive income. For\u00a0financial liabilities\u00a0at amortised\u00a0cost, the gain or \u00a0
loss is the difference between the carrying\u00a0amount and the redemption price including cost related to\u00a0the redemption, if any. \u00a0
For financial\u00a0assets and liabilities\u00a0subject to fair value hedge accounting, the fair value adjustments\u00a0of the hedged financial instrument and the hedging \u00a0
instruments are\u00a0recognised in Net trading income or loss. Therefore, any hedge ineffectiveness\u00a0is presented\u00a0in Net trading income or loss. \u00a0
Returns (interest income and fair value changes) on assets under pooled schemes and the crediting of these returns to customer accounts are \u00a0
recognised under Net trading\u00a0income or loss. \u00a0
G5. Net interest and net trading income or loss continued \u00a0
Net interest \u00a0
Net trading \u00a0
2023 (DKK millions) \u00a0
Interest income\u00a0Interest expense \u00a0
income \u00a0
income \u00a0
Total \u00a0
Financial portfolios at amortised cost \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
6,944 \u00a0
-3,040 \u00a0
9,984 \u00a0
-9 \u00a0
9,975 \u00a0
Loans and deposits \u00a0
46,619 \u00a0
15,386 \u00a0
31,234 \u00a0
293 \u00a0
31,527 \u00a0
Bonds held to collect (investment securities) \u00a0
2,102 \u00a0
-
2,102 \u00a0
-
2,102 \u00a0
Issued bonds, including non-preferred senior \u00a0
-
8,354 \u00a0
-8,354 \u00a0
-11,873 \u00a0
-20,227 \u00a0
Subordinated debt \u00a0
-
1,313 \u00a0
-1,313 \u00a0
-846 \u00a0
-2,159 \u00a0
Other financial\u00a0instruments \u00a0
1,576 \u00a0
-4,205 \u00a0
5,781 \u00a0
-
5,781 \u00a0
Total \u00a0
57,240 \u00a0
17,807 \u00a0
39,433 \u00a0
-12,435 \u00a0
26,998 \u00a0
Financial portfolios at fair value through OCI \u00a0
Bonds held to collect and sell (investment\u00a0securities) \u00a0
3,592 \u00a0
-
3,592 \u00a0
-8 \u00a0
3,584 \u00a0
Total \u00a0
3,592 \u00a0
-
3,592 \u00a0
-8 \u00a0
3,584 \u00a0
Financial portfolios at fair value through profit or loss \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
2,431 \u00a0
4,995 \u00a0
-2,564 \u00a0
-
-2,564 \u00a0
Loans and deposits \u00a0
27,538 \u00a0
8,224 \u00a0
19,314 \u00a0
-
19,314 \u00a0
Trading portfolio assets and liabilities \u00a0
-3,011 \u00a0
-
-3,011 \u00a0
13,764 \u00a0
10,754 \u00a0
Bonds (investment\u00a0securities) \u00a0
-8,213 \u00a0
-
-8,213 \u00a0
6,150 \u00a0
-2,063 \u00a0
Issued bonds \u00a0
-
16,282 \u00a0
-16,282 \u00a0
-
-16,282 \u00a0
Assets and deposits under pooled schemes \u00a0
-
-
-
-75 \u00a0
-75 \u00a0
Reclassification on disposal of units outside Denmark \u00a0
-
-
-
-806 \u00a0
-806 \u00a0
Total \u00a0
18,745 \u00a0
29,502 \u00a0
-10,756 \u00a0
19,033 \u00a0
8,277 \u00a0
Total net interest and net trading income \u00a0
79,578 \u00a0
47,309 \u00a0
32,269 \u00a0
6,590 \u00a0
38,859 \u00a0
Negative interest\u00a0income \u00a0
4
4
-
-
-
Negative interest\u00a0expense \u00a0
13 \u00a0
13 \u00a0
-
-
-
Income statement - Danske Bank Group \u00a0
79,594 \u00a0
47,325 \u00a0
32,269 \u00a0
6,590 \u00a0
38,859 \u00a0
2022* (DKK millions) \u00a0
Financial portfolios at amortised cost \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
3,654 \u00a0
1,819 \u00a0
1,835 \u00a0
10 \u00a0
1,845 \u00a0
Loans and deposits \u00a0
25,376 \u00a0
4,202 \u00a0
21,174 \u00a0
-2,260 \u00a0
18,914 \u00a0
Bonds held to collect (investment securities) \u00a0
906 \u00a0
-
906 \u00a0
-
906 \u00a0
Issued bonds, including non-preferred senior \u00a0
-
5,556 \u00a0
-5,556 \u00a0
21,649 \u00a0
16,093 \u00a0
Subordinated debt \u00a0
-
1,342 \u00a0
-1,342 \u00a0
1,871 \u00a0
529 \u00a0
Other financial instruments \u00a0
8
-1,511 \u00a0
1,519 \u00a0
-
1,519 \u00a0
Total \u00a0
29,945 \u00a0
11,408 \u00a0
18,537 \u00a0
21,270 \u00a0
39,807 \u00a0
Financial portfolios at fair value through OCI \u00a0
Bonds held to collect and sell (investment\u00a0securities) \u00a0
901 \u00a0
-
901 \u00a0
-24 \u00a0
877 \u00a0
Total \u00a0
901 \u00a0
-
901 \u00a0
-24 \u00a0
877 \u00a0
Financial portfolios at fair value through profit or loss \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
-570 \u00a0
-592 \u00a0
23 \u00a0
-
23 \u00a0
Loans and deposits \u00a0
15,113 \u00a0
285 \u00a0
14,828 \u00a0
-
14,828 \u00a0
Trading portfolio assets and liabilities \u00a0
1,343 \u00a0
-
1,343 \u00a0
-10,488 \u00a0
-9,145 \u00a0
Bonds (investment securities) \u00a0
-672 \u00a0
-
-672 \u00a0
-9,279 \u00a0
-9,951 \u00a0
Issued bonds \u00a0
-
9,607 \u00a0
-9,607 \u00a0
-
-9,607 \u00a0
Assets and deposits under pooled schemes \u00a0
-
-
-
102 \u00a0
102 \u00a0
Total \u00a0
15,214 \u00a0
9,299 \u00a0
5,914 \u00a0
-19,665 \u00a0
-13,750 \u00a0
Total net\u00a0interest and net trading income \u00a0
46,059 \u00a0
20,708 \u00a0
25,351 \u00a0
1,581 \u00a0
26,933 \u00a0
Negative interest income \u00a0
1,171 \u00a0
1,171 \u00a0
-
-
-
Negative interest expense \u00a0
2,755 \u00a0
2,755 \u00a0
-
-
-
Income statement\u00a0- Danske Bank Group \u00a0
49,985 \u00a0
24,634 \u00a0
25,351 \u00a0
1,581 \u00a0
26,933 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
G5. Net interest and net trading income or loss continued \u00a0
Negative interest income relates primarily to repo transactions, while negative interest expenses relate primarily to deposits and repo transactions. In \u00a0
the table above showing interest income and expenses by portfolios, these amounts are offset\u00a0against interest income and inte\u00a0rest expenses, \u00a0
respectively. In\u00a0the income statement, negative interest income is\u00a0recognised as interest expenses and negative interest expenses as interest income as \u00a0
shown in the line items \u2018Negative interest income\u2019 and \u2018Negative interest expense\u2019 in the table above. \u00a0
Changes to\u00a0the fair value of the hedged interest rate risk are recognised under net trading income or loss and shown under the hedged balance sheet \u00a0
items in the table above, whereas value adjustments\u00a0of hedging\u00a0derivatives are\u00a0recognised under net trading income or loss under the trading portfolio. \u00a0
Net trading\u00a0income or loss includes\u00a0dividends from\u00a0shares of DKK 425 million (2022: DKK 435 million) and foreign exchange adjustments\u00a0of DKK 545 \u00a0
million (2022: DKK 2,202 million). \u00a0
(a) Investment securities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Financial assets at fair value through profit or loss \u00a0
Listed bonds \u00a0
20,798 \u00a0
18,234 \u00a0
Unlisted shares \u00a0
493 \u00a0
1,187 \u00a0
Total financial assets designated\u00a0at fair value through profit or loss \u00a0
21,291 \u00a0
19,421 \u00a0
Bonds hold to collect and sell (FVOCI) \u00a0
Listed bonds \u00a0
107,226 \u00a0
116,429 \u00a0
Total bonds hold to collect and sell (FVOCI) \u00a0
107,226 \u00a0
116,429 \u00a0
Total at fair value \u00a0
128,517 \u00a0
135,850 \u00a0
Bonds hold to collect (AMC) \u00a0
Listed bonds \u00a0
155,398 \u00a0
151,573 \u00a0
Total investment securities \u00a0
283,914 \u00a0
287,423 \u00a0
Financial assets measured at fair value through profit or loss (FVPL) \u00a0
This portfolio includes the part\u00a0of the liquidity bond portfolio that is actively traded although less frequently than what is required to be classified as a \u00a0
held-for-trading portfolio. These\u00a0bonds are held in a\u00a0business model being neither \u2018hold to collect\u2019 nor \u2018hold to collect and sell\u2019 and are therefore mandatorily \u00a0
recognised at fair value through profit or loss under IFRS 9. \u00a0
The portfolio comprises primarily Danish mortgage bonds. Further, the portfolio includes listed and unlisted shares. \u00a0
G14. Due from\u00a0credit institutions\u00a0and central banks \u00a0
The item due from credit institutions\u00a0and central banks\u00a0includes both balances that are measured at amortised cost\u00a0and balances that are measured at \u00a0
fair value through profit or loss, depending\u00a0on the\u00a0business model\u00a0for the management\u00a0of the amounts\u00a0due from credit institutions. \u00a0
Accounting policy \u00a0
For balances due from\u00a0credit institutions\u00a0in the Group\u2019s banking units (Personal & Business Customers, General Banking\u00a0in Large Corporates \u00a0
&
Institutions, Northern\u00a0Ireland and\u00a0Non-core), the business model is \u2018hold to collect\u2019. As the contractual cash flows represent basic lending\u00a0feature, these \u00a0
balances are measured at amortised cost. For further\u00a0information on the accounting policy etc., see\u00a0note G15. \u00a0
For balances due from credit institutions\u00a0and central banks in the Group\u2019s trading units (Markets and\u00a0Investment Banking &\u00a0Securities in\u00a0Large \u00a0
Corporates &\u00a0Institutions) the\u00a0business model\u00a0is neither\u00a0\u2018hold to collect\u2019 nor \u2018hold to collect and sell\u2019 and these balances are mandatorily\u00a0recognised at \u00a0
fair value through profit or loss. For further information\u00a0on the\u00a0accounting policy, see\u00a0note G16. \u00a0
Cash in\u00a0hand and\u00a0demand deposits with central banks \u00a0
Includes cash\u00a0in hand of DKK 6,419 million (2022: DKK 6,630 million)\u00a0and demand\u00a0deposits of DKK 252,737\u00a0million (2022:\u00a0DKK 168,422 million) \u00a0
(measured at amortised cost). \u00a0
Due from credit institutions\u00a0and central banks \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Due from credit institutions\u00a0and central banks measured at fair value through profit or loss: \u00a0
Reverse transactions \u00a0
92,389 \u00a0
37,379 \u00a0
Other amounts due \u00a0
595 \u00a0
768 \u00a0
Total at fair value through profit or loss \u00a0
92,984 \u00a0
38,147 \u00a0
Due from credit institutions\u00a0and central banks measured at amortised cost: \u00a0
Reverse transactions \u00a0
3,727 \u00a0
-
Other amounts due \u00a0
18,118 \u00a0
22,686 \u00a0
Allowance account \u00a0
16 \u00a0
47 \u00a0
Total at amortised cost \u00a0
21,829 \u00a0
22,639 \u00a0
Due from credit institutions\u00a0and central banks, total \u00a0
114,813 \u00a0
60,786 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Due from credit institutions\u00a0and central banks includes amounts due within three months and totalled DKK 106,453 million\u00a0at the end of 2023 (2022: \u00a0
DKK 57,479 million). This amount is\u00a0included under Cash and cash equivalents in the cash flow statement. \u00a0
G16. Loans and issued bonds at fair value \u00a0
The Group has two types of portfolios of loans and issued bonds that are measured at fair value through profit or loss. The f irst portfolio consists of loans \u00a0
granted and bonds issued by the subsidiary Realkredit Danmark,\u00a0a Danish mortgage institution\u00a0cover ed\u00a0by Danish mortgage finance law. The other portfolio \u00a0
consists of loans and bonds issued by the Group\u2019s trading units (Markets and Investment Banking\u00a0& Securities in LC&I). \u00a0
Accounting policy \u00a0
Loans granted and bonds issued by Realkredit\u00a0Danmark \u00a0
Loans granted by Realkredit\u00a0Danmark have contractual cash\u00a0flows that are not solely payment of principal and interest on the principal amount \u00a0
outstanding. Therefore,\u00a0the loans are\u00a0mandatorily recognised at\u00a0fair value\u00a0through profit\u00a0or loss. The issued bonds that are\u00a0funding the loans are \u00a0
designated at\u00a0fair value through profit or loss in order not to create an accounting\u00a0mismatch. For\u00a0the issued bonds, changes in fair value attributable\u00a0to \u00a0
the Group\u2019s own credit risk is presented in the income\u00a0statement, as\u00a0an accounting\u00a0mismatch would otherwise be introduced. \u00a0
The fair value of the bonds issued by Realkredit Danmark is normally defined as their quoted market price. A small number of the issued bonds are \u00a0
illiquid, however, and\u00a0the fair value\u00a0of these bonds is calculated\u00a0on the basis of a discounted\u00a0cash flow valuation technique. The fair value of the loans is \u00a0
based on the fair value of the underlying\u00a0bonds which ensures that changes in the fair value of the interest rate risk on the loans are measured based \u00a0
on market implied\u00a0input. This fair value is adjusted for changes in the fair value of cash flows from the loans that differ from the cash flows from the \u00a0
issued bonds. The most important\u00a0component is\u00a0the credit risk on the borrowers (covered by the Group and\u00a0not by\u00a0the bond holders and therefore not \u00a0
priced into the price of the issued bonds). \u00a0
Changes in fair value of credit risk etc on the loans \u00a0
The IFRS 13 estimate\u00a0of the fair value of the credit risk on the loans is based on the expected credit losses estimated in the models developed in \u00a0
connection with the Group\u2019s implementation\u00a0of the expected\u00a0credit loss impairment model in IFRS 9, including\u00a0the allocation o\u00a0f loans\u00a0between stage 1, \u00a0
stage 2 and stage 3. The expected credit losses are calculated for all loans as a function of PD, EAD and LGD and incorporates forward looking \u00a0
information, see\u00a0further in note G15. The latter reflects management\u2019s expectations of\u00a0expected credit\u00a0losses and\u00a0involves multiple scenarios (base \u00a0
case, upside\u00a0and downside),\u00a0including an\u00a0assessment of\u00a0the probability\u00a0for each scenario. \u00a0
On top of the expected\u00a0credit losses, a collective\u00a0assessment determines\u00a0the need for further adjustments\u00a0to reflect other components\u00a0in the fair value \u00a0
measurement, such as an assessment of lifetime\u00a0expected credit\u00a0losses for\u00a0loans in\u00a0stage 1, an investors risk premium, compensation for \u00a0
administrative costs\u00a0related to the loans and the possibility\u00a0to increase the margin on the loans if the credit risk etc increases. It is acknowledged that \u00a0
the possibility to\u00a0increase the margin depends on the economic resources of the customers.\u00a0The possibility\u00a0to increase the margin is therefore only \u00a0
considered in\u00a0the measurement if it is very likely that the margin can be increased without\u00a0the customer defaulting. Further,\u00a0the possibility\u00a0to increase \u00a0
the margin is only relevant if it does not give the customer an incentive to \u201cmove\u201d to another mortgage institution.\u00a0Therefore, the possibility\u00a0to increase \u00a0
the margin is only relevant for the measurement of loans to customers with neither a relatively\u00a0high credit risk nor a relati\u00a0vely low\u00a0credit risk. \u00a0
The discount rate used to discount the cash flows represents the interest rate on the funding bonds. This is considered to be close to a risk-free interes\u00a0t \u00a0
rate. The risk premium is incorporated into the cash\u00a0flows. The risk premium is assumed to be higher for customers with high credit risk than for \u00a0
customers with low credit risk. Further, the adjustments\u00a0for changes in the fair value\u00a0of the credit risk and other components\u00a0cannot increase the value \u00a0
of a loan\u00a0(the adjustment\u00a0cannot be positive). \u00a0
Other loans and\u00a0issued bonds measured at fair value through profit or loss \u00a0
The loans in the Group\u2019s trading units (Markets and Investment Banking & Securities in LC&I) are managed and their performance reported on a fair \u00a0
value basis and the loans are under IFRS 9 mandatorily\u00a0measured at fair value\u00a0through profit or loss. In order not to introduce\u00a0an accounting mismatc\u00a0h \u00a0
by measuring the financial assets in the trading units at\u00a0fair value through profit or loss and the financial liabilities\u00a0at amortised cost, the\u00a0financia l \u00a0
liabilities in\u00a0the trading units are designated at\u00a0fair value through profit or\u00a0loss with fair value changes attributable\u00a0to the Group\u2019s own credit risk \u00a0
presented in\u00a0other comprehensive income. \u00a0
G16. Loans and issued bonds at fair value continued \u00a0
(a) Loans at fair value \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Loans granted by Realkredit Danmark: \u00a0
Nominal value \u00a0
806,157 \u00a0
802,025 \u00a0
Fair value adjustment of underlying bonds \u00a0
-49,874 \u00a0
-74,724 \u00a0
Adjustment for\u00a0credit risk \u00a0
3,006 \u00a0
3,250 \u00a0
Fair value\u00a0of loans granted by Realkredit\u00a0Danmark \u00a0
753,277 \u00a0
724,051 \u00a0
Loans in the Group's trading units: \u00a0
Reverse transactions \u00a0
174,963 \u00a0
208,626 \u00a0
Other loans \u00a0
-
-
Total \u00a0
928,239 \u00a0
932,677 \u00a0
(b) Issued bonds at fair\u00a0value \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Bonds issued by Realkredit Danmark: \u00a0
Nominal value \u00a0
848,774 \u00a0
840,922 \u00a0
Fair value adjustment of funding of current loans \u00a0
-49,874 \u00a0
-74,735 \u00a0
Holding of own mortgage bonds \u00a0
57,837 \u00a0
54,414 \u00a0
Fair value\u00a0of bonds issued by Realkredit\u00a0Danmark \u00a0
741,062 \u00a0
711,773 \u00a0
Bonds issued by the Group's trading units: \u00a0
Commercial papers and certificates of deposit \u00a0
7,718 \u00a0
12,150 \u00a0
Total \u00a0
748,780 \u00a0
723,923 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
(c) Further explanation on loans granted and bonds issued by Realkredit Danmark \u00a0
Each loan granted by Realkredit Danmark\u00a0is funded by issuing listed mortgage bonds with matching characteristics (e.g.\u00a0amount outstanding, reference \u00a0
interest rate, term and currency). The borrower may repay the loan by delivering the underlying bonds to Realkredit Danmark. \u00a0
The loans are held in a business model being similar to other loans in the Group\u2019s banking units, i.e. the business model under IFRS 9 is \u2018held to collect\u2019. The \u00a0
customers\u2019 right to prepay a loan by delivering the underlying\u00a0bonds represents an option to prepay at fair value. Under this prepayment option, the prepayment \u00a0
amount can be both\u00a0above and below the principal amount plus accrued interest.\u00a0Changes in the fair value of the underlying bonds include other elements \u00a0
than the effect of changes in the relevant benchmark interest rate and the prepayment option is therefore not consistent with the SPPI test in IFRS 9 and are \u00a0
mandatorily measured at FVPL. \u00a0
To eliminate the accounting mismatch that would exist if the loans are measured at fair value through profit or loss and the issued bonds at amortised cost, \u00a0
the issued bonds are designated at fair value through profit or loss using the fair value option fo\u00a0r financial liabilities\u00a0in IFRS 9. As the fair value of the loans\u00a0is \u00a0
based on the fair value of the issued bonds, fair value changes of the issued bonds are offset by fair value changes of the loans, including the changes related \u00a0
to the fair value of the own credit risk of the issued bonds. For example, if the credit quality of the bonds worsens the fair value of the liability decreases and \u00a0
the fair value of the loans also decreases. Therefore, fair value changes of own credit risk on the issued bonds are recognised in the income statement, as an \u00a0
accounting mismatch\u00a0would otherwise be created if changes in own credit risk were recognised in other comprehensive income. \u00a0
The value of the loans is affected by changes in the credit risk on the loans. In 2023, the Group recognised DKK -109 million\u00a0regarding changes in the credit \u00a0
risk on loans at fair value\u00a0(2022: DKK\u00a015 million) see note G11. At the end of 2023, the accumulated changes in the credit risk amounted to DKK 3,006 \u00a0
million (2022: DKK 3,250 million). The amounts are determined as the amount of the change in fair value that is not attributable\u00a0to changes\u00a0in market \u00a0
conditions that give rise\u00a0to market risk, with the latter being represented by the fair value of the funding issuedbonds. Th e Group does not use credit derivative s \u00a0
or similar instruments to mitigate the exposure to credit risk. \u00a0
The holding of own mortgage bonds includes pre-issued bonds of DKK 31 billion (2022: DKK\u00a029 billion)\u00a0used for FlexL\u00e5n\u00ae refinancing in January\u00a02024. \u00a0
The nominal\u00a0value of bonds issued by Realkredit Danmark equals the amount to be redeemed on maturity. \u00a0
G16. Loans and issued bonds at fair value continued \u00a0
Fair value adjustment for the credit risk on issued mortgage bonds is calculated on the basis of the option-adjusted spread (OAS). The calculation incorporates \u00a0
maturity, nominal holdings and OAS sensitivity. As a number of estimates are made, the calculation is subject to uncertainty. \u00a0
In 2023, the Danish mortgage bond yield spread increased and the fair value of issued mortgage bonds thus decreased by approx\u00a0imately DKK 6.6\u00a0billion. In \u00a0
2022, the Danish mortgage bond yield spread narrowed, causing an increase in the fair value of issued mortgage bonds. Based o n the outstanding\u00a0portfolio \u00a0
at the end of 2023, Realkredit Danmark estimates that there has been a net narrowing of the spread since the issuance of the bonds, which produces a \u00a0
negative fair value of approximately DKK 0.05 billion (2022: positive fair value of approximately DKK 0.3 billion). Net profit and shareholders\u2019 equity remain \u00a0
unaffected by the\u00a0change in fair value because the spread narrowing increased the value of mortgage loans correspondingly. \u00a0
Fair value adjustment for the credit risk on issued mortgage bonds may also be calculated on the basis of\u00a0changes in similar\u00a0AAA rated mortgage bonds \u00a0
offered by\u00a0other Danish issuers.\u00a0The market for\u00a0such bonds is characterised by an absence of measurable price differences bet\u00a0ween bonds with similar \u00a0
features from different issuers. Using this method, no fair value adjustment for credit risk in 2023 or the period since the issue has been required. \u00a0
(d) Further explanation on loans, deposits and issued bonds by the Group\u2019s trading units \u00a0
The loans in the Group\u2019s trading units (Markets and\u00a0Investment Banking &\u00a0Securities in LC&I) are managed and their performance reported on a fair value \u00a0
basis. The loans are mandatorily recognised at fair value through profit or loss as the business model is neither \u2018held to collect\u2019 nor \u2018held to c ollect and sell\u2019. \u00a0
The loans consist primarily of reverse transactions and short-term loans. In order not to introduce an accounting mismatch, the financial liabilities in the \u00a0
trading units are designated at fair value through profit or loss, using the fair value option in IFRS 9. \u00a0
The financial liabilities consist of issued bonds (certificates of deposits and commercial papers) and deposits (including re po transactions) with a maturity no \u00a0
longer than six months in general. Fair value changes attributable to the Group\u2019s own credit risk are presented in other comprehensive income. During 2023, \u00a0
changes in fair value attributable to the Group\u2019s\u00a0own credit risk recognised in Other Comprehensive\u00a0Income amounted to DKK 0 million (2022: DKK 0 million). \u00a0
In the balance sheet, deposits in the trading units are presented together with other deposits. The amount that the Group would be contractually required to \u00a0
pay at maturity amounts to DKK 8,066 million (2022: DKK 12,636 million) for bonds issued by the Group\u2019s trading units. \u00a0
G17. Assets and deposits under pooled schemes and unit-linked investment contracts \u00a0
Assets and\u00a0deposits under pooled schemes and unit-linked investment contracts comprises contributions to pooled schemes and unit-linked contracts \u00a0
defined as investment contracts. Assets include intra-group balances, which are eliminated.\u00a0Consequently, the\u00a0value of the line item Deposits under pooled \u00a0
schemes and unit-linked\u00a0investment contracts exceeds that of Assets under pooled schemes and unit-linked\u00a0investment contracts. \u00a0
Accounting policy \u00a0
Assets earmarked for customer savings are measured at fair value and recognised under Assets under pooled schemes and unit-linked\u00a0investment \u00a0
contracts. Deposits made by customers are recognised under Deposits under pooled schemes and unit-linked investment contracts. These deposits are \u00a0
measured at the\u00a0value of savings, corresponding to the fair value of the assets. \u00a0
The Group has elected not to deduct own shares from equity that are held on behalf of customers. Therefore total assets under pooled schemes and unit- \u00a0
linked contracts includes these own shares that meet this criterion. \u00a0
Pooled schemes \u00a0
Unit-linked contracts \u00a0
Total \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
2023 \u00a0
2022* \u00a0
2023 \u00a0
2022* \u00a0
(a) Assets \u00a0
Bonds \u00a0
16,992 \u00a0
18,493 \u00a0
6,024 \u00a0
4,891 \u00a0
23,016 \u00a0
23,384 \u00a0
Shares \u00a0
14,676 \u00a0
13,421 \u00a0
11,146 \u00a0
7,579 \u00a0
25,822 \u00a0
21,000 \u00a0
Unit trust certificates \u00a0
16,434 \u00a0
14,228 \u00a0
2,564 \u00a0
7,124 \u00a0
18,998 \u00a0
21,352 \u00a0
Other \u00a0
38 \u00a0
115 \u00a0
3,379 \u00a0
875 \u00a0
3,417 \u00a0
990 \u00a0
Total \u00a0
48,140 \u00a0
46,256 \u00a0
23,113 \u00a0
20,469 \u00a0
71,253 \u00a0
66,725 \u00a0
including \u00a0
other intra-group balances \u00a0
263 \u00a0
-104 \u00a0
90 \u00a0
91 \u00a0
353 \u00a0
-13 \u00a0
Total assets recognised in balance \u00a0
sheet \u00a0
47,877 \u00a0
46,360 \u00a0
23,023 \u00a0
20,378 \u00a0
70,900 \u00a0
66,739 \u00a0
(b) Deposits \u00a0
48,140 \u00a0
46,256 \u00a0
23,113 \u00a0
20,469 \u00a0
71,253 \u00a0
66,725 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Assets under pooled schemes include DKK 198 million of own shares that are not eliminated\u00a0(2022: DKK 207 million). Assets under unit-linked \u00a0
contracts include DKK 60 million of\u00a0own shares\u00a0that are\u00a0not eliminated\u00a0(2022: DKK 33 million). \u00a0
G20. Due to credit institutions and central banks and Deposits \u00a0
Amounts due to credit institutions\u00a0and central banks\u00a0and Deposits\u00a0also include amounts received under repo transactions (sales of securities which the \u00a0
Group agrees to repurchase at a later date). Such transactions are presented as collateralised borrowings. \u00a0
Accounting policy \u00a0
Amounts due to credit institutions\u00a0and central banks and Deposits in the Group\u2019s trading units\u00a0(Markets and Investment Banking\u00a0& Securities\u00a0in LC&I) \u00a0
are designated at fair value through profit or loss. However, the amount of the change in fair value attributable\u00a0to the Group\u2019s own credit risk is \u00a0
recognised in other comprehensive\u00a0income. \u00a0
All other\u00a0balances are measured at amortised\u00a0cost. If fixed-rate\u00a0deposits are hedged effectively by derivatives,\u00a0the fair value\u00a0of the hedged interest rate \u00a0
risk is added to the amortised cost of the liabilities. \u00a0
(a) Due to credit institutions\u00a0and central banks (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Designated at\u00a0fair value: \u00a0
Repo transactions \u00a0
80,108 \u00a0
47,618 \u00a0
Other amounts due \u00a0
5,440 \u00a0
4,634 \u00a0
Total designated at\u00a0fair value \u00a0
85,548 \u00a0
52,252 \u00a0
Amortised cost: \u00a0
Repo transactions \u00a0
3,727 \u00a0
-
Other amounts due \u00a0
65,333 \u00a0
86,525 \u00a0
Total amortised cost \u00a0
69,060 \u00a0
86,525 \u00a0
Total \u00a0
154,608 \u00a0
138,777 \u00a0
(b) Deposits (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Designated at\u00a0fair value: \u00a0
Repo transactions \u00a0
113,306 \u00a0
90,168 \u00a0
Time deposits \u00a0
6,907 \u00a0
7,749 \u00a0
Total designated at\u00a0fair value \u00a0
120,213 \u00a0
97,917 \u00a0
Amortised cost: \u00a0
Repo transactions \u00a0
-
134 \u00a0
Transaction accounts \u00a0
930,083 \u00a0
1,023,795 \u00a0
Time deposits \u00a0
158,222 \u00a0
124,872 \u00a0
Pension savings\u00a0etc. \u00a0
13,685 \u00a0
15,574 \u00a0
Total amortised cost \u00a0
1,101,990 \u00a0
1,164,375 \u00a0
Total \u00a0
1,222,203 \u00a0
1,262,293 \u00a0
(c) Further explanation\u00a0on balances\u00a0designated at\u00a0fair value\u00a0through profit\u00a0or loss \u00a0
Any changes in the fair value that is attributable\u00a0to changes in the Group\u2019s own credit risk of the liabilities are recognised in other comprehensive income. As \u00a0
the deposits are collateralised and/or with a short maturity, no change in the fair value is attributable\u00a0to changes in the Group\u2019s own credit risk.\u00a0The amount \u00a0
that the\u00a0Group would be contractually required to pay at maturity amounts to DKK 85.5 billion (2022: DKK 52.3 billion) for Due to credit institutions\u00a0and \u00a0
central banks\u00a0and DKK\u00a0120.2 billion (2022: DKK 97.9 billion) for Deposits. \u00a0
G22. Issued bonds \u00a0
The issued bonds presented in this note consist of preferred senior, non-preferred senior and subordinated bonds issued by the Group, with the exception of \u00a0
additional tier\u00a01 capital accounted for as equity. Note G16 provides more information about issued bonds measured at fair value through profit or loss and \u00a0
note G25 provides more information about additional\u00a0tier 1 capital accounted for as equity. \u00a0
Preferred senior bonds are presented under the balance sheet item Issued bonds at amortised cost, while non-preferred senior and subordinated bonds are \u00a0
presented as separate line items in the balance sheet. Non-preferred senior bonds rank senior to subordindated debt and junior to other debt. Subordinated \u00a0
bonds are liabilities in the form of subordinated loan capital and other capital instruments which, in case of the Group\u2019s voluntary or\u00a0compulsory winding-up, \u00a0
will not be repaid until\u00a0the claims of its ordinary and non-preferred senior creditors have been met. Subordinated bonds include additional tier 1 capital that \u00a0
converts into a variable number of ordinary shares if the common equity tier 1 capital ratio falls below 7% for Danske Bank A/S or Danske\u00a0Bank Group (the \u00a0
trigger event). The number of shares the additional tier 1 capital could potentially\u00a0convert into a function of the share price at the time of conversion, however, \u00a0
minimised to USD 23.97 per share (a maximum of 62.6 million\u00a0shares for the outstanding amount of the capital of USD 1.5 billi\u00a0on). This capital utilises 70% \u00a0
of the Board of Directors\u2019 authorisation\u00a0to issue shares without pre-emption rights. For further information on the Group\u2019s additional tier 1 capital, see note \u00a0
G25. \u00a0
Accounting policy \u00a0
Issued bonds, both senior, non-preferred senior and subordinated\u00a0bonds, are at initial\u00a0recognition measured at fair value less transaction\u00a0costs and \u00a0
subsequently measured\u00a0at amortised\u00a0cost plus\u00a0the fair value of\u00a0the hedged interest rate risk. Interest expense is recognised according to the effective \u00a0
interest rate method, including amortisation\u00a0of any difference between the amount received on\u00a0issue and the redemption amount. \u00a0
The Group issues perpetual bonds with discretionary\u00a0interest payments that fulfil the requirements\u00a0for additional\u00a0tier 1 capital under the Capital \u00a0
Requirements Regulation (CRR).\u00a0If a\u00a0trigger event occurs,\u00a0those bonds must be\u00a0either written down temporarily or converted into a variable number of \u00a0
ordinary shares, depending on the terms of the individual\u00a0bond issue. Bonds that convert into a\u00a0variable number of\u00a0ordinary shares are accounted for \u00a0
as liabilities,\u00a0while bonds that are temporarily written down are accounted for as equity. For liability\u00a0accounted bonds, the interest expense is recognised \u00a0
in the income statement, i.e. the bonds are accounted for as liabilities\u00a0in their entirety. \u00a0
The yield on some issued bonds depends on an index that is not closely linked to the bonds\u2019 financial characteristics, for example an equity or commodity index. \u00a0
Such embedded derivatives\u00a0are bifurcated and measured at fair value in the trading portfolio. \u00a0
(a) Other\u00a0issued bonds \u00a0
Issued bonds\u00a0at fair value \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Bonds issued by Realkredit Danmark (covered bonds) \u00a0
741,062 \u00a0
711,773 \u00a0
Commercial papers and certificates of deposits \u00a0
5,228 \u00a0
9,119 \u00a0
Structured retail\u00a0notes \u00a0
2,489 \u00a0
3,032 \u00a0
Issued bonds\u00a0at fair value, total \u00a0
748,780 \u00a0
723,923 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
Bonds issued by Realkredit Danmark under the Group\u2019s green finance framework amounted to a nominal value of DKK 27,153 million outstanding at the end \u00a0
of 2023 (2022: DKK 21,544 million). \u00a0
Issued bonds\u00a0at amortised\u00a0cost \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Commercial papers and certificates of deposits \u00a0
24,419 \u00a0
-
Preferred senior bonds* \u00a0
63,345 \u00a0
48,356 \u00a0
Covered bonds \u00a0
124,703 \u00a0
140,829 \u00a0
Structured retail\u00a0notes* \u00a0
1,766 \u00a0
3,498 \u00a0
Issued bonds\u00a0at amortised\u00a0cost, total \u00a0
214,234 \u00a0
192,682 \u00a0
Non-preferred senior bonds \u00a0
93,194 \u00a0
93,235 \u00a0
* DKK 3.5 billion of Structured retail bonds that were included within Preferred senior bonds as at 31 December 2022 have been reclassified in the table above. There is no change to the total \u00a0
balance of Issued bonds at amortised cost as at 31 December 2022. \u00a0
Further information on issued bonds at fair value through profit or loss can be found in note G16. The issuance and redemption of bonds (including commercial \u00a0
papers and certificates of deposits at fair value) during the year and the maturity\u00a0of the outstanding bonds are presented in the tables below. \u00a0
G22. Issued bonds\u00a0continued \u00a0
Foreign \u00a0
Nominal value \u00a0
1 January \u00a0
currency \u00a0
31 December \u00a0
(DKK millions) \u00a0
2023 \u00a0
Issued \u00a0
Redeemed* \u00a0
translation \u00a0
2023 \u00a0
Commercial papers and certificate of deposits \u00a0
9,128 \u00a0
66,432 \u00a0
36,812 \u00a0
-9,135 \u00a0
29,613 \u00a0
Preferred senior bonds** \u00a0
59,348 \u00a0
39,700 \u00a0
27,843 \u00a0
-1,583 \u00a0
69,621 \u00a0
Covered bonds \u00a0
156,740 \u00a0
33,000 \u00a0
65,850 \u00a0
5,529 \u00a0
129,419 \u00a0
Non-preferred senior bonds \u00a0
100,586 \u00a0
22,500 \u00a0
23,700 \u00a0
-1,486 \u00a0
97,900 \u00a0
Other issued bonds \u00a0
325,801 \u00a0
161,633 \u00a0
154,206 \u00a0
-6,675 \u00a0
326,553 \u00a0
*Redeemed covered bonds includes DKK 25,8 billion of covered bonds that have been reclassified to Liabilities in disposal groups held for sale. See note G23 for more detail. \u00a0
** Preferred senior bonds includes structured retail notes. \u00a0
Foreign \u00a0
Nominal value \u00a0
1 January \u00a0
currency 31\u00a0December \u00a0
(DKK millions) \u00a0
2022 \u00a0
Issued \u00a0
Redeemed \u00a0
translation \u00a0
2022 \u00a0
Commercial papers and certificate of deposits \u00a0
23,712 \u00a0
13,445 \u00a0
26,709 \u00a0
-1,321 \u00a0
9,128 \u00a0
Preferred senior bonds* \u00a0
67,724 \u00a0
1,400 \u00a0
14,630 \u00a0
4,854 \u00a0
59,348 \u00a0
Covered bonds \u00a0
165,067 \u00a0
39,600 \u00a0
39,605 \u00a0
-8,322 \u00a0
156,740 \u00a0
Non-preferred senior bonds \u00a0
108,104 \u00a0
20,100 \u00a0
30,530 \u00a0
2,913 \u00a0
100,586 \u00a0
Other issued bonds \u00a0
364,607 \u00a0
74,545 \u00a0
111,475 \u00a0
-1,876 \u00a0
325,801 \u00a0
* Preferred senior bonds includes structured retail notes. \u00a0
The Group has issued non-preferred senior bonds and preferred senior bonds in accordance with the Group\u2019s green bond framework. At the end of 2023, the \u00a0
nominal value of green non-preferred senior bonds issued amounted to DKK 24,223 million (2022: DKK 13,014), and the nominal value of green preferred \u00a0
senior bonds issued amounted to DKK 9,134 million (2022: DKK\u00a00 million). \u00a0
Broken down\u00a0by maturity \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Redeemed bonds 2023 \u00a0
92,355 \u00a0
2024 \u00a0
96,248 \u00a0
70,143 \u00a0
2025 \u00a0
69,343 \u00a0
57,229 \u00a0
2026 or later \u00a0
160,961 \u00a0
106,075 \u00a0
Nominal value of other issued bonds \u00a0
326,553 \u00a0
325,801 \u00a0
Fair value hedging of interest rate risk \u00a0
-7,389 \u00a0
-19,351 \u00a0
Premium/discount \u00a0
-432 \u00a0
18 \u00a0
Own holding\u00a0of bonds issued \u00a0
3,586 \u00a0
8,401 \u00a0
Total other issued bonds \u00a0
315,145 \u00a0
298,068 \u00a0
G22. Issued bonds\u00a0continued \u00a0
(b) Subordinated\u00a0debt \u00a0
Subordinated debt\u00a0consists of\u00a0liabilities in\u00a0the form of issued subordinated bonds. Some of these bonds (presented as liability\u00a0accounted additional tier \u00a0
1 capital below) rank below other subordinated\u00a0bonds. Early redemption of\u00a0subordinated debt\u00a0must be approved by the Danish FSA. Subordinated\u00a0debt \u00a0
is included in total capital in\u00a0accordance with\u00a0the CRR. \u00a0
The issuance and redemption of subordinated\u00a0debt during the year and the maturity\u00a0of the outstanding\u00a0debt are presented in the tables\u00a0below. \u00a0
Foreign \u00a0
1 January \u00a0
currency 31\u00a0December \u00a0
Nominal value\u00a0(DKK millions) \u00a0
2023 \u00a0
Issued \u00a0
Redeemed \u00a0
translation \u00a0
2023 \u00a0
Subordinated debt, excluding liability accounted \u00a0
additional tier 1 capital \u00a0
24,837 \u00a0
-
-
58 \u00a0
24,895 \u00a0
Liability accounted additional tier 1 capital \u00a0
15,676 \u00a0
-
-
-503 \u00a0
15,174 \u00a0
Total subordinated debt \u00a0
40,514 \u00a0
-
-
-445 \u00a0
40,069 \u00a0
Foreign \u00a0
1 January \u00a0
currency 31\u00a0December \u00a0
Nominal value\u00a0(DKK millions) \u00a0
2022 \u00a0
Issued \u00a0
Redeemed \u00a0
translation \u00a0
2022 \u00a0
Subordinated debt, excluding liability accounted \u00a0
additional tier 1 capital \u00a0
24,895 \u00a0
-
-
-58 \u00a0
24,837 \u00a0
Liability accounted additional tier 1 capital \u00a0
14,754 \u00a0
-
-
922 \u00a0
15,676 \u00a0
Total subordinated debt \u00a0
39,649 \u00a0
-
-
864 \u00a0
40,514 \u00a0
Nominal \u00a0
Interest Year\u00a0of \u00a0
Redemption \u00a0
2023 \u00a0
2022 \u00a0
Currency \u00a0
Borrower Note \u00a0
(millions) \u00a0
rate \u00a0
issue \u00a0
Maturity \u00a0
price \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
Subordinated debt, excluding liability accounted additional tier 1 capital \u00a0
Redeemed loans 2023 \u00a0
-
EUR \u00a0
Danica \u00a0
a
500 \u00a0
4.375 \u00a0
2015 29.09.2045 \u00a0
100 \u00a0
3,727 \u00a0
3,718 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
b
750 \u00a0
2.50 \u00a0
2019 21.06.2029 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
SEK \u00a0
Danske Bank A/S \u00a0
c
1,000 \u00a0
var \u00a0
2019 14.11.2029 \u00a0
100 \u00a0
672 \u00a0
669 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
d
750 \u00a0
1.375 \u00a0
2019 12.02.2030 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
e
500 \u00a0
1.50 \u00a0
2020 02.09.2030 \u00a0
100 \u00a0
3,727 \u00a0
3,718 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
f
750 \u00a0
1.00 \u00a0
2021 15.05.2031 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
Subordinated debt,\u00a0excluding liability \u00a0
accounted additional\u00a0tier 1 capital \u00a0
24,895 \u00a0
24,837 \u00a0
Liability accounted additional tier 1 capital \u00a0
USD \u00a0
Danske Bank A/S \u00a0
g
750 \u00a0
6.125 \u00a0
2017 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
USD \u00a0
Danske Bank A/S \u00a0
h
750 \u00a0
7.00 \u00a0
2018 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
USD \u00a0
Danske Bank A/S \u00a0
i
750 \u00a0
4.375 \u00a0
2021 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
Liability accounted\u00a0additional tier 1 \u00a0
capital \u00a0
15,174 \u00a0
15,676 \u00a0
Nominal subordinated debt \u00a0
40,069 \u00a0
40,514 \u00a0
Discount \u00a0
-72 \u00a0
-128 \u00a0
Fair value hedging of interest rate risk \u00a0
-997 \u00a0
-1,843 \u00a0
Own holding\u00a0of subordinated debt \u00a0
-226 \u00a0
-193 \u00a0
Total subordinated debt \u00a0
38,774 \u00a0
38,350 \u00a0
Portion included\u00a0in total\u00a0capital as \u00a0
additional tier\u00a01 or tier\u00a02 capital \u00a0
instruments \u00a0
36,342 \u00a0
36,795 \u00a0
As at 31 December\u00a02023, the Group has no additional tier 1 bond issues accounted for as equity (31 December 2022: DKK 0 billion). \u00a0
G22. Issued bonds\u00a0continued \u00a0
a
Optional redemption from\u00a0September 2025. If the debt is not redeemed, the annual interest rate will be reset at 4.38 percentage points above the \u00a0
10-year EUR swap\u00a0rate every tenth year until maturity. Solvency II compliant tier 2 capital and included in Danica\u2019s capital bas\u00a0e. \u00a0
b
Optional redemption in June 2024. If the\u00a0debt is not redeemed, the annual interest rate will be reset at 2.50 percentage\u00a0points above the 5 year EUR \u00a0
swap rate for the remaining five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
c
Optional redemption in\u00a0November 2024. If\u00a0the debt is\u00a0not redeemed, the quarterly interest\u00a0rate will be reset\u00a0at 1.90 percentage points\u00a0above the 3- \u00a0
month STIBOR rate\u00a0for the remaining five years until maturity. CRR compliant\u00a0tier 2 capital. \u00a0
d
Optional redemption in February 2025. If the debt is not redeemed, the annual interest rate will be reset\u00a0at 1.70 percentage\u00a0points above the 5-year \u00a0
EUR swap\u00a0rate for the remaining\u00a0five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
e
Optional redemption in September 2025. If\u00a0the debt\u00a0is not redeemed,\u00a0the annual interest rate will be\u00a0reset at 1.90 percentage points above the 5- \u00a0
year EUR swap rate for the remaining\u00a0five years until maturity.\u00a0CRR compliant tier 2\u00a0capital. \u00a0
f
Optional redemption in May 2026. If the debt is not redeemed, the annual interest rate will be reset at 1.40 percentage point\u00a0s above the 5-year EUR \u00a0
swap rate for the remaining five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
g
Optional redemption from\u00a0March 2024.\u00a0If the debt is not redeemed, the annual interest rate will be reset at 3.896 percentage\u00a0points above 7-year \u00a0
USD swap rate. CRR compliant\u00a0tier 1 capital.\u00a0The capital converts\u00a0into a variable\u00a0number of shares if Danske Bank Group\u2019s or Danske Bank A/S\u2019 \u00a0
common equity tier 1 capital ratio falls below 7%. The instrument is included as a CRR compliant additional\u00a0tier 1 capital instrum ent\u00a0in the statemen\u00a0t \u00a0
of capital. \u00a0
h
Optional redemption from\u00a0June 2025. If the debt is not redeemed, the annual interest rate will be reset at 4.130 percentage p\u00a0oints above 5-year \u00a0
CMT rate.\u00a0CRR compliant tier 1\u00a0capital. The capital converts\u00a0into a\u00a0variable number of\u00a0shares if Danske\u00a0Bank Group\u2019s or Danske Bank A/S\u2019\u00a0comm on \u00a0
equity tier 1\u00a0capital ratio falls below 7%. The instrument is included as a CRR compliant additional tier 1 capital instrumen\u00a0t in\u00a0the statement of \u00a0
capital. \u00a0
i
Optional redemption from\u00a0May 2026. If the debt is not redeemed,\u00a0the annual\u00a0interest r\u00a0ate will be reset at 3.387 percentage points\u00a0above the 5 year \u00a0
CMT rate. The capital converts into a variable\u00a0number of shares if Danske\u00a0Bank Group\u2019s or Danske Bank A/S\u2019s common equity tier 1 capital ratio \u00a0
falls below 7%. The\u00a0instrument is included as\u00a0a CRR compliant additional\u00a0tier 1 capital instrument\u00a0in the statement\u00a0of capita l. \u00a0
G33. Fair value information\u00a0for financial instruments \u00a0
Financial instruments\u00a0are carried in the balance sheet at fair value or amortised cost. The Group breaks down its financial instruments\u00a0according to the \u00a0
valuation method\u00a0(note G1 provides\u00a0additional information). \u00a0
2023 \u00a0
2022* \u00a0
(DKK millions) \u00a0
Fair value \u00a0
Amortised cost \u00a0
Fair value \u00a0
Amortised cost \u00a0
Financial assets \u00a0
Cash in hand and demand deposits with central banks \u00a0
-
259,156 \u00a0
-
175,052 \u00a0
Due from credit institutions\u00a0and central banks \u00a0
92,985 \u00a0
21,829 \u00a0
38,147 \u00a0
22,639 \u00a0
Trading portfolio assets \u00a0
548,189 \u00a0
-
638,799 \u00a0
-
Investment securities held at amortised cost \u00a0
-
155,398 \u00a0
-
151,573 \u00a0
Investment securities held at fair value \u00a0
128,516 \u00a0
-
135,850 \u00a0
-
Loans at amortised cost \u00a0
-
918,628 \u00a0
-
1,082,818 \u00a0
Loans at fair value \u00a0
928,239 \u00a0
-
932,677 \u00a0
-
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
70,900 \u00a0
-
66,739 \u00a0
-
Assets under insurance contracts \u00a0
460,747 \u00a0
-
465,720 \u00a0
-
Loans held for sale \u00a0
-
110,415 \u00a0
-
-
Total \u00a0
2,229,576 \u00a0
1,465,426 \u00a0
2,277,932 \u00a0
1,432,082 \u00a0
Financial liabilities \u00a0
Due to credit institutions and central banks \u00a0
85,548 \u00a0
69,060 \u00a0
52,252 \u00a0
86,525 \u00a0
Trading portfolio liabilities \u00a0
454,487 \u00a0
-
554,321 \u00a0
-
Deposits \u00a0
120,213 \u00a0
1,101,990 \u00a0
97,917 \u00a0
1,164,375 \u00a0
Issued bonds at fair value \u00a0
748,780 \u00a0
-
723,923 \u00a0
-
Issued bonds at amortised cost \u00a0
-
214,234 \u00a0
-
192,682 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
71,253 \u00a0
-
66,725 \u00a0
-
Liabilities held for sale \u00a0
-
56,476 \u00a0
-
-
Non-preferred senior bonds \u00a0
-
93,194 \u00a0
-
93,235 \u00a0
Subordinated debt \u00a0
-
38,774 \u00a0
-
38,350 \u00a0
Loan commitments\u00a0and guarantees \u00a0
-
3,161 \u00a0
-
2,627 \u00a0
Total \u00a0
1,480,281 \u00a0
1,576,889 \u00a0
1,495,138 \u00a0
1,577,795 \u00a0
* Comparative information has been restated as described in note G2(a). \u00a0
Liabilties under insurance contracts are measured using the General Measurement Model, Variable Fee Approach or\u00a0Premium Allocation Appro\u00a0ach in \u00a0
line with IFRS 17. Liabilities under insurance contracts are\u00a0therefore not included in the table above. \u00a0
(a) Financial\u00a0instruments at fair value \u00a0
The fair value is the amount for which a financial asset or a financial liability\u00a0can be exchanged\u00a0between knowledgeable,\u00a0willing parties. Fair value is \u00a0
measured on the basis of the following hierarchy: \u00a0
The fair value hierarchy \u00a0
\u2022
Quoted price\u00a0(level 1) consists of financial instruments\u00a0that are quoted in an active market.\u00a0The Group uses the price quoted in the principal market. \u00a0
\u2022
Valuation based\u00a0on observable input (level 2) consists of financial instruments\u00a0valued substantially\u00a0on the\u00a0basis of observable input other than a \u00a0
quoted price for the instrument\u00a0itself. If a financial instrument\u00a0is quoted\u00a0in a market\u00a0that is not active, the Group bases its measurement on the most \u00a0
recent transaction\u00a0price. Adjustment\u00a0is made for subsequent changes to market conditions,\u00a0for instance,\u00a0by including transactions\u00a0in similar \u00a0
financial instruments that are\u00a0assumed to be motivated by normal business considerations. For a\u00a0number of financial assets and liabilities,\u00a0no \u00a0
market exists. In such cases, the Group uses recent transactions\u00a0in similar instruments\u00a0and discounted cash flows or other generally accepted \u00a0
estimation and\u00a0valuation techniques\u00a0based on market conditions at the balance sheet date to calculate an estimated\u00a0value. This category covers \u00a0
instruments such\u00a0as derivatives\u00a0valued on\u00a0the basis of observable\u00a0yield curves and exchange rates and illiquid\u00a0mortgage bonds valued by reference \u00a0
to the value of similar\u00a0liquid bonds. \u00a0
\u2022
Valuation based on\u00a0significant non-observable input\u00a0(level 3): The valuation\u00a0of certain financial instruments\u00a0is based substantially\u00a0on non-observable \u00a0
input. Such\u00a0instruments include unlisted shares,\u00a0some unlisted bonds and a\u00a0limited portion of\u00a0the derivatives\u00a0portfolio (2%). \u00a0
If, at the balance sheet date, a financial instrument\u2019s classification differs\u00a0from its classification at the beginning of the year, the classification of the \u00a0
instrument changes.\u00a0Changes are\u00a0considered to have taken place at the balance sheet date. Developments\u00a0in the financial markets have resulted in \u00a0
reclassifications between\u00a0the categories. Some bonds have become illiquid and have therefore been\u00a0moved from\u00a0the Quoted\u00a0prices to\u00a0the Observable \u00a0
input category, while other bonds have instead become liquid and have been moved from the Observable input to the\u00a0Quoted prices category. \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
Valuation techniques \u00a0
The most frequently\u00a0used valuation\u00a0techniques include the pricing of transactions with future settlement and swap\u00a0models that apply present value \u00a0
calculations, credit\u00a0pricing models and options models, such as Black & Scholes models. As part of the Group\u2019s\u00a0control environment, valuation models are \u00a0
validated by\u00a0units that\u00a0are independent\u00a0of the business units\u00a0that develop\u00a0the models and trade in the products covered by\u00a0th e\u00a0models. Validation\u00a0is made \u00a0
to test the implementation,\u00a0quality and operating stability\u00a0of models\u00a0to ensure that the models can be used for pricing and risk management of financial \u00a0
products. \u00a0
Loans granted and bonds issued by Realkredit Danmark\u00a0are recognised at the fair value of the issued bonds (the quoted price in an active market). The \u00a0
Group adjusts\u00a0for changes to the fair value of the credit risk on borrowers\u00a0etc. The adjustment\u00a0is described further\u00a0in note\u00a0G16. \u00a0
The value of derivatives,\u00a0primarily long-term contracts, is determined on\u00a0observable yields extrapolated\u00a0to yield curves for the full duration of the contracts. \u00a0
Moreover, the very limited portfolio of\u00a0credit derivatives\u00a0is valued\u00a0on the basis of observable\u00a0input as\u00a0well as assumptions\u00a0about the probability\u00a0of default \u00a0
(recovery rate).\u00a0Unlisted shares\u00a0are measured at fair value in accordance with the International\u00a0Private Equity and Venture C\u00a0apital Valuation Guideline\u00a0s \u00a0
(IPEV) which are compliant with IFRS. IPEV guides the calculation of the estimated fair\u00a0value of\u00a0unlisted shares as the price\u00a0that would be received to sell \u00a0
an asset or paid to transfer a liability\u00a0in an orderly transaction between market participants\u00a0at the measurement\u00a0date. Valua\u00a0tion methods include \u00a0
discounted cash flow models and pricing based on a multiple\u00a0of earnings or equity. \u00a0
Fair value adjustments \u00a0
Management estimates underlie the\u00a0valuation of\u00a0financial instruments\u00a0for which the value is based on valuation\u00a0techniques. The Group makes fair value \u00a0
adjustments to\u00a0cover changes in counterparty\u00a0risk (CVA) on derivatives,\u00a0funding risk (FVA and ColVA),\u00a0bid-offer spreads on\u00a0the net\u00a0open position of \u00a0
portfolios with\u00a0offsetting market risk, and model risk on level 3 derivatives. \u00a0
Credit value\u00a0adjustment (CVA)\u00a0and funding value adjustment\u00a0(FVA and ColVA) \u00a0
The Group makes a\u00a0fair value adjustment to cover the counterparty credit risk on derivatives\u00a0with a positive fair value (CVA). For\u00a0a given counterparty\u2019 s \u00a0
portfolio of\u00a0derivatives, CVA\u00a0is calculated as\u00a0a function\u00a0of the probability\u00a0of default\u00a0(PD), the expected\u00a0positive exposure (EPE) and the loss given default in \u00a0
the event of bankruptcy\u00a0(LGD). The Group enters into derivatives\u00a0transactions mainly with counterparties\u00a0in the Scandinavian\u00a0market. \u00a0
The PDs used in the CVA model are derived\u00a0from single name liquid credit default swap (CDS). If this is not available,\u00a0the PDs are derived using proxy- \u00a0
mapping to a CDS index. For the calculation of EPE, the Group uses simulations\u00a0to estimate\u00a0the expected positive exposures to\u00a0the counterparty\u2019s portfolio \u00a0
over the term of\u00a0the derivatives.\u00a0The exposure model is\u00a0based fully on market-implied\u00a0data. For\u00a0the calculation\u00a0of LGD, the Group uses market compliant \u00a0
LGD. However, for customers classified in stage 3 in relation to the expected credit loss impairment, CVA is calculated\u00a0as if the\u00a0derivatives were\u00a0loans \u00a0
subject to\u00a0impairment because\u00a0of credit losses. \u00a0
A fair value adjustment\u00a0for derivatives\u00a0to cover expected funding costs (FVA\u00a0and ColVA) is calculated.\u00a0FVA primarily\u00a0arises from the cost or benefit of \u00a0
funding uncollateralised\u00a0derivatives. The adjustment is\u00a0a function\u00a0of the unsecured funding curve and expected future exposures. ColVA takes into account \u00a0
the funding cost and benefit on collateralised\u00a0derivatives. The ColVA adjustment is a function of expected collateral balance\u00a0s and cross-currency\u00a0basis \u00a0
and repo spreads. \u00a0
At the end of 2023, CVA, DVA,\u00a0FVA and ColVA came to a net amount of DKK\u00a0153 million (2022: DKK -94\u00a0million), including the adjustment for\u00a0credit risk \u00a0
on derivatives\u00a0in stage 3. \u00a0
Bid-offer spread \u00a0
For portfolios\u00a0of assets and liabilities\u00a0with offsetting market risk, the Group bases its measurement of the portfolios on mid-market prices and\u00a0makes fair \u00a0
value adjustments\u00a0to recognise net assets at the bid price and net liabilities\u00a0at the\u00a0offer price (exit prices). At the end of 2023, these fair value adjustmen\u00a0ts \u00a0
totalled DKK 138 million (2022: DKK 151 million). \u00a0
Model risk \u00a0
To account for the uncertainty\u00a0associated with measuring\u00a0the value of derivatives\u00a0on the basis of non-observable\u00a0input (level 3\u00a0in the fair value\u00a0hierarchy), \u00a0
the Group has established guidelines to quantify risk. The Group calculates and\u00a0monitors the reserve\u00a0on an ongoing basis. At the end of 2023, the reserve \u00a0
totalled DKK 1\u00a0million (2022: DKK 0\u00a0million). \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
Amortisation of\u00a0initial margin \u00a0
If, at the time of acquisition,\u00a0a difference\u00a0arises between the model value of\u00a0a financial instrument,\u00a0calculated on\u00a0the basi\u00a0s of\u00a0non-observable input\u00a0and \u00a0
actual cost (day-one profit or\u00a0loss), and the difference is not the result of transaction\u00a0costs, the Group adjusts model parameters to actual cost to take \u00a0
the initial\u00a0margin into account. Accordingly,\u00a0the valuation\u00a0of derivatives\u00a0includes amortisation of\u00a0the value of initial\u00a0margins over the remaining term to \u00a0
maturity. The initial margins relate to elements not covered by\u00a0the above CVA and FVA adjustments,\u00a0such as future administrative\u00a0expenses and capital \u00a0
consumption. At 31\u00a0December 2023,\u00a0the value of\u00a0unamortised initial margins was DKK 1,176 million\u00a0(2022: DKK\u00a01,101 million). \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Unamortised initial margins at\u00a01 January \u00a0
1,101 \u00a0
1,381 \u00a0
Amortised to the income statement during the year \u00a0
-342 \u00a0
-592 \u00a0
Initial margins on new derivatives contracts \u00a0
596 \u00a0
530 \u00a0
Terminated derivatives contracts \u00a0
-179 \u00a0
-218 \u00a0
Unamortised initial\u00a0margins as\u00a0at 31 December \u00a0
1,176 \u00a0
1,101 \u00a0
Observable Non-observable \u00a0
(DKK millions) \u00a0
Quoted prices \u00a0
input \u00a0
input \u00a0
Total \u00a0
31 December 2023 \u00a0
Financial assets \u00a0
Due from credit institutions\u00a0and central banks \u00a0
-
92,985 \u00a0
-
92,985 \u00a0
Derivatives \u00a0
6,723 \u00a0
343,134 \u00a0
1,865 \u00a0
351,722 \u00a0
Interest rate contracts \u00a0
6,723 \u00a0
232,885 \u00a0
1,014 \u00a0
240,621 \u00a0
Currency contracts etc. \u00a0
-
110,250 \u00a0
851 \u00a0
111,101 \u00a0
Trading portfolio bonds \u00a0
168,031 \u00a0
9,532 \u00a0
-
177,563 \u00a0
Trading portfolio shares \u00a0
18,785 \u00a0
-
119 \u00a0
18,904 \u00a0
Investment securities, bonds \u00a0
100,554 \u00a0
27,470 \u00a0
-
128,023 \u00a0
Investment securities, shares \u00a0
-
-
493 \u00a0
493 \u00a0
Loans at fair value \u00a0
-
928,239 \u00a0
-
928,239 \u00a0
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
70,900 \u00a0
-
-
70,900 \u00a0
Assets under insurance contracts, bonds \u00a0
189,297 \u00a0
22,318 \u00a0
2,458 \u00a0
214,073 \u00a0
Danish mortgage bonds \u00a0
92,182 \u00a0
10,865 \u00a0
334 \u00a0
103,381 \u00a0
Other covered bonds \u00a0
97,115 \u00a0
11,453 \u00a0
2,124 \u00a0
110,692 \u00a0
Assets under insurance contracts, shares \u00a0
153,310 \u00a0
5,121 \u00a0
34,755 \u00a0
193,186 \u00a0
Assets under insurance contracts, derivatives \u00a0
141 \u00a0
52,436 \u00a0
911 \u00a0
53,488 \u00a0
Total \u00a0
707,741 \u00a0
1,481,235 \u00a0
40,601 \u00a0
2,229,576 \u00a0
Financial liabilities \u00a0
Due to credit institutions and central banks \u00a0
-
85,548 \u00a0
-
85,548 \u00a0
Derivatives \u00a0
7,360 \u00a0
331,954 \u00a0
1,604 \u00a0
340,918 \u00a0
Interest rate contracts \u00a0
7,360 \u00a0
204,035 \u00a0
803 \u00a0
212,198 \u00a0
Currency contracts etc. \u00a0
-
127,919 \u00a0
801 \u00a0
128,720 \u00a0
Obligations to repurchase securities \u00a0
111,657 \u00a0
1,853 \u00a0
59 \u00a0
113,569 \u00a0
Deposits \u00a0
-
120,213 \u00a0
-
120,213 \u00a0
Issued bonds at fair value \u00a0
748,780 \u00a0
-
-
748,780 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
-
71,253 \u00a0
-
71,253 \u00a0
Total \u00a0
867,797 \u00a0
610,821 \u00a0
1,663 \u00a0
1,480,281 \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
Observable Non-observable \u00a0
(DKK millions) \u00a0
Quoted prices \u00a0
input \u00a0
input \u00a0
Total \u00a0
31 December 2022* \u00a0
Financial assets \u00a0
Due from credit institutions\u00a0and central banks \u00a0
-
38,147 \u00a0
-
38,147 \u00a0
Derivatives \u00a0
6,942 \u00a0
421,917 \u00a0
1,263 \u00a0
430,123 \u00a0
Interest rate contracts \u00a0
6,942 \u00a0
298,988 \u00a0
317 \u00a0
306,248 \u00a0
Currency contracts etc. \u00a0
-
122,929 \u00a0
946 \u00a0
123,875 \u00a0
Trading portfolio\u00a0bonds \u00a0
183,205 \u00a0
17,190 \u00a0
-
200,395 \u00a0
Trading portfolio\u00a0shares \u00a0
8,198 \u00a0
-
83 \u00a0
8,281 \u00a0
Investment securities, bonds \u00a0
97,209 \u00a0
37,454 \u00a0
-
134,663 \u00a0
Investment securities, shares \u00a0
-
-
1,187 \u00a0
1,187 \u00a0
Loans at fair value \u00a0
-
932,677 \u00a0
-
932,677 \u00a0
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
66,739 \u00a0
-
-
66,739 \u00a0
Assets under insurance contracts, bonds \u00a0
188,260 \u00a0
23,834 \u00a0
3,369 \u00a0
215,463 \u00a0
Danish mortgage bonds \u00a0
82,523 \u00a0
13,308 \u00a0
327 \u00a0
96,158 \u00a0
Other covered bonds \u00a0
105,737 \u00a0
10,526 \u00a0
3,042 \u00a0
119,305 \u00a0
Assets under insurance contracts, shares \u00a0
124,338 \u00a0
4,788 \u00a0
47,045 \u00a0
176,171 \u00a0
Assets under insurance contracts, derivatives \u00a0
817 \u00a0
72,406 \u00a0
863 \u00a0
74,086 \u00a0
Total \u00a0
675,708 \u00a0
1,548,413 \u00a0
53,810 \u00a0
2,277,932 \u00a0
Financial liabilities \u00a0
Due to credit institutions and central banks \u00a0
-
52,252 \u00a0
-
52,252 \u00a0
Derivatives \u00a0
4,967 \u00a0
429,138 \u00a0
1,036 \u00a0
435,141 \u00a0
Interest rate contracts \u00a0
4,967 \u00a0
292,552 \u00a0
332 \u00a0
297,852 \u00a0
Currency contracts etc. \u00a0
-
136,585 \u00a0
704 \u00a0
137,289 \u00a0
Obligations to repurchase securities \u00a0
113,830 \u00a0
5,327 \u00a0
23 \u00a0
119,180 \u00a0
Deposits \u00a0
-
97,917 \u00a0
-
97,917 \u00a0
Issued bonds at fair value \u00a0
723,923 \u00a0
-
-
723,923 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
-
66,725 \u00a0
-
66,725 \u00a0
Total \u00a0
842,721 \u00a0
651,358 \u00a0
1,059 \u00a0
1,495,138 \u00a0
* Comparative information has been restated as described in note G2(a) \u00a0
Financial instruments valued on\u00a0the basis\u00a0of non-observable input \u00a0
The tables below shows financial instruments valued on the basis of non-observable input. \u00a0
Sensitivity \u00a0
(change in fair \u00a0
Gains/losses \u00a0
value) \u00a0
for the period \u00a0
(DKK millions) \u00a0
Carrying amount \u00a0
Increase \u00a0
Decrease \u00a0
Realised \u00a0
Unrealised \u00a0
31 December 2023 \u00a0
Unlisted shares \u00a0
allocated to insurance contract policyholders \u00a0
34,755 \u00a0
-
-
472 \u00a0
-522 \u00a0
other \u00a0
553 \u00a0
55 \u00a0
55 \u00a0
352 \u00a0
-160 \u00a0
Illiquid bonds \u00a0
2,458 \u00a0
56 \u00a0
56 \u00a0
2
-152 \u00a0
Derivatives, net\u00a0fair value \u00a0
1,172 \u00a0
-
-
-
234 \u00a0
31 December 2022 \u00a0
Unlisted shares \u00a0
allocated to insurance contract policyholders \u00a0
47,045 \u00a0
-
-
6,423 \u00a0
-706 \u00a0
other \u00a0
1,247 \u00a0
125 \u00a0
125 \u00a0
175 \u00a0
-31 \u00a0
Illiquid bonds \u00a0
3,369 \u00a0
67 \u00a0
67 \u00a0
-128 \u00a0
-61 \u00a0
Derivatives, net\u00a0fair value \u00a0
1,090 \u00a0
-
-
-
-420 \u00a0
For unlisted\u00a0shares allocated to insurance contract policyholders, the policyholders assume most of the risk on the shares. T\u00a0herefore, changes in the fair \u00a0
value of those shares will only to a\u00a0limited extent\u00a0affect the\u00a0Group\u2019s net\u00a0profit. The Group\u2019s remain\u00a0ing portfolio\u00a0of unlisted shares consists primarily of \u00a0
banking-related investments and\u00a0holdings in\u00a0private equity funds.\u00a0The sensitivity\u00a0of the fair value\u00a0measurement to\u00a0changes in\u00a0the uno\u00a0bservable input \u00a0
disclosed in the table is calculated as a 10% increase or 10 % decrease in fair value. Under\u00a0current market conditions, a\u00a010 % decrease in the fair value \u00a0
is considered\u00a0to be below a possible\u00a0alternative estimate of\u00a0the fair value at the end of the period.\u00a0The unrealised adjustments\u00a0in 2023 were attributab\u00a0le \u00a0
to various unlisted\u00a0shares. \u00a0
The estimated fair value of\u00a0illiquid bonds\u00a0depends significantly\u00a0on the estimated credit spre\u00a0ad. In the\u00a0table, the sensitivity\u00a0of the fair value measurement \u00a0
to changes in non-observable\u00a0input is\u00a0calculated as a\u00a050bps widening or\u00a0narrowing of the credit spread. \u00a0
A substantial\u00a0number of derivatives\u00a0valued on the basis of non-observable input are hedged by similar derivatives\u00a0or are used for hedging\u00a0the credit risk \u00a0
on bonds also valued\u00a0on the basis of non-observable\u00a0input. Changing one\u00a0or more of the non-observable\u00a0inputs to\u00a0reflect reasonable,\u00a0possible alternative \u00a0
assumptions would\u00a0not change the fair value of the derivatives\u00a0significantly above what\u00a0is already covered by the reserve rel\u00a0ated to fair value\u00a0adjustment \u00a0
for model risk. \u00a0
Shares, bonds and derivatives valued on the basis of non-observable input \u00a0
Reconciliation from\u00a0beginning to\u00a0end of period \u00a0
2023 \u00a0
2022 \u00a0
(DKK millions) \u00a0
Shares \u00a0
Bonds \u00a0
Derivatives \u00a0
Shares \u00a0
Bonds \u00a0
Derivatives \u00a0
Fair value at 1 January \u00a0
48,292 \u00a0
3,369 \u00a0
1,090 \u00a0
46,573 \u00a0
5,300 \u00a0
2,504 \u00a0
Value adjustment through profit or loss \u00a0
142 \u00a0
-150 \u00a0
234 \u00a0
5,861 \u00a0
-189 \u00a0
-420 \u00a0
Acquisitions \u00a0
3,152 \u00a0
161 \u00a0
-250 \u00a0
20,800 \u00a0
107 \u00a0
186 \u00a0
Sale and redemption \u00a0
-16,278 \u00a0
-922 \u00a0
-272 \u00a0
-24,942 \u00a0
-1,849 \u00a0
-42 \u00a0
Transferred from quoted prices and observable input \u00a0
-
-
295 \u00a0
-
-
-
Transferred to quoted prices and observable input \u00a0
-
-
74 \u00a0
-
-
-1,136 \u00a0
Fair value\u00a0end of period \u00a0
35,308 \u00a0
2,458 \u00a0
1,172 \u00a0
48,292 \u00a0
3,369 \u00a0
1,090 \u00a0
The value adjustment through profit or loss\u00a0is recognised under Net trading\u00a0income or loss. The transfer of derivatives\u00a0to the Observable input category \u00a0
consists primarily\u00a0of maturity\u00a0reductions, implying that the yield curves have become observable. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2588": {
"value": "G1. Basis of preparation\u00a0continued \u00a0
Financial instruments\u00a0and obligations\u00a0under insurance contracts, classification\u00a0and measurement\u00a0end of 2023 \u00a0
Amortised \u00a0
Fair value \u00a0
cost \u00a0
OCI \u00a0
Fair value through profit or loss \u00a0
Held to collect \u00a0
Held to collect \u00a0
and sell \u00a0
assets/ \u00a0
financial \u00a0
Held for\u00a0Managed at\u00a0FVPL due to \u00a0
Interest rate\u00a0Own shares / \u00a0
(DKK billions) \u00a0
Liabilities \u00a0
assets* \u00a0
trading \u00a0
fair value \u00a0
SPPI test\u00a0Designated \u00a0
hedge ** \u00a0
bonds \u00a0
Total \u00a0
Assets \u00a0
Cash in hand and demand \u00a0
deposits with central banks \u00a0
259 \u00a0
-
-
-
-
-
-
-
259 \u00a0
Due from credit institutions\u00a0and \u00a0
central banks \u00a0
22 \u00a0
-
-
93 \u00a0
-
-
-
-
115 \u00a0
Derivatives \u00a0
-
-
346 \u00a0
-
-
-
6
-
352 \u00a0
Bonds \u00a0
155 \u00a0
107 \u00a0
178 \u00a0
21 \u00a0
-
-
-
-
461 \u00a0
Shares \u00a0
-
-
19 \u00a0
-
-
-
-
-
19 \u00a0
Loans *** \u00a0
919 \u00a0
-
-
175 \u00a0
753 \u00a0
-
-1 \u00a0
-
1,847 \u00a0
Assets under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
43 \u00a0
-
-
-
28 \u00a0
71 \u00a0
Assets under insurance \u00a0
contracts \u00a0
-
-
-
460 \u00a0
-
-
-
1
461 \u00a0
Total financial assets, \u00a0
1,356 \u00a0
107 \u00a0
542 \u00a0
792 \u00a0
753 \u00a0
-
6
29 \u00a0
3,585 \u00a0
31 December\u00a02023 \u00a0
Total financial assets, \u00a0
1,433 \u00a0
116 \u00a0
635 \u00a0
771 \u00a0
724 \u00a0
-
3
28 \u00a0
3,710 \u00a0
31 December\u00a02022**** \u00a0
Liabilities \u00a0
Due to credit institutions and \u00a0
central banks \u00a0
69 \u00a0
-
-
-
-
86 \u00a0
-
-
155 \u00a0
Trading portfolio liabilities \u00a0
-
-
442 \u00a0
-
-
-
13 \u00a0
-
454 \u00a0
Deposits *** \u00a0
1,102 \u00a0
-
-
-
-
120 \u00a0
-
-
1,222 \u00a0
Issued bonds at fair value \u00a0
-
-
-
-
-
749 \u00a0
-
-
749 \u00a0
Issued bonds at amortised cost \u00a0
*** \u00a0
219 \u00a0
-
-
-
-
-
-5 \u00a0
-
214 \u00a0
Deposits under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
-
-
71 \u00a0
-
-
71 \u00a0
Liabilities under insurance \u00a0
contracts ***** \u00a0
-
-
-
-
-
483 \u00a0
-
-
483 \u00a0
Non-preferred senior bonds \u00a0
96 \u00a0
-
-
-
-
-
-3 \u00a0
-
93 \u00a0
Subordinated debt \u00a0
39 \u00a0
-
-
-
-
-
-
-
39 \u00a0
Loan commitments\u00a0and \u00a0
guarantees \u00a0
3
-
-
-
-
-
-
-
3
Total financial liabilities, \u00a0
1,528 \u00a0
-
442 \u00a0
-
-
1,508 \u00a0
5
-
3,483 \u00a0
31 December\u00a02023 \u00a0
Total financial liabilities, \u00a0
1,599 \u00a0
-
533 \u00a0
-
-
1,402 \u00a0
-
27 \u00a0
3,562 \u00a0
31 December\u00a02022**** \u00a0
* Unrealised fair value gains and losses are presented in Other comprehensive income, and realised fair value gains and losses are recycled to the income statement . \u00a0
**The interest rate risk on some fixed-rate financial assets and liabilities is hedged by derivatives (fair value hedging). The interest rate risk on some fixed-rate bonds 'hold to collect and sell' \u00a0
is also hedged by derivatives. The fair value represents changes in the fair value of the interest rate risk on the hedged items, i.e. not a full fair value of the hedged items. \u00a0
*** Loans (amortised cost), Deposits (amortised cost) and Issued bonds at amortised cost include Assets held for sale and Liabilities i n disposal groups held for sale which are measured in \u00a0
accordance with\u00a0IFRS 9. These are presented separately on the Balance sheet. \u00a0
**** Comparative information has been restated, as described in note G2(a). \u00a0
***** Liabilities under insurance contracts comprise the liability for remaining coverage and liability for incurred claims, which includes estimates of present value of future cash flows, risk \u00a0
adjustment for non-financial\u00a0risk and contractual service margin. \u00a0
.
G16. Loans and issued bonds at fair value \u00a0
The Group has two types of portfolios of loans and issued bonds that are measured at fair value through profit or loss. The f irst portfolio consists of loans \u00a0
granted and bonds issued by the subsidiary Realkredit Danmark,\u00a0a Danish mortgage institution\u00a0cover ed\u00a0by Danish mortgage finance law. The other portfolio \u00a0
consists of loans and bonds issued by the Group\u2019s trading units (Markets and Investment Banking\u00a0& Securities in LC&I). \u00a0
Accounting policy \u00a0
Loans granted and bonds issued by Realkredit\u00a0Danmark \u00a0
Loans granted by Realkredit\u00a0Danmark have contractual cash\u00a0flows that are not solely payment of principal and interest on the principal amount \u00a0
outstanding. Therefore,\u00a0the loans are\u00a0mandatorily recognised at\u00a0fair value\u00a0through profit\u00a0or loss. The issued bonds that are\u00a0funding the loans are \u00a0
designated at\u00a0fair value through profit or loss in order not to create an accounting\u00a0mismatch. For\u00a0the issued bonds, changes in fair value attributable\u00a0to \u00a0
the Group\u2019s own credit risk is presented in the income\u00a0statement, as\u00a0an accounting\u00a0mismatch would otherwise be introduced. \u00a0
The fair value of the bonds issued by Realkredit Danmark is normally defined as their quoted market price. A small number of the issued bonds are \u00a0
illiquid, however, and\u00a0the fair value\u00a0of these bonds is calculated\u00a0on the basis of a discounted\u00a0cash flow valuation technique. The fair value of the loans is \u00a0
based on the fair value of the underlying\u00a0bonds which ensures that changes in the fair value of the interest rate risk on the loans are measured based \u00a0
on market implied\u00a0input. This fair value is adjusted for changes in the fair value of cash flows from the loans that differ from the cash flows from the \u00a0
issued bonds. The most important\u00a0component is\u00a0the credit risk on the borrowers (covered by the Group and\u00a0not by\u00a0the bond holders and therefore not \u00a0
priced into the price of the issued bonds). \u00a0
Changes in fair value of credit risk etc on the loans \u00a0
The IFRS 13 estimate\u00a0of the fair value of the credit risk on the loans is based on the expected credit losses estimated in the models developed in \u00a0
connection with the Group\u2019s implementation\u00a0of the expected\u00a0credit loss impairment model in IFRS 9, including\u00a0the allocation o\u00a0f loans\u00a0between stage 1, \u00a0
stage 2 and stage 3. The expected credit losses are calculated for all loans as a function of PD, EAD and LGD and incorporates forward looking \u00a0
information, see\u00a0further in note G15. The latter reflects management\u2019s expectations of\u00a0expected credit\u00a0losses and\u00a0involves multiple scenarios (base \u00a0
case, upside\u00a0and downside),\u00a0including an\u00a0assessment of\u00a0the probability\u00a0for each scenario. \u00a0
On top of the expected\u00a0credit losses, a collective\u00a0assessment determines\u00a0the need for further adjustments\u00a0to reflect other components\u00a0in the fair value \u00a0
measurement, such as an assessment of lifetime\u00a0expected credit\u00a0losses for\u00a0loans in\u00a0stage 1, an investors risk premium, compensation for \u00a0
administrative costs\u00a0related to the loans and the possibility\u00a0to increase the margin on the loans if the credit risk etc increases. It is acknowledged that \u00a0
the possibility to\u00a0increase the margin depends on the economic resources of the customers.\u00a0The possibility\u00a0to increase the margin is therefore only \u00a0
considered in\u00a0the measurement if it is very likely that the margin can be increased without\u00a0the customer defaulting. Further,\u00a0the possibility\u00a0to increase \u00a0
the margin is only relevant if it does not give the customer an incentive to \u201cmove\u201d to another mortgage institution.\u00a0Therefore, the possibility\u00a0to increase \u00a0
the margin is only relevant for the measurement of loans to customers with neither a relatively\u00a0high credit risk nor a relati\u00a0vely low\u00a0credit risk. \u00a0
The discount rate used to discount the cash flows represents the interest rate on the funding bonds. This is considered to be close to a risk-free interes\u00a0t \u00a0
rate. The risk premium is incorporated into the cash\u00a0flows. The risk premium is assumed to be higher for customers with high credit risk than for \u00a0
customers with low credit risk. Further, the adjustments\u00a0for changes in the fair value\u00a0of the credit risk and other components\u00a0cannot increase the value \u00a0
of a loan\u00a0(the adjustment\u00a0cannot be positive). \u00a0
Other loans and\u00a0issued bonds measured at fair value through profit or loss \u00a0
The loans in the Group\u2019s trading units (Markets and Investment Banking & Securities in LC&I) are managed and their performance reported on a fair \u00a0
value basis and the loans are under IFRS 9 mandatorily\u00a0measured at fair value\u00a0through profit or loss. In order not to introduce\u00a0an accounting mismatc\u00a0h \u00a0
by measuring the financial assets in the trading units at\u00a0fair value through profit or loss and the financial liabilities\u00a0at amortised cost, the\u00a0financia l \u00a0
liabilities in\u00a0the trading units are designated at\u00a0fair value through profit or\u00a0loss with fair value changes attributable\u00a0to the Group\u2019s own credit risk \u00a0
presented in\u00a0other comprehensive income. \u00a0
G16. Loans and issued bonds at fair value continued \u00a0
(a) Loans at fair value \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Loans granted by Realkredit Danmark: \u00a0
Nominal value \u00a0
806,157 \u00a0
802,025 \u00a0
Fair value adjustment of underlying bonds \u00a0
-49,874 \u00a0
-74,724 \u00a0
Adjustment for\u00a0credit risk \u00a0
3,006 \u00a0
3,250 \u00a0
Fair value\u00a0of loans granted by Realkredit\u00a0Danmark \u00a0
753,277 \u00a0
724,051 \u00a0
Loans in the Group's trading units: \u00a0
Reverse transactions \u00a0
174,963 \u00a0
208,626 \u00a0
Other loans \u00a0
-
-
Total \u00a0
928,239 \u00a0
932,677 \u00a0
(b) Issued bonds at fair\u00a0value \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Bonds issued by Realkredit Danmark: \u00a0
Nominal value \u00a0
848,774 \u00a0
840,922 \u00a0
Fair value adjustment of funding of current loans \u00a0
-49,874 \u00a0
-74,735 \u00a0
Holding of own mortgage bonds \u00a0
57,837 \u00a0
54,414 \u00a0
Fair value\u00a0of bonds issued by Realkredit\u00a0Danmark \u00a0
741,062 \u00a0
711,773 \u00a0
Bonds issued by the Group's trading units: \u00a0
Commercial papers and certificates of deposit \u00a0
7,718 \u00a0
12,150 \u00a0
Total \u00a0
748,780 \u00a0
723,923 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
(c) Further explanation on loans granted and bonds issued by Realkredit Danmark \u00a0
Each loan granted by Realkredit Danmark\u00a0is funded by issuing listed mortgage bonds with matching characteristics (e.g.\u00a0amount outstanding, reference \u00a0
interest rate, term and currency). The borrower may repay the loan by delivering the underlying bonds to Realkredit Danmark. \u00a0
The loans are held in a business model being similar to other loans in the Group\u2019s banking units, i.e. the business model under IFRS 9 is \u2018held to collect\u2019. The \u00a0
customers\u2019 right to prepay a loan by delivering the underlying\u00a0bonds represents an option to prepay at fair value. Under this prepayment option, the prepayment \u00a0
amount can be both\u00a0above and below the principal amount plus accrued interest.\u00a0Changes in the fair value of the underlying bonds include other elements \u00a0
than the effect of changes in the relevant benchmark interest rate and the prepayment option is therefore not consistent with the SPPI test in IFRS 9 and are \u00a0
mandatorily measured at FVPL. \u00a0
To eliminate the accounting mismatch that would exist if the loans are measured at fair value through profit or loss and the issued bonds at amortised cost, \u00a0
the issued bonds are designated at fair value through profit or loss using the fair value option fo\u00a0r financial liabilities\u00a0in IFRS 9. As the fair value of the loans\u00a0is \u00a0
based on the fair value of the issued bonds, fair value changes of the issued bonds are offset by fair value changes of the loans, including the changes related \u00a0
to the fair value of the own credit risk of the issued bonds. For example, if the credit quality of the bonds worsens the fair value of the liability decreases and \u00a0
the fair value of the loans also decreases. Therefore, fair value changes of own credit risk on the issued bonds are recognised in the income statement, as an \u00a0
accounting mismatch\u00a0would otherwise be created if changes in own credit risk were recognised in other comprehensive income. \u00a0
The value of the loans is affected by changes in the credit risk on the loans. In 2023, the Group recognised DKK -109 million\u00a0regarding changes in the credit \u00a0
risk on loans at fair value\u00a0(2022: DKK\u00a015 million) see note G11. At the end of 2023, the accumulated changes in the credit risk amounted to DKK 3,006 \u00a0
million (2022: DKK 3,250 million). The amounts are determined as the amount of the change in fair value that is not attributable\u00a0to changes\u00a0in market \u00a0
conditions that give rise\u00a0to market risk, with the latter being represented by the fair value of the funding issuedbonds. Th e Group does not use credit derivative s \u00a0
or similar instruments to mitigate the exposure to credit risk. \u00a0
The holding of own mortgage bonds includes pre-issued bonds of DKK 31 billion (2022: DKK\u00a029 billion)\u00a0used for FlexL\u00e5n\u00ae refinancing in January\u00a02024. \u00a0
The nominal\u00a0value of bonds issued by Realkredit Danmark equals the amount to be redeemed on maturity. \u00a0
G16. Loans and issued bonds at fair value continued \u00a0
Fair value adjustment for the credit risk on issued mortgage bonds is calculated on the basis of the option-adjusted spread (OAS). The calculation incorporates \u00a0
maturity, nominal holdings and OAS sensitivity. As a number of estimates are made, the calculation is subject to uncertainty. \u00a0
In 2023, the Danish mortgage bond yield spread increased and the fair value of issued mortgage bonds thus decreased by approx\u00a0imately DKK 6.6\u00a0billion. In \u00a0
2022, the Danish mortgage bond yield spread narrowed, causing an increase in the fair value of issued mortgage bonds. Based o n the outstanding\u00a0portfolio \u00a0
at the end of 2023, Realkredit Danmark estimates that there has been a net narrowing of the spread since the issuance of the bonds, which produces a \u00a0
negative fair value of approximately DKK 0.05 billion (2022: positive fair value of approximately DKK 0.3 billion). Net profit and shareholders\u2019 equity remain \u00a0
unaffected by the\u00a0change in fair value because the spread narrowing increased the value of mortgage loans correspondingly. \u00a0
Fair value adjustment for the credit risk on issued mortgage bonds may also be calculated on the basis of\u00a0changes in similar\u00a0AAA rated mortgage bonds \u00a0
offered by\u00a0other Danish issuers.\u00a0The market for\u00a0such bonds is characterised by an absence of measurable price differences bet\u00a0ween bonds with similar \u00a0
features from different issuers. Using this method, no fair value adjustment for credit risk in 2023 or the period since the issue has been required. \u00a0
(d) Further explanation on loans, deposits and issued bonds by the Group\u2019s trading units \u00a0
The loans in the Group\u2019s trading units (Markets and\u00a0Investment Banking &\u00a0Securities in LC&I) are managed and their performance reported on a fair value \u00a0
basis. The loans are mandatorily recognised at fair value through profit or loss as the business model is neither \u2018held to collect\u2019 nor \u2018held to c ollect and sell\u2019. \u00a0
The loans consist primarily of reverse transactions and short-term loans. In order not to introduce an accounting mismatch, the financial liabilities in the \u00a0
trading units are designated at fair value through profit or loss, using the fair value option in IFRS 9. \u00a0
The financial liabilities consist of issued bonds (certificates of deposits and commercial papers) and deposits (including re po transactions) with a maturity no \u00a0
longer than six months in general. Fair value changes attributable to the Group\u2019s own credit risk are presented in other comprehensive income. During 2023, \u00a0
changes in fair value attributable to the Group\u2019s\u00a0own credit risk recognised in Other Comprehensive\u00a0Income amounted to DKK 0 million (2022: DKK 0 million). \u00a0
In the balance sheet, deposits in the trading units are presented together with other deposits. The amount that the Group would be contractually required to \u00a0
pay at maturity amounts to DKK 8,066 million (2022: DKK 12,636 million) for bonds issued by the Group\u2019s trading units. \u00a0
G20. Due to credit institutions and central banks and Deposits \u00a0
Amounts due to credit institutions\u00a0and central banks\u00a0and Deposits\u00a0also include amounts received under repo transactions (sales of securities which the \u00a0
Group agrees to repurchase at a later date). Such transactions are presented as collateralised borrowings. \u00a0
Accounting policy \u00a0
Amounts due to credit institutions\u00a0and central banks and Deposits in the Group\u2019s trading units\u00a0(Markets and Investment Banking\u00a0& Securities\u00a0in LC&I) \u00a0
are designated at fair value through profit or loss. However, the amount of the change in fair value attributable\u00a0to the Group\u2019s own credit risk is \u00a0
recognised in other comprehensive\u00a0income. \u00a0
All other\u00a0balances are measured at amortised\u00a0cost. If fixed-rate\u00a0deposits are hedged effectively by derivatives,\u00a0the fair value\u00a0of the hedged interest rate \u00a0
risk is added to the amortised cost of the liabilities. \u00a0
(a) Due to credit institutions\u00a0and central banks (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Designated at\u00a0fair value: \u00a0
Repo transactions \u00a0
80,108 \u00a0
47,618 \u00a0
Other amounts due \u00a0
5,440 \u00a0
4,634 \u00a0
Total designated at\u00a0fair value \u00a0
85,548 \u00a0
52,252 \u00a0
Amortised cost: \u00a0
Repo transactions \u00a0
3,727 \u00a0
-
Other amounts due \u00a0
65,333 \u00a0
86,525 \u00a0
Total amortised cost \u00a0
69,060 \u00a0
86,525 \u00a0
Total \u00a0
154,608 \u00a0
138,777 \u00a0
(b) Deposits (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Designated at\u00a0fair value: \u00a0
Repo transactions \u00a0
113,306 \u00a0
90,168 \u00a0
Time deposits \u00a0
6,907 \u00a0
7,749 \u00a0
Total designated at\u00a0fair value \u00a0
120,213 \u00a0
97,917 \u00a0
Amortised cost: \u00a0
Repo transactions \u00a0
-
134 \u00a0
Transaction accounts \u00a0
930,083 \u00a0
1,023,795 \u00a0
Time deposits \u00a0
158,222 \u00a0
124,872 \u00a0
Pension savings\u00a0etc. \u00a0
13,685 \u00a0
15,574 \u00a0
Total amortised cost \u00a0
1,101,990 \u00a0
1,164,375 \u00a0
Total \u00a0
1,222,203 \u00a0
1,262,293 \u00a0
(c) Further explanation\u00a0on balances\u00a0designated at\u00a0fair value\u00a0through profit\u00a0or loss \u00a0
Any changes in the fair value that is attributable\u00a0to changes in the Group\u2019s own credit risk of the liabilities are recognised in other comprehensive income. As \u00a0
the deposits are collateralised and/or with a short maturity, no change in the fair value is attributable\u00a0to changes in the Group\u2019s own credit risk.\u00a0The amount \u00a0
that the\u00a0Group would be contractually required to pay at maturity amounts to DKK 85.5 billion (2022: DKK 52.3 billion) for Due to credit institutions\u00a0and \u00a0
central banks\u00a0and DKK\u00a0120.2 billion (2022: DKK 97.9 billion) for Deposits. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2589": {
"value": "G1. Basis of preparation\u00a0continued \u00a0
Financial instruments\u00a0and obligations\u00a0under insurance contracts, classification\u00a0and measurement\u00a0end of 2023 \u00a0
Amortised \u00a0
Fair value \u00a0
cost \u00a0
OCI \u00a0
Fair value through profit or loss \u00a0
Held to collect \u00a0
Held to collect \u00a0
and sell \u00a0
assets/ \u00a0
financial \u00a0
Held for\u00a0Managed at\u00a0FVPL due to \u00a0
Interest rate\u00a0Own shares / \u00a0
(DKK billions) \u00a0
Liabilities \u00a0
assets* \u00a0
trading \u00a0
fair value \u00a0
SPPI test\u00a0Designated \u00a0
hedge ** \u00a0
bonds \u00a0
Total \u00a0
Assets \u00a0
Cash in hand and demand \u00a0
deposits with central banks \u00a0
259 \u00a0
-
-
-
-
-
-
-
259 \u00a0
Due from credit institutions\u00a0and \u00a0
central banks \u00a0
22 \u00a0
-
-
93 \u00a0
-
-
-
-
115 \u00a0
Derivatives \u00a0
-
-
346 \u00a0
-
-
-
6
-
352 \u00a0
Bonds \u00a0
155 \u00a0
107 \u00a0
178 \u00a0
21 \u00a0
-
-
-
-
461 \u00a0
Shares \u00a0
-
-
19 \u00a0
-
-
-
-
-
19 \u00a0
Loans *** \u00a0
919 \u00a0
-
-
175 \u00a0
753 \u00a0
-
-1 \u00a0
-
1,847 \u00a0
Assets under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
43 \u00a0
-
-
-
28 \u00a0
71 \u00a0
Assets under insurance \u00a0
contracts \u00a0
-
-
-
460 \u00a0
-
-
-
1
461 \u00a0
Total financial assets, \u00a0
1,356 \u00a0
107 \u00a0
542 \u00a0
792 \u00a0
753 \u00a0
-
6
29 \u00a0
3,585 \u00a0
31 December\u00a02023 \u00a0
Total financial assets, \u00a0
1,433 \u00a0
116 \u00a0
635 \u00a0
771 \u00a0
724 \u00a0
-
3
28 \u00a0
3,710 \u00a0
31 December\u00a02022**** \u00a0
Liabilities \u00a0
Due to credit institutions and \u00a0
central banks \u00a0
69 \u00a0
-
-
-
-
86 \u00a0
-
-
155 \u00a0
Trading portfolio liabilities \u00a0
-
-
442 \u00a0
-
-
-
13 \u00a0
-
454 \u00a0
Deposits *** \u00a0
1,102 \u00a0
-
-
-
-
120 \u00a0
-
-
1,222 \u00a0
Issued bonds at fair value \u00a0
-
-
-
-
-
749 \u00a0
-
-
749 \u00a0
Issued bonds at amortised cost \u00a0
*** \u00a0
219 \u00a0
-
-
-
-
-
-5 \u00a0
-
214 \u00a0
Deposits under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
-
-
71 \u00a0
-
-
71 \u00a0
Liabilities under insurance \u00a0
contracts ***** \u00a0
-
-
-
-
-
483 \u00a0
-
-
483 \u00a0
Non-preferred senior bonds \u00a0
96 \u00a0
-
-
-
-
-
-3 \u00a0
-
93 \u00a0
Subordinated debt \u00a0
39 \u00a0
-
-
-
-
-
-
-
39 \u00a0
Loan commitments\u00a0and \u00a0
guarantees \u00a0
3
-
-
-
-
-
-
-
3
Total financial liabilities, \u00a0
1,528 \u00a0
-
442 \u00a0
-
-
1,508 \u00a0
5
-
3,483 \u00a0
31 December\u00a02023 \u00a0
Total financial liabilities, \u00a0
1,599 \u00a0
-
533 \u00a0
-
-
1,402 \u00a0
-
27 \u00a0
3,562 \u00a0
31 December\u00a02022**** \u00a0
* Unrealised fair value gains and losses are presented in Other comprehensive income, and realised fair value gains and losses are recycled to the income statement . \u00a0
**The interest rate risk on some fixed-rate financial assets and liabilities is hedged by derivatives (fair value hedging). The interest rate risk on some fixed-rate bonds 'hold to collect and sell' \u00a0
is also hedged by derivatives. The fair value represents changes in the fair value of the interest rate risk on the hedged items, i.e. not a full fair value of the hedged items. \u00a0
*** Loans (amortised cost), Deposits (amortised cost) and Issued bonds at amortised cost include Assets held for sale and Liabilities i n disposal groups held for sale which are measured in \u00a0
accordance with\u00a0IFRS 9. These are presented separately on the Balance sheet. \u00a0
**** Comparative information has been restated, as described in note G2(a). \u00a0
***** Liabilities under insurance contracts comprise the liability for remaining coverage and liability for incurred claims, which includes estimates of present value of future cash flows, risk \u00a0
adjustment for non-financial\u00a0risk and contractual service margin. \u00a0
.
G12. Trading portfolio assets and liabilities \u00a0
Trading portfolio assets\u00a0comprise the equities\u00a0and bonds\u00a0held by\u00a0the Group\u2019s trading units at\u00a0Large Corporates & Institutions\u00a0and all\u00a0derivatives with \u00a0
positive fair\u00a0value. Trading portfolio liabilities\u00a0consist of derivatives\u00a0with negative\u00a0fair value and obligations\u00a0to deliver securities (obligations to repurchase \u00a0
securities). \u00a0
Accounting policy \u00a0
The trading\u00a0portfolio is recognised at fair value\u00a0through profit\u00a0or loss. Realised and unrealised\u00a0capital gains and losses and dividends\u00a0are recognised in \u00a0
the income statement\u00a0under Net trading\u00a0income or loss. Fair value\u00a0is the\u00a0amount for which a financial asset can be sold or a financial liability\u00a0be \u00a0
transferred to a knowledgeable,\u00a0willing third\u00a0party. Note G33 provides information\u00a0about fair value measurement and fair value adjustments. \u00a0
The Group uses the option in IFRS 9 to continue using the fair value hedge accounting model in IAS 39.\u00a0The derivatives used\u00a0as hedging instruments \u00a0
are presented\u00a0in the balance sheet together with other derivatives. \u00a0
(a) Trading portfolio assets (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Derivatives with\u00a0positive fair value \u00a0
351,722 \u00a0
430,123 \u00a0
Listed bonds \u00a0
177,563 \u00a0
200,395 \u00a0
Listed shares \u00a0
18,785 \u00a0
8,198 \u00a0
Unlisted shares \u00a0
119 \u00a0
83 \u00a0
Total \u00a0
548,189 \u00a0
638,799 \u00a0
(b) Trading portfolio liabilities\u00a0(DKK millions) \u00a0
Derivatives with\u00a0negative fair value \u00a0
340,918 \u00a0
435,141 \u00a0
Obligations to repurchase securities \u00a0
113,569 \u00a0
119,180 \u00a0
Total \u00a0
454,487 \u00a0
554,321 \u00a0
G12. Trading portfolio assets and liabilities continued \u00a0
(c) Explanation of derivatives \u00a0
The Group\u2019s activities in\u00a0the financial markets include trading in derivatives.\u00a0Derivatives are\u00a0financial instruments\u00a0whose value depends on the value of \u00a0
an underlying\u00a0instrument or index etc. Derivatives\u00a0can be used to manage market risk exposure, for example.\u00a0The Group trades a considerable\u00a0volume of \u00a0
the most commonly used interest rate, currency and\u00a0equity derivatives,\u00a0including \u00a0
\u2022
swaps \u00a0
\u2022
forwards and\u00a0futures \u00a0
\u2022
options \u00a0
The Group trades a\u00a0limited number of swaps\u00a0whose value depends on\u00a0developments in\u00a0specific credit or commodity\u00a0risks, or inflation\u00a0indices. \u00a0
The Group trades derivatives\u00a0as part of servicing\u00a0customers\u2019 needs as individual\u00a0transactions or as\u00a0integral parts of other services, such as the issuance \u00a0
of bonds with yields\u00a0that depend on developments\u00a0in equity\u00a0or currency indices. The Group also uses derivatives\u00a0to manage the Group\u2019s own exposure\u00a0to \u00a0
foreign exchange, interest rate, equity market and credit risks. Note G40 provide\u00a0additional information about\u00a0the Group\u2019s risk management policy.\u00a0Large \u00a0
Corporates &\u00a0Institutions is\u00a0responsible for\u00a0the day-to-day management and hedging of the Group\u2019s market risks. \u00a0
Derivatives are\u00a0recognised and measured at fair\u00a0value. Some of the Group\u2019s loans, deposits, issued bonds, etc. in the Group\u2019s banking units\u00a0and Group \u00a0
Treasury carry\u00a0fixed rates. Generally,\u00a0such fixed-rate items are recognised\u00a0at amortised\u00a0cost. Further,\u00a0the Group\u00a0classifies certain bonds as \u2018hold to \u00a0
collect and sell\u2019 financial assets. Unrealised value adjustments\u00a0of such bonds are recognised under Other comprehensive\u00a0income. The Group uses fair \u00a0
value hedge accounting\u00a0if the interest rate risk on fixed-rate financial assets and liabilities\u00a0or bonds measured at\u00a0fair value through other comprehensive \u00a0
income is hedged by derivatives. \u00a0
Derivatives \u00a0
2023 \u00a0
2022 \u00a0
Notional \u00a0
Positive \u00a0
Negative \u00a0
Notional \u00a0
Positive \u00a0
Negative \u00a0
(DKK millions) \u00a0
amount \u00a0
fair value \u00a0
fair value \u00a0
amount \u00a0
fair value \u00a0
fair value \u00a0
Currency contracts \u00a0
Forwards and swaps \u00a0
7,296,753 \u00a0
109,089 \u00a0
126,236 \u00a0
7,214,105 \u00a0
121,850 \u00a0
135,218 \u00a0
Options \u00a0
241,234 \u00a0
1,180 \u00a0
1,411 \u00a0
153,739 \u00a0
989 \u00a0
1,247 \u00a0
Interest rate contracts \u00a0
Forwards/swaps/FRAs \u00a0
26,216,460 \u00a0
193,870 \u00a0
161,656 \u00a0
27,145,285 \u00a0
243,706 \u00a0
215,787 \u00a0
Options \u00a0
3,163,676 \u00a0
35,177 \u00a0
31,289 \u00a0
3,480,220 \u00a0
54,471 \u00a0
54,875 \u00a0
Equity contracts \u00a0
Forwards \u00a0
216,008 \u00a0
3,122 \u00a0
3,846 \u00a0
217,605 \u00a0
2,619 \u00a0
3,341 \u00a0
Options \u00a0
227,452 \u00a0
2,980 \u00a0
3,462 \u00a0
124,041 \u00a0
2,964 \u00a0
3,144 \u00a0
Other contracts \u00a0
Commodity contracts \u00a0
-
-
-
28 \u00a0
-
-
Credit derivatives bought \u00a0
438 \u00a0
-
96 \u00a0
1,429 \u00a0
97 \u00a0
48 \u00a0
Credit derivatives sold \u00a0
696 \u00a0
96 \u00a0
-29 \u00a0
1,626 \u00a0
48 \u00a0
105 \u00a0
Total derivatives\u00a0held for trading purposes \u00a0
-
345,515 \u00a0
327,968 \u00a0
-
426,743 \u00a0
413,764 \u00a0
Hedging derivatives \u00a0
Currency contracts \u00a0
1,839 \u00a0
6
92 \u00a0
1,956 \u00a0
9
119 \u00a0
Interest rate contracts \u00a0
537,923 \u00a0
6,201 \u00a0
12,858 \u00a0
513,852 \u00a0
3,371 \u00a0
21,258 \u00a0
Total derivatives \u00a0
351,722 \u00a0
340,918 \u00a0
430,123 \u00a0
435,141 \u00a0
Positive and negative fair\u00a0values of\u00a0derivatives are\u00a0offset if certain\u00a0criteria are fulfilled. Note G32 provides more information. \u00a0
G12. Trading portfolio assets and liabilities continued \u00a0
(d) Explanation of hedge accounting \u00a0
An overview over the risks the Group is exposed to and how they are defined is provided on the first page of note G40. For some of those risks hedge \u00a0
accounting is\u00a0applied. The Group uses fair\u00a0value hedge accounting for\u00a0hedges of interest rate risk. Further, the Group hedges part of the foreign currency \u00a0
risk on net investment\u00a0in foreign entities. \u00a0
Hedge of interest rate risk \u00a0
The Group manages the fixed interest rate risk on\u00a0financial assets and liabilities\u00a0measured at amortised cost as a combination\u00a0of economic hedges \u00a0
(matching of interest rate risk from assets and liabilities\u00a0at amortised cost across the Group\u2019s banking units) and hedges using interest rate swaps. \u00a0
Group Treasury is\u00a0responsible for the risk management of the interest rate risk (the so-called interest rate risk in the banking\u00a0book). In\u00a0the risk \u00a0
management process,\u00a0economic hedges are established\u00a0and/or identified.\u00a0This includes the\u00a0acquisition of\u00a0\u2018hold to collect\u2019 fixed interest\u00a0rate bonds in \u00a0
Group Treasury and\u00a0the identification\u00a0of fixed-rate loans extended by the Group\u2019s banking units to\u00a0hedge the fixed interest rate risk on liabilities\u00a0(including \u00a0
core demand deposits). Interest rate risk on fixed-rate liabilities\u00a0(such as long\u00a0dated funding via bond issuance) is generally hedged by interest rate swaps \u00a0
and the interest rate risk on certain fixed-rate assets can be hedged using derivatives\u00a0as well. For further information\u00a0see the\u00a0sections Market risk\u00a0in \u00a0
relation to non-trading portfolios at Group Treasury and Interest rate risk in the banking book (IRRBB) in G40. \u00a0
When the Group uses swaps to hedge the fixed interest rate risk on financial instruments,\u00a0the Group applies fair\u00a0value hedge accounting using the\u00a0optio n \u00a0
in IFRS 9 to continue\u00a0to apply\u00a0the fair value\u00a0hedge accounting\u00a0provisions in\u00a0IAS 39. Fair value hedge accounting can\u00a0be applied if changes in the fair value \u00a0
of the hedging swaps are expected to be effective in offsetting changes in the fair value of the hedged fixed interest rate risk. This requires (1) a\u00a0formal \u00a0
designation and documentation\u00a0of the hedging\u00a0relationship, including a\u00a0risk management objective and strategy for the hedge, (2)\u00a0that the hedge is \u00a0
expected to be highly effective in achieving\u00a0offsetting changes in fair value of the hedged interest rate risk, (3) the effectiveness of the hedge can be reliably \u00a0
measured and (4) the hedge on an ongoing basis has proven to be effective in actually offsetting of changes in fair value. With effective hedging, the hedged \u00a0
interest rate\u00a0risk on hedged assets and liabilities\u00a0is measured at fair value\u00a0and recognised as a value adjustment\u00a0of the hedged items. Value\u00a0adjustments \u00a0
on the hedged item and the hedging swaps are presented in the income statement\u00a0under Net trading\u00a0income or\u00a0loss. Any ineffective portion of a\u00a0hedge \u00a0
that lies within the range for effective hedging\u00a0is therefore also included under Net trading income or loss. \u00a0
The interest rate is considered fixed\u00a0if the interest rate resets to a reference rate with a term longer than three months. Once a financial instrument\u00a0has \u00a0
been designated\u00a0as a hedged item it will remain as hedged item for the life of the instrument.\u00a0For hedged assets and liabilities\u00a0to which a fixed rate of \u00a0
interest applies for\u00a0a specified period of time\u00a0starting at the commencement date of the agreement, future interest payments are split into basis interes\u00a0t \u00a0
and a customer margin and into periods of time. By entering into swaps or forwards with matching payment profiles in the same currencies and for the \u00a0
same periods, the Group hedges the risk at portfolio level from the commencement date of the hedged items. The fair values of the hedged interest rate \u00a0
risk and\u00a0the hedging derivatives\u00a0to ensure that changes\u00a0in the fair value of the hedged interest\u00a0rate risk lie within a band of 80-125% of the changes in \u00a0
the fair value\u00a0of the hedging derivatives.\u00a0Portfolios of\u00a0hedging derivatives\u00a0are adjusted if\u00a0necessary. \u00a0
The primary reasons\u00a0for changes in\u00a0the fair value of fixed interest rate financial assets are changes in the interest rate risk and the credit risk. \u00a0
Hedge ineffectiveness relates to the fact that fair value changes on the hedged items are\u00a0measured based on the interest rate curve relevant for each \u00a0
hedged item while the fair value of the fixed legs of the hedging derivatives\u00a0are measured based on a swap curve. Further, the adjustment\u00a0of the portfolio s \u00a0
of hedging derivatives\u00a0to changes in hedged positions is not done instantly,\u00a0and some hedge ineffectiveness\u00a0can therefore\u00a0exist. \u00a0
The Interest Rate Benchmark Reform is progressively replacing inter-bank offered\u00a0rates (IBORs) with alternative\u00a0risk-free rates. The Group had \u00a0
established an IBOR Transition\u00a0Programme, the main objectives\u00a0being to\u00a0identify how the IBOR transition would affect the Group financially and \u00a0
operationally, and\u00a0to identify how\u00a0cessation of IBOR publications\u00a0would affect the Group\u2019s\u00a0ability to service its customer base. The IBOR Transitio\u00a0n \u00a0
programme has achieved its aims and\u00a0will be\u00a0wound down during\u00a0the first\u00a0quarter of\u00a02024. Interest rate developments\u00a0are continuously\u00a0monitored, and \u00a0
any future introduction\u00a0of new risk-free rates will be managed and resourced as required. \u00a0
As at 31 December\u00a02023, there are no derivatives\u00a0that are yet to transition to alternative\u00a0benchmark rates (31\u00a0December 2022: DKK 2,738 million). \u00a0
G12. Trading portfolio assets and liabilities continued \u00a0
The tables below show the hedging derivatives\u00a0and the hedged fixed interest rate financial instruments. \u00a0
Changes in fair value \u00a0
used for calculating \u00a0
Hedging derivatives \u00a0
Nominal amount \u00a0
Carrying amount \u00a0
hedge ineffectiveness \u00a0
(DKK millions) \u00a0
Assets \u00a0
Liabilities \u00a0
Interest rate swaps, 2023 \u00a0
Total \u00a0
539,762 \u00a0
6,207 \u00a0
12,950 \u00a0
12,381 \u00a0
Interest rate swaps, 2022 \u00a0
Total \u00a0
515,807 \u00a0
3,380 \u00a0
21,377 \u00a0
-21,295 \u00a0
Profile of the timing\u00a0of the nominal amount\u00a0of the hedging\u00a0derivatives \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
< 12 months \u00a0
168,795 \u00a0
151,844 \u00a0
1-5 years \u00a0
358,068 \u00a0
348,754 \u00a0
> 5 years \u00a0
12,899 \u00a0
15,210 \u00a0
Total \u00a0
539,762 \u00a0
515,807 \u00a0
Accumulated amount of fair \u00a0
value hedge adjustments on the \u00a0
Change in fair \u00a0
hedged item included in the \u00a0
value used for \u00a0
carrying amount of the hedged \u00a0
calculating hedge \u00a0
Hedged fixed\u00a0interest rate risk \u00a0
Carrying amount\u00a0of hedged items \u00a0
item \u00a0
ineffectiveness \u00a0
(DKK millions) \u00a0
Assets \u00a0
Liabilities \u00a0
Assets \u00a0
Liabilities \u00a0
2023 \u00a0
Amounts due from credit institutions \u00a0
-
-
-
Loans \u00a0
11,232 \u00a0
-537 \u00a0
293 \u00a0
Bonds 'held to collect and sell' \u00a0
749 \u00a0
68 \u00a0
-8 \u00a0
Amounts due to credit institutions \u00a0
8,587 \u00a0
3
-9 \u00a0
Deposits \u00a0
18,899 \u00a0
105 \u00a0
-128 \u00a0
Issued bonds \u00a0
200,015 \u00a0
-5,044 \u00a0
-9,204 \u00a0
Non-preferred senior debt \u00a0
87,166 \u00a0
-2,537 \u00a0
-2,669 \u00a0
Subordinated debt \u00a0
22,974 \u00a0
-997 \u00a0
-846 \u00a0
Total \u00a0
11,980 \u00a0
337,641 \u00a0
-470 \u00a0
-8,470 \u00a0
-12,572 \u00a0
2022 \u00a0
Amounts due from credit institutions \u00a0
-
-
-
Loans \u00a0
13,706 \u00a0
-844 \u00a0
-2,260 \u00a0
Bonds 'held to collect and sell' \u00a0
837 \u00a0
76 \u00a0
-24 \u00a0
Amounts due to credit institutions \u00a0
2,432 \u00a0
-6 \u00a0
10 \u00a0
Deposits \u00a0
4,205 \u00a0
-24 \u00a0
23 \u00a0
Issued bonds \u00a0
155,541 \u00a0
-14,296 \u00a0
15,760 \u00a0
Non-preferred senior debt \u00a0
83,028 \u00a0
-5,206 \u00a0
5,889 \u00a0
Subordinated debt \u00a0
22,069 \u00a0
-1,843 \u00a0
1,871 \u00a0
Total \u00a0
14,544 \u00a0
267,276 \u00a0
-768 \u00a0
-21,375 \u00a0
21,270 \u00a0
Hedge ineffectiveness recognised in the income statement, 2023 \u00a0
-191 \u00a0
Hedge ineffectiveness recognised in the income statement, 2022 \u00a0
-26 \u00a0
G12. Trading portfolio assets and liabilities continued \u00a0
Hedge of foreign exchange risk on net investments\u00a0in foreign entities \u00a0
The Group hedges its foreign exchange risk on net investments\u00a0in foreign currency units. Foreign exchange risk is defined as risk of losses from translatin\u00a0g \u00a0
the net investments\u00a0in foreign entities\u00a0that are\u00a0denominated in a\u00a0foreign currency other than DKK. The net investment\u00a0in foreign currency\u00a0units include\u00a0s \u00a0
the net assets and goodwill of the units. The Group has granted loans in the currency of the foreign unit to its branches in Sweden, Norway and Finland \u00a0
for a total of DKK 37,999 million\u00a0(2022: 34,573 million). The loans represent the capital allocated to these units. The settlement of the loans is\u00a0neithe r \u00a0
planned nor likely to occur in the foreseeable future and they are a\u00a0part of\u00a0the net investment\u00a0in those units.\u00a0Further, Danske Bank\u00a0A/S has\u00a0granted the \u00a0
subsidiary Northern Bank an additional\u00a0tier 1 capital instrument\u00a0that together with shareholders\u2019 equity in Northern Bank is\u00a0considered part\u00a0of the net \u00a0
investment in\u00a0Northern Bank.\u00a0The exchange differences from translating net profit in the foreign\u00a0units at\u00a0the date of underlying\u00a0transactions and assets \u00a0
and liabilities\u00a0at the closing rate and from translating\u00a0the opening net assets at a closing rate that differs from the previous closing rate are recognised \u00a0
in Other comprehensive\u00a0income (translation differences). \u00a0
The Group hedges the foreign exchange risk of net investments\u00a0in branches and subsidiaries\u00a0outside Denmark by designating\u00a0funding arrangements in \u00a0
the matching currencies as\u00a0a hedge of the foreign exchange risk on the net investments.\u00a0The foreign exchange differences on the funding arrangements \u00a0
are recognised in Other comprehensive income to offset\u00a0the exchange differences on the net investments.\u00a0The funding\u00a0arrangements consist primarily \u00a0
of issued bonds. Realised net profit is hedged in the beginning\u00a0of the next month. The Group does not\u00a0hedge the expected financial results of units outsid\u00a0e \u00a0
Denmark or\u00a0other future transactions.\u00a0In terms\u00a0of assessing hedge effectiveness, this is applied by comparing the nominal value of the funding \u00a0
arrangement to the nominal value of\u00a0the net\u00a0investments. Hedge ineffectiveness can\u00a0arise to the extent the funding arrangements exceed the net \u00a0
investments. However, when\u00a0the net investments\u00a0are decreased, e.g. when the net investments\u00a0are reduced by paying\u00a0out dividend,\u00a0the same amount of \u00a0
funding arrangements are de-designated as hedges and the funding arrangements designated as hedges will therefore, in general, not exceed the net \u00a0
investments. \u00a0
Part of the funding of the loans granted to the branches in Sweden, Norway and Finland is in DKK in order to create a so-called structural FX hedge \u00a0
position in\u00a0accordance with banking\u00a0regulation, i.e.\u00a0to reduce the impact on capital ratios resulting\u00a0from changes in the risk exposure amount due to \u00a0
changes in currency rates. The Group\u2019s net investment\u00a0in its\u00a0subsidiaries Danske Hypotek AB\u00a0(Sweden) and\u00a0Danske Mortgage Bank\u00a0Plc (Finland)\u00a0is \u00a0
included in\u00a0the structural hedge\u00a0position to extend the hedge to the risk exposure amount measured by\u00a0currency for EUR, NOK a\u00a0nd SEK across the entir\u00a0e \u00a0
Group balance sheet, although with constraints\u00a0to the size of the loans to the foreign branches and the n\u00a0et investment\u00a0in the foreign subsidiaries.\u00a0This \u00a0
strategy of\u00a0partly hedging the sensitivity\u00a0to capital ratios from\u00a0volatility in\u00a0foreign currency rates, increases the volatility\u00a0in Other comprehensive\u00a0income \u00a0
and the Foreign currency translation reserve in equity under IFRS since it decrease the hedge of the currency risk on the net investments\u00a0in those\u00a0units . \u00a0
At the end of 2023, the structural FX hedge position totalled DKK 37,641 million (2022: DKK 41,350 million) and a\u00a0loss of DKK 730 million has been \u00a0
recognised in Other comprehensive\u00a0income due to a\u00a0weakening of the NOK against the DKK, of which, a\u00a0loss of DKK 786 million h\u00a0as been realised and \u00a0
reclassified from Other comprehensive\u00a0income to the Income statement (and therefore has no impact on total\u00a0shareholders\u2019 equity). This is due to an \u00a0
adjustment made\u00a0for the structural FX hedge position held in NOK, to reflect\u00a0the reduction in long term risk exposure amount\u00a0(REA) in\u00a0NOK coming from \u00a0
the announced sale of personal customer business in Norway. For comparison, a loss of DKK 2,071 million was recognised in Other comprehensive \u00a0
income during 2022 mainly due to a\u00a0weakening of\u00a0the SEK against the DKK. For\u00a0further information, see\u00a0the section on Market risk \u2013 Structural FX risk \u00a0
in G40. \u00a0
The cumulative exchange differences on\u00a0the hedging instrument\u00a0and the translation\u00a0differences related to the net\u00a0investment are\u00a0reclassified from\u00a0Other \u00a0
comprehensive income to\u00a0the income statement on\u00a0the disposal of the foreign entities. \u00a0
The table below provides information on the hedge of net investments\u00a0in foreign entities. \u00a0
Hedging of foreign entities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Net investment\u00a0in foreign units \u00a0
47,909 \u00a0
44,585 \u00a0
Funding arrangements designated as a hedge of net investments\u00a0in foreign units* \u00a0
10,269 \u00a0
3,236 \u00a0
Portion of net investment\u00a0in foreign\u00a0units not hedged, structural FX position \u00a0
37,641 \u00a0
41,350 \u00a0
Hedge ineffectiveness \u00a0
Exchange differences on the hedging instruments \u00a0
589 \u00a0
2,463 \u00a0
Exchange differences on the net investment used for recognising hedge ineffectiveness \u00a0
-589 \u00a0
-2,463 \u00a0
Hedge ineffectiveness recognised in the income statement (net trading income) \u00a0
-
-
Hedging gains or losses recognised in OCI \u00a0
589 \u00a0
2,463 \u00a0
Reclassified to the income statement on disposal of foreign units** \u00a0
806 \u00a0
-
*Primarily included on the line item \u2018Issued bonds at amortised cost\u2019 \u00a0
**Included in the item \u2018Net trading income in the Income statement\u2019 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsHeldForTradingExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2590": {
"value": "G1. Basis of preparation\u00a0continued \u00a0
Financial instruments\u00a0and obligations\u00a0under insurance contracts, classification\u00a0and measurement\u00a0end of 2023 \u00a0
Amortised \u00a0
Fair value \u00a0
cost \u00a0
OCI \u00a0
Fair value through profit or loss \u00a0
Held to collect \u00a0
Held to collect \u00a0
and sell \u00a0
assets/ \u00a0
financial \u00a0
Held for\u00a0Managed at\u00a0FVPL due to \u00a0
Interest rate\u00a0Own shares / \u00a0
(DKK billions) \u00a0
Liabilities \u00a0
assets* \u00a0
trading \u00a0
fair value \u00a0
SPPI test\u00a0Designated \u00a0
hedge ** \u00a0
bonds \u00a0
Total \u00a0
Assets \u00a0
Cash in hand and demand \u00a0
deposits with central banks \u00a0
259 \u00a0
-
-
-
-
-
-
-
259 \u00a0
Due from credit institutions\u00a0and \u00a0
central banks \u00a0
22 \u00a0
-
-
93 \u00a0
-
-
-
-
115 \u00a0
Derivatives \u00a0
-
-
346 \u00a0
-
-
-
6
-
352 \u00a0
Bonds \u00a0
155 \u00a0
107 \u00a0
178 \u00a0
21 \u00a0
-
-
-
-
461 \u00a0
Shares \u00a0
-
-
19 \u00a0
-
-
-
-
-
19 \u00a0
Loans *** \u00a0
919 \u00a0
-
-
175 \u00a0
753 \u00a0
-
-1 \u00a0
-
1,847 \u00a0
Assets under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
43 \u00a0
-
-
-
28 \u00a0
71 \u00a0
Assets under insurance \u00a0
contracts \u00a0
-
-
-
460 \u00a0
-
-
-
1
461 \u00a0
Total financial assets, \u00a0
1,356 \u00a0
107 \u00a0
542 \u00a0
792 \u00a0
753 \u00a0
-
6
29 \u00a0
3,585 \u00a0
31 December\u00a02023 \u00a0
Total financial assets, \u00a0
1,433 \u00a0
116 \u00a0
635 \u00a0
771 \u00a0
724 \u00a0
-
3
28 \u00a0
3,710 \u00a0
31 December\u00a02022**** \u00a0
Liabilities \u00a0
Due to credit institutions and \u00a0
central banks \u00a0
69 \u00a0
-
-
-
-
86 \u00a0
-
-
155 \u00a0
Trading portfolio liabilities \u00a0
-
-
442 \u00a0
-
-
-
13 \u00a0
-
454 \u00a0
Deposits *** \u00a0
1,102 \u00a0
-
-
-
-
120 \u00a0
-
-
1,222 \u00a0
Issued bonds at fair value \u00a0
-
-
-
-
-
749 \u00a0
-
-
749 \u00a0
Issued bonds at amortised cost \u00a0
*** \u00a0
219 \u00a0
-
-
-
-
-
-5 \u00a0
-
214 \u00a0
Deposits under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
-
-
71 \u00a0
-
-
71 \u00a0
Liabilities under insurance \u00a0
contracts ***** \u00a0
-
-
-
-
-
483 \u00a0
-
-
483 \u00a0
Non-preferred senior bonds \u00a0
96 \u00a0
-
-
-
-
-
-3 \u00a0
-
93 \u00a0
Subordinated debt \u00a0
39 \u00a0
-
-
-
-
-
-
-
39 \u00a0
Loan commitments\u00a0and \u00a0
guarantees \u00a0
3
-
-
-
-
-
-
-
3
Total financial liabilities, \u00a0
1,528 \u00a0
-
442 \u00a0
-
-
1,508 \u00a0
5
-
3,483 \u00a0
31 December\u00a02023 \u00a0
Total financial liabilities, \u00a0
1,599 \u00a0
-
533 \u00a0
-
-
1,402 \u00a0
-
27 \u00a0
3,562 \u00a0
31 December\u00a02022**** \u00a0
* Unrealised fair value gains and losses are presented in Other comprehensive income, and realised fair value gains and losses are recycled to the income statement . \u00a0
**The interest rate risk on some fixed-rate financial assets and liabilities is hedged by derivatives (fair value hedging). The interest rate risk on some fixed-rate bonds 'hold to collect and sell' \u00a0
is also hedged by derivatives. The fair value represents changes in the fair value of the interest rate risk on the hedged items, i.e. not a full fair value of the hedged items. \u00a0
*** Loans (amortised cost), Deposits (amortised cost) and Issued bonds at amortised cost include Assets held for sale and Liabilities i n disposal groups held for sale which are measured in \u00a0
accordance with\u00a0IFRS 9. These are presented separately on the Balance sheet. \u00a0
**** Comparative information has been restated, as described in note G2(a). \u00a0
***** Liabilities under insurance contracts comprise the liability for remaining coverage and liability for incurred claims, which includes estimates of present value of future cash flows, risk \u00a0
adjustment for non-financial\u00a0risk and contractual service margin. \u00a0
.
(a) Trading portfolio assets (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Derivatives with\u00a0positive fair value \u00a0
351,722 \u00a0
430,123 \u00a0
Listed bonds \u00a0
177,563 \u00a0
200,395 \u00a0
Listed shares \u00a0
18,785 \u00a0
8,198 \u00a0
Unlisted shares \u00a0
119 \u00a0
83 \u00a0
Total \u00a0
548,189 \u00a0
638,799 \u00a0
(b) Trading portfolio liabilities\u00a0(DKK millions) \u00a0
Derivatives with\u00a0negative fair value \u00a0
340,918 \u00a0
435,141 \u00a0
Obligations to repurchase securities \u00a0
113,569 \u00a0
119,180 \u00a0
Total \u00a0
454,487 \u00a0
554,321 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialLiabilitiesHeldForTradingExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2591": {
"value": "G1. Basis of preparation\u00a0continued \u00a0
Financial instruments\u00a0and obligations\u00a0under insurance contracts, classification\u00a0and measurement\u00a0end of 2023 \u00a0
Amortised \u00a0
Fair value \u00a0
cost \u00a0
OCI \u00a0
Fair value through profit or loss \u00a0
Held to collect \u00a0
Held to collect \u00a0
and sell \u00a0
assets/ \u00a0
financial \u00a0
Held for\u00a0Managed at\u00a0FVPL due to \u00a0
Interest rate\u00a0Own shares / \u00a0
(DKK billions) \u00a0
Liabilities \u00a0
assets* \u00a0
trading \u00a0
fair value \u00a0
SPPI test\u00a0Designated \u00a0
hedge ** \u00a0
bonds \u00a0
Total \u00a0
Assets \u00a0
Cash in hand and demand \u00a0
deposits with central banks \u00a0
259 \u00a0
-
-
-
-
-
-
-
259 \u00a0
Due from credit institutions\u00a0and \u00a0
central banks \u00a0
22 \u00a0
-
-
93 \u00a0
-
-
-
-
115 \u00a0
Derivatives \u00a0
-
-
346 \u00a0
-
-
-
6
-
352 \u00a0
Bonds \u00a0
155 \u00a0
107 \u00a0
178 \u00a0
21 \u00a0
-
-
-
-
461 \u00a0
Shares \u00a0
-
-
19 \u00a0
-
-
-
-
-
19 \u00a0
Loans *** \u00a0
919 \u00a0
-
-
175 \u00a0
753 \u00a0
-
-1 \u00a0
-
1,847 \u00a0
Assets under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
43 \u00a0
-
-
-
28 \u00a0
71 \u00a0
Assets under insurance \u00a0
contracts \u00a0
-
-
-
460 \u00a0
-
-
-
1
461 \u00a0
Total financial assets, \u00a0
1,356 \u00a0
107 \u00a0
542 \u00a0
792 \u00a0
753 \u00a0
-
6
29 \u00a0
3,585 \u00a0
31 December\u00a02023 \u00a0
Total financial assets, \u00a0
1,433 \u00a0
116 \u00a0
635 \u00a0
771 \u00a0
724 \u00a0
-
3
28 \u00a0
3,710 \u00a0
31 December\u00a02022**** \u00a0
Liabilities \u00a0
Due to credit institutions and \u00a0
central banks \u00a0
69 \u00a0
-
-
-
-
86 \u00a0
-
-
155 \u00a0
Trading portfolio liabilities \u00a0
-
-
442 \u00a0
-
-
-
13 \u00a0
-
454 \u00a0
Deposits *** \u00a0
1,102 \u00a0
-
-
-
-
120 \u00a0
-
-
1,222 \u00a0
Issued bonds at fair value \u00a0
-
-
-
-
-
749 \u00a0
-
-
749 \u00a0
Issued bonds at amortised cost \u00a0
*** \u00a0
219 \u00a0
-
-
-
-
-
-5 \u00a0
-
214 \u00a0
Deposits under pooled schemes \u00a0
and unit-linked\u00a0investment \u00a0
contracts \u00a0
-
-
-
-
-
71 \u00a0
-
-
71 \u00a0
Liabilities under insurance \u00a0
contracts ***** \u00a0
-
-
-
-
-
483 \u00a0
-
-
483 \u00a0
Non-preferred senior bonds \u00a0
96 \u00a0
-
-
-
-
-
-3 \u00a0
-
93 \u00a0
Subordinated debt \u00a0
39 \u00a0
-
-
-
-
-
-
-
39 \u00a0
Loan commitments\u00a0and \u00a0
guarantees \u00a0
3
-
-
-
-
-
-
-
3
Total financial liabilities, \u00a0
1,528 \u00a0
-
442 \u00a0
-
-
1,508 \u00a0
5
-
3,483 \u00a0
31 December\u00a02023 \u00a0
Total financial liabilities, \u00a0
1,599 \u00a0
-
533 \u00a0
-
-
1,402 \u00a0
-
27 \u00a0
3,562 \u00a0
31 December\u00a02022**** \u00a0
* Unrealised fair value gains and losses are presented in Other comprehensive income, and realised fair value gains and losses are recycled to the income statement . \u00a0
**The interest rate risk on some fixed-rate financial assets and liabilities is hedged by derivatives (fair value hedging). The interest rate risk on some fixed-rate bonds 'hold to collect and sell' \u00a0
is also hedged by derivatives. The fair value represents changes in the fair value of the interest rate risk on the hedged items, i.e. not a full fair value of the hedged items. \u00a0
*** Loans (amortised cost), Deposits (amortised cost) and Issued bonds at amortised cost include Assets held for sale and Liabilities i n disposal groups held for sale which are measured in \u00a0
accordance with\u00a0IFRS 9. These are presented separately on the Balance sheet. \u00a0
**** Comparative information has been restated, as described in note G2(a). \u00a0
***** Liabilities under insurance contracts comprise the liability for remaining coverage and liability for incurred claims, which includes estimates of present value of future cash flows, risk \u00a0
adjustment for non-financial\u00a0risk and contractual service margin. \u00a0
.
(a) Trading portfolio assets (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Derivatives with\u00a0positive fair value \u00a0
351,722 \u00a0
430,123 \u00a0
Listed bonds \u00a0
177,563 \u00a0
200,395 \u00a0
Listed shares \u00a0
18,785 \u00a0
8,198 \u00a0
Unlisted shares \u00a0
119 \u00a0
83 \u00a0
Total \u00a0
548,189 \u00a0
638,799 \u00a0
(b) Trading portfolio liabilities\u00a0(DKK millions) \u00a0
Derivatives with\u00a0negative fair value \u00a0
340,918 \u00a0
435,141 \u00a0
Obligations to repurchase securities \u00a0
113,569 \u00a0
119,180 \u00a0
Total \u00a0
454,487 \u00a0
554,321 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialAssetsHeldForTradingExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2599": {
"value": "G1. Basis\u00a0of preparation\u00a0continued \u00a0
(c) Overview\u00a0of classification\u00a0and measurement\u00a0basis for financial instruments\u00a0and insurance contracts \u00a0
Classification and\u00a0measurement of\u00a0financial assets\u00a0and financial\u00a0liabilities \u2013 general \u00a0
Financial assets are classified on the basis of the business model adopted for\u00a0managing the assets and on their contractual\u00a0cash flow characteristic\u00a0s \u00a0
(including embedded\u00a0derivatives, if\u00a0any) are grouped into one of the following\u00a0measurement categories: \u00a0
\u2022
Amortised cost\u00a0(AMC) \u00a0
\u2022
Fair value through other comprehensive income (FVOCI) \u00a0
\u2022
Fair value through profit or loss (FVPL) \u00a0
Financial assets are measured at AMC if they are held within a business model for the purpose of collecting contractual\u00a0cash flows\u00a0(hold to collect) and \u00a0
if cash flows are solely payments\u00a0of principal\u00a0and interest\u00a0on the principal amount outstanding. \u00a0
Financial assets\u00a0are measured at FVOCI\u00a0if they are held within\u00a0a business model for\u00a0the purpose of both collecting\u00a0contractual cash\u00a0flows and selling \u00a0
(hold to collect and sell) and if cash flows are solely payments of principal and interest on the principal amount outstanding.\u00a0FVOCI results in the assets \u00a0
being recognised at fair value in the balance sheet and at AMC in\u00a0the income statement. Gains and\u00a0losses, except for expected credit losses and\u00a0foreign \u00a0
exchanges gains and losses, are therefore recognised in other comprehensive\u00a0income until the financial asset is derecognised. When the financial asset \u00a0
is derecognised the cumulative\u00a0gains and losses previously\u00a0recognised in other comprehensive\u00a0income are reclassified\u00a0to the income\u00a0statement. \u00a0
All other financial assets are mandatorily\u00a0measured at FVPL including\u00a0financial assets held within other business models, such as\u00a0financial assets \u00a0
managed at\u00a0fair value or held for trading and financial\u00a0assets with contractual cash flows that are not solely payments of principal and interest on the \u00a0
principal amount outstanding. \u00a0
Generally, financial liabilities\u00a0are measured at\u00a0amortised cost\u00a0and when relevant with bifurcation of embedded derivatives\u00a0not closely related to the host \u00a0
contract. Financial liabilities measured at\u00a0fair value comprise the trading portfolio (derivatives and\u00a0obligations to repurchase securities) and\u00a0liabilitie s \u00a0
designated at\u00a0fair value through profit or loss under the fair value option.\u00a0Value adjustments relating to the inherent credit risk of financial liabilitie\u00a0s \u00a0
designated at\u00a0fair value\u00a0are recognised in other comprehensive\u00a0income unless this leads to an accounting\u00a0mismatch. \u00a0
(a) Financial\u00a0instruments at fair value \u00a0
The fair value is the amount for which a financial asset or a financial liability\u00a0can be exchanged\u00a0between knowledgeable,\u00a0willing parties. Fair value is \u00a0
measured on the basis of the following hierarchy: \u00a0
The fair value hierarchy \u00a0
\u2022
Quoted price\u00a0(level 1) consists of financial instruments\u00a0that are quoted in an active market.\u00a0The Group uses the price quoted in the principal market. \u00a0
\u2022
Valuation based\u00a0on observable input (level 2) consists of financial instruments\u00a0valued substantially\u00a0on the\u00a0basis of observable input other than a \u00a0
quoted price for the instrument\u00a0itself. If a financial instrument\u00a0is quoted\u00a0in a market\u00a0that is not active, the Group bases its measurement on the most \u00a0
recent transaction\u00a0price. Adjustment\u00a0is made for subsequent changes to market conditions,\u00a0for instance,\u00a0by including transactions\u00a0in similar \u00a0
financial instruments that are\u00a0assumed to be motivated by normal business considerations. For a\u00a0number of financial assets and liabilities,\u00a0no \u00a0
market exists. In such cases, the Group uses recent transactions\u00a0in similar instruments\u00a0and discounted cash flows or other generally accepted \u00a0
estimation and\u00a0valuation techniques\u00a0based on market conditions at the balance sheet date to calculate an estimated\u00a0value. This category covers \u00a0
instruments such\u00a0as derivatives\u00a0valued on\u00a0the basis of observable\u00a0yield curves and exchange rates and illiquid\u00a0mortgage bonds valued by reference \u00a0
to the value of similar\u00a0liquid bonds. \u00a0
\u2022
Valuation based on\u00a0significant non-observable input\u00a0(level 3): The valuation\u00a0of certain financial instruments\u00a0is based substantially\u00a0on non-observable \u00a0
input. Such\u00a0instruments include unlisted shares,\u00a0some unlisted bonds and a\u00a0limited portion of\u00a0the derivatives\u00a0portfolio (2%). \u00a0
If, at the balance sheet date, a financial instrument\u2019s classification differs\u00a0from its classification at the beginning of the year, the classification of the \u00a0
instrument changes.\u00a0Changes are\u00a0considered to have taken place at the balance sheet date. Developments\u00a0in the financial markets have resulted in \u00a0
reclassifications between\u00a0the categories. Some bonds have become illiquid and have therefore been\u00a0moved from\u00a0the Quoted\u00a0prices to\u00a0the Observable \u00a0
input category, while other bonds have instead become liquid and have been moved from the Observable input to the\u00a0Quoted prices category. \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
Valuation techniques \u00a0
The most frequently\u00a0used valuation\u00a0techniques include the pricing of transactions with future settlement and swap\u00a0models that apply present value \u00a0
calculations, credit\u00a0pricing models and options models, such as Black & Scholes models. As part of the Group\u2019s\u00a0control environment, valuation models are \u00a0
validated by\u00a0units that\u00a0are independent\u00a0of the business units\u00a0that develop\u00a0the models and trade in the products covered by\u00a0th e\u00a0models. Validation\u00a0is made \u00a0
to test the implementation,\u00a0quality and operating stability\u00a0of models\u00a0to ensure that the models can be used for pricing and risk management of financial \u00a0
products. \u00a0
Loans granted and bonds issued by Realkredit Danmark\u00a0are recognised at the fair value of the issued bonds (the quoted price in an active market). The \u00a0
Group adjusts\u00a0for changes to the fair value of the credit risk on borrowers\u00a0etc. The adjustment\u00a0is described further\u00a0in note\u00a0G16. \u00a0
The value of derivatives,\u00a0primarily long-term contracts, is determined on\u00a0observable yields extrapolated\u00a0to yield curves for the full duration of the contracts. \u00a0
Moreover, the very limited portfolio of\u00a0credit derivatives\u00a0is valued\u00a0on the basis of observable\u00a0input as\u00a0well as assumptions\u00a0about the probability\u00a0of default \u00a0
(recovery rate).\u00a0Unlisted shares\u00a0are measured at fair value in accordance with the International\u00a0Private Equity and Venture C\u00a0apital Valuation Guideline\u00a0s \u00a0
(IPEV) which are compliant with IFRS. IPEV guides the calculation of the estimated fair\u00a0value of\u00a0unlisted shares as the price\u00a0that would be received to sell \u00a0
an asset or paid to transfer a liability\u00a0in an orderly transaction between market participants\u00a0at the measurement\u00a0date. Valua\u00a0tion methods include \u00a0
discounted cash flow models and pricing based on a multiple\u00a0of earnings or equity. \u00a0
Fair value adjustments \u00a0
Management estimates underlie the\u00a0valuation of\u00a0financial instruments\u00a0for which the value is based on valuation\u00a0techniques. The Group makes fair value \u00a0
adjustments to\u00a0cover changes in counterparty\u00a0risk (CVA) on derivatives,\u00a0funding risk (FVA and ColVA),\u00a0bid-offer spreads on\u00a0the net\u00a0open position of \u00a0
portfolios with\u00a0offsetting market risk, and model risk on level 3 derivatives. \u00a0
Credit value\u00a0adjustment (CVA)\u00a0and funding value adjustment\u00a0(FVA and ColVA) \u00a0
The Group makes a\u00a0fair value adjustment to cover the counterparty credit risk on derivatives\u00a0with a positive fair value (CVA). For\u00a0a given counterparty\u2019 s \u00a0
portfolio of\u00a0derivatives, CVA\u00a0is calculated as\u00a0a function\u00a0of the probability\u00a0of default\u00a0(PD), the expected\u00a0positive exposure (EPE) and the loss given default in \u00a0
the event of bankruptcy\u00a0(LGD). The Group enters into derivatives\u00a0transactions mainly with counterparties\u00a0in the Scandinavian\u00a0market. \u00a0
The PDs used in the CVA model are derived\u00a0from single name liquid credit default swap (CDS). If this is not available,\u00a0the PDs are derived using proxy- \u00a0
mapping to a CDS index. For the calculation of EPE, the Group uses simulations\u00a0to estimate\u00a0the expected positive exposures to\u00a0the counterparty\u2019s portfolio \u00a0
over the term of\u00a0the derivatives.\u00a0The exposure model is\u00a0based fully on market-implied\u00a0data. For\u00a0the calculation\u00a0of LGD, the Group uses market compliant \u00a0
LGD. However, for customers classified in stage 3 in relation to the expected credit loss impairment, CVA is calculated\u00a0as if the\u00a0derivatives were\u00a0loans \u00a0
subject to\u00a0impairment because\u00a0of credit losses. \u00a0
A fair value adjustment\u00a0for derivatives\u00a0to cover expected funding costs (FVA\u00a0and ColVA) is calculated.\u00a0FVA primarily\u00a0arises from the cost or benefit of \u00a0
funding uncollateralised\u00a0derivatives. The adjustment is\u00a0a function\u00a0of the unsecured funding curve and expected future exposures. ColVA takes into account \u00a0
the funding cost and benefit on collateralised\u00a0derivatives. The ColVA adjustment is a function of expected collateral balance\u00a0s and cross-currency\u00a0basis \u00a0
and repo spreads. \u00a0
At the end of 2023, CVA, DVA,\u00a0FVA and ColVA came to a net amount of DKK\u00a0153 million (2022: DKK -94\u00a0million), including the adjustment for\u00a0credit risk \u00a0
on derivatives\u00a0in stage 3. \u00a0
Bid-offer spread \u00a0
For portfolios\u00a0of assets and liabilities\u00a0with offsetting market risk, the Group bases its measurement of the portfolios on mid-market prices and\u00a0makes fair \u00a0
value adjustments\u00a0to recognise net assets at the bid price and net liabilities\u00a0at the\u00a0offer price (exit prices). At the end of 2023, these fair value adjustmen\u00a0ts \u00a0
totalled DKK 138 million (2022: DKK 151 million). \u00a0
Model risk \u00a0
To account for the uncertainty\u00a0associated with measuring\u00a0the value of derivatives\u00a0on the basis of non-observable\u00a0input (level 3\u00a0in the fair value\u00a0hierarchy), \u00a0
the Group has established guidelines to quantify risk. The Group calculates and\u00a0monitors the reserve\u00a0on an ongoing basis. At the end of 2023, the reserve \u00a0
totalled DKK 1\u00a0million (2022: DKK 0\u00a0million). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2609": {
"value": "G1. Basis\u00a0of preparation\u00a0continued \u00a0
(d) Financial\u00a0highlights \u00a0
The financial highlights\u00a0and reporting\u00a0for each segment shown\u00a0in note G3 are used in the Management\u2019s report and represent the financial informatio\u00a0n \u00a0
regularly provided to management. The Reclassification\u00a0column in note\u00a0G3 shows the\u00a0reconciliation between\u00a0the presentation\u00a0in the financial highlights \u00a0
and the presentation in the consolidated\u00a0financial statements\u00a0prepared under IFRS and includes\u00a0the following: \u00a0
Operating leases \u00a0
In the IFRS income statement, gains or losses on the sale of operating lease assets, excluding\u00a0properties, at\u00a0the end of the lease agreement\u00a0are presented \u00a0
on a gross basis (the Group\u00a0acts as a lessor). This\u00a0means that\u00a0the proceeds from the sale of the assets are recognised under Other\u00a0income, whereas the \u00a0
carrying amount of\u00a0the lease assets is recognised under Operating expenses. \u00a0
In the financial highlights,\u00a0the gains or losses on the sale of the\u00a0lease asset are presented\u00a0on a net basis under\u00a0Other income to better reflect the \u00a0
development in\u00a0the cost\u00a0base. \u00a0
Markets and Investment\u00a0Banking &\u00a0Securities (both\u00a0part of\u00a0Large Corporates\u00a0& Institutions)\u00a0and Group Treasury (part of Group Functions) \u00a0
In the IFRS income statement,\u00a0income from Markets and Investment\u00a0Banking & Securities and Group Treasury is\u00a0presented as\u00a0Net interest income, the \u00a0
net of Fee income and Fee expenses. Net trading\u00a0income or\u00a0loss and Other income, depending on\u00a0the type of\u00a0income. The distribution\u00a0of income between \u00a0
the various income line items can\u00a0vary considerably from\u00a0one year to the next, depending\u00a0on the underlying\u00a0transactions and\u00a0market conditions.\u00a0To better \u00a0
reflect income in those areas, the following\u00a0reclassifications are made in\u00a0the financial highlights: \u00a0
\u2022
All income contributed by Markets, excluding Market\u2019s share of margins on customer derivatives,\u00a0is presented\u00a0as Net trading\u00a0income \u00a0
\u2022
Trading-related income at Investment Banking &\u00a0Securities is presented as Net trading\u00a0income. However,\u00a0income contributed by\u00a0Equity Finance \u00a0
(also part of Large Corporates\u00a0& Institutions,\u00a0Investment Banking & Securities) is presented as Net fee income \u00a0
\u2022
All income in Group Treasury, except income at Internal Bank, income on bonds held to collect and bonds held to\u00a0collect and sell, are presented as \u00a0
Net trading income. \u00a0
Danica Pension \u00a0
In the IFRS income statement,\u00a0all income and expenses from insurance activities except gain or loss from sale of disposal groups is presented within Net \u00a0
insurance result. In the financial highlights,\u00a0Gain or loss on sale of disposal groups is included within Net income from insurance business. \u00a0
Non-core \u00a0
In the IFRS income statement and balance sheet, income and expense items and asset\u00a0and liability\u00a0items from\u00a0the Non-core segment are included\u00a0in the \u00a0
various income statement and balance sheet line items, as the segment does not fulfil the requirements\u00a0in IFRS 5, Non-current Assets Held for Sale and \u00a0
Discontinued Operations. \u00a0
The Non-core segment includes\u00a0certain customer segments that are\u00a0no longer considered part of the Group\u2019s core business. To better reflect activitie\u00a0s \u00a0
from the Group\u2019s core and non-core business, the profit or loss of the Non-core segment is presented as one amount in a separate line item \u2018Profit before \u00a0
tax, Non-core\u2019 in the\u00a0financial highlights. Similarly,\u00a0assets are presented together\u00a0as Total\u00a0assets in\u00a0Non-core and liabilities\u00a0together as Total liabilities\u00a0in \u00a0
Non-core in the balance sheet in the financial highlights. \u00a0
(e) Reporting\u00a0on the ESEF Regulation \u00a0
The Commission\u2019s Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF\u00a0Regulation) requires a spe\u00a0cial digital reporting \u00a0
format for annual\u00a0report for publicly\u00a0listed entities. The ESEF Regulation includes requirements related to the\u00a0preparation of\u00a0the annual report in XHTML \u00a0
format and iXBRL\u00a0tagging of the\u00a0consolidated financial statements\u00a0key elements\u00a0including Income\u00a0statement, Statement\u00a0of comprehensive\u00a0income, \u00a0
Balance sheet, Statement\u00a0of capital, Cash flow statement and notes. \u00a0
Danske Bank\u00a0Group\u2019s iXBRL tagging is prepared in accordance the ESEF taxonomy which is included in the appendices\u00a0of the ESEF Regulation\u00a0and is \u00a0
developed based\u00a0on the IFRS taxonomy that is published by\u00a0IFRS Foundation. For\u00a0the annual\u00a0report for\u00a02023, the ESEF Taxonomy for 2022 has been \u00a0
applied. \u00a0
The account balances in the consolidated financial statement is\u00a0XBRL tagged to the elements in the ESEF Regulation\u00a0that is as\u00a0sessed to correspond to \u00a0
the content of the account balances. For account balances that are assessed not to be covered by the accoun\u00a0t balances\u00a0defined in the ESEF taxonomy, \u00a0
the Group has incorporated entity specific extensions to the taxonomy. These extensions are \u2013 except subtotals \u2013 embedded in the elements in the ESEF \u00a0
Taxonomy. \u00a0
The annual report comprises\u00a0\u2013 in accordance with the requirements of the ESEF Regulation \u2013 of a zip-file\u00a0danskebank-2023-12-31-en.zip, that\u00a0includes \u00a0
an XHTML-file,\u00a0that can\u00a0be opened with standard web browsers and a number of technical XBRL files that make automated extracts of the\u00a0incorporate d \u00a0
XBRL data possible. \u00a0
G2. Changes and forthcoming changes to accounting policies and presentation \u00a0
(a) Changes\u00a0to material accounting policies and presentation during\u00a0the year \u00a0
On 1 January\u00a02023, the Group implemented\u00a0a new standard, IFRS 17, and the amendments\u00a0to IAS 1, IAS 8\u00a0and IAS 12. \u00a0
As a result of IFRS 17 implementation,\u00a0the Group has changed the presentation\u00a0of the Income statement\u00a0to include material lin\u00a0e items as\u00a0required by \u00a0
IAS 1. At the same time, sub-totals\u00a0for Net fee income, Net insurance\u00a0result, Total other income and Total income have been included in\u00a0the Income \u00a0
statement. \u00a0
The subsidiary Northern Bank Ltd. has a portfolio\u00a0of non-maturing\u00a0core deposits where the interest rate risk is most efficiently hedged by using \u00a0
derivatives. To\u00a0avoid accounting mismatch between deposits at amortised cost and hedging derivatives\u00a0at fair\u00a0va lue, hedge accounting after EU\u2019s carve \u00a0
out to IAS 39 has been applied on this portfolio in the local reporting\u00a0for Northern Bank Ltd. To hedge the interest rate ris\u00a0k on this portfolio at group level \u00a0
and to simplify the group financial reporting process,\u00a0Danske Bank Group has\u00a0adopted EU\u2019s carve out to IAS 39 in 2023. Hedging of Northern Bank Ltd. \u00a0
core deposits at group level has only taken\u00a0place with prospective effect. The adoption of EU\u2019s carve out to IAS 39 has reduc\u00a0ed net profit for 2023 by \u00a0
DKK 1\u00a0million. \u00a0
The sections below explain in further details the changes to accounting policies. \u00a0
IFRS 17, Insurance contracts \u00a0
On 1 January 2023, the Group implemented\u00a0IFRS 17, Insurance Contracts.\u00a0IFRS 17 replaces IFRS 4, which was a provisional\u00a0accounting standard that \u00a0
did not explain the measurement of\u00a0insurance contracts but was based on pre-existing accounting\u00a0policies. IFRS 17 is a comprehensive\u00a0standard \u00a0
containing the principles for\u00a0recognition and measurement and presentation of\u00a0insurance contracts in the financial statements\u00a0. Disclosures required by \u00a0
IFRS 17 are in notes G7 and G18. \u00a0
The key impacts\u00a0of the implementation\u00a0of IFRS 17 are: \u00a0
\u2022
Life insurance products and Health and Accident products have been disaggregated, as they are subject to different risks and therefore cannot \u00a0
be grouped\u00a0together under IFRS 17. This resulted in\u00a0a decrease of DKK 1.4 billion in the Group\u2019s equity as at 1 January 2022\u00a0. \u00a0
\u2022
Premiums are no longer recognised in profit or loss at their due dates. Instead,\u00a0insurance revenue\u00a0comprises the expected claims and \u00a0
insurance service expenses in the period, the release of the risk adjustment\u00a0and the contractual service margin (C\u00a0SM), which\u00a0is recognised as \u00a0
services are provided over the expected coverage period of the group of insurance contracts. \u00a0
\u2022
Benefits are\u00a0no longer recognised in profit or loss when paid. Instead, insurance service expenses are recognised when incurr\u00a0ed, comprising \u00a0
incurred claims\u00a0and other\u00a0incurred insurance expenses. \u00a0
\u2022
Changes in\u00a0insurance obligations during the\u00a0year due to additional provisions for benefit guarantees and the tax on pension r\u00a0eturns are no \u00a0
longer under Net trading income or loss. \u00a0
\u2022
The return on\u00a0assets earmarked for\u00a0insurance contracts is\u00a0no longer carried under Net interest income and Net trading income\u00a0or loss. This \u00a0
is now presented\u00a0as Net return on investments\u00a0backing insurance liabilities. \u00a0
\u2022
The Group has simplified its reporting of Danica, and now reports the majority of Danica\u2019s assets and liabilities\u00a0under Asset\u00a0s under insurance \u00a0
contracts and Liabilities under\u00a0insurance contracts respectively in\u00a0the Balance sheet. Previously,\u00a0an allocation\u00a0of Danica\u2019s assets and liabilitie\u00a0s \u00a0
(equating to\u00a0Danica\u2019s equity) were\u00a0consolidated on\u00a0a line-by-line basis in the Balance sheet. \u00a0
\u2022
The presentation\u00a0of the IFRS Income\u00a0statement has\u00a0been changed: the line items Net\u00a0premiums and\u00a0Net insurance benefits\u00a0are removed, and \u00a0
new lines in relation to insurance are added: Insurance service result and other insurance income, Net return on investments\u00a0backing \u00a0
insurance liabilities\u00a0and Net finance income or expense from insurance.\u00a0The IFRS Income statement has thus been restated for\u00a02022. The \u00a0
restated IFRS\u00a0Income statement for\u00a02022 has been amended from that published in Interim report \u2013 first nine months 2023. \u00a0
The fair value approach has been applied on\u00a0transition to\u00a0IFRS 17, since the full retrospective\u00a0approach is\u00a0impracticable to\u00a0apply due to\u00a0relevant data \u00a0
not being available or high resource consumption. \u00a0
In addition,\u00a0the following changes have been\u00a0made to accounting policies as a\u00a0result of IFRS 17 implementation: \u00a0
\u2022
When, and only when, the Group reacquires its own equity instruments (i.e. own\u00a0shares) to be included in investment\u00a0funds tha\u00a0t provide\u00a0s \u00a0
investors with\u00a0benefits determined by\u00a0units in\u00a0the fund, and for which financial\u00a0liabilities are\u00a0recognised for the amou\u00a0nts to be paid to those \u00a0
investors, IAS 32\u00a0has been amended with an optional election not to deduct these shares from equity,\u00a0and account for them as financial assets \u00a0
held at fair\u00a0value through profit or loss. The Group has applied this election to its own shares in Pooled schemes and Unit-linked\u00a0investme nt \u00a0
contracts which\u00a0meet the\u00a0IAS 32\u00a0election criteria. The same\u00a0election applies to the Group\u2019s own shares that are included as u\u00a0nderlying items \u00a0
of direct participation\u00a0contracts (Assets under insurance contracts). \u00a0
\u2022
When, and only when the Group repurchases its own financial liabilities\u00a0to be included in investment\u00a0funds that provides investors\u00a0with benefits \u00a0
determined by\u00a0units in\u00a0the fund, and for which financial liabilities\u00a0are recognised for the amounts\u00a0to be paid to those inves\u00a0tors, or includes the \u00a0
own financial\u00a0liabilities as\u00a0underlying items of\u00a0direct participating\u00a0contracts, IFRS 9 has been amended with an optional ele\u00a0ction to\u00a0not \u00a0
derecognise the financial liabilities,\u00a0and to account for the repurchased instrume\u00a0nts as\u00a0financial assets\u00a0held at fair value through profit\u00a0or loss. \u00a0
The Group has\u00a0applied this election to own\u00a0bonds in Assets under insurance contracts which meet the IFRS 9\u00a0election criteria. \u00a0
The impact of the changes in IAS 32 and IFRS 9 accounting\u00a0policies resulted in an increase of DKK 0.7 billion\u00a0in the Group\u2019s\u00a0equity and the\u00a0Group\u2019s assets \u00a0
as at 1 January 2022. \u00a0
At the transition\u00a0date of 1 January\u00a02022, the Group: \u00a0
\u2022
Identified, recognised and measured each group of insurance contracts and reinsurance contracts according to\u00a0IFRS 17 \u00a0
\u2022
Derecognised previously reported\u00a0balances that would not have existed if IFRS 17 had always been applied \u00a0
\u2022
Reclassified Danica\u2019s assets and liabilities\u00a0to Assets under insurance contracts and Liabilities\u00a0under insurance contracts re\u00a0spectively where \u00a0
relevant \u00a0
\u2022
Recognised own shares and own bonds as assets that were underlying\u00a0items of direct participating\u00a0contracts at\u00a0fair value \u00a0
\u2022
Recognised own shares that were reacquired to be held in investment\u00a0funds on behalf of customers \u00a0
\u2022
Recognised the resulting net differences in equity. \u00a0
The DKK\u00a01.4 billion decrease in the Group\u2019s equity from IFRS 17 implementation\u00a0and DKK 0.7 billion increase from the IAS 32 a\u00a0nd IFRS 9 accounting \u00a0
policy changes result in a net decrease in equity of DKK 0.7 billion as at\u00a01 January 2022, which is presented in the Statement\u00a0of changes in equity.\u00a0The \u00a0
impact of these changes increases the Group\u2019s 2022 result by DKK 0.5 billion.\u00a0The impact\u00a0on the\u00a0Group\u2019s equity as\u00a0at 31 Decem\u00a0ber 2022 is\u00a0a net \u00a0
decrease of DKK 40 million,\u00a0as result\u00a0of the increase in the Group\u2019s 2022 result and the direct impact on equity from the change in treatment\u00a0of own \u00a0
shares. \u00a0
Ratios for regulatory requirements in 2022 have not been restated as a result of the changes described above. The overall imp\u00a0act on equity at 31 \u00a0
December 2022 of\u00a0DKK 40 million is\u00a0immaterial, and\u00a0therefore the Group\u2019s total capital and capital ratios for\u00a02 022 will not be revised nor resubmitte\u00a0d \u00a0
to regulators, and remains as published in the Annual Report 2022. \u00a0
The table below shows the impact on the 2022 IFRS Income statement of IFRS 17 implementation, the\u00a0change in treatment\u00a0of the Group\u2019s\u00a0own shares, \u00a0
and the change in treatment\u00a0of the Group\u2019s own bonds. \u00a0
Adjustments \u00a0
IAS 32 \u2013 own \u00a0
IFRS 9 \u2013 own \u00a0
Restated \u00a0
(DKK millions) \u00a0
2022 \u00a0
IFRS 17 \u00a0
shares \u00a0
bonds \u00a0
2022 \u00a0
Interest income calculated using the effective interest method \u00a0
31,697 \u00a0
-
-
-
31,697 \u00a0
Other interest income \u00a0
47,570 \u00a0
-29,957 \u00a0
-
675 \u00a0
18,288 \u00a0
Interest expense \u00a0
51,241 \u00a0
-27,282 \u00a0
-
675 \u00a0
24,634 \u00a0
Net interest income from banking activities \u00a0
28,026 \u00a0
-2,675 \u00a0
-
-
25,351 \u00a0
Fee income \u00a0
17,305 \u00a0
-
-
-
17,305 \u00a0
Fee expenses \u00a0
5,993 \u00a0
-1,169 \u00a0
-
-
4,824 \u00a0
Net fee income \u00a0
11,312 \u00a0
1,169 \u00a0
-
-
12,481 \u00a0
Net trading income or loss \u00a0
-32,983 \u00a0
34,379 \u00a0
185 \u00a0
-
1,581 \u00a0
Insurance revenue \u00a0
-
5,126 \u00a0
-
-
5,126 \u00a0
Insurance service expenses \u00a0
-
3,604 \u00a0
-
-
3,604 \u00a0
Net return on investments backing insurance liabilities \u00a0
-
-60,302 \u00a0
-
-
-60,302 \u00a0
Net finance income or expense from insurance \u00a0
-
58,624 \u00a0
-
-
58,624 \u00a0
Other insurance related income \u00a0
-
21 \u00a0
-
-
21 \u00a0
Net insurance result \u00a0
-
-135 \u00a0
-
-
-135 \u00a0
Gain or loss on sale of disposal groups \u00a0
1,420 \u00a0
-
-
-
1,420 \u00a0
Other income \u00a0
5,476 \u00a0
-691 \u00a0
-
-
4,785 \u00a0
Total other income \u00a0
6,897 \u00a0
-691 \u00a0
-
-
6,206 \u00a0
Net premiums \u00a0
35,394 \u00a0
-35,394 \u00a0
-
-
-
Net insurance benefits \u00a0
2,750 \u00a0
-2,750 \u00a0
-
-
-
Total income \u00a0
45,896 \u00a0
-596 \u00a0
185 \u00a0
-
45,484 \u00a0
Operating expenses \u00a0
31,250 \u00a0
-998 \u00a0
-
-
30,252 \u00a0
Provision for Estonia matter \u00a0
13,800 \u00a0
-
-
-
13,800 \u00a0
Impairment charges on goodwill \u00a0
1,627 \u00a0
-
-
-
1,627 \u00a0
Profit before loan impairment charges \u00a0
-781 \u00a0
401 \u00a0
185 \u00a0
-
-195 \u00a0
Loan impairment charges \u00a0
1,502 \u00a0
-
-
-
1,502 \u00a0
Profit before tax \u00a0
-2,284 \u00a0
401 \u00a0
185 \u00a0
-
-1,697 \u00a0
Tax \u00a0
2,784 \u00a0
99 \u00a0
-
-
2,883 \u00a0
Net profit \u00a0
-5,067 \u00a0
303 \u00a0
185 \u00a0
-
-4,580 \u00a0
Portion attributable to \u00a0
Shareholders of Danske Bank A/S (the Parent Company) \u00a0
-5,154 \u00a0
303 \u00a0
185 \u00a0
-
-4,666 \u00a0
Additional Tier 1 capital holders \u00a0
86 \u00a0
-
-
-
86 \u00a0
Net profit \u00a0
-5,068 \u00a0
303 \u00a0
185 \u00a0
-
-4,580 \u00a0
Earnings per share (DKK) \u00a0
-6.1 \u00a0
-5.4 \u00a0
Diluted earnings per share (DKK) \u00a0
-6.0 \u00a0
-5.4 \u00a0
Dividend per share (DKK) \u00a0
-
-
G2. Changes and forthcoming changes to accounting policies and presentation\u00a0continued \u00a0
The table below shows\u00a0a reconciliation\u00a0of the Group\u2019s\u00a0balances between 31\u00a0December 2021 and 1 January 2022, showing the impac\u00a0t of IFRS 17 \u00a0
(including the reclassification of Danica\u2019s assets and liabilities),\u00a0the change in treatment of the Group\u2019s own shares, and the change in tr\u00a0eatment of\u00a0the \u00a0
Group\u2019s own bonds. \u00a0
Effect of changes in accounting policy\u00a0as at 1 January\u00a02022 \u00a0
Remeasurements \u00a0
31 December \u00a0
IAS 32 \u2013 \u00a0
IFRS 9 \u2013 \u00a0
1 January \u00a0
(DKK millions) \u00a0
2021 \u00a0
IFRS 17\u00a0own shares\u00a0own bonds \u00a0
2022 \u00a0
Assets \u00a0
Cash in hand and demand deposits with central banks \u00a0
293,386 \u00a0
-
-
-
293,386 \u00a0
Due from credit institutions\u00a0and central banks \u00a0
71,156 \u00a0
-7 \u00a0
-
-
71,149 \u00a0
Trading portfolio assets \u00a0
509,590 \u00a0
-164 \u00a0
-
-
509,426 \u00a0
Investment securities \u00a0
303,777 \u00a0
-22,835 \u00a0
-
-
280,942 \u00a0
Loans at amortised cost \u00a0
1,027,442 \u00a0
-
-
-
1,027,442 \u00a0
Loans at fair value \u00a0
1,024,461 \u00a0
-
-
-
1,024,461 \u00a0
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
76,654 \u00a0
-
151 \u00a0
-
76,805 \u00a0
Assets under insurance contracts \u00a0
547,806 \u00a0
29,731 \u00a0
507 \u00a0
44,590 \u00a0
622,634 \u00a0
Assets held for sale \u00a0
28,800 \u00a0
-
-
-
28,800 \u00a0
Intangible assets \u00a0
8,819 \u00a0
-2,628 \u00a0
-
-
6,191 \u00a0
Tax assets \u00a0
4,510 \u00a0
-
-
-
4,510 \u00a0
Other assets \u00a0
39,433 \u00a0
-4,097 \u00a0
-
-
35,336 \u00a0
Total assets \u00a0
3,935,834 \u00a0
-
658 \u00a0
44,590 3,981,082 \u00a0
Liabilities \u00a0
Due to credit institutions and central banks \u00a0
172,976 \u00a0
-
-
-
172,976 \u00a0
Trading portfolio liabilities \u00a0
374,959 \u00a0
-
-
-
374,959 \u00a0
Deposits \u00a0
1,292,030 \u00a0
-
-
-
1,292,030 \u00a0
Issued bonds at fair value \u00a0
794,909 \u00a0
-
-
44,426 \u00a0
839,335 \u00a0
Issued bonds at amortised cost \u00a0
223,854 \u00a0
-
-
-
223,854 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
76,982 \u00a0
-
-
-
76,982 \u00a0
Liabilities under insurance contracts \u00a0
588,736 \u00a0
2,247 \u00a0
-
-
590,983 \u00a0
Liabilities in disposal\u00a0groups held for sale \u00a0
29,577 \u00a0
-
-
-
29,577 \u00a0
Tax liabilities \u00a0
1,864 \u00a0
-460 \u00a0
-
-
1,404 \u00a0
Other liabilities \u00a0
56,268 \u00a0
-422 \u00a0
-
164 \u00a0
56,010 \u00a0
Non-preferred senior bonds \u00a0
107,654 \u00a0
-
-
-
107,654 \u00a0
Subordinated debt \u00a0
39,321 \u00a0
-
-
-
39,321 \u00a0
Total liabilities \u00a0
3,759,130 \u00a0
1,365 \u00a0
-
44,590 3,805,085 \u00a0
Equity \u00a0
Share capital \u00a0
8,622 \u00a0
-
-
-
8,622 \u00a0
Foreign currency translation reserve \u00a0
-612 \u00a0
-
-
-
-612 \u00a0
Reserve for bonds at fair value (OCI) \u00a0
34 \u00a0
-
-
-
34 \u00a0
Retained earnings \u00a0
161,439 \u00a0
-1,365 \u00a0
658 \u00a0
-
160,732 \u00a0
Proposed dividends \u00a0
1,724 \u00a0
-
-
-
1,724 \u00a0
Shareholders of Danske Bank A/S (the Parent Company) \u00a0
171,207 \u00a0
-1,365 \u00a0
658 \u00a0
-
170,500 \u00a0
Additional tier\u00a01 capital\u00a0holders \u00a0
5,497 \u00a0
-
-
-
5,497 \u00a0
Non-controlling interests \u00a0
-
-
-
-
-
Total equity \u00a0
176,704 \u00a0
-1,365 \u00a0
658 \u00a0
-
175,997 \u00a0
Total liabilities\u00a0and equity \u00a0
3,935,834 \u00a0
-
658 \u00a0
44,590 3,981,082 \u00a0
Amendment to\u00a0IAS 1, Presentation\u00a0of financial\u00a0statements \u00a0
The amendment to IAS 1 requires disclosure of material accounting policy information, rather than significant accounting poli\u00a0cies. Accounting \u00a0
policy information is considered to be material if users of the financial statements\u00a0need it to understand other material inf\u00a0ormation in the financial \u00a0
statements. If\u00a0immaterial accounting policy\u00a0information is\u00a0disclosed, it\u00a0should not obscure material acco\u00a0unting policy\u00a0information. \u00a0
The amendment has no\u00a0impact on\u00a0the financial statements. \u00a0
Amendment to\u00a0IAS 8, Accounting\u00a0policies, changes in\u00a0accounting estimates and\u00a0errors \u00a0
The amendment introduces a definition of accounting estimates \u2013 monetary amounts in\u00a0financial statements\u00a0that are subject to measurement uncertainty \u00a0
\u2013 and clarifies\u00a0that a change in accounting\u00a0estimate that\u00a0results from\u00a0new information or\u00a0new developments\u00a0is not the correctio n\u00a0of an error. Similarly, \u00a0
the effects of a change in an input or a measurement technique used to develop an accounting estimate are changes in accounti\u00a0ng estimates if they do \u00a0
not result from the correction of prior period errors. \u00a0
The amendment has no\u00a0impact on\u00a0the financial statements. \u00a0
Amendment to\u00a0IAS 12,\u00a0Income taxes \u00a0
The first amendment to IAS 12 clarifies how entities\u00a0should account for deferred tax on assets and liabilities\u00a0arising from a\u00a0single transaction such as \u00a0
Leases liabilities\u00a0and right-of-use assets or decommissioning obligations\u00a0and property,\u00a0plant and\u00a0equipment. \u00a0
The main change is that the initial recognition exemption\u00a0in IAS\u00a012 does not apply to transactions\u00a0in which equal amounts of\u00a0deductible and taxable \u00a0
temporary differences arise on\u00a0initial recognition.\u00a0This amendment has\u00a0no impact on\u00a0the financial statements. \u00a0
The second amendment introduces an\u00a0exception to the requirement of IAS 12 that an entity does not recognise and does not disc\u00a0lose information about \u00a0
deferred tax assets and liabilities\u00a0related to the OECD\u00a0Pillar Two income taxes. Pillar Two legislation\u00a0has been enacted\u00a0or substantively\u00a0enacted in most \u00a0
jurisdictions where\u00a0Danske Bank\u00a0Group operates.\u00a0The legislation\u00a0will be\u00a0effective for the Group\u2019s financial year beginning 1 January 2024. The Danske \u00a0
Bank Group\u00a0is in scope of the enacted\u00a0or substantively\u00a0enacted legislation and has performed an assessment of the potential\u00a0exposure to Pillar Two \u00a0
income taxes. No material exposure to Pillar Two income taxes affecting the income statement\u00a0for Danske\u00a0Bank Group are expect\u00a0ed. See note G21 for \u00a0
more detail. \u00a0
(b) Standards\u00a0and interpretations\u00a0not yet in force \u00a0
The International\u00a0Accounting Standards\u00a0Board (IASB) has issued amendments to existing international\u00a0accounting standards (IAS 1,\u00a0IAS 7,\u00a0IAS 21, IFRS \u00a0
7 and IFRS 16), that have not yet come into force. None of the amendments\u00a0is expected to\u00a0have a\u00a0significant impact on the Group\u2019s financial statements . \u00a0
Accounting policy \u00a0
For balances due from\u00a0credit institutions\u00a0in the Group\u2019s banking units (Personal & Business Customers, General Banking\u00a0in Large Corporates \u00a0
&
Institutions, Northern\u00a0Ireland and\u00a0Non-core), the business model is \u2018hold to collect\u2019. As the contractual cash flows represent basic lending\u00a0feature, these \u00a0
balances are measured at amortised cost. For further\u00a0information on the accounting policy etc., see\u00a0note G15. \u00a0
For balances due from credit institutions\u00a0and central banks in the Group\u2019s trading units (Markets and\u00a0Investment Banking &\u00a0Securities in\u00a0Large \u00a0
Corporates &\u00a0Institutions) the\u00a0business model\u00a0is neither\u00a0\u2018hold to collect\u2019 nor \u2018hold to collect and sell\u2019 and these balances are mandatorily\u00a0recognised at \u00a0
fair value through profit or loss. For further information\u00a0on the\u00a0accounting policy, see\u00a0note G16. \u00a0
Accounting policy \u00a0
Issued bonds, both senior, non-preferred senior and subordinated\u00a0bonds, are at initial\u00a0recognition measured at fair value less transaction\u00a0costs and \u00a0
subsequently measured\u00a0at amortised\u00a0cost plus\u00a0the fair value of\u00a0the hedged interest rate risk. Interest expense is recognised according to the effective \u00a0
interest rate method, including amortisation\u00a0of any difference between the amount received on\u00a0issue and the redemption amount. \u00a0
The Group issues perpetual bonds with discretionary\u00a0interest payments that fulfil the requirements\u00a0for additional\u00a0tier 1 capital under the Capital \u00a0
Requirements Regulation (CRR).\u00a0If a\u00a0trigger event occurs,\u00a0those bonds must be\u00a0either written down temporarily or converted into a variable number of \u00a0
ordinary shares, depending on the terms of the individual\u00a0bond issue. Bonds that convert into a\u00a0variable number of\u00a0ordinary shares are accounted for \u00a0
as liabilities,\u00a0while bonds that are temporarily written down are accounted for as equity. For liability\u00a0accounted bonds, the interest expense is recognised \u00a0
in the income statement, i.e. the bonds are accounted for as liabilities\u00a0in their entirety. \u00a0
Accounting policy \u00a0
Equity is the\u00a0residual interest in\u00a0recognised assets after deduction of recognised liabilities. In this context, the following items are of particular interest: \u00a0
Own shares \u00a0
Amounts received or\u00a0paid for the Group\u2019s sale or purchase of Danske\u00a0Bank shares that are neither held on behalf of customers or are underlying\u00a0items \u00a0
of insurance contracts with direct participation\u00a0features are\u00a0recognised directly in equity under transactions\u00a0with owners. The same applies to \u00a0
premiums received or paid for derivatives\u00a0entailing settlement in\u00a0own shares. A capital\u00a0reduction by\u00a0cancellation of\u00a0own shares will lower the share \u00a0
capital by an\u00a0amount equal to the nominal value of the shares at the time of registration\u00a0of the capital reduction. \u00a0
With effect\u00a0from 1 January 2023 the Group has\u00a0elected to not deduct from equity own shares that are\u00a0held on behalf of\u00a0customers or\u00a0those that are \u00a0
underlying items of\u00a0insurance contracts with direct participation\u00a0features. \u00a0
Additional tier\u00a01 capital \u00a0
The capital instruments accounted for\u00a0as equity\u00a0instruments include no\u00a0contractual obligation to deliver cash\u00a0or another\u00a0financial asset\u00a0to the holders, \u00a0
as Danske\u00a0Bank A/S may, at its sole discretion,\u00a0omit payment of\u00a0interest and principal payments to the bondholders. Therefore, the issue does not fall \u00a0
under the definition\u00a0of financial liabilities\u00a0under IAS 32. The net amount received at the time of issue is recognised as an increase in equity. Interes\u00a0t \u00a0
payments are\u00a0accounted for as dividends,\u00a0which are recognised directly in equity at the time the payment obligation arises. If Danske Bank A/S chooses \u00a0
to redeem the bonds, equity will be reduced by the redemption amount at the time of redemption. Amounts received or\u00a0paid for\u00a0the sale or acquisitio\u00a0n \u00a0
of own holdings of additional tier 1 capital instruments are recognised directly in equity, similarly\u00a0to holdings of own shares. \u00a0
Accounting policy \u00a0
Assets and liabilities\u00a0are offset\u00a0when the Group and the counterparty\u00a0have a legally enforceable right to offset recognised amounts\u00a0and have agreed to \u00a0
settle the balances on a\u00a0net basis or to realise the asset and settle the liability\u00a0simultaneously. Positive and\u00a0negative fair values of\u00a0derivatives with\u00a0the \u00a0
same counterparty\u00a0are offset if the Group has agreed with the counterparty\u00a0to settle\u00a0contractual cash\u00a0flows net\u00a0and to make cash payments\u00a0or provid e \u00a0
collateral on a daily basis to cover changes in the fair value of the derivative\u00a0position. Master netting agreements or\u00a0similar agreements give the right \u00a0
to additional\u00a0offsetting in\u00a0the event of default. Such agreements reduce the exposure further in the event of\u00a0default, but do\u00a0not qualify for offsetting in \u00a0
accordance with IFRS. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfOtherAccountingPoliciesRelevantToUnderstandingOfFinancialStatements",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2611": {
"value": "Operating leases \u00a0
In the IFRS income statement, gains or losses on the sale of operating lease assets, excluding\u00a0properties, at\u00a0the end of the lease agreement\u00a0are presented \u00a0
on a gross basis (the Group\u00a0acts as a lessor). This\u00a0means that\u00a0the proceeds from the sale of the assets are recognised under Other\u00a0income, whereas the \u00a0
carrying amount of\u00a0the lease assets is recognised under Operating expenses. \u00a0
In the financial highlights,\u00a0the gains or losses on the sale of the\u00a0lease asset are presented\u00a0on a net basis under\u00a0Other income to better reflect the \u00a0
development in\u00a0the cost\u00a0base. \u00a0
Income from lease assets and investment\u00a0property \u00a0
Income from lease assets and\u00a0investment property includes income from assets let under operating leases. Lease\u00a0payments are recognised on a \u00a0
straight line basis over the period of the lease term. The accounting\u00a0policy for lease assets is further described in note G24. \u00a0
Right of\u00a0use lease assets and lease liabilities \u00a0
The Group recognise a right-of-use asset and a lease liability\u00a0at the commencement\u00a0date, for all lease agreements,\u00a0that the Group has entered into as \u00a0
lessee, except short-term leases and leases of low value\u00a0asset. The lease liability\u00a0is initially\u00a0measured at the present value\u00a0of the future payme\u00a0nts from \u00a0
lease components, discounted using the\u00a0incremental borrowing\u00a0rate for the individual\u00a0lease. The lease liability\u00a0is subsequently measured\u00a0by increasing \u00a0
the carrying amount, to reflect interest and by reducing the carrying amount to reflect the lease payments\u00a0made. Fur\u00a0ther lease liabilities\u00a0are changed \u00a0
when remeasurements\u00a0are needed, corresponding adjustment is\u00a0the related right-of-use asset. Gain or\u00a0loss from a lease modification,\u00a0(excluding \u00a0
modifications that\u00a0change the basis for determining\u00a0future lease\u00a0payments as a\u00a0result of\u00a0the Interest Rate Benchmark Reform) that are\u00a0not accounte\u00a0d \u00a0
for as a separate lease, is recognised in profit and loss. If a lease modification\u00a0is necessary\u00a0as a direct consequence of the interest\u00a0rate benchmar\u00a0k \u00a0
reform, and the new basis for determining\u00a0the lease payments is\u00a0economically equivalent to the previous basis immediately\u00a0pre ceding\u00a0the modification, \u00a0
then the lease liability\u00a0shall be remeasured by discounting\u00a0the revised lease payments.\u00a0The initial\u00a0right-of-use asset comprise the amount of the initial \u00a0
measurement of the lease liability,\u00a0lease payments made at or before the commencement day,\u00a0initial direct costs and costs to restore the underlyin\u00a0g \u00a0
asset. The right-of-use asset are subsequently\u00a0measured at cost less accumulated\u00a0depreciation and impairment losses.\u00a0The right-of-use assets are \u00a0
depreciated over the shorter period of the lease term and the useful life of the underlying asset. When the Group is an inter\u00a0mediate lessor,\u00a0the Group \u00a0
accounts for the head lease and the sublease as two separate contracts.\u00a0The sublease is\u00a0classified as\u00a0a finance\u00a0or operating\u00a0lease by reference to the \u00a0
right-of-use asset arising from the head lease. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2612": {
"value": "Markets and Investment\u00a0Banking &\u00a0Securities (both\u00a0part of\u00a0Large Corporates\u00a0& Institutions)\u00a0and Group Treasury (part of Group Functions) \u00a0
In the IFRS income statement,\u00a0income from Markets and Investment\u00a0Banking & Securities and Group Treasury is\u00a0presented as\u00a0Net interest income, the \u00a0
net of Fee income and Fee expenses. Net trading\u00a0income or\u00a0loss and Other income, depending on\u00a0the type of\u00a0income. The distribution\u00a0of income between \u00a0
the various income line items can\u00a0vary considerably from\u00a0one year to the next, depending\u00a0on the underlying\u00a0transactions and\u00a0market conditions.\u00a0To better \u00a0
reflect income in those areas, the following\u00a0reclassifications are made in\u00a0the financial highlights: \u00a0
\u2022
All income contributed by Markets, excluding Market\u2019s share of margins on customer derivatives,\u00a0is presented\u00a0as Net trading\u00a0income \u00a0
\u2022
Trading-related income at Investment Banking &\u00a0Securities is presented as Net trading\u00a0income. However,\u00a0income contributed by\u00a0Equity Finance \u00a0
(also part of Large Corporates\u00a0& Institutions,\u00a0Investment Banking & Securities) is presented as Net fee income \u00a0
\u2022
All income in Group Treasury, except income at Internal Bank, income on bonds held to collect and bonds held to\u00a0collect and sell, are presented as \u00a0
Net trading income. \u00a0
Accounting policy \u00a0
Interest income and expenses \u00a0
Interest income and expenses arising from interest-bearing\u00a0financial instruments\u00a0measured at\u00a0amortised cost\u00a0or at fair value through Other \u00a0
comprehensive income are\u00a0recognised according to the effective interest method on\u00a0the basis of the cost of the individual\u00a0financial instrument.\u00a0Interes t \u00a0
includes amortised amounts of\u00a0fees that are an integral part of the effective yield on a financial\u00a0instrument, such\u00a0as origination\u00a0fees, and amortise\u00a0d \u00a0
differences between the cost and the redemption\u00a0price, if any. Interest\u00a0on financial instruments\u00a0included in\u00a0stage 3 (for the calculation\u00a0of expected credit \u00a0
losses) is recognised on the basis of the carrying amount (i.e. net of impairment charges). The interest rate risk on some financial portfolios\u00a0recognised \u00a0
at amortised\u00a0cost is hedged by derivatives\u00a0using fair value hedge accounting. Note G12 provides\u00a0more information\u00a0on hedge accounting.\u00a0Interest income \u00a0
calculated using\u00a0the effective interest method and\u00a0presented as\u00a0a separate line item in the income statement excludes the impact from hedge \u00a0
accounting. \u00a0
Further, interest income and expenses includes interest on financial instruments\u00a0measured at\u00a0fair value through profit or loss. Among others, this \u00a0
includes interest income on loans measured at fair value\u00a0for which interest on loans included in stage 3 is recognised on the basis of the gross carrying \u00a0
amount. However, interest on\u00a0assets and\u00a0deposits under pooled schemes is recognised under Net trading income or loss. In the income statement, \u00a0
interest income on financial assets measured at fair\u00a0value through profit\u00a0or loss is presented\u00a0under the line item Other interest income, while the line \u00a0
item Interest expenses includes all interest expenses. \u00a0
Net trading\u00a0income or loss \u00a0
Net trading income or\u00a0loss includes realised and\u00a0unrealised capital gains and losses\u00a0on financial assets and financial liabilities\u00a0recognised at fair value \u00a0
through profit or\u00a0loss as well as exchange\u00a0rate adjustments\u00a0and dividends.\u00a0However, the fair value adjustments\u00a0of the credit risk on loans granted by \u00a0
Realkredit Danmark are\u00a0presented under Loan impairment charges. Further, the fair value adjustment\u00a0of own credit risk on financial liabilities\u00a0in the \u00a0
Group\u2019s trading units Markets and Investment Banking & Securities part of\u00a0LC&I designated at fair value through profit or\u00a0loss is presented in Other \u00a0
comprehensive income. Net trading income or\u00a0loss includes the fair value adjustments of own credit risk on bonds issued by Realkredit Danmark,\u00a0as an \u00a0
accounting mismatch between the fair\u00a0value adjustment of the loans and\u00a0the bonds in Realkredit\u00a0Danmark would otherwise exist (see\u00a0further \u00a0
information in note G16). \u00a0
Realised gains and losses on financial assets at amortised cost,\u00a0e.g. loans, are recognised under Net trading income or loss when the financial asset is \u00a0
derecognised, unless the derecognition relates to a\u00a0credit risk event/forbearance\u00a0measure, in which case the gain or loss is presented under Loan \u00a0
impairment charges\u00a0(see note G15). Otherwise, the derecognition gain or loss on the financial asset is calculated\u00a0as the difference between the carrying \u00a0
amount (gross of expected credit losses) and the repayment\u00a0amount. For financial assets (bonds) at fair value through other comprehensive\u00a0income, \u00a0
gains or losses further include\u00a0amounts previously recognised in\u00a0other comprehensive income. For\u00a0financial liabilities\u00a0at amortised\u00a0cost, the gain or \u00a0
loss is the difference between the carrying\u00a0amount and the redemption price including cost related to\u00a0the redemption, if any. \u00a0
For financial\u00a0assets and liabilities\u00a0subject to fair value hedge accounting, the fair value adjustments\u00a0of the hedged financial instrument and the hedging \u00a0
instruments are\u00a0recognised in Net trading income or loss. Therefore, any hedge ineffectiveness\u00a0is presented\u00a0in Net trading income or loss. \u00a0
Returns (interest income and fair value changes) on assets under pooled schemes and the crediting of these returns to customer accounts are \u00a0
recognised under Net trading\u00a0income or loss. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2613": {
"value": "Markets and Investment\u00a0Banking &\u00a0Securities (both\u00a0part of\u00a0Large Corporates\u00a0& Institutions)\u00a0and Group Treasury (part of Group Functions) \u00a0
In the IFRS income statement,\u00a0income from Markets and Investment\u00a0Banking & Securities and Group Treasury is\u00a0presented as\u00a0Net interest income, the \u00a0
net of Fee income and Fee expenses. Net trading\u00a0income or\u00a0loss and Other income, depending on\u00a0the type of\u00a0income. The distribution\u00a0of income between \u00a0
the various income line items can\u00a0vary considerably from\u00a0one year to the next, depending\u00a0on the underlying\u00a0transactions and\u00a0market conditions.\u00a0To better \u00a0
reflect income in those areas, the following\u00a0reclassifications are made in\u00a0the financial highlights: \u00a0
\u2022
All income contributed by Markets, excluding Market\u2019s share of margins on customer derivatives,\u00a0is presented\u00a0as Net trading\u00a0income \u00a0
\u2022
Trading-related income at Investment Banking &\u00a0Securities is presented as Net trading\u00a0income. However,\u00a0income contributed by\u00a0Equity Finance \u00a0
(also part of Large Corporates\u00a0& Institutions,\u00a0Investment Banking & Securities) is presented as Net fee income \u00a0
\u2022
All income in Group Treasury, except income at Internal Bank, income on bonds held to collect and bonds held to\u00a0collect and sell, are presented as \u00a0
Net trading income. \u00a0
Net trading\u00a0income or loss \u00a0
Net trading income or\u00a0loss includes realised and\u00a0unrealised capital gains and losses\u00a0on financial assets and financial liabilities\u00a0recognised at fair value \u00a0
through profit or\u00a0loss as well as exchange\u00a0rate adjustments\u00a0and dividends.\u00a0However, the fair value adjustments\u00a0of the credit risk on loans granted by \u00a0
Realkredit Danmark are\u00a0presented under Loan impairment charges. Further, the fair value adjustment\u00a0of own credit risk on financial liabilities\u00a0in the \u00a0
Group\u2019s trading units Markets and Investment Banking & Securities part of\u00a0LC&I designated at fair value through profit or\u00a0loss is presented in Other \u00a0
comprehensive income. Net trading income or\u00a0loss includes the fair value adjustments of own credit risk on bonds issued by Realkredit Danmark,\u00a0as an \u00a0
accounting mismatch between the fair\u00a0value adjustment of the loans and\u00a0the bonds in Realkredit\u00a0Danmark would otherwise exist (see\u00a0further \u00a0
information in note G16). \u00a0
Realised gains and losses on financial assets at amortised cost,\u00a0e.g. loans, are recognised under Net trading income or loss when the financial asset is \u00a0
derecognised, unless the derecognition relates to a\u00a0credit risk event/forbearance\u00a0measure, in which case the gain or loss is presented under Loan \u00a0
impairment charges\u00a0(see note G15). Otherwise, the derecognition gain or loss on the financial asset is calculated\u00a0as the difference between the carrying \u00a0
amount (gross of expected credit losses) and the repayment\u00a0amount. For financial assets (bonds) at fair value through other comprehensive\u00a0income, \u00a0
gains or losses further include\u00a0amounts previously recognised in\u00a0other comprehensive income. For\u00a0financial liabilities\u00a0at amortised\u00a0cost, the gain or \u00a0
loss is the difference between the carrying\u00a0amount and the redemption price including cost related to\u00a0the redemption, if any. \u00a0
For financial\u00a0assets and liabilities\u00a0subject to fair value hedge accounting, the fair value adjustments\u00a0of the hedged financial instrument and the hedging \u00a0
instruments are\u00a0recognised in Net trading income or loss. Therefore, any hedge ineffectiveness\u00a0is presented\u00a0in Net trading income or loss. \u00a0
Returns (interest income and fair value changes) on assets under pooled schemes and the crediting of these returns to customer accounts are \u00a0
recognised under Net trading\u00a0income or loss. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradingIncomeAndExpenseExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2614": {
"value": "Danica Pension \u00a0
In the IFRS income statement,\u00a0all income and expenses from insurance activities except gain or loss from sale of disposal groups is presented within Net \u00a0
insurance result. In the financial highlights,\u00a0Gain or loss on sale of disposal groups is included within Net income from insurance business. \u00a0
Non-core \u00a0
In the IFRS income statement and balance sheet, income and expense items and asset\u00a0and liability\u00a0items from\u00a0the Non-core segment are included\u00a0in the \u00a0
various income statement and balance sheet line items, as the segment does not fulfil the requirements\u00a0in IFRS 5, Non-current Assets Held for Sale and \u00a0
Discontinued Operations. \u00a0
The Non-core segment includes\u00a0certain customer segments that are\u00a0no longer considered part of the Group\u2019s core business. To better reflect activitie\u00a0s \u00a0
from the Group\u2019s core and non-core business, the profit or loss of the Non-core segment is presented as one amount in a separate line item \u2018Profit before \u00a0
tax, Non-core\u2019 in the\u00a0financial highlights. Similarly,\u00a0assets are presented together\u00a0as Total\u00a0assets in\u00a0Non-core and liabilities\u00a0together as Total liabilities\u00a0in \u00a0
Non-core in the balance sheet in the financial highlights. \u00a0
Accounting policy \u00a0
Segment reporting\u00a0complies with the material accounting policies. The \u2018Reclassification\u2019 column shows\u00a0adjustments made\u00a0to the IFRS statements\u00a0in \u00a0
the calculation of the financial highlights. \u00a0
Internal income and expenses are allocated to the individual\u00a0segments on an arm\u2019s-length basis. Expenses incurred centrally, including\u00a0expenses \u00a0
incurred by\u00a0support, administrative\u00a0and back-office functions, are charged to the business units according to consumption\u00a0and activity.\u00a0Funding costs \u00a0
for lending\u00a0and deposit activities\u00a0(FTP) are allocated\u00a0on the basis of a maturity\u00a0analysis of\u00a0loans and deposits, interbank\u00a0rates and funding\u00a0spreads, and \u00a0
depend on market trends. \u00a0
Segment assets and liabilities\u00a0are assets and liabilities\u00a0that are used for maintaining\u00a0the operating activities\u00a0of a segment or have come into existenc\u00a0e \u00a0
as a result of such activities\u00a0and which are either directly attributable\u00a0or may be reasonably\u00a0allocated to a segment. A\u00a0calculated share of\u00a0shareholders\u2019 \u00a0
equity is\u00a0allocated to each segment. Other assets and liabilities\u00a0are recognised\u00a0under Group Functions. \u00a0
Capital (shareholders\u2019 equity) is\u00a0allocated to the business units based on the Group\u2019s capital allocation framework, with\u00a0goodwill allocated directly to \u00a0
the relevant business units. The framework is based on a regulatory approach and is calibrated to the Group\u2019s CET1 capital ratio target. Therefore, the \u00a0
capital consumption of\u00a0the individual\u00a0business units is closely aligned with the Group\u2019s total capital consumption. However, for\u00a0the Danica Pension and \u00a0
Northern Ireland business units, the capital allocated equals the legal entity\u2019s capital. \u00a0
A calculated\u00a0interest income equal to the risk-free return on its allocated capital is apportioned\u00a0to each business unit and offset by a corresponding \u00a0
interest expense at Group Functions. This income is\u00a0calculated on the basis of the short-term money market rate. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2619": {
"value": "G2. Changes and forthcoming changes to accounting policies and presentation \u00a0
(a) Changes\u00a0to material accounting policies and presentation during\u00a0the year \u00a0
On 1 January\u00a02023, the Group implemented\u00a0a new standard, IFRS 17, and the amendments\u00a0to IAS 1, IAS 8\u00a0and IAS 12. \u00a0
As a result of IFRS 17 implementation,\u00a0the Group has changed the presentation\u00a0of the Income statement\u00a0to include material lin\u00a0e items as\u00a0required by \u00a0
IAS 1. At the same time, sub-totals\u00a0for Net fee income, Net insurance\u00a0result, Total other income and Total income have been included in\u00a0the Income \u00a0
statement. \u00a0
The subsidiary Northern Bank Ltd. has a portfolio\u00a0of non-maturing\u00a0core deposits where the interest rate risk is most efficiently hedged by using \u00a0
derivatives. To\u00a0avoid accounting mismatch between deposits at amortised cost and hedging derivatives\u00a0at fair\u00a0va lue, hedge accounting after EU\u2019s carve \u00a0
out to IAS 39 has been applied on this portfolio in the local reporting\u00a0for Northern Bank Ltd. To hedge the interest rate ris\u00a0k on this portfolio at group level \u00a0
and to simplify the group financial reporting process,\u00a0Danske Bank Group has\u00a0adopted EU\u2019s carve out to IAS 39 in 2023. Hedging of Northern Bank Ltd. \u00a0
core deposits at group level has only taken\u00a0place with prospective effect. The adoption of EU\u2019s carve out to IAS 39 has reduc\u00a0ed net profit for 2023 by \u00a0
DKK 1\u00a0million. \u00a0
The sections below explain in further details the changes to accounting policies. \u00a0
IFRS 17, Insurance contracts \u00a0
On 1 January 2023, the Group implemented\u00a0IFRS 17, Insurance Contracts.\u00a0IFRS 17 replaces IFRS 4, which was a provisional\u00a0accounting standard that \u00a0
did not explain the measurement of\u00a0insurance contracts but was based on pre-existing accounting\u00a0policies. IFRS 17 is a comprehensive\u00a0standard \u00a0
containing the principles for\u00a0recognition and measurement and presentation of\u00a0insurance contracts in the financial statements\u00a0. Disclosures required by \u00a0
IFRS 17 are in notes G7 and G18. \u00a0
The key impacts\u00a0of the implementation\u00a0of IFRS 17 are: \u00a0
\u2022
Life insurance products and Health and Accident products have been disaggregated, as they are subject to different risks and therefore cannot \u00a0
be grouped\u00a0together under IFRS 17. This resulted in\u00a0a decrease of DKK 1.4 billion in the Group\u2019s equity as at 1 January 2022\u00a0. \u00a0
\u2022
Premiums are no longer recognised in profit or loss at their due dates. Instead,\u00a0insurance revenue\u00a0comprises the expected claims and \u00a0
insurance service expenses in the period, the release of the risk adjustment\u00a0and the contractual service margin (C\u00a0SM), which\u00a0is recognised as \u00a0
services are provided over the expected coverage period of the group of insurance contracts. \u00a0
\u2022
Benefits are\u00a0no longer recognised in profit or loss when paid. Instead, insurance service expenses are recognised when incurr\u00a0ed, comprising \u00a0
incurred claims\u00a0and other\u00a0incurred insurance expenses. \u00a0
\u2022
Changes in\u00a0insurance obligations during the\u00a0year due to additional provisions for benefit guarantees and the tax on pension r\u00a0eturns are no \u00a0
longer under Net trading income or loss. \u00a0
\u2022
The return on\u00a0assets earmarked for\u00a0insurance contracts is\u00a0no longer carried under Net interest income and Net trading income\u00a0or loss. This \u00a0
is now presented\u00a0as Net return on investments\u00a0backing insurance liabilities. \u00a0
\u2022
The Group has simplified its reporting of Danica, and now reports the majority of Danica\u2019s assets and liabilities\u00a0under Asset\u00a0s under insurance \u00a0
contracts and Liabilities under\u00a0insurance contracts respectively in\u00a0the Balance sheet. Previously,\u00a0an allocation\u00a0of Danica\u2019s assets and liabilitie\u00a0s \u00a0
(equating to\u00a0Danica\u2019s equity) were\u00a0consolidated on\u00a0a line-by-line basis in the Balance sheet. \u00a0
\u2022
The presentation\u00a0of the IFRS Income\u00a0statement has\u00a0been changed: the line items Net\u00a0premiums and\u00a0Net insurance benefits\u00a0are removed, and \u00a0
new lines in relation to insurance are added: Insurance service result and other insurance income, Net return on investments\u00a0backing \u00a0
insurance liabilities\u00a0and Net finance income or expense from insurance.\u00a0The IFRS Income statement has thus been restated for\u00a02022. The \u00a0
restated IFRS\u00a0Income statement for\u00a02022 has been amended from that published in Interim report \u2013 first nine months 2023. \u00a0
The fair value approach has been applied on\u00a0transition to\u00a0IFRS 17, since the full retrospective\u00a0approach is\u00a0impracticable to\u00a0apply due to\u00a0relevant data \u00a0
not being available or high resource consumption. \u00a0
In addition,\u00a0the following changes have been\u00a0made to accounting policies as a\u00a0result of IFRS 17 implementation: \u00a0
\u2022
When, and only when, the Group reacquires its own equity instruments (i.e. own\u00a0shares) to be included in investment\u00a0funds tha\u00a0t provide\u00a0s \u00a0
investors with\u00a0benefits determined by\u00a0units in\u00a0the fund, and for which financial\u00a0liabilities are\u00a0recognised for the amou\u00a0nts to be paid to those \u00a0
investors, IAS 32\u00a0has been amended with an optional election not to deduct these shares from equity,\u00a0and account for them as financial assets \u00a0
held at fair\u00a0value through profit or loss. The Group has applied this election to its own shares in Pooled schemes and Unit-linked\u00a0investme nt \u00a0
contracts which\u00a0meet the\u00a0IAS 32\u00a0election criteria. The same\u00a0election applies to the Group\u2019s own shares that are included as u\u00a0nderlying items \u00a0
of direct participation\u00a0contracts (Assets under insurance contracts). \u00a0
\u2022
When, and only when the Group repurchases its own financial liabilities\u00a0to be included in investment\u00a0funds that provides investors\u00a0with benefits \u00a0
determined by\u00a0units in\u00a0the fund, and for which financial liabilities\u00a0are recognised for the amounts\u00a0to be paid to those inves\u00a0tors, or includes the \u00a0
own financial\u00a0liabilities as\u00a0underlying items of\u00a0direct participating\u00a0contracts, IFRS 9 has been amended with an optional ele\u00a0ction to\u00a0not \u00a0
derecognise the financial liabilities,\u00a0and to account for the repurchased instrume\u00a0nts as\u00a0financial assets\u00a0held at fair value through profit\u00a0or loss. \u00a0
The Group has\u00a0applied this election to own\u00a0bonds in Assets under insurance contracts which meet the IFRS 9\u00a0election criteria. \u00a0
The impact of the changes in IAS 32 and IFRS 9 accounting\u00a0policies resulted in an increase of DKK 0.7 billion\u00a0in the Group\u2019s\u00a0equity and the\u00a0Group\u2019s assets \u00a0
as at 1 January 2022. \u00a0
At the transition\u00a0date of 1 January\u00a02022, the Group: \u00a0
\u2022
Identified, recognised and measured each group of insurance contracts and reinsurance contracts according to\u00a0IFRS 17 \u00a0
\u2022
Derecognised previously reported\u00a0balances that would not have existed if IFRS 17 had always been applied \u00a0
\u2022
Reclassified Danica\u2019s assets and liabilities\u00a0to Assets under insurance contracts and Liabilities\u00a0under insurance contracts re\u00a0spectively where \u00a0
relevant \u00a0
\u2022
Recognised own shares and own bonds as assets that were underlying\u00a0items of direct participating\u00a0contracts at\u00a0fair value \u00a0
\u2022
Recognised own shares that were reacquired to be held in investment\u00a0funds on behalf of customers \u00a0
\u2022
Recognised the resulting net differences in equity. \u00a0
The DKK\u00a01.4 billion decrease in the Group\u2019s equity from IFRS 17 implementation\u00a0and DKK 0.7 billion increase from the IAS 32 a\u00a0nd IFRS 9 accounting \u00a0
policy changes result in a net decrease in equity of DKK 0.7 billion as at\u00a01 January 2022, which is presented in the Statement\u00a0of changes in equity.\u00a0The \u00a0
impact of these changes increases the Group\u2019s 2022 result by DKK 0.5 billion.\u00a0The impact\u00a0on the\u00a0Group\u2019s equity as\u00a0at 31 Decem\u00a0ber 2022 is\u00a0a net \u00a0
decrease of DKK 40 million,\u00a0as result\u00a0of the increase in the Group\u2019s 2022 result and the direct impact on equity from the change in treatment\u00a0of own \u00a0
shares. \u00a0
Ratios for regulatory requirements in 2022 have not been restated as a result of the changes described above. The overall imp\u00a0act on equity at 31 \u00a0
December 2022 of\u00a0DKK 40 million is\u00a0immaterial, and\u00a0therefore the Group\u2019s total capital and capital ratios for\u00a02 022 will not be revised nor resubmitte\u00a0d \u00a0
to regulators, and remains as published in the Annual Report 2022. \u00a0
The table below shows the impact on the 2022 IFRS Income statement of IFRS 17 implementation, the\u00a0change in treatment\u00a0of the Group\u2019s\u00a0own shares, \u00a0
and the change in treatment\u00a0of the Group\u2019s own bonds. \u00a0
Adjustments \u00a0
IAS 32 \u2013 own \u00a0
IFRS 9 \u2013 own \u00a0
Restated \u00a0
(DKK millions) \u00a0
2022 \u00a0
IFRS 17 \u00a0
shares \u00a0
bonds \u00a0
2022 \u00a0
Interest income calculated using the effective interest method \u00a0
31,697 \u00a0
-
-
-
31,697 \u00a0
Other interest income \u00a0
47,570 \u00a0
-29,957 \u00a0
-
675 \u00a0
18,288 \u00a0
Interest expense \u00a0
51,241 \u00a0
-27,282 \u00a0
-
675 \u00a0
24,634 \u00a0
Net interest income from banking activities \u00a0
28,026 \u00a0
-2,675 \u00a0
-
-
25,351 \u00a0
Fee income \u00a0
17,305 \u00a0
-
-
-
17,305 \u00a0
Fee expenses \u00a0
5,993 \u00a0
-1,169 \u00a0
-
-
4,824 \u00a0
Net fee income \u00a0
11,312 \u00a0
1,169 \u00a0
-
-
12,481 \u00a0
Net trading income or loss \u00a0
-32,983 \u00a0
34,379 \u00a0
185 \u00a0
-
1,581 \u00a0
Insurance revenue \u00a0
-
5,126 \u00a0
-
-
5,126 \u00a0
Insurance service expenses \u00a0
-
3,604 \u00a0
-
-
3,604 \u00a0
Net return on investments backing insurance liabilities \u00a0
-
-60,302 \u00a0
-
-
-60,302 \u00a0
Net finance income or expense from insurance \u00a0
-
58,624 \u00a0
-
-
58,624 \u00a0
Other insurance related income \u00a0
-
21 \u00a0
-
-
21 \u00a0
Net insurance result \u00a0
-
-135 \u00a0
-
-
-135 \u00a0
Gain or loss on sale of disposal groups \u00a0
1,420 \u00a0
-
-
-
1,420 \u00a0
Other income \u00a0
5,476 \u00a0
-691 \u00a0
-
-
4,785 \u00a0
Total other income \u00a0
6,897 \u00a0
-691 \u00a0
-
-
6,206 \u00a0
Net premiums \u00a0
35,394 \u00a0
-35,394 \u00a0
-
-
-
Net insurance benefits \u00a0
2,750 \u00a0
-2,750 \u00a0
-
-
-
Total income \u00a0
45,896 \u00a0
-596 \u00a0
185 \u00a0
-
45,484 \u00a0
Operating expenses \u00a0
31,250 \u00a0
-998 \u00a0
-
-
30,252 \u00a0
Provision for Estonia matter \u00a0
13,800 \u00a0
-
-
-
13,800 \u00a0
Impairment charges on goodwill \u00a0
1,627 \u00a0
-
-
-
1,627 \u00a0
Profit before loan impairment charges \u00a0
-781 \u00a0
401 \u00a0
185 \u00a0
-
-195 \u00a0
Loan impairment charges \u00a0
1,502 \u00a0
-
-
-
1,502 \u00a0
Profit before tax \u00a0
-2,284 \u00a0
401 \u00a0
185 \u00a0
-
-1,697 \u00a0
Tax \u00a0
2,784 \u00a0
99 \u00a0
-
-
2,883 \u00a0
Net profit \u00a0
-5,067 \u00a0
303 \u00a0
185 \u00a0
-
-4,580 \u00a0
Portion attributable to \u00a0
Shareholders of Danske Bank A/S (the Parent Company) \u00a0
-5,154 \u00a0
303 \u00a0
185 \u00a0
-
-4,666 \u00a0
Additional Tier 1 capital holders \u00a0
86 \u00a0
-
-
-
86 \u00a0
Net profit \u00a0
-5,068 \u00a0
303 \u00a0
185 \u00a0
-
-4,580 \u00a0
Earnings per share (DKK) \u00a0
-6.1 \u00a0
-5.4 \u00a0
Diluted earnings per share (DKK) \u00a0
-6.0 \u00a0
-5.4 \u00a0
Dividend per share (DKK) \u00a0
-
-
G2. Changes and forthcoming changes to accounting policies and presentation\u00a0continued \u00a0
The table below shows\u00a0a reconciliation\u00a0of the Group\u2019s\u00a0balances between 31\u00a0December 2021 and 1 January 2022, showing the impac\u00a0t of IFRS 17 \u00a0
(including the reclassification of Danica\u2019s assets and liabilities),\u00a0the change in treatment of the Group\u2019s own shares, and the change in tr\u00a0eatment of\u00a0the \u00a0
Group\u2019s own bonds. \u00a0
Effect of changes in accounting policy\u00a0as at 1 January\u00a02022 \u00a0
Remeasurements \u00a0
31 December \u00a0
IAS 32 \u2013 \u00a0
IFRS 9 \u2013 \u00a0
1 January \u00a0
(DKK millions) \u00a0
2021 \u00a0
IFRS 17\u00a0own shares\u00a0own bonds \u00a0
2022 \u00a0
Assets \u00a0
Cash in hand and demand deposits with central banks \u00a0
293,386 \u00a0
-
-
-
293,386 \u00a0
Due from credit institutions\u00a0and central banks \u00a0
71,156 \u00a0
-7 \u00a0
-
-
71,149 \u00a0
Trading portfolio assets \u00a0
509,590 \u00a0
-164 \u00a0
-
-
509,426 \u00a0
Investment securities \u00a0
303,777 \u00a0
-22,835 \u00a0
-
-
280,942 \u00a0
Loans at amortised cost \u00a0
1,027,442 \u00a0
-
-
-
1,027,442 \u00a0
Loans at fair value \u00a0
1,024,461 \u00a0
-
-
-
1,024,461 \u00a0
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
76,654 \u00a0
-
151 \u00a0
-
76,805 \u00a0
Assets under insurance contracts \u00a0
547,806 \u00a0
29,731 \u00a0
507 \u00a0
44,590 \u00a0
622,634 \u00a0
Assets held for sale \u00a0
28,800 \u00a0
-
-
-
28,800 \u00a0
Intangible assets \u00a0
8,819 \u00a0
-2,628 \u00a0
-
-
6,191 \u00a0
Tax assets \u00a0
4,510 \u00a0
-
-
-
4,510 \u00a0
Other assets \u00a0
39,433 \u00a0
-4,097 \u00a0
-
-
35,336 \u00a0
Total assets \u00a0
3,935,834 \u00a0
-
658 \u00a0
44,590 3,981,082 \u00a0
Liabilities \u00a0
Due to credit institutions and central banks \u00a0
172,976 \u00a0
-
-
-
172,976 \u00a0
Trading portfolio liabilities \u00a0
374,959 \u00a0
-
-
-
374,959 \u00a0
Deposits \u00a0
1,292,030 \u00a0
-
-
-
1,292,030 \u00a0
Issued bonds at fair value \u00a0
794,909 \u00a0
-
-
44,426 \u00a0
839,335 \u00a0
Issued bonds at amortised cost \u00a0
223,854 \u00a0
-
-
-
223,854 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
76,982 \u00a0
-
-
-
76,982 \u00a0
Liabilities under insurance contracts \u00a0
588,736 \u00a0
2,247 \u00a0
-
-
590,983 \u00a0
Liabilities in disposal\u00a0groups held for sale \u00a0
29,577 \u00a0
-
-
-
29,577 \u00a0
Tax liabilities \u00a0
1,864 \u00a0
-460 \u00a0
-
-
1,404 \u00a0
Other liabilities \u00a0
56,268 \u00a0
-422 \u00a0
-
164 \u00a0
56,010 \u00a0
Non-preferred senior bonds \u00a0
107,654 \u00a0
-
-
-
107,654 \u00a0
Subordinated debt \u00a0
39,321 \u00a0
-
-
-
39,321 \u00a0
Total liabilities \u00a0
3,759,130 \u00a0
1,365 \u00a0
-
44,590 3,805,085 \u00a0
Equity \u00a0
Share capital \u00a0
8,622 \u00a0
-
-
-
8,622 \u00a0
Foreign currency translation reserve \u00a0
-612 \u00a0
-
-
-
-612 \u00a0
Reserve for bonds at fair value (OCI) \u00a0
34 \u00a0
-
-
-
34 \u00a0
Retained earnings \u00a0
161,439 \u00a0
-1,365 \u00a0
658 \u00a0
-
160,732 \u00a0
Proposed dividends \u00a0
1,724 \u00a0
-
-
-
1,724 \u00a0
Shareholders of Danske Bank A/S (the Parent Company) \u00a0
171,207 \u00a0
-1,365 \u00a0
658 \u00a0
-
170,500 \u00a0
Additional tier\u00a01 capital\u00a0holders \u00a0
5,497 \u00a0
-
-
-
5,497 \u00a0
Non-controlling interests \u00a0
-
-
-
-
-
Total equity \u00a0
176,704 \u00a0
-1,365 \u00a0
658 \u00a0
-
175,997 \u00a0
Total liabilities\u00a0and equity \u00a0
3,935,834 \u00a0
-
658 \u00a0
44,590 3,981,082 \u00a0
Amendment to\u00a0IAS 1, Presentation\u00a0of financial\u00a0statements \u00a0
The amendment to IAS 1 requires disclosure of material accounting policy information, rather than significant accounting poli\u00a0cies. Accounting \u00a0
policy information is considered to be material if users of the financial statements\u00a0need it to understand other material inf\u00a0ormation in the financial \u00a0
statements. If\u00a0immaterial accounting policy\u00a0information is\u00a0disclosed, it\u00a0should not obscure material acco\u00a0unting policy\u00a0information. \u00a0
The amendment has no\u00a0impact on\u00a0the financial statements. \u00a0
Amendment to\u00a0IAS 8, Accounting\u00a0policies, changes in\u00a0accounting estimates and\u00a0errors \u00a0
The amendment introduces a definition of accounting estimates \u2013 monetary amounts in\u00a0financial statements\u00a0that are subject to measurement uncertainty \u00a0
\u2013 and clarifies\u00a0that a change in accounting\u00a0estimate that\u00a0results from\u00a0new information or\u00a0new developments\u00a0is not the correctio n\u00a0of an error. Similarly, \u00a0
the effects of a change in an input or a measurement technique used to develop an accounting estimate are changes in accounti\u00a0ng estimates if they do \u00a0
not result from the correction of prior period errors. \u00a0
The amendment has no\u00a0impact on\u00a0the financial statements. \u00a0
Amendment to\u00a0IAS 12,\u00a0Income taxes \u00a0
The first amendment to IAS 12 clarifies how entities\u00a0should account for deferred tax on assets and liabilities\u00a0arising from a\u00a0single transaction such as \u00a0
Leases liabilities\u00a0and right-of-use assets or decommissioning obligations\u00a0and property,\u00a0plant and\u00a0equipment. \u00a0
The main change is that the initial recognition exemption\u00a0in IAS\u00a012 does not apply to transactions\u00a0in which equal amounts of\u00a0deductible and taxable \u00a0
temporary differences arise on\u00a0initial recognition.\u00a0This amendment has\u00a0no impact on\u00a0the financial statements. \u00a0
The second amendment introduces an\u00a0exception to the requirement of IAS 12 that an entity does not recognise and does not disc\u00a0lose information about \u00a0
deferred tax assets and liabilities\u00a0related to the OECD\u00a0Pillar Two income taxes. Pillar Two legislation\u00a0has been enacted\u00a0or substantively\u00a0enacted in most \u00a0
jurisdictions where\u00a0Danske Bank\u00a0Group operates.\u00a0The legislation\u00a0will be\u00a0effective for the Group\u2019s financial year beginning 1 January 2024. The Danske \u00a0
Bank Group\u00a0is in scope of the enacted\u00a0or substantively\u00a0enacted legislation and has performed an assessment of the potential\u00a0exposure to Pillar Two \u00a0
income taxes. No material exposure to Pillar Two income taxes affecting the income statement\u00a0for Danske\u00a0Bank Group are expect\u00a0ed. See note G21 for \u00a0
more detail. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2621": {
"value": "As a result of IFRS 17 implementation,\u00a0the Group has changed the presentation\u00a0of the Income statement\u00a0to include material lin\u00a0e items as\u00a0required by \u00a0
IAS 1. At the same time, sub-totals\u00a0for Net fee income, Net insurance\u00a0result, Total other income and Total income have been included in\u00a0the Income \u00a0
statement. \u00a0
The table below shows the impact on the 2022 IFRS Income statement of IFRS 17 implementation, the\u00a0change in treatment\u00a0of the Group\u2019s\u00a0own shares, \u00a0
and the change in treatment\u00a0of the Group\u2019s own bonds. \u00a0
Adjustments \u00a0
IAS 32 \u2013 own \u00a0
IFRS 9 \u2013 own \u00a0
Restated \u00a0
(DKK millions) \u00a0
2022 \u00a0
IFRS 17 \u00a0
shares \u00a0
bonds \u00a0
2022 \u00a0
Interest income calculated using the effective interest method \u00a0
31,697 \u00a0
-
-
-
31,697 \u00a0
Other interest income \u00a0
47,570 \u00a0
-29,957 \u00a0
-
675 \u00a0
18,288 \u00a0
Interest expense \u00a0
51,241 \u00a0
-27,282 \u00a0
-
675 \u00a0
24,634 \u00a0
Net interest income from banking activities \u00a0
28,026 \u00a0
-2,675 \u00a0
-
-
25,351 \u00a0
Fee income \u00a0
17,305 \u00a0
-
-
-
17,305 \u00a0
Fee expenses \u00a0
5,993 \u00a0
-1,169 \u00a0
-
-
4,824 \u00a0
Net fee income \u00a0
11,312 \u00a0
1,169 \u00a0
-
-
12,481 \u00a0
Net trading income or loss \u00a0
-32,983 \u00a0
34,379 \u00a0
185 \u00a0
-
1,581 \u00a0
Insurance revenue \u00a0
-
5,126 \u00a0
-
-
5,126 \u00a0
Insurance service expenses \u00a0
-
3,604 \u00a0
-
-
3,604 \u00a0
Net return on investments backing insurance liabilities \u00a0
-
-60,302 \u00a0
-
-
-60,302 \u00a0
Net finance income or expense from insurance \u00a0
-
58,624 \u00a0
-
-
58,624 \u00a0
Other insurance related income \u00a0
-
21 \u00a0
-
-
21 \u00a0
Net insurance result \u00a0
-
-135 \u00a0
-
-
-135 \u00a0
Gain or loss on sale of disposal groups \u00a0
1,420 \u00a0
-
-
-
1,420 \u00a0
Other income \u00a0
5,476 \u00a0
-691 \u00a0
-
-
4,785 \u00a0
Total other income \u00a0
6,897 \u00a0
-691 \u00a0
-
-
6,206 \u00a0
Net premiums \u00a0
35,394 \u00a0
-35,394 \u00a0
-
-
-
Net insurance benefits \u00a0
2,750 \u00a0
-2,750 \u00a0
-
-
-
Total income \u00a0
45,896 \u00a0
-596 \u00a0
185 \u00a0
-
45,484 \u00a0
Operating expenses \u00a0
31,250 \u00a0
-998 \u00a0
-
-
30,252 \u00a0
Provision for Estonia matter \u00a0
13,800 \u00a0
-
-
-
13,800 \u00a0
Impairment charges on goodwill \u00a0
1,627 \u00a0
-
-
-
1,627 \u00a0
Profit before loan impairment charges \u00a0
-781 \u00a0
401 \u00a0
185 \u00a0
-
-195 \u00a0
Loan impairment charges \u00a0
1,502 \u00a0
-
-
-
1,502 \u00a0
Profit before tax \u00a0
-2,284 \u00a0
401 \u00a0
185 \u00a0
-
-1,697 \u00a0
Tax \u00a0
2,784 \u00a0
99 \u00a0
-
-
2,883 \u00a0
Net profit \u00a0
-5,067 \u00a0
303 \u00a0
185 \u00a0
-
-4,580 \u00a0
Portion attributable to \u00a0
Shareholders of Danske Bank A/S (the Parent Company) \u00a0
-5,154 \u00a0
303 \u00a0
185 \u00a0
-
-4,666 \u00a0
Additional Tier 1 capital holders \u00a0
86 \u00a0
-
-
-
86 \u00a0
Net profit \u00a0
-5,068 \u00a0
303 \u00a0
185 \u00a0
-
-4,580 \u00a0
Earnings per share (DKK) \u00a0
-6.1 \u00a0
-5.4 \u00a0
Diluted earnings per share (DKK) \u00a0
-6.0 \u00a0
-5.4 \u00a0
Dividend per share (DKK) \u00a0
-
-
The table below shows\u00a0a reconciliation\u00a0of the Group\u2019s\u00a0balances between 31\u00a0December 2021 and 1 January 2022, showing the impac\u00a0t of IFRS 17 \u00a0
(including the reclassification of Danica\u2019s assets and liabilities),\u00a0the change in treatment of the Group\u2019s own shares, and the change in tr\u00a0eatment of\u00a0the \u00a0
Group\u2019s own bonds. \u00a0
Effect of changes in accounting policy\u00a0as at 1 January\u00a02022 \u00a0
Remeasurements \u00a0
31 December \u00a0
IAS 32 \u2013 \u00a0
IFRS 9 \u2013 \u00a0
1 January \u00a0
(DKK millions) \u00a0
2021 \u00a0
IFRS 17\u00a0own shares\u00a0own bonds \u00a0
2022 \u00a0
Assets \u00a0
Cash in hand and demand deposits with central banks \u00a0
293,386 \u00a0
-
-
-
293,386 \u00a0
Due from credit institutions\u00a0and central banks \u00a0
71,156 \u00a0
-7 \u00a0
-
-
71,149 \u00a0
Trading portfolio assets \u00a0
509,590 \u00a0
-164 \u00a0
-
-
509,426 \u00a0
Investment securities \u00a0
303,777 \u00a0
-22,835 \u00a0
-
-
280,942 \u00a0
Loans at amortised cost \u00a0
1,027,442 \u00a0
-
-
-
1,027,442 \u00a0
Loans at fair value \u00a0
1,024,461 \u00a0
-
-
-
1,024,461 \u00a0
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
76,654 \u00a0
-
151 \u00a0
-
76,805 \u00a0
Assets under insurance contracts \u00a0
547,806 \u00a0
29,731 \u00a0
507 \u00a0
44,590 \u00a0
622,634 \u00a0
Assets held for sale \u00a0
28,800 \u00a0
-
-
-
28,800 \u00a0
Intangible assets \u00a0
8,819 \u00a0
-2,628 \u00a0
-
-
6,191 \u00a0
Tax assets \u00a0
4,510 \u00a0
-
-
-
4,510 \u00a0
Other assets \u00a0
39,433 \u00a0
-4,097 \u00a0
-
-
35,336 \u00a0
Total assets \u00a0
3,935,834 \u00a0
-
658 \u00a0
44,590 3,981,082 \u00a0
Liabilities \u00a0
Due to credit institutions and central banks \u00a0
172,976 \u00a0
-
-
-
172,976 \u00a0
Trading portfolio liabilities \u00a0
374,959 \u00a0
-
-
-
374,959 \u00a0
Deposits \u00a0
1,292,030 \u00a0
-
-
-
1,292,030 \u00a0
Issued bonds at fair value \u00a0
794,909 \u00a0
-
-
44,426 \u00a0
839,335 \u00a0
Issued bonds at amortised cost \u00a0
223,854 \u00a0
-
-
-
223,854 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
76,982 \u00a0
-
-
-
76,982 \u00a0
Liabilities under insurance contracts \u00a0
588,736 \u00a0
2,247 \u00a0
-
-
590,983 \u00a0
Liabilities in disposal\u00a0groups held for sale \u00a0
29,577 \u00a0
-
-
-
29,577 \u00a0
Tax liabilities \u00a0
1,864 \u00a0
-460 \u00a0
-
-
1,404 \u00a0
Other liabilities \u00a0
56,268 \u00a0
-422 \u00a0
-
164 \u00a0
56,010 \u00a0
Non-preferred senior bonds \u00a0
107,654 \u00a0
-
-
-
107,654 \u00a0
Subordinated debt \u00a0
39,321 \u00a0
-
-
-
39,321 \u00a0
Total liabilities \u00a0
3,759,130 \u00a0
1,365 \u00a0
-
44,590 3,805,085 \u00a0
Equity \u00a0
Share capital \u00a0
8,622 \u00a0
-
-
-
8,622 \u00a0
Foreign currency translation reserve \u00a0
-612 \u00a0
-
-
-
-612 \u00a0
Reserve for bonds at fair value (OCI) \u00a0
34 \u00a0
-
-
-
34 \u00a0
Retained earnings \u00a0
161,439 \u00a0
-1,365 \u00a0
658 \u00a0
-
160,732 \u00a0
Proposed dividends \u00a0
1,724 \u00a0
-
-
-
1,724 \u00a0
Shareholders of Danske Bank A/S (the Parent Company) \u00a0
171,207 \u00a0
-1,365 \u00a0
658 \u00a0
-
170,500 \u00a0
Additional tier\u00a01 capital\u00a0holders \u00a0
5,497 \u00a0
-
-
-
5,497 \u00a0
Non-controlling interests \u00a0
-
-
-
-
-
Total equity \u00a0
176,704 \u00a0
-1,365 \u00a0
658 \u00a0
-
175,997 \u00a0
Total liabilities\u00a0and equity \u00a0
3,935,834 \u00a0
-
658 \u00a0
44,590 3,981,082 \u00a0
Changes in\u00a0financial highlights\u00a0and segment reporting \u00a0
On 1 January 2023, the Group implemented IFRS 17, Insurance contracts, resulting in the restatement of 2022. See note G2(a)\u00a0for details of the changes in \u00a0
accounting policy. At the same time, the Group simplified its reporting of Danica Pension by stopping the allocation of Danica\u2019s equity to Group Treasury (w ithin \u00a0
Group Functions). The table below shows the impact of the restatements on the financial highlights and segment reporting for 2022: \u00a0
Changes in financial highlights and segment reporting\u00a0\u2013 2022 restated \u00a0
Financial Implement Elimination Elimination \u00a0
Adjusted \u00a0
Highlights \u00a0
ation of \u00a0
of own \u00a0
of own \u00a0
Financial \u00a0
(DKK millions) \u00a0
2022 \u00a0
IFRS 17 \u00a0
shares \u00a0
bonds \u00a0
Highlights \u00a0
Net interest income \u00a0
25,188 \u00a0
-80 \u00a0
-
-
25,108 \u00a0
Net fee income \u00a0
12,590 \u00a0
-
-
-
12,590 \u00a0
Net trading\u00a0income \u00a0
1,426 \u00a0
264 \u00a0
185 \u00a0
-
1,875 \u00a0
Net income\u00a0from insurance business \u00a0
63 \u00a0
217 \u00a0
-
-
280 \u00a0
Other income \u00a0
1,936 \u00a0
-
-
-
1,936 \u00a0
Total income \u00a0
41,203 \u00a0
401 \u00a0
185 \u00a0
-
41,789 \u00a0
Operating expenses \u00a0
26,478 \u00a0
-
-
-
26,478 \u00a0
of which resolution fund, bank tax etc. \u00a0
962 \u00a0
-
-
-
962 \u00a0
of which impairment charges, other intangible assets \u00a0
24 \u00a0
-
-
-
24 \u00a0
Provision for Estonia matter \u00a0
13,800 \u00a0
-
-
-
13,800 \u00a0
Goodwill impairment charges \u00a0
1,627 \u00a0
-
-
-
1,627 \u00a0
Profit before loan impairment charges \u00a0
-703 \u00a0
401 \u00a0
185 \u00a0
-
-116 \u00a0
Loan impairment charges \u00a0
1,568 \u00a0
-
-
-
1,568 \u00a0
Profit before tax (core) \u00a0
-2,271 \u00a0
401 \u00a0
185 \u00a0
-
-1,684 \u00a0
Profit before tax, Non-core \u00a0
-13 \u00a0
-
-
-
-13 \u00a0
Profit before tax \u00a0
-2,284 \u00a0
401 \u00a0
185 \u00a0
-
-1,697 \u00a0
Loans, excluding reverse transactions \u00a0
1,803,955 \u00a0
-
-
-
1,803,955 \u00a0
Other assets (including Non-core) \u00a0
1,959,044 \u00a0
-
1,022 \u00a0
26,535 \u00a0
1,986,601 \u00a0
Total assets \u00a0
3,762,999 \u00a0
-
1,022 \u00a0
26,535 \u00a0
3,790,556 \u00a0
Deposits, excluding repo deposits \u00a0
1,169,879 \u00a0
-
-
-
1,169,879 \u00a0
Other liabilities (including Non-core) \u00a0
2,432,802 \u00a0
1,062 \u00a0
-
26,535 \u00a0
2,460,399 \u00a0
Allocated capital \u00a0
160,318 \u00a0
-1,062 \u00a0
1,022 \u00a0
-
160,278 \u00a0
Total liabilities\u00a0and equity \u00a0
3,762,999 \u00a0
-
1,022 \u00a0
26,535 \u00a0
3,790,556 \u00a0
Profit before tax as % p.a. of allocated capital (avg.) \u00a0
-1.4 \u00a0
-
-
-
-1.0 \u00a0
Cost/income ratio (%) \u00a0
101.7 \u00a0
-
-
-
100.3 \u00a0
Adjusted cost/income ratio (%) \u00a0
-
-
-
-
63.4 \u00a0
Full-time-equivalent staff,\u00a0end of period \u00a0
21,022 \u00a0
-
-
-
21,022 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact2853": {
"value": "The Group has five business units, a\u00a0Non-core unit and\u00a0a Group Functions unit, which\u00a0constitute the Group\u2019s reportable segments under IFRS\u00a08. \u00a0
Personal Customers serves personal customers\u00a0and Private Banking customers in Denmark, Sweden, Norway and Finland. \u00a0
Business Customers serves small and medium-sized business customers across all markets, and includes the Group\u2019s Asset Finance operations . \u00a0
Large Corporates\u00a0& Institutions\u00a0serves large corporates and institutional\u00a0customers across all Nordic markets. \u00a0
Danica Pension\u00a0specialises in\u00a0pension schemes, life insurance policies and health insurance policies in\u00a0Denmark. \u00a0
Northern Ireland serves personal, business and corporate in Northern Ireland alongside digital channels. \u00a0
Non-core includes certain\u00a0customer segments that are\u00a0no longer considered part of the core business. The Non\u00a0-core unit is responsible for managing \u00a0
legacy assets and portfolios by way of divestment,\u00a0refinancing with\u00a0other credit institutions\u00a0or amortisation. \u00a0
Group Functions\u00a0encompasses Group Treasury, Group support functions and eliminations,\u00a0including the elimination\u00a0of returns\u00a0on own shares\u00a0(that are \u00a0
held for trading) and issues, as well as interest on additional\u00a0tier 1 capital, which is reported as an interest expense in the business units.\u00a0Group Treasury \u00a0
is responsible for the Group\u2019s liquidity\u00a0management and funding. \u00a0
G3. Business\u00a0model and business\u00a0segmentation continued \u00a0
Business segments 2023 \u00a0
Large \u00a0
IFRS \u00a0
Personal Business\u00a0Corporates \u00a0
Northern \u00a0
Non- \u00a0
Group \u00a0
Financial \u00a0
financial \u00a0
Reclassifica \u00a0
(DKK millions) \u00a0
Customers Customers &\u00a0Institutions \u00a0
Danica \u00a0
Ireland \u00a0
core Functions\u00a0Eliminations highlights \u00a0
tion \u00a0
statements \u00a0
Net interest income \u00a0
14,166 \u00a0
11,684 \u00a0
6,938 \u00a0
-
2,549 \u00a0
-
-159 \u00a0
-178 \u00a0
35,000 \u00a0
-2,731 \u00a0
32,269 \u00a0
Net fee income \u00a0
4,043 \u00a0
1,737 \u00a0
5,700 \u00a0
-
319 \u00a0
-
-283 \u00a0
191 \u00a0
11,707 \u00a0
-77 \u00a0
11,630 \u00a0
Net trading\u00a0income \u00a0
331 \u00a0
507 \u00a0
3,125 \u00a0
-
288 \u00a0
-
-528 \u00a0
-19 \u00a0
3,704 \u00a0
2,886 \u00a0
6,590 \u00a0
Net income\u00a0from insurance \u00a0
-
-
-
1,472 \u00a0
-
-
-
-
1,472 \u00a0
-
1,472 \u00a0
business* \u00a0
Other income** \u00a0
-608 \u00a0
1,024 \u00a0
15 \u00a0
-
15 \u00a0
-
2,822 \u00a0
-2,705 \u00a0
562 \u00a0
3,329 \u00a0
3,891 \u00a0
Total income \u00a0
17,932 \u00a0
14,952 \u00a0
15,777 \u00a0
1,472 \u00a0
3,171 \u00a0
-
1,852 \u00a0
-2,712 \u00a0
52,445 \u00a0
3,407 \u00a0
55,852 \u00a0
Operating expenses \u00a0
9,460 \u00a0
5,255 \u00a0
7,397 \u00a0
-
1,368 \u00a0
-
4,569 \u00a0
-2,634 \u00a0
25,414 \u00a0
3,494 \u00a0
28,908 \u00a0
of which resolution fund, \u00a0
169 \u00a0
255 \u00a0
492 \u00a0
-
-
-
72 \u00a0
-
989 \u00a0
-989 \u00a0
-
bank tax etc. \u00a0
Profit before loan \u00a0
8,473 \u00a0
9,698 \u00a0
8,380 \u00a0
1,472 \u00a0
1,804 \u00a0
-
-2,717 \u00a0
-78 \u00a0
27,031 \u00a0
-87 \u00a0
26,944 \u00a0
impairment charges \u00a0
Loan impairment charges \u00a0
312 \u00a0
431 \u00a0
-367 \u00a0
-
-113 \u00a0
-
-1 \u00a0
-
262 \u00a0
-
262 \u00a0
Profit before tax, core \u00a0
8,160 \u00a0
9,267 \u00a0
8,747 \u00a0
1,472 \u00a0
1,917 \u00a0
-
-2,716 \u00a0
-78 \u00a0
26,769 \u00a0
-87 \u00a0
26,682 \u00a0
Profit before tax, Non-core \u00a0
-
-
-
-
-
-87 \u00a0
-
-
-87 \u00a0
87 \u00a0
-
Profit before tax \u00a0
8,160 \u00a0
9,267 \u00a0
8,747 \u00a0
1,472 \u00a0
1,917 \u00a0
-87 \u00a0
-2,716 \u00a0
-78 \u00a0
26,682 \u00a0
-
26,682 \u00a0
Loans, excluding reverse \u00a0
770,846 644,735 \u00a0
306,952 \u00a0
-
57,846 \u00a0
-
26,277 \u00a0
-27,632 1,779,024\u00a0-108,882 1,670,142 \u00a0
transactions*** \u00a0
Other assets (including \u00a0
354,776 184,777\u00a03,293,987 541,668 \u00a0
59,654 1,889\u00a04,481,573 -6,926,366 1,991,957\u00a0108,882 2,100,839 \u00a0
Non-core) \u00a0
Total assets \u00a0
1,125,622 829,512\u00a03,600,939 541,668\u00a0117,499 1,889\u00a04,507,850 -6,953,998 3,770,981 \u00a0
-
3,770,981 \u00a0
Deposits, excluding repo \u00a0
408,018 257,076\u00a0382,596 97,396\u00a02,864 -10,890\u00a01,137,061 \u00a0
-
-
-28,163 1,108,898 \u00a0
deposits*** \u00a0
Other liabilities (including \u00a0
688,867 532,121\u00a03,177,621 541,668\u00a014,078 2,878\u00a04,444,056 -6,943,107 2,458,181 \u00a0
28,163 2,486,344 \u00a0
Non-core) \u00a0
Allocated capital \u00a0
28,737 40,315\u00a040,722 6,025\u00a059,941 175,739 \u00a0
-
-
-
-
175,739 \u00a0
Total liabilities\u00a0and equity \u00a0
1,125,622 829,512\u00a03,600,939 541,668\u00a0117,499 2,878\u00a04,506,861 -6,953,998 3,770,981 \u00a0
-
3,770,981 \u00a0
Profit before tax as % p.a. \u00a0
of allocated capital (avg.) \u00a0
27.8 \u00a0
23.4 \u00a0
21.7 \u00a0
7.5 \u00a0
28.4 \u00a0
-
-7.1 \u00a0
-
15.9 \u00a0
-
15.9 \u00a0
Cost/income ratio (%) \u00a0
52.8 \u00a0
35.1 \u00a0
46.9 \u00a0
-
43.1 \u00a0
-
-
-
48.5 \u00a0
-
51.8 \u00a0
Full-time-equivalent staff, \u00a0
end of period \u00a0
4,064 \u00a0
1,646 \u00a0
2,085 \u00a0
912 \u00a0
1,267 \u00a0
7
10,039 \u00a0
-
20,021 \u00a0
-
20,021 \u00a0
* Net income from insurance business in the financial highlights is equivalent to Net insurance result in the IFRS financial\u00a0statements. \u00a0
** Other income in the financial highlights is equivalent to Total other income in the IFRS financial statements. \u00a0
*** Loans and deposits that are included inthe sale of the personal customers business inNorway are presented inthe financial highlights within Loans, excluding reverse transactions and Deposits, \u00a0
excluding repo deposits respectively. These are presented within Assets held for sale and Liabilities in disposal groups held for sale in the IFRS Balance sheet. \u00a0
The \u2018Reclassification\u2019 column shows the\u00a0reconciliation between the\u00a0presentation in the financial highlights and the presentation\u00a0in the IFRS statements. \u00a0
The reclassifications\u00a0are explained\u00a0in note G1(d). \u00a0
The Group\u2019s internal reporting on\u00a0business segments does not include tax. Tax is therefore not allocated\u00a0to the business units, but solely presented within \u00a0
the total amount. \u00a0
G3. Business\u00a0model and business\u00a0segmentation continued \u00a0
Business segments 2022 \u00a0
Large \u00a0
IFRS \u00a0
Personal \u00a0
Business \u00a0
Corporates \u00a0
Northern \u00a0
Non- \u00a0
Group Eliminations \u00a0
Financial Reclassifi \u00a0
financial \u00a0
(DKK millions) \u00a0
Customers Customers\u00a0& Institutions\u00a0Danica* \u00a0
Ireland \u00a0
core Functions* \u00a0
*
highlights* \u00a0
cation* statements* \u00a0
Net interest income \u00a0
8,778 \u00a0
9,175 \u00a0
5,605 \u00a0
-
1,900 \u00a0
-
-245 \u00a0
-104 \u00a0
25,108 \u00a0
243 \u00a0
25,351 \u00a0
Net fee income \u00a0
4,730 \u00a0
1,825 \u00a0
5,732 \u00a0
-
335 \u00a0
-
-198 \u00a0
165 \u00a0
12,590 \u00a0
-109 \u00a0
12,481 \u00a0
Net trading\u00a0income \u00a0
444 \u00a0
517 \u00a0
1,489 \u00a0
-
-342 \u00a0
-
-223 \u00a0
-10 \u00a0
1,875 \u00a0
-294 \u00a0
1,581 \u00a0
Net income\u00a0from \u00a0
insurance business** \u00a0
-
-
-
280 \u00a0
-
-
-
-
280 \u00a0
-415 \u00a0
-135 \u00a0
Other income*** \u00a0
987 \u00a0
847 \u00a0
2
-
21 \u00a0
-
2,581 \u00a0
-2,503 \u00a0
1,936 \u00a0
4,270 \u00a0
6,206 \u00a0
Total income \u00a0
14,939 \u00a0
12,364 \u00a0
12,828 \u00a0
280 \u00a0
1,914 \u00a0
-
1,915 \u00a0
-2,451 \u00a0
41,789 \u00a0
3,695 \u00a0
45,484 \u00a0
Operating expenses \u00a0
10,104 \u00a0
5,356 \u00a0
6,966 \u00a0
-
1,290 \u00a0
-
5,313 \u00a0
-2,552 \u00a0
26,478 \u00a0
3,774 \u00a0
30,252 \u00a0
of which resolution fund, \u00a0
bank tax etc. \u00a0
161 \u00a0
224 \u00a0
504 \u00a0
-
-
-
74 \u00a0
-
962 \u00a0
-962 \u00a0
-
of which impairment \u00a0
charges, other intangible \u00a0
assets \u00a0
-
-
-
-
-
-
24 \u00a0
-
24 \u00a0
-24 \u00a0
-
Provision for Estonia \u00a0
matter \u00a0
-
-
-
-
-
-
13,800 \u00a0
-
13,800 \u00a0
-
13,800 \u00a0
Goodwill impairment \u00a0
charges \u00a0
-
-
-
1,627 \u00a0
-
-
-
-
1,627 \u00a0
-
1,627 \u00a0
Profit before loan \u00a0
impairment charges \u00a0
4,836 \u00a0
7,008 \u00a0
5,861 \u00a0
-1,347 \u00a0
623 \u00a0
-
-17,199 \u00a0
101 \u00a0
-116 \u00a0
-78 \u00a0
-195 \u00a0
Loan impairment charges \u00a0
927 \u00a0
578 \u00a0
-774 \u00a0
-
168 \u00a0
-
669 \u00a0
-
1,568 \u00a0
-66 \u00a0
1,502 \u00a0
Profit before tax, core \u00a0
3,909 \u00a0
6,430 \u00a0
6,635 \u00a0
-1,347 \u00a0
456 \u00a0
-
-17,868 \u00a0
101 \u00a0
-1,684 \u00a0
-13 \u00a0
-1,697 \u00a0
Profit before tax, Non-core \u00a0
-
-
-
-
-
-13 \u00a0
-
-
-13 \u00a0
13 \u00a0
-
Profit before tax \u00a0
3,909 \u00a0
6,430 \u00a0
6,635 \u00a0
-1,347 \u00a0
456 \u00a0
-13 \u00a0
-17,868 \u00a0
101 \u00a0
-1,697 \u00a0
-
-1,697 \u00a0
Loans, excluding reverse \u00a0
transactions \u00a0
800,394 \u00a0
630,619 \u00a0
320,491 \u00a0
-
52,937 \u00a0
-
27,274 \u00a0
-27,759 1,803,955 \u00a0
1,168 1,805,123 \u00a0
Other assets (including \u00a0
Non-core) \u00a0
315,679 \u00a0
197,541 \u00a0
3,584,663 548,874\u00a059,680 2,180 4,493,984\u00a0-7,216,000 1,986,601 \u00a0
-1,168 1,985,433 \u00a0
Total assets \u00a0
1,116,073 \u00a0
828,160 \u00a0
3,905,154 548,874 112,616\u00a02,180 4,521,258\u00a0-7,243,759 3,790,556 \u00a0
-
3,790,556 \u00a0
Deposits, excluding repo \u00a0
deposits \u00a0
410,806 \u00a0
285,177 \u00a0
389,486 \u00a0
-
94,562 \u00a0
-
1,431 \u00a0
-11,584 1,169,879 \u00a0
2,112 1,171,990 \u00a0
Other liabilities (including \u00a0
Non-core) \u00a0
674,966 \u00a0
503,173 \u00a0
3,474,451 530,953\u00a012,930 2,467 4,494,656\u00a0-7,233,197 2,460,399 \u00a0
-2,112 2,458,288 \u00a0
Allocated capital \u00a0
30,300 \u00a0
39,810 \u00a0
41,217 17,921\u00a05,124 24,884\u00a01,022 160,278 \u00a0
-
-
160,278 \u00a0
Total liabilities\u00a0and equity \u00a0
1,116,073 \u00a0
828,160 \u00a0
3,905,154 548,874 112,616\u00a02,467 4,520,971\u00a0-7,243,759 3,790,556 \u00a0
-
3,790,556 \u00a0
Profit before tax as % p.a. \u00a0
of allocated capital (avg.) \u00a0
12,7 \u00a0
16,2 \u00a0
15,7 \u00a0
-6,6 \u00a0
7,5 \u00a0
-
-51,8 \u00a0
-
-1,0 \u00a0
-
-1,0 \u00a0
Cost/income ratio (%) \u00a0
67,6 \u00a0
43,3 \u00a0
54,3 \u00a0
-
67,4 \u00a0
-
-
-
100,3 \u00a0
-
100,4 \u00a0
Full-time-equivalent staff, \u00a0
end of period \u00a0
4,262 \u00a0
1,635 \u00a0
2,054 \u00a0
881 \u00a0
1,288 \u00a0
25 \u00a0
10,878 \u00a0
-
21,022 \u00a0
-
21,022 \u00a0
* Comparative information has been restated, as described in note G2(a) and G 3(a). \u00a0
** Net income from insurance business in the financial highlights is equivalent to Net insurance result in the IFRS financial st atements. \u00a0
*** Other income in the financial highlights is equivalent to Total other income in the IFRS financial statements. \u00a0
The table below breaks down\u00a0credit exposure by core business\u00a0unit and underlying\u00a0segment. \u00a0
Credit portfolio\u00a0in core activities\u00a0broken down by business\u00a0unit \u00a0
31 December 2023 \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK billions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Stage 1\u00a0Stage 2 \u00a0
Stage 3 \u00a0
Personal Customers \u00a0
Personal Customers\u00a0DK \u00a0
424.0 \u00a0
18.6 \u00a0
6.2 \u00a0
1.0 \u00a0
0.9 \u00a0
1.3 \u00a0
423.0 \u00a0
17.7 \u00a0
4.9 \u00a0
49.4 \u00a0
1.8 \u00a0
-
Personal Customers \u00a0
Nordic \u00a0
304.6 \u00a0
12.9 \u00a0
2.8 \u00a0
0.3 \u00a0
0.5 \u00a0
0.8 \u00a0
304.2 \u00a0
12.3 \u00a0
1.9 \u00a0
66.4 \u00a0
1.3 \u00a0
-
Global Private Banking \u00a0
76.5 \u00a0
3.1 \u00a0
0.7 \u00a0
-
0.1 \u00a0
0.2 \u00a0
76.4 \u00a0
3.0 \u00a0
0.5 \u00a0
16.2 \u00a0
1.0 \u00a0
-
Total Personal \u00a0
Customers \u00a0
805.0 \u00a0
34.6 \u00a0
9.6 \u00a0
1.3 \u00a0
1.6 \u00a0
2.4 \u00a0
803.7 \u00a0
33.0 \u00a0
7.3 \u00a0
132.1 \u00a0
4.1 \u00a0
-
Business Customers \u00a0
Asset Finance \u00a0
52.7 \u00a0
9.4 \u00a0
1.4 \u00a0
0.1 \u00a0
0.5 \u00a0
0.5 \u00a0
52.6 \u00a0
8.8 \u00a0
0.9 \u00a0
19.5 \u00a0
1.6 \u00a0
-
Business Customers \u00a0
309.6 \u00a0
36.8 \u00a0
10.4 \u00a0
1.1 \u00a0
3.0 \u00a0
3.7 \u00a0
308.5 \u00a0
33.8 \u00a0
6.7 \u00a0
93.3 \u00a0
13.8 \u00a0
0.6 \u00a0
Commercial Real Estate \u00a0
308.0 \u00a0
24.9 \u00a0
2.3 \u00a0
0.4 \u00a0
1.1 \u00a0
0.3 \u00a0
307.6 \u00a0
23.8 \u00a0
2.0 \u00a0
44.8 \u00a0
3.9 \u00a0
0.1 \u00a0
Business Customers \u00a0
Other \u00a0
0.4 \u00a0
-
0.1 \u00a0
-
-
-
0.4 \u00a0
-
0.1 \u00a0
0.4 \u00a0
-
-
Total Business \u00a0
Customers \u00a0
670.6 \u00a0
71.1 \u00a0
14.2 \u00a0
1.6 \u00a0
4.7 \u00a0
4.5 \u00a0
669.0 \u00a0
66.4 \u00a0
9.7 \u00a0
158.0 \u00a0
19.3 \u00a0
0.6 \u00a0
Large Corporates\u00a0& \u00a0
Institutions \u00a0
595.9 \u00a0
33.8 \u00a0
6.9 \u00a0
0.4 \u00a0
1.1 \u00a0
1.8 \u00a0
595.5 \u00a0
32.7 \u00a0
5.1 \u00a0
511.5 \u00a0
29.8 \u00a0
2.1 \u00a0
Northern Ireland \u00a0
89.4 \u00a0
4.7 \u00a0
1.9 \u00a0
0.3 \u00a0
0.1 \u00a0
0.4 \u00a0
89.1 \u00a0
4.6 \u00a0
1.5 \u00a0
48.1 \u00a0
0.8 \u00a0
0.2 \u00a0
Group Functions \u00a0
229.8 \u00a0
0.1 \u00a0
-
-
-
-
229.8 \u00a0
0.1 \u00a0
-
229.7 \u00a0
-
-
Total \u00a0
2,390.8 \u00a0
144.2 \u00a0
32.7 \u00a0
3.6 \u00a0
7.5 \u00a0
9.1 2,387.2 \u00a0
136.7 \u00a0
23.6 1,079.4 \u00a0
54.1 \u00a0
3.0 \u00a0
31 December 2022 \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral* \u00a0
(DKK billions) \u00a0
Stage 1\u00a0Stage 2 \u00a0
Stage 3\u00a0Stage 1\u00a0Stage 2 \u00a0
Stage 3\u00a0Stage 1\u00a0Stage 2 \u00a0
Stage 3\u00a0Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Personal Customers** \u00a0
Personal Customers\u00a0DK \u00a0
404.3 \u00a0
25.5 \u00a0
6.1 \u00a0
0.9 \u00a0
1.4 \u00a0
1.2 \u00a0
403.3 \u00a0
24.0 \u00a0
4.9 \u00a0
45.8 \u00a0
2.2 \u00a0
-
Personal Customers \u00a0
Nordic \u00a0
349.4 \u00a0
15.9 \u00a0
3.2 \u00a0
0.2 \u00a0
0.3 \u00a0
0.8 \u00a0
349.2 \u00a0
15.6 \u00a0
2.4 \u00a0
72.2 \u00a0
2.0 \u00a0
-
Global Private Banking \u00a0
76.1 \u00a0
7.1 \u00a0
0.6 \u00a0
0.1 \u00a0
0.2 \u00a0
0.2 \u00a0
76.0 \u00a0
6.9 \u00a0
0.4 \u00a0
16.0 \u00a0
2.9 \u00a0
-
Total Personal \u00a0
Customers \u00a0
829.8 \u00a0
48.5 \u00a0
9.9 \u00a0
1.3 \u00a0
2.0 \u00a0
2.2 \u00a0
828.5 \u00a0
46.5 \u00a0
7.7 \u00a0
134.1 \u00a0
7.1 \u00a0
-
Business Customers \u00a0
Asset Finance \u00a0
47.6 \u00a0
12.9 \u00a0
1.2 \u00a0
0.1 \u00a0
0.5 \u00a0
0.3 \u00a0
47.4 \u00a0
12.4 \u00a0
0.8 \u00a0
18.6 \u00a0
2.4 \u00a0
-
Business Customers \u00a0
324.0 \u00a0
56.4 \u00a0
11.1 \u00a0
0.9 \u00a0
3.9 \u00a0
3.5 \u00a0
323.1 \u00a0
52.5 \u00a0
7.5 \u00a0
119.7 \u00a0
17.8 \u00a0
1.0 \u00a0
Commercial Real Esate \u00a0
279.1 \u00a0
22.1 \u00a0
1.3 \u00a0
0.2 \u00a0
0.6 \u00a0
0.3 \u00a0
278.9 \u00a0
21.5 \u00a0
1.0 \u00a0
43.4 \u00a0
3.9 \u00a0
0.2 \u00a0
Business Customers \u00a0
Other \u00a0
0.1 \u00a0
-
-
-
-
-
0.1 \u00a0
-
-
0.1 \u00a0
-
-
Total Business \u00a0
Customers \u00a0
650.7 \u00a0
91.4 \u00a0
13.6 \u00a0
1.2 \u00a0
4.9 \u00a0
4.2 \u00a0
649.5 \u00a0
86.4 \u00a0
9.4 \u00a0
181.7 \u00a0
24.1 \u00a0
1.2 \u00a0
Large Corporates\u00a0& \u00a0
Institutions \u00a0
615.2 \u00a0
29.1 \u00a0
7.0 \u00a0
0.5 \u00a0
1.0 \u00a0
1.5 \u00a0
614.7 \u00a0
28.1 \u00a0
5.5 \u00a0
535.3 \u00a0
25.5 \u00a0
-
Northern Ireland \u00a0
81.4 \u00a0
6.9 \u00a0
1.7 \u00a0
0.3 \u00a0
0.2 \u00a0
0.4 \u00a0
81.1 \u00a0
6.7 \u00a0
1.2 \u00a0
45.4 \u00a0
1.1 \u00a0
0.1 \u00a0
Group Functions \u00a0
147.1 \u00a0
0.2 \u00a0
-
-
-
-
147.1 \u00a0
0.2 \u00a0
-
146.9 \u00a0
0.2 \u00a0
-
Total \u00a0
2,324.2 \u00a0
176.0 \u00a0
32.1 \u00a0
3.3 \u00a0
8.1 \u00a0
8.3 2,321.0 \u00a0
168.0 \u00a0
23.9 1,043.5 \u00a0
58.0 \u00a0
1.4 \u00a0
* Net exposure, ex collateral as at 31 December 2022 has been restated. \u00a0
** Global Private Banking is a new sub-segment in Personal Customers in 2023. Comparatives have been reclassified from other sub-segments of Personal Customers. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4204": {
"value": "G4. Activities by country \u00a0
Under CRD\u00a0IV, a financial institution\u00a0must disclose, by country in which it operates through a subsidiary or a\u00a0branch, information about income, number \u00a0
of employees,\u00a0profit before tax, tax and public\u00a0subsidies received. This information is\u00a0not comparable\u00a0to the geographical\u00a0segmentation presented in note \u00a0
G3(d), in which segmentation\u00a0is based on the customer\u2019s country of\u00a0residence. The Group has not received any\u00a0public subsidies that relate to the Group\u2019s \u00a0
activities as\u00a0a financial\u00a0institution. \u00a0
Income* \u00a0
Full-time- Profit\u00a0before tax \u00a0
Tax on profit \u00a0
2023 \u00a0
(DKK millions)\u00a0equivalent staff \u00a0
(DKK millions) \u00a0
(DKK millions) \u00a0
Denmark \u00a0
45,102 \u00a0
9,785 \u00a0
18,444 \u00a0
3,686 \u00a0
Finland \u00a0
13,218 \u00a0
1,498 \u00a0
2,375 \u00a0
494 \u00a0
Sweden \u00a0
15,088 \u00a0
1,427 \u00a0
552 \u00a0
176 \u00a0
Norway \u00a0
15,591 \u00a0
957 \u00a0
2,461 \u00a0
596 \u00a0
United Kingdom \u00a0
5,680 \u00a0
1,366 \u00a0
2,052 \u00a0
374 \u00a0
Ireland \u00a0
763 \u00a0
45 \u00a0
364 \u00a0
-44 \u00a0
Lithuania \u00a0
2,120 \u00a0
4,383 \u00a0
43 \u00a0
19 \u00a0
Luxembourg \u00a0
1,161 \u00a0
19 \u00a0
96 \u00a0
23 \u00a0
Poland \u00a0
286 \u00a0
522 \u00a0
148 \u00a0
29 \u00a0
USA \u00a0
81 \u00a0
19 \u00a0
27 \u00a0
5
India \u00a0
491 \u00a0
-
120 \u00a0
60 \u00a0
Total \u00a0
99,580 \u00a0
20,021 \u00a0
26,682 \u00a0
5,420 \u00a0
*Income is defined as interest income (including negative interest income), fee and commission income and other operating income. \u00a0
Income** \u00a0
Full-time- Profit\u00a0before tax \u00a0
Tax on profit \u00a0
2022* \u00a0
(DKK millions)\u00a0equivalent staff \u00a0
(DKK millions) \u00a0
(DKK millions) \u00a0
Denmark*** \u00a0
37,085 \u00a0
9,741 \u00a0
-9,495 \u00a0
1,555 \u00a0
Finland \u00a0
5,497 \u00a0
1,517 \u00a0
1,706 \u00a0
348 \u00a0
Sweden \u00a0
8,987 \u00a0
1,438 \u00a0
2,118 \u00a0
376 \u00a0
Norway \u00a0
10,234 \u00a0
1,057 \u00a0
2,586 \u00a0
690 \u00a0
United Kingdom \u00a0
3,079 \u00a0
1,385 \u00a0
577 \u00a0
-89 \u00a0
Ireland \u00a0
390 \u00a0
44 \u00a0
113 \u00a0
-130 \u00a0
Lithuania \u00a0
1,856 \u00a0
4,093 \u00a0
46 \u00a0
20 \u00a0
Luxembourg \u00a0
1,604 \u00a0
28 \u00a0
449 \u00a0
110 \u00a0
Germany \u00a0
11 \u00a0
-
10 \u00a0
7
Poland \u00a0
180 \u00a0
336 \u00a0
100 \u00a0
18 \u00a0
USA \u00a0
75 \u00a0
16 \u00a0
12 \u00a0
6
India \u00a0
571 \u00a0
1,367 \u00a0
80 \u00a0
-28 \u00a0
China \u00a0
-
-
-1 \u00a0
-
Total \u00a0
69,570 \u00a0
21,022 \u00a0
-1,697 \u00a0
2,883 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
** Income is defined as interest income (including negative interest income), fee and commission income and other operating income. \u00a0
***The provision for Estonia matter of DKK 13.8 billion is included in the profit before tax in Denmark. \u00a0
G4. Activities\u00a0by country continued \u00a0
Danske Bank carries out\u00a0its activities in the\u00a0countries listed below under a variety of names, of which the main ones are: Danske Bank (banking, trading and \u00a0
asset management activities),\u00a0Realkredit Danmark (mortgage finance), Danske\u00a0Mortgage Bank\u00a0(mortgage finance), Danske Hypotek\u00a0(mortgage finance), \u00a0
Northern Bank (banking), Danica Pension (life insurance) and Danske Leasing A/S (leasing). Note G37 discloses the company names of the Group\u2019s significant \u00a0
subsidiaries. \u00a0
Activities in\u00a0the individual countries \u00a0
Activities in\u00a0Denmark include:\u00a0Banking, trading, asset management, leasing, life and nonlife insurance and other activities. \u00a0
Activities in\u00a0Finland include: Banking, trading, asset\u00a0management, leasing and other activities. \u00a0
Activities in\u00a0Sweden include:\u00a0Banking, trading, asset management, leasing and other activities. \u00a0
Activities in\u00a0Norway include: Banking,\u00a0trading, asset management, leasing\u00a0and other activities.\u00a0Life insurance activities ceased in the second quarter of 2022. \u00a0
Activities in\u00a0the United Kingdom include: Banking, trading and leasing. \u00a0
Activities in\u00a0Ireland include: Banking. \u00a0
Activities in\u00a0Lithuania include:\u00a0Banking, leasing and other activities.\u00a0Banking and\u00a0leasing activities in Lithuania were finalised by the end of 2022. \u00a0
Activities in\u00a0Luxembourg include: Banking and asset\u00a0management. As of the first quarter of 2022, the Group has no activities in Luxembourg. \u00a0
Activities in\u00a0Germany include: Banking. As of the second quarter of 2022, the Group has no activities in Germany. \u00a0
Activities in\u00a0Poland include: Banking. \u00a0
Activities in\u00a0the USA include: Trading. \u00a0
Activities in\u00a0India include: Other activities. As of\u00a0the third quarter of 2023, the Group has no activities in India, after the sale of Danske IT during the third \u00a0
quarter of 2023. \u00a0
Other activities include: Group support functions, real-estate brokerage and activities taken over by the Group under non-performing-loan agreements. \u00a0
G28. Balance sheet items broken down by expected due date \u00a0
The Group presents the balance sheet items in order of liquidity\u00a0instead of distinguishing\u00a0between current and non-current items. The table below shows \u00a0
the balance sheet items expected to mature within one year and\u00a0after more than one year. \u00a0
2023 \u00a0
2022* \u00a0
Within 1 year \u00a0
After 1 year \u00a0
Within 1 year \u00a0
After 1 year \u00a0
(DKK millions) \u00a0
Assets \u00a0
Cash in hand and demand deposits with central banks \u00a0
259,156 \u00a0
-
175,052 \u00a0
-
Due from credit institutions\u00a0and central banks \u00a0
113,743 \u00a0
1,070 \u00a0
59,665 \u00a0
1,121 \u00a0
Trading portfolio assets \u00a0
283,012 \u00a0
265,177 \u00a0
305,290 \u00a0
333,509 \u00a0
Investment securities \u00a0
75,036 \u00a0
208,878 \u00a0
73,025 \u00a0
214,398 \u00a0
Loans at amortised cost \u00a0
181,752 \u00a0
736,876 \u00a0
306,048 \u00a0
776,770 \u00a0
Loans at fair value \u00a0
195,394 \u00a0
732,846 \u00a0
229,001 \u00a0
703,676 \u00a0
Assets under pooled schemes and unit-linked\u00a0investments contracts \u00a0
-
70,900 \u00a0
-
66,739 \u00a0
Assets under insurance contracts \u00a0
30,561 \u00a0
465,470 \u00a0
58,957 \u00a0
444,038 \u00a0
Assets held for sale \u00a0
110,704 \u00a0
-
350 \u00a0
-
Intangible assets \u00a0
-
6,064 \u00a0
-
6,045 \u00a0
Tax assets \u00a0
2,018 \u00a0
1,246 \u00a0
4,230 \u00a0
969 \u00a0
Other assets \u00a0
18,076 \u00a0
13,003 \u00a0
19,303 \u00a0
12,370 \u00a0
Total \u00a0
1,269,452 \u00a0
2,501,529 \u00a0
1,230,921 \u00a0
2,559,635 \u00a0
Liabilities \u00a0
Due to credit institutions and central banks \u00a0
151,367 \u00a0
3,242 \u00a0
133,557 \u00a0
5,220 \u00a0
Trading portfolio liabilities \u00a0
131,915 \u00a0
322,572 \u00a0
148,901 \u00a0
405,420 \u00a0
Deposits \u00a0
243,913 \u00a0
978,290 \u00a0
219,387 \u00a0
1,042,905 \u00a0
Issued bonds at fair value \u00a0
162,084 \u00a0
586,695 \u00a0
120,468 \u00a0
603,455 \u00a0
Issued bonds at amortised cost, including Non-preferred senior bonds* \u00a0
56,910 \u00a0
250,517 \u00a0
73,657 \u00a0
212,261 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts* \u00a0
11,346 \u00a0
59,907 \u00a0
10,509 \u00a0
56,216 \u00a0
Liabilities under insurance contracts* \u00a0
57,415 \u00a0
425,215 \u00a0
59,409 \u00a0
429,482 \u00a0
Liabilities in disposal\u00a0groups held for sale \u00a0
56,476 \u00a0
-
-
-
Tax liabilities \u00a0
450 \u00a0
1,107 \u00a0
630 \u00a0
1,473 \u00a0
Other liabilities \u00a0
52,641 \u00a0
4,406 \u00a0
65,864 \u00a0
3,114 \u00a0
Subordinated debt \u00a0
-
38,774 \u00a0
-
38,349 \u00a0
Total \u00a0
924,516 \u00a0
2,670,724 \u00a0
832,382 \u00a0
2,797,896 \u00a0
* Comparative information has been restated as described in note G2(a). \u00a0
Deposits include fixed-term deposits and demand deposits. Fixed-term deposits are recognised according to\u00a0maturity. Demand deposits have\u00a0short \u00a0
contractual maturities\u00a0but are considered\u00a0a stable funding\u00a0source with an expected\u00a0maturity of\u00a0more than one year. \u00a0
G29. Contractual due dates of financial liabilities \u00a0
The table below shows the contractual due dates of non-derivative\u00a0financial liabilities broken down\u00a0by maturity time bands. The maturity\u00a0analysis is based \u00a0
on the\u00a0earliest date on\u00a0which the Group can be required to pay and does not reflect the expected due date. The section on liquidity\u00a0risk in note G40 \u00a0
provides information about\u00a0the Group\u2019s liquidity risk\u00a0and liquidity\u00a0risk management. \u00a0
2023 \u00a0
(DKK millions) \u00a0
0-1 month \u00a0
1-3 months \u00a0
3-12 months \u00a0
1-5 years \u00a0
> 5 years \u00a0
Due to credit institutions and central banks \u00a0
138,074 \u00a0
9,418 \u00a0
8,898 \u00a0
3,819 \u00a0
2
Deposits \u00a0
1,147,929 \u00a0
53,941 \u00a0
37,648 \u00a0
12,705 \u00a0
9,807 \u00a0
Repurchase obligation under reverse transactions \u00a0
113,569 \u00a0
-
-
-
-
Issued bonds at fair value \u00a0
48,366 \u00a0
3,650 \u00a0
126,288 \u00a0
465,071 \u00a0
237,077 \u00a0
Issued bonds at amortised cost \u00a0
-
18,874 \u00a0
66,343 \u00a0
283,666 \u00a0
10,401 \u00a0
Subordinated debt \u00a0
141 \u00a0
282 \u00a0
1,269 \u00a0
85,667 \u00a0
-
Other financial\u00a0liabilities \u00a0
941 \u00a0
1,701 \u00a0
9,061 \u00a0
23,443 \u00a0
36,107 \u00a0
Financial and loss guarantees \u00a0
75,883 \u00a0
-
-
-
-
Loan commitments shorter than 1 year \u00a0
197,007 \u00a0
-
-
-
-
Loan commitments\u00a0longer than 1 year \u00a0
220,285 \u00a0
-
-
-
-
Other unutilised loan commitments \u00a0
75 \u00a0
-
-
-
-
Total \u00a0
1,942,270 \u00a0
87,865 \u00a0
249,507 \u00a0
874,371 \u00a0
293,394 \u00a0
2022 \u00a0
0-1 month \u00a0
1-3 months \u00a0
3-12 months \u00a0
1-5 years \u00a0
> 5 years \u00a0
(DKK millions) \u00a0
Due to credit institutions and central banks \u00a0
90,912 \u00a0
9,603 \u00a0
33,885 \u00a0
5,376 \u00a0
1
Deposits \u00a0
1,173,421 \u00a0
44,719 \u00a0
27,500 \u00a0
11,284 \u00a0
9,521 \u00a0
Repurchase obligation under reverse transactions \u00a0
119,180 \u00a0
-
-
-
-
Issued bonds at fair value \u00a0
22,547 \u00a0
9,151 \u00a0
92,477 \u00a0
473,389 \u00a0
181,087 \u00a0
Issued bonds at amortised cost \u00a0
-
4,858 \u00a0
70,626 \u00a0
223,330 \u00a0
9,021 \u00a0
Subordinated debt \u00a0
141 \u00a0
281 \u00a0
1,267 \u00a0
82,625 \u00a0
-
Other financial\u00a0liabilities \u00a0
2,123 \u00a0
1,267 \u00a0
7,119 \u00a0
22,178 \u00a0
34,039 \u00a0
Financial and loss guarantees \u00a0
81,397 \u00a0
-
-
-
-
Loan commitments\u00a0shorter than 1 year \u00a0
236,062 \u00a0
-
-
-
-
Loan commitments\u00a0longer than 1 year \u00a0
199,888 \u00a0
-
-
-
-
Other unutilised loan commitments \u00a0
85 \u00a0
-
-
-
-
Total \u00a0
1,925,755 \u00a0
69,880 \u00a0
232,873 \u00a0
818,182 \u00a0
233,669 \u00a0
(a) Further explanation \u00a0
Disclosures comprise\u00a0agreed payments, including principal and\u00a0interest. For liabilities\u00a0with variable cash flows, for\u00a0example variable-rate financia\u00a0l \u00a0
liabilities, disclosure\u00a0is based on the contractual\u00a0conditions at\u00a0the balance sheet date. \u00a0
Usually, deposits are\u00a0contractually very short-term funding, but in practice, they are considered a\u00a0stable funding source, as amounts disbursed largely \u00a0
equal deposits\u00a0received. A\u00a0number of\u00a0loan commitments\u00a0and guarantees\u00a0expire without\u00a0being utilised. Loan commitments\u00a0and guarantees\u00a0are include d \u00a0
at the earliest\u00a0date on\u00a0which the Group can be required to pay. To take into account potential drawings under loan commitments,\u00a0the Group factors in\u00a0the \u00a0
effect of\u00a0the unutilised portion of\u00a0the facilities in the calculation of liquidity\u00a0risk. \u00a0
For guarantees to result in a payment\u00a0obligation to the\u00a0Group, a number of individual\u00a0conditions must\u00a0be met. As it is not possible to break down the \u00a0
earliest dates on\u00a0which such conditions\u00a0are met by maturity time bands, all guarantees\u00a0are included\u00a0in the 0-1 month\u00a0column. \u00a0
The table excludes investment commitments\u00a0in Danica\u00a0Pension of DKK\u00a016,644 million (2022: 15,111 million). The investment\u00a0commitments relate \u00a0
primarily to commitments\u00a0to participate in alternative\u00a0investments where the insurance policyholders\u2019\u00a0assume the majority\u00a0of the risks on the \u00a0
investments. \u00a0
G39. Interests in unconsolidated\u00a0structured entities \u00a0
The Group has established a number of\u00a0investment funds\u00a0in which the Group acts as\u00a0fund manager.\u00a0The Group is\u00a0entitled to\u00a0receive management fees \u00a0
based on the assets under management.\u00a0The Group may also retain units\u00a0in these\u00a0funds. The assets in unconsolidated\u00a0investment funds\u00a0managed by the \u00a0
Group totalled DKK 764.7 billion\u00a0(2022: DKK 660.8 billion). The Group retained holdings of\u00a0DKK 113.8 billion\u00a0(2022: DKK 64.6 billion) in these funds. \u00a0
Substantially all\u00a0of these\u00a0holdings are related to pooled schemes, unit-linked\u00a0investment contracts and insurance contracts. Income generated to the \u00a0
Group in the form\u00a0of management fees amounted to DKK 3.3 billion (2022: DKK 3.7 billion). In addition,\u00a0the Group has holdings in private equity \u00a0
investment funds\u00a0of DKK 0.1 billion (2022: DKK 0.1 billion). \u00a0
The Group has limited exposure to\u00a0structured securitisation entities.\u00a0The exposure dates back to the period between 2001-2007 when the Group acted \u00a0
as an\u00a0investor. This\u00a0involved the purchase\u00a0of bonds\u00a0and entering\u00a0into facilities\u00a0for securitisation\u00a0assets that were either structurally\u00a0senior or\u00a0triple A- \u00a0
rated by\u00a0at least one of the major rating agencies. The Group\u00a0has not acted as a sponsor or an orginator, and none of the assets of the structured\u00a0entitie s \u00a0
were previously\u00a0held on the Group's\u00a0balance sheet. The remaining\u00a0exposure consists mainly of liquidity\u00a0facilities and\u00a0is reported as part of the credit \u00a0
exposure in\u00a0the Non-core segment. At the end of 2023, the gross exposure amounted\u00a0to DKK 2.5 billion\u00a0(2022: DKK 2.4 billion). During the year, the \u00a0
Group did not\u00a0provide any\u00a0non-contractual financial\u00a0or other support to any of the structural entities.\u00a0The key risk\u00a0on the portfolio\u00a0relates to\u00a0the underlying \u00a0
securitisation transactions, which\u00a0consist mainly of commercial and residential mortgage loans originated in\u00a0the UK and\u00a0Germany. \u00a0
Life insurance risk \u00a0
The Danske Bank Group\u2019s life insurance risk consists of risks originating\u00a0from its ownership of Danica\u00a0Pension. This includes pension-related\u00a0market risk \u00a0
and insurance risk. In addition, the operations\u00a0of Danica\u00a0Pension are exposed to non-financial\u00a0risk as well as sustainability\u00a0and conduct risk. The Group \u00a0
runs its life insurance\u00a0operations with the aim of providing\u00a0best-in-class services to customers, while at\u00a0the same time maintaining\u00a0a predictable\u00a0risk \u00a0
profile. The Group is\u00a0also subject to\u00a0internal pension risk\u00a0through its defined benefit plans established\u00a0for current and former employees. \u00a0
Danske Bank\u2019s financial results are\u00a0affected by\u00a0Danica Pension\u2019s financial position.\u00a0Earnings from Danica Pension consist mai\u00a0nly of the risk allowance \u00a0
from with-profits\u00a0policies, earnings from unit-linked\u00a0products and from health and accident products,\u00a0and the investment\u00a0return on Danica\u00a0Pension\u2019s \u00a0
equity capital. \u00a0
The life insurance risk framework is governed by Danica Pension\u2019s Board of Directors.\u00a0On a daily\u00a0basis, Danica Pension\u2019s risk management function \u00a0
monitors both\u00a0the risk and the asset-liability\u00a0management (ALM) limits set by its Board of Directors,\u00a0including limits set for its solvency capital \u00a0
requirement, for the solvency coverage ratio and for\u00a0the own\u00a0funds loss exposure in a risk scenario defined by\u00a0Danica Pension\u2019s Board of Directors. The \u00a0
risk management function also follows up\u00a0on investment\u00a0limits and\u00a0calculates key\u00a0risk figures\u00a0for ALM purposes. \u00a0
Operating under\u00a0Solvency II\u00a0regulations, Danica Pension provides pensions as well as life and health insurance products\u00a0in De nmark.\u00a0As part of its product \u00a0
offerings, Danica Pension provides benefits and life annuities\u00a0on retirement,\u00a0insurance against death, disability and accident. Danica Pension no longer \u00a0
writes new business on guaranteed benefits and annuities\u00a0but have large portfolio\u00a0on existing\u00a0customers in\u00a0these products.\u00a0This exposes\u00a0Danica Pension \u00a0
to insurance risks (such\u00a0as longevity\u00a0and disability\u00a0risks) and to pension related market risk. \u00a0
Pension-related market\u00a0risk \u00a0
Pension-related market risk involves the risk of losses because of changes in the fair value of Danica Pension\u2019s assets and liabilities since assets and liabilities \u00a0
are not fully exposed to the same types of pension-related market risk. Pension-related market risk primarily covers changing market conditions, such as \u00a0
changes in interest rates, equity prices, property values, exchange rates and credit spreads. Pension-related market risk also includes: \u00a0
\u2022
volatility risk, which relates primarily to the value of assets with embedded options, including equity options and swaptions\u00a0, but also assets with build-in \u00a0
options like Danish callable mortgage bonds, \u00a0
\u2022
inflation risk, which relates mainly to the indexation of benefits for part of Danica Pension\u2019s health and accident products , \u00a0
\u2022
liquidity risk,\u00a0which is\u00a0the risk of losses because Danica Pension may be forced to sell investment\u00a0assets to meet liquidity\u00a0needs, \u00a0
\u2022
counterparty credit risk, which is the risk of losses because counterparties default on their obligations , \u00a0
\u2022
concentration risk, which is the risk of losses as a result of high exposure to a few asset classes, industries, issuers, etc . \u00a0
Pension-related market risk may lead to financial losses for Danica Pension, either as losses of investment assets or as the technical provisions increases. \u00a0
Danica Pension has three sources of pension related market risk: \u00a0
\u2022
with-profits products (conventional, average-rate products), \u00a0
\u2022
unit-linked products\u00a0(to which customers may have attached an investment\u00a0guarantee) , \u00a0
\u2022
investments relating to assets allocated to the shareholders\u2019 equity of Danica Pension and other products with direct equity exposure. \u00a0
The amount of pension-related market risk differs for the various products in Danica Pension\u2019s product range, but the most significant pension-related market \u00a0
risk is the market risk relating to its with-profit products. \u00a0
Life insurance risk\u00a0continued \u00a0
The with-profit products offer guaranteed benefits based on a technical rate of interest and are called Danica Traditional.\u00a0The portfo\u00a0lio of with-profit \u00a0
products is closed for new business, which means that it is in run-off. \u00a0
The products offer\u00a0policyholders an\u00a0annuity or a lump sum consisting of a guaranteed minimum amount in nominal terms. Custome\u00a0rs are\u00a0divided into \u00a0
homogeneous interest rate\u00a0groups on\u00a0basis of the technical\u00a0rates, and each group has its own investment\u00a0strateg y\u00a0and asset allocation. In each interes\u00a0t \u00a0
rate group, customers participate in a collective investment\u00a0pool that covers a range of different assets (such as equities,\u00a0property and bonds). \u00a0
The policyholders\u00a0earn interest\u00a0at a rate set at the discretion of Danica\u00a0Pension and subject to change at any time. \u00a0
The difference between the actual (set) interest rate and the return on the policyholders\u2019\u00a0(collective) assets is allocated t\u00a0o collective\u00a0buffer accounts \u00a0
owned by the customers. The balances of these buffer accounts are gradually transferred to the individ\u00a0ual customer accounts\u00a0in subsequent years by \u00a0
means of a bonus allocation\u00a0mechanism. This means that high investment\u00a0returns may lead to higher benefits than those guarant\u00a0eed. \u00a0
The mark-to-market\u00a0value of the guaranteed benefits depends on\u00a0the level of the discount curve, which is defined under Solvency II and ba\u00a0sed primarily \u00a0
on EUR\u00a0swap rates and also takes into account yields\u00a0on Danish\u00a0mortgage, credit and government bonds. The\u00a0level of the long end of the discount curve, \u00a0
for which no reliable\u00a0market data is available,\u00a0is determined by the European Insurance and Occupational\u00a0Pensions Authority\u00a0( EIOPA). \u00a0
For the portfolio of with-profit products Danica Pension will have to cover the shortfall if the value of the assets falls below the value of the liabi\u00a0lities. This will \u00a0
be the case if, for example, investment returns become sufficiently negative (reducing the asset values) or if the level of the discount curve, other things being \u00a0
equal, falls (increasing the value of the liabilities). Hence, the market risk on investments is borne by the customers to the extent that the negative returns can \u00a0
be covered by the collective buffer accounts. Once the buffer accounts have been depleted, negative investment returns on customer savings will force Danica \u00a0
Pension to step in with funds to ensure that it is possible to provide the benefits guaranteed to the policyholders. In that\u00a0case, Danske\u00a0Bank A/S will incur a \u00a0
loss in the form of a decrease in equity holdings in Danica Pension. \u00a0
Furthermore, Danica Pension can book the annual risk allowance fee income for each of the individual interest rate groups only if the collective bonus potential \u00a0
for the interest rate group is sufficient to cover the risk allowance. \u00a0
Managing the with-profits product thus involves\u00a0a combination of managing risks on behalf of the policyholders and managing Danica Pension\u2019s ri\u00a0sk of having \u00a0
to cover losses. For more information about the management of these risks, see Danica Pension\u2019s Annual Report 2023. \u00a0
The pension related market risk associated with unit-linked products is primarily borne by the policyholders, particularly in respect of contracts without an \u00a0
investment guarantee. \u00a0
In unit-linked\u00a0products, policyholders\u00a0receive the actual return on the investments\u00a0rather than a\u00a0fixed interest\u00a0rate return. However\u00a0, some of the unit- \u00a0
linked products give the policyholders the option to have their benefits guaranteed. \u00a0
Danica Pension\u2019s main\u00a0savings product \u2013\u00a0and the product recommended to most customers\u00a0\u2013 is called Danica Balance. Danica Balance is a life-cycle \u00a0
product, meaning that the\u00a0asset allocation\u00a0between different risk categories\u00a0(bonds or equities,\u00a0for example) f or each customer is adjusted\u00a0gradually as \u00a0
the customer gets older and approaches retirement. \u00a0
For unit-linked\u00a0products with financial\u00a0guarantees, Danica\u00a0Pension hedges the risk on the financial guarantees by means of financial d\u00a0erivatives and\u00a0by \u00a0
adjusting the investment allocation during the period leading up to retirement. The investment allocatio\u00a0n is adjusted according to the guarantee amount, the \u00a0
investment horizon etc. However, if a guarantee is attached to the individual\u00a0policy, Danica Pension bears the risk in relation to the guarantee. \u00a0
The pension related market risk associated with assets allocated to shareholders\u2019 equity and other products\u00a0concerns the following: \u00a0
\u2022
Assets in\u00a0which the shareholders\u2019 equity of Danica Pension is invested, i.e. investment returns have a full effect on Danica Pension profits. \u00a0
\u2022
The investment results for Danica Pension\u2019s health and accident products \u00a0
\u2022
Assets for\u00a0some life insurance products with investment\u00a0guarantees. This means, that Danica Pension bears the risk if the changes in the\u00a0value of \u00a0
provisions for these products differ from the changes in the value of the corresponding assets. The provisions are the ne t present value of expected future \u00a0
pay-outs and are exposed to movements in the discount curve, which is defined under Solvency II. The corresponding assets may be exposed to changes \u00a0
in interest rates and also to changes in the values of equities and property. \u00a0
Danica Pension has\u00a0separate investment strategies for\u00a0assets allocated to its equity, to health and accident products, and to\u00a0life insurance products with \u00a0
investment guarantees. \u00a0
Life insurance risk\u00a0continued \u00a0
Insurance risk \u00a0
Insurance risks are linked to trends in policy surrender activity, mortality, disability, critical illness and other variables that could materialise unfavourably \u00a0
from Danica Pension\u2019s current assumptions and expectations. For example, an increase in longevity lengthens the period during which benefits are payable \u00a0
under certain pension plans and may potentially have a negative effect on Danica Pension\u2019s profits. Similarly, trends in mortality, sickness and recovery affect \u00a0
life insurance and disability benefits. The principal insurance risks are longevity risk and the risk of increased surrenders (i.e. the risk of customers leaving \u00a0
Danica Pension or ceasing to pay premiums). Most insurance risks materialise over long\u00a0-time horizons during which the gradual changes in biometric \u00a0
conditions deviate from those assumed in contract pricing. \u00a0
Insurance risk may also materialise through changes in the actuarial assumptions used for liability\u00a0valuation. Unfavourable c\u00a0hanges in assumptions resulting \u00a0
in an increase in liabilities will, to the extent possible, be covered by customer buffers. Once the buffer accounts have been depleted, Danica Pension will have \u00a0
to step in with funds to ensure that it is possible to provide the benefits guaranteed to the policyholders. In that case, Danske Bank A/S will incur a loss in the \u00a0
form of a decrease in equity holdings in Danica Pension. \u00a0
Concentration risk relating to life insurance risk comprises the risk of losses as a result of high exposure to a few custome r groups and to a few individuals. \u00a0
Danica Pension limits concentration risk by means of risk diversification of the insurance portf olio and by means of reinsurance. \u00a0
To limit losses on individual\u00a0life insurance policies subject to high-risk exposure, Danica Pension reinsures a small portion of the risk related to mortality\u00a0and \u00a0
disability. \u00a0
The various risk elements are subject to ongoing actuarial assessment for the purposes of calculating\u00a0insurance obligations\u00a0a nd making\u00a0relevant business \u00a0
adjustments. \u00a0
Monitoring and\u00a0reporting \u00a0
Danica Pension\u2019s Board of Directors has set overall risk limits on the potential loss in a number of stress scenarios. The ri\u00a0sk management function monitors \u00a0
these limits on a daily basis. Any breaches are reported by the CRO to the ALM Committee and senior\u00a0management. \u00a0
Danica Pension\u2019s Board of Directors receives quarterly reports on Danica Pension\u2019s risk and solvency position, including stre ss and sensitivity figures. Stress \u00a0
and sensitivity\u00a0figures are also reported to Danske Bank A/S via Group Risk Management and CFO Area (Capital Management). \u00a0
The table below shows the changes in different risk factors that result in a solvency\u00a0coverage ratio of 125%. However, for the interest rate risk sensitivity,\u00a0the \u00a0
table shows the lowest possible solvency coverage ratio in the event of an interest rate change ranging from -2.0 percentage points to +2.0 percentage points. \u00a0
Sensitivity analysis\u00a0SCR \u00a0
Solvency capital \u00a0
Own funds (DKK \u00a0
requirement \u00a0
Solvency capital \u00a0
31 December 2023 \u00a0
Stress (%) \u00a0
million) \u00a0
(DKK million) \u00a0
ratio (%) \u00a0
Interest rate risk \u00a0
-2 \u00a0
30,352 \u00a0
20,101 \u00a0
151 \u00a0
Equity risk \u00a0
73 \u00a0
21,678 \u00a0
17,342 \u00a0
125 \u00a0
Property risk \u00a0
63 \u00a0
25,285 \u00a0
20,228 \u00a0
125 \u00a0
Credit spread risk \u00a0
- Danish government bonds \u00a0
15 \u00a0
26,178 \u00a0
20,943 \u00a0
125 \u00a0
- Other government bonds \u00a0
42 \u00a0
27,300 \u00a0
21,840 \u00a0
125 \u00a0
- Other bonds \u00a0
43 \u00a0
25,973 \u00a0
20,778 \u00a0
125 \u00a0
Longevity risk \u00a0
51 \u00a0
28,330 \u00a0
22,664 \u00a0
125 \u00a0
Life insurance option risk \u00a0
622 \u00a0
30,428 \u00a0
22,539 \u00a0
135 \u00a0
Non-life catastrophe risk \u00a0
n/a \u00a0
n/a \u00a0
n/a \u00a0
n/a \u00a0
Life insurance risk\u00a0continued \u00a0
The tables below provides\u00a0information on the bond portfolio held in connection with with-profit and unit-linked\u00a0products. \u00a0
Bond portfolio (insurance business) broken\u00a0down by geographical\u00a0area \u00a0
Central and \u00a0
Quasi- \u00a0
Danish \u00a0
Swedish \u00a0
Other \u00a0
local govern-\u00a0government \u00a0
mortgage \u00a0
covered \u00a0
covered \u00a0
Corporate \u00a0
31 December\u00a02023 \u00a0
ment bond \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
Total \u00a0
Denmark \u00a0
12,122 \u00a0
-
103,381 \u00a0
-
-
7,406 \u00a0
122,909 \u00a0
Sweden \u00a0
-
-
-
-
16 \u00a0
1,882 \u00a0
1,898 \u00a0
UK \u00a0
5
-
-
-
6
2,146 \u00a0
2,157 \u00a0
Norway \u00a0
-
-
-
-
-
841 \u00a0
841 \u00a0
USA \u00a0
11,570 \u00a0
986 \u00a0
-
-
9
12,482 \u00a0
25,047 \u00a0
Spain \u00a0
1,323 \u00a0
-
-
-
-
744 \u00a0
2,067 \u00a0
France \u00a0
5,893 \u00a0
-
-
-
-
2,859 \u00a0
8,752 \u00a0
Luxembourg \u00a0
124 \u00a0
-
-
-
2,746 \u00a0
2,870 \u00a0
Canada \u00a0
-
-
-
-
-
1,312 \u00a0
1,312 \u00a0
Finland \u00a0
225 \u00a0
5
-
-
-
504 \u00a0
734 \u00a0
Ireland \u00a0
638 \u00a0
-
-
-
-
438 \u00a0
1,076 \u00a0
Italy \u00a0
3,055 \u00a0
-
-
-
-
1,082 \u00a0
4,137 \u00a0
Portugal \u00a0
2
-
-
-
-
106 \u00a0
108 \u00a0
Austria \u00a0
-
-
-
-
-
88 \u00a0
88 \u00a0
Netherlands \u00a0
841 \u00a0
-
-
-
-
2,825 \u00a0
3,666 \u00a0
Germany \u00a0
19,077 \u00a0
-
-
-
-
2,395 \u00a0
21,472 \u00a0
Other \u00a0
7,018 \u00a0
842 \u00a0
-
-
-
7,079 \u00a0
14,939 \u00a0
Total \u00a0
61,769 \u00a0
1,957 \u00a0
103,381 \u00a0
-
31 \u00a0
46,935 \u00a0
214,073 \u00a0
31 December 2022 \u00a0
Denmark \u00a0
14,320 \u00a0
-
56,608 \u00a0
-
-
27,905 \u00a0
98,833 \u00a0
Sweden \u00a0
-
-
-
-
-
1,581 \u00a0
1,581 \u00a0
UK \u00a0
4
-
-
-
5
2,243 \u00a0
2,252 \u00a0
Norway \u00a0
-
-
-
-
-
816 \u00a0
816 \u00a0
USA \u00a0
9,797 \u00a0
923 \u00a0
-
-
7
12,938 \u00a0
23,665 \u00a0
Spain \u00a0
463 \u00a0
-
-
-
-
370 \u00a0
833 \u00a0
France \u00a0
5,479 \u00a0
54 \u00a0
-
-
-
2,502 \u00a0
8,035 \u00a0
Luxembourg \u00a0
-
84 \u00a0
-
-
-
2,520 \u00a0
2,604 \u00a0
Canada \u00a0
-
-
-
-
-
943 \u00a0
943 \u00a0
Finland \u00a0
215 \u00a0
6
-
-
-
172 \u00a0
393 \u00a0
Ireland \u00a0
541 \u00a0
-
-
-
-
558 \u00a0
1,099 \u00a0
Italy \u00a0
2,589 \u00a0
-
-
-
-
390 \u00a0
2,979 \u00a0
Portugal \u00a0
2
-
-
-
-
56 \u00a0
58 \u00a0
Austria \u00a0
-
-
-
-
-
36 \u00a0
36 \u00a0
Netherlands \u00a0
121 \u00a0
-
-
-
-
2,514 \u00a0
2,635 \u00a0
Germany \u00a0
17,524 \u00a0
1,694 \u00a0
-
-
-
1,734 \u00a0
20,952 \u00a0
Other \u00a0
5,277 \u00a0
617 \u00a0
-
-
-
6,521 \u00a0
12,415 \u00a0
Total \u00a0
56,332 \u00a0
3,378 \u00a0
56,608 \u00a0
-
12 \u00a0
63,799 \u00a0
180,129 \u00a0
Life insurance risk\u00a0continued \u00a0
Bond portfolio (insurance business) broken\u00a0down by external \u00a0
ratings \u00a0
Central and \u00a0
Quasi- \u00a0
Danish \u00a0
Swedish \u00a0
Other \u00a0
local govern-\u00a0government \u00a0
mortgage \u00a0
covered \u00a0
covered \u00a0
Corporate \u00a0
31 December\u00a02023 \u00a0
ment bond \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
Total \u00a0
AAA \u00a0
43,609 \u00a0
1,401 \u00a0
90,451 \u00a0
-
-
3,060 \u00a0
138,521 \u00a0
AA+ \u00a0
225 \u00a0
-
-
-
-
2,335 \u00a0
2,560 \u00a0
AA \u00a0
6,978 \u00a0
68 \u00a0
-
-
-
149 \u00a0
7,195 \u00a0
AA- \u00a0
134 \u00a0
-
-
-
17 \u00a0
1,268 \u00a0
1,419 \u00a0
A+ \u00a0
407 \u00a0
-
8,561 \u00a0
-
-
5,920 \u00a0
14,888 \u00a0
A
1,544 \u00a0
-
3,594 \u00a0
-
-
1,778 \u00a0
6,916 \u00a0
A- \u00a0
792 \u00a0
47 \u00a0
-
-
-
2,947 \u00a0
3,786 \u00a0
BBB+ \u00a0
296 \u00a0
3
-
-
-
2,127 \u00a0
2,426 \u00a0
BBB \u00a0
4,280 \u00a0
151 \u00a0
775 \u00a0
-
-
4,498 \u00a0
9,704 \u00a0
BBB- \u00a0
974 \u00a0
96 \u00a0
-
-
-
1,841 \u00a0
2,911 \u00a0
Sub-inv. grade or unrated \u00a0
2,530 \u00a0
191 \u00a0
-
-
14 \u00a0
21,012 \u00a0
23,747 \u00a0
Total \u00a0
61,769 \u00a0
1,957 \u00a0
103,381 \u00a0
-
31 \u00a0
46,935 \u00a0
214,073 \u00a0
31 December 2022 \u00a0
AAA \u00a0
41,759 \u00a0
2,958 \u00a0
48,759 \u00a0
-
-
3,958 \u00a0
97,434 \u00a0
AA+ \u00a0
215 \u00a0
-
-
-
-
2,017 \u00a0
2,232 \u00a0
AA \u00a0
6,217 \u00a0
62 \u00a0
-
-
-
338 \u00a0
6,617 \u00a0
AA- \u00a0
616 \u00a0
-
-
-
-
1,758 \u00a0
2,374 \u00a0
A+ \u00a0
330 \u00a0
-
7,848 \u00a0
-
-
25,421 \u00a0
33,599 \u00a0
A
567 \u00a0
-
1
-
-
1,296 \u00a0
1,864 \u00a0
A- \u00a0
549 \u00a0
58 \u00a0
-
-
-
2,750 \u00a0
3,357 \u00a0
BBB+ \u00a0
120 \u00a0
-
-
-
-
1,835 \u00a0
1,955 \u00a0
BBB \u00a0
3,392 \u00a0
172 \u00a0
-
-
-
3,826 \u00a0
7,390 \u00a0
BBB- \u00a0
514 \u00a0
39 \u00a0
-
-
-
1,298 \u00a0
1,851 \u00a0
Sub-inv. grade or unrated \u00a0
2,053 \u00a0
89 \u00a0
-
-
12 \u00a0
19,302 \u00a0
21,456 \u00a0
Total \u00a0
56,332 \u00a0
3,378 \u00a0
56,608 \u00a0
-
12 \u00a0
63,799 \u00a0
180,129 \u00a0
Danica Pension has set\u00a0a separate investment\u00a0strategy for\u00a0assets in\u00a0which its shareholders\u2019 equity is invested. \u00a0
Non-financial risk \u00a0
of financial\u00a0losses or gains, regulatory impact, reputational\u00a0impact or\u00a0customer impact resulting from inadequate or\u00a0failed internal processes\u00a0, people\u00a0or \u00a0
systems or from external events, including\u00a0legal and compliance\u00a0risks. According to the Group\u2019s risk taxonomy as set out in\u00a0its enterprise risk \u00a0
management (ERM)\u00a0framework, non-financial risk consists of five risk categories: operational risk, Information Technology (IT) and security risk, data risk, \u00a0
financial crime\u00a0risk and\u00a0regulatory compliance risk. In addition, to the five non-financial risk categories conduct risk and\u00a0sustainability risk\u00a0are embedded \u00a0
across the taxonomy\u00a0and may arise as any or all other risk types\u00a0materialise. \u00a0
Implementation of\u00a0the non-financial\u00a0risk management framework is linked\u00a0to building\u00a0and maintaining\u00a0a strong risk and compliance culture across the \u00a0
Group. The Group has a\u00a0suite of\u00a0mandatory training courses\u00a0for all employees\u00a0including the\u00a0Executive Leadership Team.\u00a0The internal\u00a0w ebsite \u201cDoRight\u201d \u00a0
allows employees to share their\u00a0concerns and is supported\u00a0by a group-wide whistleblower\u00a0system. The\u00a0Executive Leadership\u00a0Team uses a set of key \u00a0
performance indicators (KPIs) to measure the risk and compliance culture. \u00a0
The Group\u2019s\u00a0approach to non-financial risk management is set out in a number of governing\u00a0documents. The Group Non-Financial\u00a0Risk Policy is the \u00a0
overarching policy and\u00a0lays down the principles\u00a0and responsibilities\u00a0for managing non-financial\u00a0risks across the three lines of\u00a0defence. Supplementar\u00a0y \u00a0
policies are\u00a0in place and reviewed annually\u00a0to ensure alignment with regulatory developments. \u00a0
Given the varying levels of\u00a0development and\u00a0maturity across non-financial risk, an\u00a0iterative approach\u00a0has been\u00a0taken to establish risk tolerance \u00a0
statements. The non-financial risk\u00a0tolerance threshold is set for net losses after recoveries for events that occur in the calendar year. Compliance with \u00a0
this tolerance threshold is\u00a0monitored and reported in\u00a0accordance with\u00a0internal procedures. \u00a0
Risk assessment \u00a0
The Group\u00b4s\u00a0standard approach to risk assessment of its non-financial risks and controls is in line with industry standards and comprises the following \u00a0
steps: scoping, risk identification,\u00a0inherent risk assessment, control identification\u00a0and assessment, residual risk assessment, and\u00a0mitigatio n \u00a0
actions/issues management The Group also conducts scenario analyses to understand exposure to low\u00a0-frequency high-severity events. Results from \u00a0
risk assessments\u00a0and stress tests are used as input for the Group\u2019s Internal Capital Adequacy Assessment Process (ICAAP). \u00a0
Event management \u00a0
Event management aims to ensure timely and appropriate handling of detected events in order to minimise the impact on Group a\u00a0nd its stakeholders\u00a0and \u00a0
to prevent reoccurrence. Furthermore, event management provides timely, accurate and complete information f\u00a0or both internal\u00a0and external reporting, \u00a0
including timely notification to\u00a0relevant supervisory authorities. Non-financial risk events are\u00a0registered, categorised and handled according to reporting \u00a0
thresholds. Risk\u00a0assessment and root-cause analyses\u00a0are performed to effectively address underlying\u00a0risks and\u00a0provide mitigation plans.\u00a0The Group \u00a0
strives to learn from materialised\u00a0events and\u00a0observed near-misses to continually\u00a0improve its operational risk management framework. Event awareness \u00a0
and coverage continues to improve across the Group as registration, approval and escalations take place in an\u00a0increasingly timely manner. \u00a0
In 2023, the majority\u00a0of the loss events\u00a0fell into two broad categories: Execution, delivery\u00a0and process management and Clien\u00a0ts, products and business \u00a0
practises. There were losses relating to legacy systems and limitations\u00a0in manual processes as well as pr\u00a0oduct and services-related\u00a0events. \u00a0
Business Continuity \u00a0
Business continuity risk\u00a0management is\u00a0a holistic approach resulting in proactive measures that enable the Group to identify potential threats and their \u00a0
impacts on business operations, effectively respond to\u00a0them, and continue the delivery of its products and services supported\u00a0by functions\u00a0at acceptable \u00a0
predefined levels\u00a0following a Disruption.\u00a0The Business Continuity\u00a0and Crisis Management Policy sets control requirements towards for business \u00a0
continuity risk. \u00a0
Information Technology (IT)\u00a0and security risk management \u00a0
Information technology (IT) &\u00a0security risk management is integrated into the Group\u2019s risk management framework and\u00a0implement s\u00a0the Board\u2019s policies \u00a0
for this\u00a0area. Business\u00a0units are\u00a0responsible for\u00a0managing IT\u00a0and security risks supported by the Security,\u00a0Resilience and Controls function reporting to \u00a0
the group Chief Security Officer (CSO). The Market,\u00a0Liquidity and\u00a0Non-Financial Risk (MLNFR) unit controls the IT\u00a0and security\u00a0risk management\u00a0policy \u00a0
framework and monitors\u00a0and regularly reports on risk management\u00a0per this framework in its second line of\u00a0defence (2LoD) oversight role. The IT and \u00a0
Security risk management framework is part of a wider framework supporting\u00a0the operational resilience of the Bank. Cyber risk management is managed \u00a0
as part of IT and security risk management framework and continues to adapt to prevent, detect, respond and recover from cyber related attacks\u00a0. \u00a0
Business units and the Security, Resilience and\u00a0Controls function\u00a0regularly report the status of risk profiles and management\u00a0in this\u00a0area, along with \u00a0
mitigations to\u00a0manage risks within tolerance, with MLNFR providing\u00a0independent 2LoD oversight reporting. \u00a0
Data risk\u00a0management \u00a0
Data risk\u00a0management is\u00a0integrated into the Group\u2019s risk management framework and implements the Board\u2019s policies for\u00a0this ar\u00a0ea. Business units are \u00a0
responsible for\u00a0managing Data risks supported by the Group Data\u00a0Management Office\u00a0(GDMO) function\u00a0reporting to the group Chief Data Officer (CDO). \u00a0
The Market,\u00a0Liquidity and\u00a0Non-Financial Risk (MLNFR) unit controls the Data risk management policy framework and monitors and regularly reports on \u00a0
risk management per this framework in its second line of defense (2LoD) oversight role. Business units and the GDMO function regularly report the statu\u00a0s \u00a0
of risk profiles and management in this area, along with mitigations\u00a0to manage risks within tolerance, with MLNFR providing i\u00a0ndependent 2LoD\u00a0oversight \u00a0
reporting. \u00a0
Non-financial risk\u00a0continued \u00a0
Third-party risk\u00a0management \u00a0
Third-party risk management (TPRM) considers the risks associated with processes, services, or activities\u00a0provided to\u00a0the Group by\u00a0third parties.\u00a0The \u00a0
purpose of TPRM is to identify, manage and mitigate non-financial\u00a0risks when the Group engages with a third party. Third-party\u00a0arrangements classified \u00a0
as outsourcing,\u00a0or critical or\u00a0important outsourcing are\u00a0subject to specific regulatory requirements listed in the EBA Guidel\u00a0ines on\u00a0Outsourcing and\u00a0the \u00a0
Danish Executive\u00a0Order on Outsourcing.\u00a0Outsourcing arrangements are\u00a0to be managed in accordance with the Group\u2019s TPRM Policy. \u00a0
As part of the Group\u2019s strategy, the Board of Directors approved the critical/important\u00a0outsourcing arrangement for\u00a0Danske IT India in June 2023. The \u00a0
change involved\u00a0the divestment of Danske IT India and the outsourcing of people services to\u00a0Infosys. \u00a0
Financial Crime Risk \u00a0
Financial crime risk is the risk that internal or external\u00a0parties misuse the Group\u2019s infrastructure\u00a0and services to steal, d\u00a0efraud, manipulate,\u00a0or circumvent \u00a0
established rules, laws\u00a0and regulations\u00a0through money laundering, terrorist financing, sanctions\u00a0violations, bribery\u00a0and corruption,\u00a0tax evasion or fraud. \u00a0
The Group\u2019s financial crime risk is managed and monitored\u00a0through the Group\u2019s three lines of defence, and Financial Crime Com pliance acts\u00a0as the second \u00a0
line of defence. \u00a0
The Group has made\u00a0significant progress\u00a0on the delivery\u00a0and closure\u00a0of the multi-year\u00a0enhancement programme\u00a0and has significantly expanded its \u00a0
financial crime\u00a0risk management capabilities.\u00a0The programme includes controls to\u00a0prevent financial crime\u00a0such as money laundering, terrorist financing, \u00a0
sanctions violations, fraud,\u00a0tax evasion,\u00a0and bribery and corruption.\u00a0In addition,\u00a0it reinforces already existing financial c\u00a0rime prevention\u00a0and assessment \u00a0
processes, leveraging data and\u00a0data analysis, internal and external reporting, and employee training. \u00a0
Regulatory Compliance risk\u00a0management \u00a0
Regulatory compliance risk is defined as the risk that the Group receives regulatory, criminal or administrative\u00a0sanctions, i\u00a0ncurs material financial losses, \u00a0
or suffers a loss of reputation as a result of its failure to comply with laws, rules and regulations applicable to\u00a0the Group\u2019s activities\u00a0in the areas of fair \u00a0
treatment of\u00a0customers, market\u00a0integrity, data protection and confidentiality or because\u00a0of a\u00a0breach of licensing, accreditat\u00a0ion and/or\u00a0individua l \u00a0
registration requirements. \u00a0
In 2023, the Group continued\u00a0to improve\u00a0its regulatory compliance risk management framework with important\u00a0enhancements . \u00a0
The Complaints\u00a0Handling Instructions were\u00a0introduced to\u00a0outline the standards for\u00a0providing easy\u00a0access for customers to express dissatisfaction\u00a0and \u00a0
for handling\u00a0customer complaints in a\u00a0fair, timely\u00a0and comprehensive\u00a0manner. Moreover, Group Compliance continued to provide advice in\u00a0respect of the \u00a0
work performed on the Group\u2019s\u00a0customer remediation cases with a focus on the debt collection case. For market\u00a0integrity a group-wide risk assessment \u00a0
was completed. The outcome of the risk assessment supports the identification\u00a0and prioritisation\u00a0of control enhancements by senior management across \u00a0
the Group.\u00a0In data protection\u00a0and confidentiality,\u00a0a new version\u00a0of the\u00a0Group\u2019s Personal Data Protection Policy was approved\u00a0by the\u00a0Board of Directors\u00a0. \u00a0
The policy sets\u00a0out the principles\u00a0and standards\u00a0for managing data\u00a0protection and confidentiality\u00a0risks. \u00a0
As part of the process to mature its product governance\u00a0framework, the Group introduced the Product Governance\u00a0Instructions t\u00a0o define obligations for \u00a0
manufacturers and\u00a0distributors of\u00a0investment products. The\u00a0instructions also cover requirements in relatio\u00a0n to sustainability. \u00a0
Sustainability in\u00a0non-financial risks \u00a0
From a group perspective,\u00a0the non-financial\u00a0risks most materially affected by\u00a0sustainability drivers\u00a0relate specifically to\u00a0the risk of not treating\u00a0customers \u00a0
fairly, including marketing, branding and\u00a0communications (Regulatory\u00a0Compliance), as well as\u00a0prac tices\u00a0and arrangements for product governance \u00a0
(operational risks). \u00a0
Sustainability and\u00a0treating customers fairly \u00a0
The standards for Treating Customers Fairly are laid out in the Group\u2019s relevant policy, underlying\u00a0frameworks and\u00a0processes that address customer \u00a0
needs, profiling and information. \u00a0
When it comes to investments,\u00a0advisers use a digital system to identify\u00a0and assess each customer\u2019s sustainability\u00a0preferences as part of the suitability \u00a0
assessment through a set of questions\u00a0based on the MiFID II and the Insurance\u00a0Distribution Directive re\u00a0gulatory requirements\u00a0for sustainability \u00a0
preferences. To ensure a\u00a0product match between customer sustainability\u00a0preferences and product recommendation,\u00a0the Group\u2019s su\u00a0stainability \u00a0
preferences concept is designed to ensure a link between the individual\u00a0customer\u2019s sustainability preferences\u00a0and the Group\u2019s product offerings. \u00a0
For product\u00a0governance practices and\u00a0arrangements, the Group\u2019s management of\u00a0sustainability risk\u00a0is laid out in frameworks an\u00a0d procedures subject to \u00a0
the Group\u2019s New & Amended\u00a0Product Approval Policy and\u00a0Product Governance\u00a0Instructions. In\u00a0this process, sus\u00a0tainability risks\u00a0and factors are built\u00a0into \u00a0
the screening processes for new product proposals\u00a0and all stages of the product approval\u00a0and review\u00a0process. Similarly,\u00a0the G\u00a0roup\u2019s position statements \u00a0
on various sustainability\u00a0themes are integrated into the Group\u2019s investment\u00a0product offerings\u00a0to support the regulatory due diligence processes and the \u00a0
integration of\u00a0sustainability risk\u00a0into the investment\u00a0decision-making process. \u00a0
Definitions of\u00a0ratios \u00a0
Ratios \u00a0
Definition \u00a0
Earnings per share (DKK) \u00a0
Net profit for the year divided by the average number of shares outstanding during the year. Net profit is stated \u00a0
after the deduction of interest on equity-accounted additional tier 1 capital. \u00a0
Diluted earnings\u00a0per share (DKK) \u00a0
Net profit for the year divided by the average number of shares outstanding during the year, including the dilutive \u00a0
effect of share options and conditional\u00a0shares granted as share-based payments. Net profit is stated after the \u00a0
deduction of interest on equity-accounted additional tier 1 capital. \u00a0
Return on equity (%) \u00a0
Net profit for the year divided by average equity (average equity as endof current andprior year), including\u00a0equity- \u00a0
accounted additional\u00a0tier 1 capital.\u00a0For the definition used in the management report see page \u201cDefinition of \u00a0
alterntive Performance Measures\u201d. \u00a0
Income/cost ratio\u00a0(%) \u00a0
Total income divided by expenses, including goodwill impairment charges and provision for Estonia matter. \u00a0
Common equity tier 1 (CET1) capital \u00a0
Primarily paid-up share capital and retained earnings. CET1 capital is defined in the Capital Requirements \u00a0
Regulation (CRR). \u00a0
Additional tier\u00a01 capital \u00a0
Capital instruments that form part of tier 1 capital. Additional\u00a0tier 1 capital is defined in CRR. \u00a0
Tier 1 capital \u00a0
Common equity tier 1 capital plus additional tier 1 capital, less certain deductions, such\u00a0as intangible assets. \u00a0
The deductions are defined in CRR. \u00a0
Tier 2 capital \u00a0
Subordinated loan\u00a0capital subject to certain restrictions that falls under the requirements for such instruments \u00a0
in CRR. \u00a0
Total capital \u00a0
Tier 1 capital plus tier 2 capital, less certain deductions as defined in CRR. \u00a0
Risk exposure amount \u00a0
Total risk exposure amount and off-balance-sheet items that involve credit risk, market risk and operational risk \u00a0
as calculated in accordance with the Capital Requirements Regulation (CRR). \u00a0
Common equity tier 1 capital ratio \u00a0
Common equity tier 1 capital divided by the total risk exposure amount. \u00a0
Tier 1 capital ratio \u00a0
Tier 1 capital divided\u00a0by the\u00a0total risk exposure amount. \u00a0
Total capital ratio \u00a0
Total capital divided by the total risk exposure amount. \u00a0
Dividend per\u00a0share (DKK) \u00a0
The total of proposed dividend\u00a0to be paid in the subsequent year and any interim dividend\u00a0payment paid during \u00a0
the year, divided by the number of shares issued at the end of the year. \u00a0
Share price at 31 December \u00a0
Closing price of Danske Bank shares at the end of the year. \u00a0
Book value per share (DKK) \u00a0
Total equity at 31 December divided by the number of shares outstanding at the end of the year. \u00a0
For the definition used in the management report see page \u201cDefinition\u00a0of alternative Performance Measures\u201d. \u00a0
Number of full-time-equivalent\u00a0staff \u00a0
Number of full-time-equivalent\u00a0staff (part-time staff translated into full-time staff) at the end of the \u00a0
at 31\u00a0December \u00a0
year. \u00a0
Lending growth \u00a0
Growth in lending from the beginning to the end of the year, excluding repo transactions. \u00a0
Loans plus impairment charges \u00a0
Loans at fair value and loans at amortised cost (gross of expected credit losses) divided by deposits including \u00a0
as % of deposits \u00a0
deposits under pooled schemes. \u00a0
Return on assets \u00a0
Net profit for the year divided by average assets (average assets as total assets end of current and prior year). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4206": {
"value": "G5. Net interest and net trading income or loss \u00a0
This note shows interest income, interest expense and net trading income or loss broken down by balance sheet item and by portfolios of financial instruments \u00a0
measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss. \u00a0
Accounting policy \u00a0
Interest income and expenses \u00a0
Interest income and expenses arising from interest-bearing\u00a0financial instruments\u00a0measured at\u00a0amortised cost\u00a0or at fair value through Other \u00a0
comprehensive income are\u00a0recognised according to the effective interest method on\u00a0the basis of the cost of the individual\u00a0financial instrument.\u00a0Interes t \u00a0
includes amortised amounts of\u00a0fees that are an integral part of the effective yield on a financial\u00a0instrument, such\u00a0as origination\u00a0fees, and amortise\u00a0d \u00a0
differences between the cost and the redemption\u00a0price, if any. Interest\u00a0on financial instruments\u00a0included in\u00a0stage 3 (for the calculation\u00a0of expected credit \u00a0
losses) is recognised on the basis of the carrying amount (i.e. net of impairment charges). The interest rate risk on some financial portfolios\u00a0recognised \u00a0
at amortised\u00a0cost is hedged by derivatives\u00a0using fair value hedge accounting. Note G12 provides\u00a0more information\u00a0on hedge accounting.\u00a0Interest income \u00a0
calculated using\u00a0the effective interest method and\u00a0presented as\u00a0a separate line item in the income statement excludes the impact from hedge \u00a0
accounting. \u00a0
Further, interest income and expenses includes interest on financial instruments\u00a0measured at\u00a0fair value through profit or loss. Among others, this \u00a0
includes interest income on loans measured at fair value\u00a0for which interest on loans included in stage 3 is recognised on the basis of the gross carrying \u00a0
amount. However, interest on\u00a0assets and\u00a0deposits under pooled schemes is recognised under Net trading income or loss. In the income statement, \u00a0
interest income on financial assets measured at fair\u00a0value through profit\u00a0or loss is presented\u00a0under the line item Other interest income, while the line \u00a0
item Interest expenses includes all interest expenses. \u00a0
Net trading\u00a0income or loss \u00a0
Net trading income or\u00a0loss includes realised and\u00a0unrealised capital gains and losses\u00a0on financial assets and financial liabilities\u00a0recognised at fair value \u00a0
through profit or\u00a0loss as well as exchange\u00a0rate adjustments\u00a0and dividends.\u00a0However, the fair value adjustments\u00a0of the credit risk on loans granted by \u00a0
Realkredit Danmark are\u00a0presented under Loan impairment charges. Further, the fair value adjustment\u00a0of own credit risk on financial liabilities\u00a0in the \u00a0
Group\u2019s trading units Markets and Investment Banking & Securities part of\u00a0LC&I designated at fair value through profit or\u00a0loss is presented in Other \u00a0
comprehensive income. Net trading income or\u00a0loss includes the fair value adjustments of own credit risk on bonds issued by Realkredit Danmark,\u00a0as an \u00a0
accounting mismatch between the fair\u00a0value adjustment of the loans and\u00a0the bonds in Realkredit\u00a0Danmark would otherwise exist (see\u00a0further \u00a0
information in note G16). \u00a0
Realised gains and losses on financial assets at amortised cost,\u00a0e.g. loans, are recognised under Net trading income or loss when the financial asset is \u00a0
derecognised, unless the derecognition relates to a\u00a0credit risk event/forbearance\u00a0measure, in which case the gain or loss is presented under Loan \u00a0
impairment charges\u00a0(see note G15). Otherwise, the derecognition gain or loss on the financial asset is calculated\u00a0as the difference between the carrying \u00a0
amount (gross of expected credit losses) and the repayment\u00a0amount. For financial assets (bonds) at fair value through other comprehensive\u00a0income, \u00a0
gains or losses further include\u00a0amounts previously recognised in\u00a0other comprehensive income. For\u00a0financial liabilities\u00a0at amortised\u00a0cost, the gain or \u00a0
loss is the difference between the carrying\u00a0amount and the redemption price including cost related to\u00a0the redemption, if any. \u00a0
For financial\u00a0assets and liabilities\u00a0subject to fair value hedge accounting, the fair value adjustments\u00a0of the hedged financial instrument and the hedging \u00a0
instruments are\u00a0recognised in Net trading income or loss. Therefore, any hedge ineffectiveness\u00a0is presented\u00a0in Net trading income or loss. \u00a0
Returns (interest income and fair value changes) on assets under pooled schemes and the crediting of these returns to customer accounts are \u00a0
recognised under Net trading\u00a0income or loss. \u00a0
G5. Net interest and net trading income or loss continued \u00a0
Net interest \u00a0
Net trading \u00a0
2023 (DKK millions) \u00a0
Interest income\u00a0Interest expense \u00a0
income \u00a0
income \u00a0
Total \u00a0
Financial portfolios at amortised cost \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
6,944 \u00a0
-3,040 \u00a0
9,984 \u00a0
-9 \u00a0
9,975 \u00a0
Loans and deposits \u00a0
46,619 \u00a0
15,386 \u00a0
31,234 \u00a0
293 \u00a0
31,527 \u00a0
Bonds held to collect (investment securities) \u00a0
2,102 \u00a0
-
2,102 \u00a0
-
2,102 \u00a0
Issued bonds, including non-preferred senior \u00a0
-
8,354 \u00a0
-8,354 \u00a0
-11,873 \u00a0
-20,227 \u00a0
Subordinated debt \u00a0
-
1,313 \u00a0
-1,313 \u00a0
-846 \u00a0
-2,159 \u00a0
Other financial\u00a0instruments \u00a0
1,576 \u00a0
-4,205 \u00a0
5,781 \u00a0
-
5,781 \u00a0
Total \u00a0
57,240 \u00a0
17,807 \u00a0
39,433 \u00a0
-12,435 \u00a0
26,998 \u00a0
Financial portfolios at fair value through OCI \u00a0
Bonds held to collect and sell (investment\u00a0securities) \u00a0
3,592 \u00a0
-
3,592 \u00a0
-8 \u00a0
3,584 \u00a0
Total \u00a0
3,592 \u00a0
-
3,592 \u00a0
-8 \u00a0
3,584 \u00a0
Financial portfolios at fair value through profit or loss \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
2,431 \u00a0
4,995 \u00a0
-2,564 \u00a0
-
-2,564 \u00a0
Loans and deposits \u00a0
27,538 \u00a0
8,224 \u00a0
19,314 \u00a0
-
19,314 \u00a0
Trading portfolio assets and liabilities \u00a0
-3,011 \u00a0
-
-3,011 \u00a0
13,764 \u00a0
10,754 \u00a0
Bonds (investment\u00a0securities) \u00a0
-8,213 \u00a0
-
-8,213 \u00a0
6,150 \u00a0
-2,063 \u00a0
Issued bonds \u00a0
-
16,282 \u00a0
-16,282 \u00a0
-
-16,282 \u00a0
Assets and deposits under pooled schemes \u00a0
-
-
-
-75 \u00a0
-75 \u00a0
Reclassification on disposal of units outside Denmark \u00a0
-
-
-
-806 \u00a0
-806 \u00a0
Total \u00a0
18,745 \u00a0
29,502 \u00a0
-10,756 \u00a0
19,033 \u00a0
8,277 \u00a0
Total net interest and net trading income \u00a0
79,578 \u00a0
47,309 \u00a0
32,269 \u00a0
6,590 \u00a0
38,859 \u00a0
Negative interest\u00a0income \u00a0
4
4
-
-
-
Negative interest\u00a0expense \u00a0
13 \u00a0
13 \u00a0
-
-
-
Income statement - Danske Bank Group \u00a0
79,594 \u00a0
47,325 \u00a0
32,269 \u00a0
6,590 \u00a0
38,859 \u00a0
2022* (DKK millions) \u00a0
Financial portfolios at amortised cost \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
3,654 \u00a0
1,819 \u00a0
1,835 \u00a0
10 \u00a0
1,845 \u00a0
Loans and deposits \u00a0
25,376 \u00a0
4,202 \u00a0
21,174 \u00a0
-2,260 \u00a0
18,914 \u00a0
Bonds held to collect (investment securities) \u00a0
906 \u00a0
-
906 \u00a0
-
906 \u00a0
Issued bonds, including non-preferred senior \u00a0
-
5,556 \u00a0
-5,556 \u00a0
21,649 \u00a0
16,093 \u00a0
Subordinated debt \u00a0
-
1,342 \u00a0
-1,342 \u00a0
1,871 \u00a0
529 \u00a0
Other financial instruments \u00a0
8
-1,511 \u00a0
1,519 \u00a0
-
1,519 \u00a0
Total \u00a0
29,945 \u00a0
11,408 \u00a0
18,537 \u00a0
21,270 \u00a0
39,807 \u00a0
Financial portfolios at fair value through OCI \u00a0
Bonds held to collect and sell (investment\u00a0securities) \u00a0
901 \u00a0
-
901 \u00a0
-24 \u00a0
877 \u00a0
Total \u00a0
901 \u00a0
-
901 \u00a0
-24 \u00a0
877 \u00a0
Financial portfolios at fair value through profit or loss \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
-570 \u00a0
-592 \u00a0
23 \u00a0
-
23 \u00a0
Loans and deposits \u00a0
15,113 \u00a0
285 \u00a0
14,828 \u00a0
-
14,828 \u00a0
Trading portfolio assets and liabilities \u00a0
1,343 \u00a0
-
1,343 \u00a0
-10,488 \u00a0
-9,145 \u00a0
Bonds (investment securities) \u00a0
-672 \u00a0
-
-672 \u00a0
-9,279 \u00a0
-9,951 \u00a0
Issued bonds \u00a0
-
9,607 \u00a0
-9,607 \u00a0
-
-9,607 \u00a0
Assets and deposits under pooled schemes \u00a0
-
-
-
102 \u00a0
102 \u00a0
Total \u00a0
15,214 \u00a0
9,299 \u00a0
5,914 \u00a0
-19,665 \u00a0
-13,750 \u00a0
Total net\u00a0interest and net trading income \u00a0
46,059 \u00a0
20,708 \u00a0
25,351 \u00a0
1,581 \u00a0
26,933 \u00a0
Negative interest income \u00a0
1,171 \u00a0
1,171 \u00a0
-
-
-
Negative interest expense \u00a0
2,755 \u00a0
2,755 \u00a0
-
-
-
Income statement\u00a0- Danske Bank Group \u00a0
49,985 \u00a0
24,634 \u00a0
25,351 \u00a0
1,581 \u00a0
26,933 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
G5. Net interest and net trading income or loss continued \u00a0
Negative interest income relates primarily to repo transactions, while negative interest expenses relate primarily to deposits and repo transactions. In \u00a0
the table above showing interest income and expenses by portfolios, these amounts are offset\u00a0against interest income and inte\u00a0rest expenses, \u00a0
respectively. In\u00a0the income statement, negative interest income is\u00a0recognised as interest expenses and negative interest expenses as interest income as \u00a0
shown in the line items \u2018Negative interest income\u2019 and \u2018Negative interest expense\u2019 in the table above. \u00a0
Changes to\u00a0the fair value of the hedged interest rate risk are recognised under net trading income or loss and shown under the hedged balance sheet \u00a0
items in the table above, whereas value adjustments\u00a0of hedging\u00a0derivatives are\u00a0recognised under net trading income or loss under the trading portfolio. \u00a0
Net trading\u00a0income or loss includes\u00a0dividends from\u00a0shares of DKK 425 million (2022: DKK 435 million) and foreign exchange adjustments\u00a0of DKK 545 \u00a0
million (2022: DKK 2,202 million). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4207": {
"value": "G5. Net interest and net trading income or loss \u00a0
This note shows interest income, interest expense and net trading income or loss broken down by balance sheet item and by portfolios of financial instruments \u00a0
measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss. \u00a0
Accounting policy \u00a0
Interest income and expenses \u00a0
Interest income and expenses arising from interest-bearing\u00a0financial instruments\u00a0measured at\u00a0amortised cost\u00a0or at fair value through Other \u00a0
comprehensive income are\u00a0recognised according to the effective interest method on\u00a0the basis of the cost of the individual\u00a0financial instrument.\u00a0Interes t \u00a0
includes amortised amounts of\u00a0fees that are an integral part of the effective yield on a financial\u00a0instrument, such\u00a0as origination\u00a0fees, and amortise\u00a0d \u00a0
differences between the cost and the redemption\u00a0price, if any. Interest\u00a0on financial instruments\u00a0included in\u00a0stage 3 (for the calculation\u00a0of expected credit \u00a0
losses) is recognised on the basis of the carrying amount (i.e. net of impairment charges). The interest rate risk on some financial portfolios\u00a0recognised \u00a0
at amortised\u00a0cost is hedged by derivatives\u00a0using fair value hedge accounting. Note G12 provides\u00a0more information\u00a0on hedge accounting.\u00a0Interest income \u00a0
calculated using\u00a0the effective interest method and\u00a0presented as\u00a0a separate line item in the income statement excludes the impact from hedge \u00a0
accounting. \u00a0
Further, interest income and expenses includes interest on financial instruments\u00a0measured at\u00a0fair value through profit or loss. Among others, this \u00a0
includes interest income on loans measured at fair value\u00a0for which interest on loans included in stage 3 is recognised on the basis of the gross carrying \u00a0
amount. However, interest on\u00a0assets and\u00a0deposits under pooled schemes is recognised under Net trading income or loss. In the income statement, \u00a0
interest income on financial assets measured at fair\u00a0value through profit\u00a0or loss is presented\u00a0under the line item Other interest income, while the line \u00a0
item Interest expenses includes all interest expenses. \u00a0
Net trading\u00a0income or loss \u00a0
Net trading income or\u00a0loss includes realised and\u00a0unrealised capital gains and losses\u00a0on financial assets and financial liabilities\u00a0recognised at fair value \u00a0
through profit or\u00a0loss as well as exchange\u00a0rate adjustments\u00a0and dividends.\u00a0However, the fair value adjustments\u00a0of the credit risk on loans granted by \u00a0
Realkredit Danmark are\u00a0presented under Loan impairment charges. Further, the fair value adjustment\u00a0of own credit risk on financial liabilities\u00a0in the \u00a0
Group\u2019s trading units Markets and Investment Banking & Securities part of\u00a0LC&I designated at fair value through profit or\u00a0loss is presented in Other \u00a0
comprehensive income. Net trading income or\u00a0loss includes the fair value adjustments of own credit risk on bonds issued by Realkredit Danmark,\u00a0as an \u00a0
accounting mismatch between the fair\u00a0value adjustment of the loans and\u00a0the bonds in Realkredit\u00a0Danmark would otherwise exist (see\u00a0further \u00a0
information in note G16). \u00a0
Realised gains and losses on financial assets at amortised cost,\u00a0e.g. loans, are recognised under Net trading income or loss when the financial asset is \u00a0
derecognised, unless the derecognition relates to a\u00a0credit risk event/forbearance\u00a0measure, in which case the gain or loss is presented under Loan \u00a0
impairment charges\u00a0(see note G15). Otherwise, the derecognition gain or loss on the financial asset is calculated\u00a0as the difference between the carrying \u00a0
amount (gross of expected credit losses) and the repayment\u00a0amount. For financial assets (bonds) at fair value through other comprehensive\u00a0income, \u00a0
gains or losses further include\u00a0amounts previously recognised in\u00a0other comprehensive income. For\u00a0financial liabilities\u00a0at amortised\u00a0cost, the gain or \u00a0
loss is the difference between the carrying\u00a0amount and the redemption price including cost related to\u00a0the redemption, if any. \u00a0
For financial\u00a0assets and liabilities\u00a0subject to fair value hedge accounting, the fair value adjustments\u00a0of the hedged financial instrument and the hedging \u00a0
instruments are\u00a0recognised in Net trading income or loss. Therefore, any hedge ineffectiveness\u00a0is presented\u00a0in Net trading income or loss. \u00a0
Returns (interest income and fair value changes) on assets under pooled schemes and the crediting of these returns to customer accounts are \u00a0
recognised under Net trading\u00a0income or loss. \u00a0
G5. Net interest and net trading income or loss continued \u00a0
Net interest \u00a0
Net trading \u00a0
2023 (DKK millions) \u00a0
Interest income\u00a0Interest expense \u00a0
income \u00a0
income \u00a0
Total \u00a0
Financial portfolios at amortised cost \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
6,944 \u00a0
-3,040 \u00a0
9,984 \u00a0
-9 \u00a0
9,975 \u00a0
Loans and deposits \u00a0
46,619 \u00a0
15,386 \u00a0
31,234 \u00a0
293 \u00a0
31,527 \u00a0
Bonds held to collect (investment securities) \u00a0
2,102 \u00a0
-
2,102 \u00a0
-
2,102 \u00a0
Issued bonds, including non-preferred senior \u00a0
-
8,354 \u00a0
-8,354 \u00a0
-11,873 \u00a0
-20,227 \u00a0
Subordinated debt \u00a0
-
1,313 \u00a0
-1,313 \u00a0
-846 \u00a0
-2,159 \u00a0
Other financial\u00a0instruments \u00a0
1,576 \u00a0
-4,205 \u00a0
5,781 \u00a0
-
5,781 \u00a0
Total \u00a0
57,240 \u00a0
17,807 \u00a0
39,433 \u00a0
-12,435 \u00a0
26,998 \u00a0
Financial portfolios at fair value through OCI \u00a0
Bonds held to collect and sell (investment\u00a0securities) \u00a0
3,592 \u00a0
-
3,592 \u00a0
-8 \u00a0
3,584 \u00a0
Total \u00a0
3,592 \u00a0
-
3,592 \u00a0
-8 \u00a0
3,584 \u00a0
Financial portfolios at fair value through profit or loss \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
2,431 \u00a0
4,995 \u00a0
-2,564 \u00a0
-
-2,564 \u00a0
Loans and deposits \u00a0
27,538 \u00a0
8,224 \u00a0
19,314 \u00a0
-
19,314 \u00a0
Trading portfolio assets and liabilities \u00a0
-3,011 \u00a0
-
-3,011 \u00a0
13,764 \u00a0
10,754 \u00a0
Bonds (investment\u00a0securities) \u00a0
-8,213 \u00a0
-
-8,213 \u00a0
6,150 \u00a0
-2,063 \u00a0
Issued bonds \u00a0
-
16,282 \u00a0
-16,282 \u00a0
-
-16,282 \u00a0
Assets and deposits under pooled schemes \u00a0
-
-
-
-75 \u00a0
-75 \u00a0
Reclassification on disposal of units outside Denmark \u00a0
-
-
-
-806 \u00a0
-806 \u00a0
Total \u00a0
18,745 \u00a0
29,502 \u00a0
-10,756 \u00a0
19,033 \u00a0
8,277 \u00a0
Total net interest and net trading income \u00a0
79,578 \u00a0
47,309 \u00a0
32,269 \u00a0
6,590 \u00a0
38,859 \u00a0
Negative interest\u00a0income \u00a0
4
4
-
-
-
Negative interest\u00a0expense \u00a0
13 \u00a0
13 \u00a0
-
-
-
Income statement - Danske Bank Group \u00a0
79,594 \u00a0
47,325 \u00a0
32,269 \u00a0
6,590 \u00a0
38,859 \u00a0
2022* (DKK millions) \u00a0
Financial portfolios at amortised cost \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
3,654 \u00a0
1,819 \u00a0
1,835 \u00a0
10 \u00a0
1,845 \u00a0
Loans and deposits \u00a0
25,376 \u00a0
4,202 \u00a0
21,174 \u00a0
-2,260 \u00a0
18,914 \u00a0
Bonds held to collect (investment securities) \u00a0
906 \u00a0
-
906 \u00a0
-
906 \u00a0
Issued bonds, including non-preferred senior \u00a0
-
5,556 \u00a0
-5,556 \u00a0
21,649 \u00a0
16,093 \u00a0
Subordinated debt \u00a0
-
1,342 \u00a0
-1,342 \u00a0
1,871 \u00a0
529 \u00a0
Other financial instruments \u00a0
8
-1,511 \u00a0
1,519 \u00a0
-
1,519 \u00a0
Total \u00a0
29,945 \u00a0
11,408 \u00a0
18,537 \u00a0
21,270 \u00a0
39,807 \u00a0
Financial portfolios at fair value through OCI \u00a0
Bonds held to collect and sell (investment\u00a0securities) \u00a0
901 \u00a0
-
901 \u00a0
-24 \u00a0
877 \u00a0
Total \u00a0
901 \u00a0
-
901 \u00a0
-24 \u00a0
877 \u00a0
Financial portfolios at fair value through profit or loss \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
-570 \u00a0
-592 \u00a0
23 \u00a0
-
23 \u00a0
Loans and deposits \u00a0
15,113 \u00a0
285 \u00a0
14,828 \u00a0
-
14,828 \u00a0
Trading portfolio assets and liabilities \u00a0
1,343 \u00a0
-
1,343 \u00a0
-10,488 \u00a0
-9,145 \u00a0
Bonds (investment securities) \u00a0
-672 \u00a0
-
-672 \u00a0
-9,279 \u00a0
-9,951 \u00a0
Issued bonds \u00a0
-
9,607 \u00a0
-9,607 \u00a0
-
-9,607 \u00a0
Assets and deposits under pooled schemes \u00a0
-
-
-
102 \u00a0
102 \u00a0
Total \u00a0
15,214 \u00a0
9,299 \u00a0
5,914 \u00a0
-19,665 \u00a0
-13,750 \u00a0
Total net\u00a0interest and net trading income \u00a0
46,059 \u00a0
20,708 \u00a0
25,351 \u00a0
1,581 \u00a0
26,933 \u00a0
Negative interest income \u00a0
1,171 \u00a0
1,171 \u00a0
-
-
-
Negative interest expense \u00a0
2,755 \u00a0
2,755 \u00a0
-
-
-
Income statement\u00a0- Danske Bank Group \u00a0
49,985 \u00a0
24,634 \u00a0
25,351 \u00a0
1,581 \u00a0
26,933 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
G5. Net interest and net trading income or loss continued \u00a0
Negative interest income relates primarily to repo transactions, while negative interest expenses relate primarily to deposits and repo transactions. In \u00a0
the table above showing interest income and expenses by portfolios, these amounts are offset\u00a0against interest income and inte\u00a0rest expenses, \u00a0
respectively. In\u00a0the income statement, negative interest income is\u00a0recognised as interest expenses and negative interest expenses as interest income as \u00a0
shown in the line items \u2018Negative interest income\u2019 and \u2018Negative interest expense\u2019 in the table above. \u00a0
Changes to\u00a0the fair value of the hedged interest rate risk are recognised under net trading income or loss and shown under the hedged balance sheet \u00a0
items in the table above, whereas value adjustments\u00a0of hedging\u00a0derivatives are\u00a0recognised under net trading income or loss under the trading portfolio. \u00a0
Net trading\u00a0income or loss includes\u00a0dividends from\u00a0shares of DKK 425 million (2022: DKK 435 million) and foreign exchange adjustments\u00a0of DKK 545 \u00a0
million (2022: DKK 2,202 million). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4208": {
"value": "G5. Net interest and net trading income or loss \u00a0
This note shows interest income, interest expense and net trading income or loss broken down by balance sheet item and by portfolios of financial instruments \u00a0
measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss. \u00a0
Accounting policy \u00a0
Interest income and expenses \u00a0
Interest income and expenses arising from interest-bearing\u00a0financial instruments\u00a0measured at\u00a0amortised cost\u00a0or at fair value through Other \u00a0
comprehensive income are\u00a0recognised according to the effective interest method on\u00a0the basis of the cost of the individual\u00a0financial instrument.\u00a0Interes t \u00a0
includes amortised amounts of\u00a0fees that are an integral part of the effective yield on a financial\u00a0instrument, such\u00a0as origination\u00a0fees, and amortise\u00a0d \u00a0
differences between the cost and the redemption\u00a0price, if any. Interest\u00a0on financial instruments\u00a0included in\u00a0stage 3 (for the calculation\u00a0of expected credit \u00a0
losses) is recognised on the basis of the carrying amount (i.e. net of impairment charges). The interest rate risk on some financial portfolios\u00a0recognised \u00a0
at amortised\u00a0cost is hedged by derivatives\u00a0using fair value hedge accounting. Note G12 provides\u00a0more information\u00a0on hedge accounting.\u00a0Interest income \u00a0
calculated using\u00a0the effective interest method and\u00a0presented as\u00a0a separate line item in the income statement excludes the impact from hedge \u00a0
accounting. \u00a0
Further, interest income and expenses includes interest on financial instruments\u00a0measured at\u00a0fair value through profit or loss. Among others, this \u00a0
includes interest income on loans measured at fair value\u00a0for which interest on loans included in stage 3 is recognised on the basis of the gross carrying \u00a0
amount. However, interest on\u00a0assets and\u00a0deposits under pooled schemes is recognised under Net trading income or loss. In the income statement, \u00a0
interest income on financial assets measured at fair\u00a0value through profit\u00a0or loss is presented\u00a0under the line item Other interest income, while the line \u00a0
item Interest expenses includes all interest expenses. \u00a0
Net trading\u00a0income or loss \u00a0
Net trading income or\u00a0loss includes realised and\u00a0unrealised capital gains and losses\u00a0on financial assets and financial liabilities\u00a0recognised at fair value \u00a0
through profit or\u00a0loss as well as exchange\u00a0rate adjustments\u00a0and dividends.\u00a0However, the fair value adjustments\u00a0of the credit risk on loans granted by \u00a0
Realkredit Danmark are\u00a0presented under Loan impairment charges. Further, the fair value adjustment\u00a0of own credit risk on financial liabilities\u00a0in the \u00a0
Group\u2019s trading units Markets and Investment Banking & Securities part of\u00a0LC&I designated at fair value through profit or\u00a0loss is presented in Other \u00a0
comprehensive income. Net trading income or\u00a0loss includes the fair value adjustments of own credit risk on bonds issued by Realkredit Danmark,\u00a0as an \u00a0
accounting mismatch between the fair\u00a0value adjustment of the loans and\u00a0the bonds in Realkredit\u00a0Danmark would otherwise exist (see\u00a0further \u00a0
information in note G16). \u00a0
Realised gains and losses on financial assets at amortised cost,\u00a0e.g. loans, are recognised under Net trading income or loss when the financial asset is \u00a0
derecognised, unless the derecognition relates to a\u00a0credit risk event/forbearance\u00a0measure, in which case the gain or loss is presented under Loan \u00a0
impairment charges\u00a0(see note G15). Otherwise, the derecognition gain or loss on the financial asset is calculated\u00a0as the difference between the carrying \u00a0
amount (gross of expected credit losses) and the repayment\u00a0amount. For financial assets (bonds) at fair value through other comprehensive\u00a0income, \u00a0
gains or losses further include\u00a0amounts previously recognised in\u00a0other comprehensive income. For\u00a0financial liabilities\u00a0at amortised\u00a0cost, the gain or \u00a0
loss is the difference between the carrying\u00a0amount and the redemption price including cost related to\u00a0the redemption, if any. \u00a0
For financial\u00a0assets and liabilities\u00a0subject to fair value hedge accounting, the fair value adjustments\u00a0of the hedged financial instrument and the hedging \u00a0
instruments are\u00a0recognised in Net trading income or loss. Therefore, any hedge ineffectiveness\u00a0is presented\u00a0in Net trading income or loss. \u00a0
Returns (interest income and fair value changes) on assets under pooled schemes and the crediting of these returns to customer accounts are \u00a0
recognised under Net trading\u00a0income or loss. \u00a0
G5. Net interest and net trading income or loss continued \u00a0
Net interest \u00a0
Net trading \u00a0
2023 (DKK millions) \u00a0
Interest income\u00a0Interest expense \u00a0
income \u00a0
income \u00a0
Total \u00a0
Financial portfolios at amortised cost \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
6,944 \u00a0
-3,040 \u00a0
9,984 \u00a0
-9 \u00a0
9,975 \u00a0
Loans and deposits \u00a0
46,619 \u00a0
15,386 \u00a0
31,234 \u00a0
293 \u00a0
31,527 \u00a0
Bonds held to collect (investment securities) \u00a0
2,102 \u00a0
-
2,102 \u00a0
-
2,102 \u00a0
Issued bonds, including non-preferred senior \u00a0
-
8,354 \u00a0
-8,354 \u00a0
-11,873 \u00a0
-20,227 \u00a0
Subordinated debt \u00a0
-
1,313 \u00a0
-1,313 \u00a0
-846 \u00a0
-2,159 \u00a0
Other financial\u00a0instruments \u00a0
1,576 \u00a0
-4,205 \u00a0
5,781 \u00a0
-
5,781 \u00a0
Total \u00a0
57,240 \u00a0
17,807 \u00a0
39,433 \u00a0
-12,435 \u00a0
26,998 \u00a0
Financial portfolios at fair value through OCI \u00a0
Bonds held to collect and sell (investment\u00a0securities) \u00a0
3,592 \u00a0
-
3,592 \u00a0
-8 \u00a0
3,584 \u00a0
Total \u00a0
3,592 \u00a0
-
3,592 \u00a0
-8 \u00a0
3,584 \u00a0
Financial portfolios at fair value through profit or loss \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
2,431 \u00a0
4,995 \u00a0
-2,564 \u00a0
-
-2,564 \u00a0
Loans and deposits \u00a0
27,538 \u00a0
8,224 \u00a0
19,314 \u00a0
-
19,314 \u00a0
Trading portfolio assets and liabilities \u00a0
-3,011 \u00a0
-
-3,011 \u00a0
13,764 \u00a0
10,754 \u00a0
Bonds (investment\u00a0securities) \u00a0
-8,213 \u00a0
-
-8,213 \u00a0
6,150 \u00a0
-2,063 \u00a0
Issued bonds \u00a0
-
16,282 \u00a0
-16,282 \u00a0
-
-16,282 \u00a0
Assets and deposits under pooled schemes \u00a0
-
-
-
-75 \u00a0
-75 \u00a0
Reclassification on disposal of units outside Denmark \u00a0
-
-
-
-806 \u00a0
-806 \u00a0
Total \u00a0
18,745 \u00a0
29,502 \u00a0
-10,756 \u00a0
19,033 \u00a0
8,277 \u00a0
Total net interest and net trading income \u00a0
79,578 \u00a0
47,309 \u00a0
32,269 \u00a0
6,590 \u00a0
38,859 \u00a0
Negative interest\u00a0income \u00a0
4
4
-
-
-
Negative interest\u00a0expense \u00a0
13 \u00a0
13 \u00a0
-
-
-
Income statement - Danske Bank Group \u00a0
79,594 \u00a0
47,325 \u00a0
32,269 \u00a0
6,590 \u00a0
38,859 \u00a0
2022* (DKK millions) \u00a0
Financial portfolios at amortised cost \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
3,654 \u00a0
1,819 \u00a0
1,835 \u00a0
10 \u00a0
1,845 \u00a0
Loans and deposits \u00a0
25,376 \u00a0
4,202 \u00a0
21,174 \u00a0
-2,260 \u00a0
18,914 \u00a0
Bonds held to collect (investment securities) \u00a0
906 \u00a0
-
906 \u00a0
-
906 \u00a0
Issued bonds, including non-preferred senior \u00a0
-
5,556 \u00a0
-5,556 \u00a0
21,649 \u00a0
16,093 \u00a0
Subordinated debt \u00a0
-
1,342 \u00a0
-1,342 \u00a0
1,871 \u00a0
529 \u00a0
Other financial instruments \u00a0
8
-1,511 \u00a0
1,519 \u00a0
-
1,519 \u00a0
Total \u00a0
29,945 \u00a0
11,408 \u00a0
18,537 \u00a0
21,270 \u00a0
39,807 \u00a0
Financial portfolios at fair value through OCI \u00a0
Bonds held to collect and sell (investment\u00a0securities) \u00a0
901 \u00a0
-
901 \u00a0
-24 \u00a0
877 \u00a0
Total \u00a0
901 \u00a0
-
901 \u00a0
-24 \u00a0
877 \u00a0
Financial portfolios at fair value through profit or loss \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
-570 \u00a0
-592 \u00a0
23 \u00a0
-
23 \u00a0
Loans and deposits \u00a0
15,113 \u00a0
285 \u00a0
14,828 \u00a0
-
14,828 \u00a0
Trading portfolio assets and liabilities \u00a0
1,343 \u00a0
-
1,343 \u00a0
-10,488 \u00a0
-9,145 \u00a0
Bonds (investment securities) \u00a0
-672 \u00a0
-
-672 \u00a0
-9,279 \u00a0
-9,951 \u00a0
Issued bonds \u00a0
-
9,607 \u00a0
-9,607 \u00a0
-
-9,607 \u00a0
Assets and deposits under pooled schemes \u00a0
-
-
-
102 \u00a0
102 \u00a0
Total \u00a0
15,214 \u00a0
9,299 \u00a0
5,914 \u00a0
-19,665 \u00a0
-13,750 \u00a0
Total net\u00a0interest and net trading income \u00a0
46,059 \u00a0
20,708 \u00a0
25,351 \u00a0
1,581 \u00a0
26,933 \u00a0
Negative interest income \u00a0
1,171 \u00a0
1,171 \u00a0
-
-
-
Negative interest expense \u00a0
2,755 \u00a0
2,755 \u00a0
-
-
-
Income statement\u00a0- Danske Bank Group \u00a0
49,985 \u00a0
24,634 \u00a0
25,351 \u00a0
1,581 \u00a0
26,933 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
G5. Net interest and net trading income or loss continued \u00a0
Negative interest income relates primarily to repo transactions, while negative interest expenses relate primarily to deposits and repo transactions. In \u00a0
the table above showing interest income and expenses by portfolios, these amounts are offset\u00a0against interest income and inte\u00a0rest expenses, \u00a0
respectively. In\u00a0the income statement, negative interest income is\u00a0recognised as interest expenses and negative interest expenses as interest income as \u00a0
shown in the line items \u2018Negative interest income\u2019 and \u2018Negative interest expense\u2019 in the table above. \u00a0
Changes to\u00a0the fair value of the hedged interest rate risk are recognised under net trading income or loss and shown under the hedged balance sheet \u00a0
items in the table above, whereas value adjustments\u00a0of hedging\u00a0derivatives are\u00a0recognised under net trading income or loss under the trading portfolio. \u00a0
Net trading\u00a0income or loss includes\u00a0dividends from\u00a0shares of DKK 425 million (2022: DKK 435 million) and foreign exchange adjustments\u00a0of DKK 545 \u00a0
million (2022: DKK 2,202 million). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4209": {
"value": "G5. Net interest and net trading income or loss \u00a0
This note shows interest income, interest expense and net trading income or loss broken down by balance sheet item and by portfolios of financial instruments \u00a0
measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss. \u00a0
Accounting policy \u00a0
Interest income and expenses \u00a0
Interest income and expenses arising from interest-bearing\u00a0financial instruments\u00a0measured at\u00a0amortised cost\u00a0or at fair value through Other \u00a0
comprehensive income are\u00a0recognised according to the effective interest method on\u00a0the basis of the cost of the individual\u00a0financial instrument.\u00a0Interes t \u00a0
includes amortised amounts of\u00a0fees that are an integral part of the effective yield on a financial\u00a0instrument, such\u00a0as origination\u00a0fees, and amortise\u00a0d \u00a0
differences between the cost and the redemption\u00a0price, if any. Interest\u00a0on financial instruments\u00a0included in\u00a0stage 3 (for the calculation\u00a0of expected credit \u00a0
losses) is recognised on the basis of the carrying amount (i.e. net of impairment charges). The interest rate risk on some financial portfolios\u00a0recognised \u00a0
at amortised\u00a0cost is hedged by derivatives\u00a0using fair value hedge accounting. Note G12 provides\u00a0more information\u00a0on hedge accounting.\u00a0Interest income \u00a0
calculated using\u00a0the effective interest method and\u00a0presented as\u00a0a separate line item in the income statement excludes the impact from hedge \u00a0
accounting. \u00a0
Further, interest income and expenses includes interest on financial instruments\u00a0measured at\u00a0fair value through profit or loss. Among others, this \u00a0
includes interest income on loans measured at fair value\u00a0for which interest on loans included in stage 3 is recognised on the basis of the gross carrying \u00a0
amount. However, interest on\u00a0assets and\u00a0deposits under pooled schemes is recognised under Net trading income or loss. In the income statement, \u00a0
interest income on financial assets measured at fair\u00a0value through profit\u00a0or loss is presented\u00a0under the line item Other interest income, while the line \u00a0
item Interest expenses includes all interest expenses. \u00a0
Net trading\u00a0income or loss \u00a0
Net trading income or\u00a0loss includes realised and\u00a0unrealised capital gains and losses\u00a0on financial assets and financial liabilities\u00a0recognised at fair value \u00a0
through profit or\u00a0loss as well as exchange\u00a0rate adjustments\u00a0and dividends.\u00a0However, the fair value adjustments\u00a0of the credit risk on loans granted by \u00a0
Realkredit Danmark are\u00a0presented under Loan impairment charges. Further, the fair value adjustment\u00a0of own credit risk on financial liabilities\u00a0in the \u00a0
Group\u2019s trading units Markets and Investment Banking & Securities part of\u00a0LC&I designated at fair value through profit or\u00a0loss is presented in Other \u00a0
comprehensive income. Net trading income or\u00a0loss includes the fair value adjustments of own credit risk on bonds issued by Realkredit Danmark,\u00a0as an \u00a0
accounting mismatch between the fair\u00a0value adjustment of the loans and\u00a0the bonds in Realkredit\u00a0Danmark would otherwise exist (see\u00a0further \u00a0
information in note G16). \u00a0
Realised gains and losses on financial assets at amortised cost,\u00a0e.g. loans, are recognised under Net trading income or loss when the financial asset is \u00a0
derecognised, unless the derecognition relates to a\u00a0credit risk event/forbearance\u00a0measure, in which case the gain or loss is presented under Loan \u00a0
impairment charges\u00a0(see note G15). Otherwise, the derecognition gain or loss on the financial asset is calculated\u00a0as the difference between the carrying \u00a0
amount (gross of expected credit losses) and the repayment\u00a0amount. For financial assets (bonds) at fair value through other comprehensive\u00a0income, \u00a0
gains or losses further include\u00a0amounts previously recognised in\u00a0other comprehensive income. For\u00a0financial liabilities\u00a0at amortised\u00a0cost, the gain or \u00a0
loss is the difference between the carrying\u00a0amount and the redemption price including cost related to\u00a0the redemption, if any. \u00a0
For financial\u00a0assets and liabilities\u00a0subject to fair value hedge accounting, the fair value adjustments\u00a0of the hedged financial instrument and the hedging \u00a0
instruments are\u00a0recognised in Net trading income or loss. Therefore, any hedge ineffectiveness\u00a0is presented\u00a0in Net trading income or loss. \u00a0
Returns (interest income and fair value changes) on assets under pooled schemes and the crediting of these returns to customer accounts are \u00a0
recognised under Net trading\u00a0income or loss. \u00a0
G5. Net interest and net trading income or loss continued \u00a0
Net interest \u00a0
Net trading \u00a0
2023 (DKK millions) \u00a0
Interest income\u00a0Interest expense \u00a0
income \u00a0
income \u00a0
Total \u00a0
Financial portfolios at amortised cost \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
6,944 \u00a0
-3,040 \u00a0
9,984 \u00a0
-9 \u00a0
9,975 \u00a0
Loans and deposits \u00a0
46,619 \u00a0
15,386 \u00a0
31,234 \u00a0
293 \u00a0
31,527 \u00a0
Bonds held to collect (investment securities) \u00a0
2,102 \u00a0
-
2,102 \u00a0
-
2,102 \u00a0
Issued bonds, including non-preferred senior \u00a0
-
8,354 \u00a0
-8,354 \u00a0
-11,873 \u00a0
-20,227 \u00a0
Subordinated debt \u00a0
-
1,313 \u00a0
-1,313 \u00a0
-846 \u00a0
-2,159 \u00a0
Other financial\u00a0instruments \u00a0
1,576 \u00a0
-4,205 \u00a0
5,781 \u00a0
-
5,781 \u00a0
Total \u00a0
57,240 \u00a0
17,807 \u00a0
39,433 \u00a0
-12,435 \u00a0
26,998 \u00a0
Financial portfolios at fair value through OCI \u00a0
Bonds held to collect and sell (investment\u00a0securities) \u00a0
3,592 \u00a0
-
3,592 \u00a0
-8 \u00a0
3,584 \u00a0
Total \u00a0
3,592 \u00a0
-
3,592 \u00a0
-8 \u00a0
3,584 \u00a0
Financial portfolios at fair value through profit or loss \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
2,431 \u00a0
4,995 \u00a0
-2,564 \u00a0
-
-2,564 \u00a0
Loans and deposits \u00a0
27,538 \u00a0
8,224 \u00a0
19,314 \u00a0
-
19,314 \u00a0
Trading portfolio assets and liabilities \u00a0
-3,011 \u00a0
-
-3,011 \u00a0
13,764 \u00a0
10,754 \u00a0
Bonds (investment\u00a0securities) \u00a0
-8,213 \u00a0
-
-8,213 \u00a0
6,150 \u00a0
-2,063 \u00a0
Issued bonds \u00a0
-
16,282 \u00a0
-16,282 \u00a0
-
-16,282 \u00a0
Assets and deposits under pooled schemes \u00a0
-
-
-
-75 \u00a0
-75 \u00a0
Reclassification on disposal of units outside Denmark \u00a0
-
-
-
-806 \u00a0
-806 \u00a0
Total \u00a0
18,745 \u00a0
29,502 \u00a0
-10,756 \u00a0
19,033 \u00a0
8,277 \u00a0
Total net interest and net trading income \u00a0
79,578 \u00a0
47,309 \u00a0
32,269 \u00a0
6,590 \u00a0
38,859 \u00a0
Negative interest\u00a0income \u00a0
4
4
-
-
-
Negative interest\u00a0expense \u00a0
13 \u00a0
13 \u00a0
-
-
-
Income statement - Danske Bank Group \u00a0
79,594 \u00a0
47,325 \u00a0
32,269 \u00a0
6,590 \u00a0
38,859 \u00a0
2022* (DKK millions) \u00a0
Financial portfolios at amortised cost \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
3,654 \u00a0
1,819 \u00a0
1,835 \u00a0
10 \u00a0
1,845 \u00a0
Loans and deposits \u00a0
25,376 \u00a0
4,202 \u00a0
21,174 \u00a0
-2,260 \u00a0
18,914 \u00a0
Bonds held to collect (investment securities) \u00a0
906 \u00a0
-
906 \u00a0
-
906 \u00a0
Issued bonds, including non-preferred senior \u00a0
-
5,556 \u00a0
-5,556 \u00a0
21,649 \u00a0
16,093 \u00a0
Subordinated debt \u00a0
-
1,342 \u00a0
-1,342 \u00a0
1,871 \u00a0
529 \u00a0
Other financial instruments \u00a0
8
-1,511 \u00a0
1,519 \u00a0
-
1,519 \u00a0
Total \u00a0
29,945 \u00a0
11,408 \u00a0
18,537 \u00a0
21,270 \u00a0
39,807 \u00a0
Financial portfolios at fair value through OCI \u00a0
Bonds held to collect and sell (investment\u00a0securities) \u00a0
901 \u00a0
-
901 \u00a0
-24 \u00a0
877 \u00a0
Total \u00a0
901 \u00a0
-
901 \u00a0
-24 \u00a0
877 \u00a0
Financial portfolios at fair value through profit or loss \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
-570 \u00a0
-592 \u00a0
23 \u00a0
-
23 \u00a0
Loans and deposits \u00a0
15,113 \u00a0
285 \u00a0
14,828 \u00a0
-
14,828 \u00a0
Trading portfolio assets and liabilities \u00a0
1,343 \u00a0
-
1,343 \u00a0
-10,488 \u00a0
-9,145 \u00a0
Bonds (investment securities) \u00a0
-672 \u00a0
-
-672 \u00a0
-9,279 \u00a0
-9,951 \u00a0
Issued bonds \u00a0
-
9,607 \u00a0
-9,607 \u00a0
-
-9,607 \u00a0
Assets and deposits under pooled schemes \u00a0
-
-
-
102 \u00a0
102 \u00a0
Total \u00a0
15,214 \u00a0
9,299 \u00a0
5,914 \u00a0
-19,665 \u00a0
-13,750 \u00a0
Total net\u00a0interest and net trading income \u00a0
46,059 \u00a0
20,708 \u00a0
25,351 \u00a0
1,581 \u00a0
26,933 \u00a0
Negative interest income \u00a0
1,171 \u00a0
1,171 \u00a0
-
-
-
Negative interest expense \u00a0
2,755 \u00a0
2,755 \u00a0
-
-
-
Income statement\u00a0- Danske Bank Group \u00a0
49,985 \u00a0
24,634 \u00a0
25,351 \u00a0
1,581 \u00a0
26,933 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
G5. Net interest and net trading income or loss continued \u00a0
Negative interest income relates primarily to repo transactions, while negative interest expenses relate primarily to deposits and repo transactions. In \u00a0
the table above showing interest income and expenses by portfolios, these amounts are offset\u00a0against interest income and inte\u00a0rest expenses, \u00a0
respectively. In\u00a0the income statement, negative interest income is\u00a0recognised as interest expenses and negative interest expenses as interest income as \u00a0
shown in the line items \u2018Negative interest income\u2019 and \u2018Negative interest expense\u2019 in the table above. \u00a0
Changes to\u00a0the fair value of the hedged interest rate risk are recognised under net trading income or loss and shown under the hedged balance sheet \u00a0
items in the table above, whereas value adjustments\u00a0of hedging\u00a0derivatives are\u00a0recognised under net trading income or loss under the trading portfolio. \u00a0
Net trading\u00a0income or loss includes\u00a0dividends from\u00a0shares of DKK 425 million (2022: DKK 435 million) and foreign exchange adjustments\u00a0of DKK 545 \u00a0
million (2022: DKK 2,202 million). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradingIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4210": {
"value": "G5. Net interest and net trading income or loss \u00a0
This note shows interest income, interest expense and net trading income or loss broken down by balance sheet item and by portfolios of financial instruments \u00a0
measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss. \u00a0
Accounting policy \u00a0
Interest income and expenses \u00a0
Interest income and expenses arising from interest-bearing\u00a0financial instruments\u00a0measured at\u00a0amortised cost\u00a0or at fair value through Other \u00a0
comprehensive income are\u00a0recognised according to the effective interest method on\u00a0the basis of the cost of the individual\u00a0financial instrument.\u00a0Interes t \u00a0
includes amortised amounts of\u00a0fees that are an integral part of the effective yield on a financial\u00a0instrument, such\u00a0as origination\u00a0fees, and amortise\u00a0d \u00a0
differences between the cost and the redemption\u00a0price, if any. Interest\u00a0on financial instruments\u00a0included in\u00a0stage 3 (for the calculation\u00a0of expected credit \u00a0
losses) is recognised on the basis of the carrying amount (i.e. net of impairment charges). The interest rate risk on some financial portfolios\u00a0recognised \u00a0
at amortised\u00a0cost is hedged by derivatives\u00a0using fair value hedge accounting. Note G12 provides\u00a0more information\u00a0on hedge accounting.\u00a0Interest income \u00a0
calculated using\u00a0the effective interest method and\u00a0presented as\u00a0a separate line item in the income statement excludes the impact from hedge \u00a0
accounting. \u00a0
Further, interest income and expenses includes interest on financial instruments\u00a0measured at\u00a0fair value through profit or loss. Among others, this \u00a0
includes interest income on loans measured at fair value\u00a0for which interest on loans included in stage 3 is recognised on the basis of the gross carrying \u00a0
amount. However, interest on\u00a0assets and\u00a0deposits under pooled schemes is recognised under Net trading income or loss. In the income statement, \u00a0
interest income on financial assets measured at fair\u00a0value through profit\u00a0or loss is presented\u00a0under the line item Other interest income, while the line \u00a0
item Interest expenses includes all interest expenses. \u00a0
Net trading\u00a0income or loss \u00a0
Net trading income or\u00a0loss includes realised and\u00a0unrealised capital gains and losses\u00a0on financial assets and financial liabilities\u00a0recognised at fair value \u00a0
through profit or\u00a0loss as well as exchange\u00a0rate adjustments\u00a0and dividends.\u00a0However, the fair value adjustments\u00a0of the credit risk on loans granted by \u00a0
Realkredit Danmark are\u00a0presented under Loan impairment charges. Further, the fair value adjustment\u00a0of own credit risk on financial liabilities\u00a0in the \u00a0
Group\u2019s trading units Markets and Investment Banking & Securities part of\u00a0LC&I designated at fair value through profit or\u00a0loss is presented in Other \u00a0
comprehensive income. Net trading income or\u00a0loss includes the fair value adjustments of own credit risk on bonds issued by Realkredit Danmark,\u00a0as an \u00a0
accounting mismatch between the fair\u00a0value adjustment of the loans and\u00a0the bonds in Realkredit\u00a0Danmark would otherwise exist (see\u00a0further \u00a0
information in note G16). \u00a0
Realised gains and losses on financial assets at amortised cost,\u00a0e.g. loans, are recognised under Net trading income or loss when the financial asset is \u00a0
derecognised, unless the derecognition relates to a\u00a0credit risk event/forbearance\u00a0measure, in which case the gain or loss is presented under Loan \u00a0
impairment charges\u00a0(see note G15). Otherwise, the derecognition gain or loss on the financial asset is calculated\u00a0as the difference between the carrying \u00a0
amount (gross of expected credit losses) and the repayment\u00a0amount. For financial assets (bonds) at fair value through other comprehensive\u00a0income, \u00a0
gains or losses further include\u00a0amounts previously recognised in\u00a0other comprehensive income. For\u00a0financial liabilities\u00a0at amortised\u00a0cost, the gain or \u00a0
loss is the difference between the carrying\u00a0amount and the redemption price including cost related to\u00a0the redemption, if any. \u00a0
For financial\u00a0assets and liabilities\u00a0subject to fair value hedge accounting, the fair value adjustments\u00a0of the hedged financial instrument and the hedging \u00a0
instruments are\u00a0recognised in Net trading income or loss. Therefore, any hedge ineffectiveness\u00a0is presented\u00a0in Net trading income or loss. \u00a0
Returns (interest income and fair value changes) on assets under pooled schemes and the crediting of these returns to customer accounts are \u00a0
recognised under Net trading\u00a0income or loss. \u00a0
G5. Net interest and net trading income or loss continued \u00a0
Net interest \u00a0
Net trading \u00a0
2023 (DKK millions) \u00a0
Interest income\u00a0Interest expense \u00a0
income \u00a0
income \u00a0
Total \u00a0
Financial portfolios at amortised cost \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
6,944 \u00a0
-3,040 \u00a0
9,984 \u00a0
-9 \u00a0
9,975 \u00a0
Loans and deposits \u00a0
46,619 \u00a0
15,386 \u00a0
31,234 \u00a0
293 \u00a0
31,527 \u00a0
Bonds held to collect (investment securities) \u00a0
2,102 \u00a0
-
2,102 \u00a0
-
2,102 \u00a0
Issued bonds, including non-preferred senior \u00a0
-
8,354 \u00a0
-8,354 \u00a0
-11,873 \u00a0
-20,227 \u00a0
Subordinated debt \u00a0
-
1,313 \u00a0
-1,313 \u00a0
-846 \u00a0
-2,159 \u00a0
Other financial\u00a0instruments \u00a0
1,576 \u00a0
-4,205 \u00a0
5,781 \u00a0
-
5,781 \u00a0
Total \u00a0
57,240 \u00a0
17,807 \u00a0
39,433 \u00a0
-12,435 \u00a0
26,998 \u00a0
Financial portfolios at fair value through OCI \u00a0
Bonds held to collect and sell (investment\u00a0securities) \u00a0
3,592 \u00a0
-
3,592 \u00a0
-8 \u00a0
3,584 \u00a0
Total \u00a0
3,592 \u00a0
-
3,592 \u00a0
-8 \u00a0
3,584 \u00a0
Financial portfolios at fair value through profit or loss \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
2,431 \u00a0
4,995 \u00a0
-2,564 \u00a0
-
-2,564 \u00a0
Loans and deposits \u00a0
27,538 \u00a0
8,224 \u00a0
19,314 \u00a0
-
19,314 \u00a0
Trading portfolio assets and liabilities \u00a0
-3,011 \u00a0
-
-3,011 \u00a0
13,764 \u00a0
10,754 \u00a0
Bonds (investment\u00a0securities) \u00a0
-8,213 \u00a0
-
-8,213 \u00a0
6,150 \u00a0
-2,063 \u00a0
Issued bonds \u00a0
-
16,282 \u00a0
-16,282 \u00a0
-
-16,282 \u00a0
Assets and deposits under pooled schemes \u00a0
-
-
-
-75 \u00a0
-75 \u00a0
Reclassification on disposal of units outside Denmark \u00a0
-
-
-
-806 \u00a0
-806 \u00a0
Total \u00a0
18,745 \u00a0
29,502 \u00a0
-10,756 \u00a0
19,033 \u00a0
8,277 \u00a0
Total net interest and net trading income \u00a0
79,578 \u00a0
47,309 \u00a0
32,269 \u00a0
6,590 \u00a0
38,859 \u00a0
Negative interest\u00a0income \u00a0
4
4
-
-
-
Negative interest\u00a0expense \u00a0
13 \u00a0
13 \u00a0
-
-
-
Income statement - Danske Bank Group \u00a0
79,594 \u00a0
47,325 \u00a0
32,269 \u00a0
6,590 \u00a0
38,859 \u00a0
2022* (DKK millions) \u00a0
Financial portfolios at amortised cost \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
3,654 \u00a0
1,819 \u00a0
1,835 \u00a0
10 \u00a0
1,845 \u00a0
Loans and deposits \u00a0
25,376 \u00a0
4,202 \u00a0
21,174 \u00a0
-2,260 \u00a0
18,914 \u00a0
Bonds held to collect (investment securities) \u00a0
906 \u00a0
-
906 \u00a0
-
906 \u00a0
Issued bonds, including non-preferred senior \u00a0
-
5,556 \u00a0
-5,556 \u00a0
21,649 \u00a0
16,093 \u00a0
Subordinated debt \u00a0
-
1,342 \u00a0
-1,342 \u00a0
1,871 \u00a0
529 \u00a0
Other financial instruments \u00a0
8
-1,511 \u00a0
1,519 \u00a0
-
1,519 \u00a0
Total \u00a0
29,945 \u00a0
11,408 \u00a0
18,537 \u00a0
21,270 \u00a0
39,807 \u00a0
Financial portfolios at fair value through OCI \u00a0
Bonds held to collect and sell (investment\u00a0securities) \u00a0
901 \u00a0
-
901 \u00a0
-24 \u00a0
877 \u00a0
Total \u00a0
901 \u00a0
-
901 \u00a0
-24 \u00a0
877 \u00a0
Financial portfolios at fair value through profit or loss \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
-570 \u00a0
-592 \u00a0
23 \u00a0
-
23 \u00a0
Loans and deposits \u00a0
15,113 \u00a0
285 \u00a0
14,828 \u00a0
-
14,828 \u00a0
Trading portfolio assets and liabilities \u00a0
1,343 \u00a0
-
1,343 \u00a0
-10,488 \u00a0
-9,145 \u00a0
Bonds (investment securities) \u00a0
-672 \u00a0
-
-672 \u00a0
-9,279 \u00a0
-9,951 \u00a0
Issued bonds \u00a0
-
9,607 \u00a0
-9,607 \u00a0
-
-9,607 \u00a0
Assets and deposits under pooled schemes \u00a0
-
-
-
102 \u00a0
102 \u00a0
Total \u00a0
15,214 \u00a0
9,299 \u00a0
5,914 \u00a0
-19,665 \u00a0
-13,750 \u00a0
Total net\u00a0interest and net trading income \u00a0
46,059 \u00a0
20,708 \u00a0
25,351 \u00a0
1,581 \u00a0
26,933 \u00a0
Negative interest income \u00a0
1,171 \u00a0
1,171 \u00a0
-
-
-
Negative interest expense \u00a0
2,755 \u00a0
2,755 \u00a0
-
-
-
Income statement\u00a0- Danske Bank Group \u00a0
49,985 \u00a0
24,634 \u00a0
25,351 \u00a0
1,581 \u00a0
26,933 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
G5. Net interest and net trading income or loss continued \u00a0
Negative interest income relates primarily to repo transactions, while negative interest expenses relate primarily to deposits and repo transactions. In \u00a0
the table above showing interest income and expenses by portfolios, these amounts are offset\u00a0against interest income and inte\u00a0rest expenses, \u00a0
respectively. In\u00a0the income statement, negative interest income is\u00a0recognised as interest expenses and negative interest expenses as interest income as \u00a0
shown in the line items \u2018Negative interest income\u2019 and \u2018Negative interest expense\u2019 in the table above. \u00a0
Changes to\u00a0the fair value of the hedged interest rate risk are recognised under net trading income or loss and shown under the hedged balance sheet \u00a0
items in the table above, whereas value adjustments\u00a0of hedging\u00a0derivatives are\u00a0recognised under net trading income or loss under the trading portfolio. \u00a0
Net trading\u00a0income or loss includes\u00a0dividends from\u00a0shares of DKK 425 million (2022: DKK 435 million) and foreign exchange adjustments\u00a0of DKK 545 \u00a0
million (2022: DKK 2,202 million). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceCostExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4211": {
"value": "G5. Net interest and net trading income or loss \u00a0
This note shows interest income, interest expense and net trading income or loss broken down by balance sheet item and by portfolios of financial instruments \u00a0
measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss. \u00a0
Accounting policy \u00a0
Interest income and expenses \u00a0
Interest income and expenses arising from interest-bearing\u00a0financial instruments\u00a0measured at\u00a0amortised cost\u00a0or at fair value through Other \u00a0
comprehensive income are\u00a0recognised according to the effective interest method on\u00a0the basis of the cost of the individual\u00a0financial instrument.\u00a0Interes t \u00a0
includes amortised amounts of\u00a0fees that are an integral part of the effective yield on a financial\u00a0instrument, such\u00a0as origination\u00a0fees, and amortise\u00a0d \u00a0
differences between the cost and the redemption\u00a0price, if any. Interest\u00a0on financial instruments\u00a0included in\u00a0stage 3 (for the calculation\u00a0of expected credit \u00a0
losses) is recognised on the basis of the carrying amount (i.e. net of impairment charges). The interest rate risk on some financial portfolios\u00a0recognised \u00a0
at amortised\u00a0cost is hedged by derivatives\u00a0using fair value hedge accounting. Note G12 provides\u00a0more information\u00a0on hedge accounting.\u00a0Interest income \u00a0
calculated using\u00a0the effective interest method and\u00a0presented as\u00a0a separate line item in the income statement excludes the impact from hedge \u00a0
accounting. \u00a0
Further, interest income and expenses includes interest on financial instruments\u00a0measured at\u00a0fair value through profit or loss. Among others, this \u00a0
includes interest income on loans measured at fair value\u00a0for which interest on loans included in stage 3 is recognised on the basis of the gross carrying \u00a0
amount. However, interest on\u00a0assets and\u00a0deposits under pooled schemes is recognised under Net trading income or loss. In the income statement, \u00a0
interest income on financial assets measured at fair\u00a0value through profit\u00a0or loss is presented\u00a0under the line item Other interest income, while the line \u00a0
item Interest expenses includes all interest expenses. \u00a0
Net trading\u00a0income or loss \u00a0
Net trading income or\u00a0loss includes realised and\u00a0unrealised capital gains and losses\u00a0on financial assets and financial liabilities\u00a0recognised at fair value \u00a0
through profit or\u00a0loss as well as exchange\u00a0rate adjustments\u00a0and dividends.\u00a0However, the fair value adjustments\u00a0of the credit risk on loans granted by \u00a0
Realkredit Danmark are\u00a0presented under Loan impairment charges. Further, the fair value adjustment\u00a0of own credit risk on financial liabilities\u00a0in the \u00a0
Group\u2019s trading units Markets and Investment Banking & Securities part of\u00a0LC&I designated at fair value through profit or\u00a0loss is presented in Other \u00a0
comprehensive income. Net trading income or\u00a0loss includes the fair value adjustments of own credit risk on bonds issued by Realkredit Danmark,\u00a0as an \u00a0
accounting mismatch between the fair\u00a0value adjustment of the loans and\u00a0the bonds in Realkredit\u00a0Danmark would otherwise exist (see\u00a0further \u00a0
information in note G16). \u00a0
Realised gains and losses on financial assets at amortised cost,\u00a0e.g. loans, are recognised under Net trading income or loss when the financial asset is \u00a0
derecognised, unless the derecognition relates to a\u00a0credit risk event/forbearance\u00a0measure, in which case the gain or loss is presented under Loan \u00a0
impairment charges\u00a0(see note G15). Otherwise, the derecognition gain or loss on the financial asset is calculated\u00a0as the difference between the carrying \u00a0
amount (gross of expected credit losses) and the repayment\u00a0amount. For financial assets (bonds) at fair value through other comprehensive\u00a0income, \u00a0
gains or losses further include\u00a0amounts previously recognised in\u00a0other comprehensive income. For\u00a0financial liabilities\u00a0at amortised\u00a0cost, the gain or \u00a0
loss is the difference between the carrying\u00a0amount and the redemption price including cost related to\u00a0the redemption, if any. \u00a0
For financial\u00a0assets and liabilities\u00a0subject to fair value hedge accounting, the fair value adjustments\u00a0of the hedged financial instrument and the hedging \u00a0
instruments are\u00a0recognised in Net trading income or loss. Therefore, any hedge ineffectiveness\u00a0is presented\u00a0in Net trading income or loss. \u00a0
Returns (interest income and fair value changes) on assets under pooled schemes and the crediting of these returns to customer accounts are \u00a0
recognised under Net trading\u00a0income or loss. \u00a0
G5. Net interest and net trading income or loss continued \u00a0
Net interest \u00a0
Net trading \u00a0
2023 (DKK millions) \u00a0
Interest income\u00a0Interest expense \u00a0
income \u00a0
income \u00a0
Total \u00a0
Financial portfolios at amortised cost \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
6,944 \u00a0
-3,040 \u00a0
9,984 \u00a0
-9 \u00a0
9,975 \u00a0
Loans and deposits \u00a0
46,619 \u00a0
15,386 \u00a0
31,234 \u00a0
293 \u00a0
31,527 \u00a0
Bonds held to collect (investment securities) \u00a0
2,102 \u00a0
-
2,102 \u00a0
-
2,102 \u00a0
Issued bonds, including non-preferred senior \u00a0
-
8,354 \u00a0
-8,354 \u00a0
-11,873 \u00a0
-20,227 \u00a0
Subordinated debt \u00a0
-
1,313 \u00a0
-1,313 \u00a0
-846 \u00a0
-2,159 \u00a0
Other financial\u00a0instruments \u00a0
1,576 \u00a0
-4,205 \u00a0
5,781 \u00a0
-
5,781 \u00a0
Total \u00a0
57,240 \u00a0
17,807 \u00a0
39,433 \u00a0
-12,435 \u00a0
26,998 \u00a0
Financial portfolios at fair value through OCI \u00a0
Bonds held to collect and sell (investment\u00a0securities) \u00a0
3,592 \u00a0
-
3,592 \u00a0
-8 \u00a0
3,584 \u00a0
Total \u00a0
3,592 \u00a0
-
3,592 \u00a0
-8 \u00a0
3,584 \u00a0
Financial portfolios at fair value through profit or loss \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
2,431 \u00a0
4,995 \u00a0
-2,564 \u00a0
-
-2,564 \u00a0
Loans and deposits \u00a0
27,538 \u00a0
8,224 \u00a0
19,314 \u00a0
-
19,314 \u00a0
Trading portfolio assets and liabilities \u00a0
-3,011 \u00a0
-
-3,011 \u00a0
13,764 \u00a0
10,754 \u00a0
Bonds (investment\u00a0securities) \u00a0
-8,213 \u00a0
-
-8,213 \u00a0
6,150 \u00a0
-2,063 \u00a0
Issued bonds \u00a0
-
16,282 \u00a0
-16,282 \u00a0
-
-16,282 \u00a0
Assets and deposits under pooled schemes \u00a0
-
-
-
-75 \u00a0
-75 \u00a0
Reclassification on disposal of units outside Denmark \u00a0
-
-
-
-806 \u00a0
-806 \u00a0
Total \u00a0
18,745 \u00a0
29,502 \u00a0
-10,756 \u00a0
19,033 \u00a0
8,277 \u00a0
Total net interest and net trading income \u00a0
79,578 \u00a0
47,309 \u00a0
32,269 \u00a0
6,590 \u00a0
38,859 \u00a0
Negative interest\u00a0income \u00a0
4
4
-
-
-
Negative interest\u00a0expense \u00a0
13 \u00a0
13 \u00a0
-
-
-
Income statement - Danske Bank Group \u00a0
79,594 \u00a0
47,325 \u00a0
32,269 \u00a0
6,590 \u00a0
38,859 \u00a0
2022* (DKK millions) \u00a0
Financial portfolios at amortised cost \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
3,654 \u00a0
1,819 \u00a0
1,835 \u00a0
10 \u00a0
1,845 \u00a0
Loans and deposits \u00a0
25,376 \u00a0
4,202 \u00a0
21,174 \u00a0
-2,260 \u00a0
18,914 \u00a0
Bonds held to collect (investment securities) \u00a0
906 \u00a0
-
906 \u00a0
-
906 \u00a0
Issued bonds, including non-preferred senior \u00a0
-
5,556 \u00a0
-5,556 \u00a0
21,649 \u00a0
16,093 \u00a0
Subordinated debt \u00a0
-
1,342 \u00a0
-1,342 \u00a0
1,871 \u00a0
529 \u00a0
Other financial instruments \u00a0
8
-1,511 \u00a0
1,519 \u00a0
-
1,519 \u00a0
Total \u00a0
29,945 \u00a0
11,408 \u00a0
18,537 \u00a0
21,270 \u00a0
39,807 \u00a0
Financial portfolios at fair value through OCI \u00a0
Bonds held to collect and sell (investment\u00a0securities) \u00a0
901 \u00a0
-
901 \u00a0
-24 \u00a0
877 \u00a0
Total \u00a0
901 \u00a0
-
901 \u00a0
-24 \u00a0
877 \u00a0
Financial portfolios at fair value through profit or loss \u00a0
Due from/to credit institutions\u00a0and central banks \u00a0
-570 \u00a0
-592 \u00a0
23 \u00a0
-
23 \u00a0
Loans and deposits \u00a0
15,113 \u00a0
285 \u00a0
14,828 \u00a0
-
14,828 \u00a0
Trading portfolio assets and liabilities \u00a0
1,343 \u00a0
-
1,343 \u00a0
-10,488 \u00a0
-9,145 \u00a0
Bonds (investment securities) \u00a0
-672 \u00a0
-
-672 \u00a0
-9,279 \u00a0
-9,951 \u00a0
Issued bonds \u00a0
-
9,607 \u00a0
-9,607 \u00a0
-
-9,607 \u00a0
Assets and deposits under pooled schemes \u00a0
-
-
-
102 \u00a0
102 \u00a0
Total \u00a0
15,214 \u00a0
9,299 \u00a0
5,914 \u00a0
-19,665 \u00a0
-13,750 \u00a0
Total net\u00a0interest and net trading income \u00a0
46,059 \u00a0
20,708 \u00a0
25,351 \u00a0
1,581 \u00a0
26,933 \u00a0
Negative interest income \u00a0
1,171 \u00a0
1,171 \u00a0
-
-
-
Negative interest expense \u00a0
2,755 \u00a0
2,755 \u00a0
-
-
-
Income statement\u00a0- Danske Bank Group \u00a0
49,985 \u00a0
24,634 \u00a0
25,351 \u00a0
1,581 \u00a0
26,933 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
G5. Net interest and net trading income or loss continued \u00a0
Negative interest income relates primarily to repo transactions, while negative interest expenses relate primarily to deposits and repo transactions. In \u00a0
the table above showing interest income and expenses by portfolios, these amounts are offset\u00a0against interest income and inte\u00a0rest expenses, \u00a0
respectively. In\u00a0the income statement, negative interest income is\u00a0recognised as interest expenses and negative interest expenses as interest income as \u00a0
shown in the line items \u2018Negative interest income\u2019 and \u2018Negative interest expense\u2019 in the table above. \u00a0
Changes to\u00a0the fair value of the hedged interest rate risk are recognised under net trading income or loss and shown under the hedged balance sheet \u00a0
items in the table above, whereas value adjustments\u00a0of hedging\u00a0derivatives are\u00a0recognised under net trading income or loss under the trading portfolio. \u00a0
Net trading\u00a0income or loss includes\u00a0dividends from\u00a0shares of DKK 425 million (2022: DKK 435 million) and foreign exchange adjustments\u00a0of DKK 545 \u00a0
million (2022: DKK 2,202 million). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4214": {
"value": "Accounting policy \u00a0
Interest income and expenses \u00a0
Interest income and expenses arising from interest-bearing\u00a0financial instruments\u00a0measured at\u00a0amortised cost\u00a0or at fair value through Other \u00a0
comprehensive income are\u00a0recognised according to the effective interest method on\u00a0the basis of the cost of the individual\u00a0financial instrument.\u00a0Interes t \u00a0
includes amortised amounts of\u00a0fees that are an integral part of the effective yield on a financial\u00a0instrument, such\u00a0as origination\u00a0fees, and amortise\u00a0d \u00a0
differences between the cost and the redemption\u00a0price, if any. Interest\u00a0on financial instruments\u00a0included in\u00a0stage 3 (for the calculation\u00a0of expected credit \u00a0
losses) is recognised on the basis of the carrying amount (i.e. net of impairment charges). The interest rate risk on some financial portfolios\u00a0recognised \u00a0
at amortised\u00a0cost is hedged by derivatives\u00a0using fair value hedge accounting. Note G12 provides\u00a0more information\u00a0on hedge accounting.\u00a0Interest income \u00a0
calculated using\u00a0the effective interest method and\u00a0presented as\u00a0a separate line item in the income statement excludes the impact from hedge \u00a0
accounting. \u00a0
Further, interest income and expenses includes interest on financial instruments\u00a0measured at\u00a0fair value through profit or loss. Among others, this \u00a0
includes interest income on loans measured at fair value\u00a0for which interest on loans included in stage 3 is recognised on the basis of the gross carrying \u00a0
amount. However, interest on\u00a0assets and\u00a0deposits under pooled schemes is recognised under Net trading income or loss. In the income statement, \u00a0
interest income on financial assets measured at fair\u00a0value through profit\u00a0or loss is presented\u00a0under the line item Other interest income, while the line \u00a0
item Interest expenses includes all interest expenses. \u00a0
Net trading\u00a0income or loss \u00a0
Net trading income or\u00a0loss includes realised and\u00a0unrealised capital gains and losses\u00a0on financial assets and financial liabilities\u00a0recognised at fair value \u00a0
through profit or\u00a0loss as well as exchange\u00a0rate adjustments\u00a0and dividends.\u00a0However, the fair value adjustments\u00a0of the credit risk on loans granted by \u00a0
Realkredit Danmark are\u00a0presented under Loan impairment charges. Further, the fair value adjustment\u00a0of own credit risk on financial liabilities\u00a0in the \u00a0
Group\u2019s trading units Markets and Investment Banking & Securities part of\u00a0LC&I designated at fair value through profit or\u00a0loss is presented in Other \u00a0
comprehensive income. Net trading income or\u00a0loss includes the fair value adjustments of own credit risk on bonds issued by Realkredit Danmark,\u00a0as an \u00a0
accounting mismatch between the fair\u00a0value adjustment of the loans and\u00a0the bonds in Realkredit\u00a0Danmark would otherwise exist (see\u00a0further \u00a0
information in note G16). \u00a0
Realised gains and losses on financial assets at amortised cost,\u00a0e.g. loans, are recognised under Net trading income or loss when the financial asset is \u00a0
derecognised, unless the derecognition relates to a\u00a0credit risk event/forbearance\u00a0measure, in which case the gain or loss is presented under Loan \u00a0
impairment charges\u00a0(see note G15). Otherwise, the derecognition gain or loss on the financial asset is calculated\u00a0as the difference between the carrying \u00a0
amount (gross of expected credit losses) and the repayment\u00a0amount. For financial assets (bonds) at fair value through other comprehensive\u00a0income, \u00a0
gains or losses further include\u00a0amounts previously recognised in\u00a0other comprehensive income. For\u00a0financial liabilities\u00a0at amortised\u00a0cost, the gain or \u00a0
loss is the difference between the carrying\u00a0amount and the redemption price including cost related to\u00a0the redemption, if any. \u00a0
For financial\u00a0assets and liabilities\u00a0subject to fair value hedge accounting, the fair value adjustments\u00a0of the hedged financial instrument and the hedging \u00a0
instruments are\u00a0recognised in Net trading income or loss. Therefore, any hedge ineffectiveness\u00a0is presented\u00a0in Net trading income or loss. \u00a0
Returns (interest income and fair value changes) on assets under pooled schemes and the crediting of these returns to customer accounts are \u00a0
recognised under Net trading\u00a0income or loss. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4215": {
"value": "Accounting policy \u00a0
Interest income and expenses \u00a0
Interest income and expenses arising from interest-bearing\u00a0financial instruments\u00a0measured at\u00a0amortised cost\u00a0or at fair value through Other \u00a0
comprehensive income are\u00a0recognised according to the effective interest method on\u00a0the basis of the cost of the individual\u00a0financial instrument.\u00a0Interes t \u00a0
includes amortised amounts of\u00a0fees that are an integral part of the effective yield on a financial\u00a0instrument, such\u00a0as origination\u00a0fees, and amortise\u00a0d \u00a0
differences between the cost and the redemption\u00a0price, if any. Interest\u00a0on financial instruments\u00a0included in\u00a0stage 3 (for the calculation\u00a0of expected credit \u00a0
losses) is recognised on the basis of the carrying amount (i.e. net of impairment charges). The interest rate risk on some financial portfolios\u00a0recognised \u00a0
at amortised\u00a0cost is hedged by derivatives\u00a0using fair value hedge accounting. Note G12 provides\u00a0more information\u00a0on hedge accounting.\u00a0Interest income \u00a0
calculated using\u00a0the effective interest method and\u00a0presented as\u00a0a separate line item in the income statement excludes the impact from hedge \u00a0
accounting. \u00a0
Further, interest income and expenses includes interest on financial instruments\u00a0measured at\u00a0fair value through profit or loss. Among others, this \u00a0
includes interest income on loans measured at fair value\u00a0for which interest on loans included in stage 3 is recognised on the basis of the gross carrying \u00a0
amount. However, interest on\u00a0assets and\u00a0deposits under pooled schemes is recognised under Net trading income or loss. In the income statement, \u00a0
interest income on financial assets measured at fair\u00a0value through profit\u00a0or loss is presented\u00a0under the line item Other interest income, while the line \u00a0
item Interest expenses includes all interest expenses. \u00a0
Net trading\u00a0income or loss \u00a0
Net trading income or\u00a0loss includes realised and\u00a0unrealised capital gains and losses\u00a0on financial assets and financial liabilities\u00a0recognised at fair value \u00a0
through profit or\u00a0loss as well as exchange\u00a0rate adjustments\u00a0and dividends.\u00a0However, the fair value adjustments\u00a0of the credit risk on loans granted by \u00a0
Realkredit Danmark are\u00a0presented under Loan impairment charges. Further, the fair value adjustment\u00a0of own credit risk on financial liabilities\u00a0in the \u00a0
Group\u2019s trading units Markets and Investment Banking & Securities part of\u00a0LC&I designated at fair value through profit or\u00a0loss is presented in Other \u00a0
comprehensive income. Net trading income or\u00a0loss includes the fair value adjustments of own credit risk on bonds issued by Realkredit Danmark,\u00a0as an \u00a0
accounting mismatch between the fair\u00a0value adjustment of the loans and\u00a0the bonds in Realkredit\u00a0Danmark would otherwise exist (see\u00a0further \u00a0
information in note G16). \u00a0
Realised gains and losses on financial assets at amortised cost,\u00a0e.g. loans, are recognised under Net trading income or loss when the financial asset is \u00a0
derecognised, unless the derecognition relates to a\u00a0credit risk event/forbearance\u00a0measure, in which case the gain or loss is presented under Loan \u00a0
impairment charges\u00a0(see note G15). Otherwise, the derecognition gain or loss on the financial asset is calculated\u00a0as the difference between the carrying \u00a0
amount (gross of expected credit losses) and the repayment\u00a0amount. For financial assets (bonds) at fair value through other comprehensive\u00a0income, \u00a0
gains or losses further include\u00a0amounts previously recognised in\u00a0other comprehensive income. For\u00a0financial liabilities\u00a0at amortised\u00a0cost, the gain or \u00a0
loss is the difference between the carrying\u00a0amount and the redemption price including cost related to\u00a0the redemption, if any. \u00a0
For financial\u00a0assets and liabilities\u00a0subject to fair value hedge accounting, the fair value adjustments\u00a0of the hedged financial instrument and the hedging \u00a0
instruments are\u00a0recognised in Net trading income or loss. Therefore, any hedge ineffectiveness\u00a0is presented\u00a0in Net trading income or loss. \u00a0
Returns (interest income and fair value changes) on assets under pooled schemes and the crediting of these returns to customer accounts are \u00a0
recognised under Net trading\u00a0income or loss. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4233": {
"value": "G6. Fee income and expenses \u00a0
Fee income\u00a0and expenses are presented\u00a0on a net fee income basis as presented in the Management\u2019s report, representing the presentation provided to \u00a0
key management for decision making purposes. Net fee income is broken down by fee type on the basis of the underlying\u00a0activity, and\u00a0by business\u00a0segment. \u00a0
Accounting policy \u00a0
Fee income \u00a0
Fee income is recognised to reflect the transfer of services to customers at an\u00a0amount that reflects the consideration\u00a0that is\u00a0expected to be received \u00a0
in exchange\u00a0for such services. The\u00a0Group identifies\u00a0the performance obligation,\u00a0i.e. the services agreed with the customer, and the consideration, and \u00a0
recognises income in line with the transfer of services, the performance obligation, agreed with the customer. \u00a0
For each performance obligation\u00a0identified, the Group determines at contract inception\u00a0whether it satisfies\u00a0the performance obligation over time or\u00a0at \u00a0
a point\u00a0in time, and whether\u00a0the consideration is fixed or\u00a0variable, including whether consideration is\u00a0constrained by, for\u00a0instance, external\u00a0factors \u00a0
outside the Group\u2019s influence. The consideration is subsequently allocated to the identified performance obligation. \u00a0
When income\u00a0is highly\u00a0susceptible to\u00a0external factors, such as the development\u00a0in the financial markets, the income is recognised once the \u00a0
consideration to\u00a0be received is known and it is probable that a significant reversal of the consideration will not occur. \u00a0
For income\u00a0derived from the provision of agency services the consideration\u00a0is presented\u00a0on a net basis. \u00a0
Fee expense \u00a0
Fee expense for services provided\u00a0over a period of time, such as guarantee commissions\u00a0and investment\u00a0management fees, are accrued over the period. \u00a0
Transaction fees,\u00a0such as brokerage and custody fees, are recognised on settlement of the individual\u00a0transaction. Fees\u00a0that form\u00a0an integral part of the \u00a0
effective rates of interest on\u00a0financial liabilities\u00a0measured at\u00a0amortised cost, such as origination\u00a0fees, are carried under interest expense. Similar fees \u00a0
related to\u00a0financial liabilities\u00a0at fair value\u00a0through profit\u00a0or loss are recognised when the financial liability\u00a0is established\u00a0and are carried under fee \u00a0
expense. \u00a0
(a) Presentation by activity \u00a0
Fee income\u00a0is managed internally\u00a0net of fee expenses, and on the basis of the underlying\u00a0activity, i.e. \u00a0
\u2022
Investment \u00a0
\u2022
Money transfers, account fees, cash management and other fees \u00a0
\u2022
Lending and guarantees \u00a0
\u2022
Capital markets \u00a0
See note G3\u00a0for net fee income per business segment. A description\u00a0of each activity\u00a0by business segment is provided below: \u00a0
Banking units \u00a0
Fee income in the banking\u00a0units relates to Personal Customers and Business Customers, General Banking in LC&I, and\u00a0Northern Ireland, and it primarily \u00a0
relates to the provision of general banking\u00a0services to\u00a0customers, i.e.: \u00a0
Fee income from investment activities, for\u00a0example for\u00a0executing customer security purchase orders,\u00a0is recognised at the time of the transaction.\u00a0When \u00a0
the service is provided over time, for example fee income for managed accounts,\u00a0fee income is recognised over time. \u00a0
Fee income from money transfers, account fees, cash management\u00a0and other\u00a0activities, is\u00a0generally recognised when the service is provided.\u00a0For \u00a0
transactions such\u00a0as money\u00a0transfers and card transactions,\u00a0fee income\u00a0is recognised at the time of the transaction. Fee income charged for services \u00a0
provided over time, for\u00a0example subscription fees,\u00a0account packages\u00a0and cash deposit\u00a0services, is recognised over time\u00a0as the service is provided to the \u00a0
customer. \u00a0
Fee income from lending and guarantee activities, such\u00a0as services provided in relation\u00a0to mortgage loans recognised at fair value, and the provision of \u00a0
trade finance guarantees, is recognised when the service has been provided\u00a0to the customer at a point\u00a0in time.\u00a0For fee income for establishing\u00a0loans \u00a0
recognised at amortised cost, although the performance obligation\u00a0is satisfied when the loan is granted, the fee income is recognised over time (the \u00a0
expected maturity of the loan), in accordance with IFRS 9 and classified as interest income. The same applies to the Group\u2019s participation in\u00a0syndicate d \u00a0
loan transactions. \u00a0
LC&I \u00a0
Net fee income in LC&I relates to income derived from General Banking\u00a0(see above description\u00a0of Banking units) and from\u00a0Markets and\u00a0Investme n t \u00a0
Banking &\u00a0Securities. \u00a0
Fee income derived\u00a0from Markets\u00a0is reclassified\u00a0to net trading income or loss in the segment reporting, however, Markets\u00a0share of margins on customer \u00a0
derivatives is\u00a0presented as part of fee income (note G3 provides further information).\u00a0Except for margins on customer derivatives,\u00a0fee income\u00a0consists \u00a0
mainly of\u00a0fees received\u00a0for services provided\u00a0at a point\u00a0in time. \u00a0
G6. Fee income and expenses\u00a0continued \u00a0
Fee income\u00a0in Investment\u00a0Banking & Securities primarily\u00a0consists of: \u00a0
Fee income from investment\u00a0activities, for\u00a0example executing share trades on\u00a0behalf of customers and securities\u00a0lending, is recognised when the service \u00a0
is provided at\u00a0a point in time. \u00a0
Fee income from lending and guarantee\u00a0activities is primarily derived from coordinating\u00a0and arranging\u00a0syndicated loan transactions, as well as issuing \u00a0
bonds on behalf of customers. Such income is recognised at a point in time,\u00a0once the agreed performance obligation has been fulfilled. \u00a0
Fee income from capital\u00a0markets activities is primarily derived from arranging transactions on\u00a0behalf of customers. Such income is recognised\u00a0when the \u00a0
individual performance\u00a0obligation has\u00a0been fulfilled. \u00a0
Asset Management\u00a0(part of LC&I) \u00a0
Fee income for asset management\u00a0services is recognised over time when the service is provided to the customer provided that it is probable\u00a0that a \u00a0
significant reversal of the consideration will not occur. Such income relates to investment,\u00a0pension and insurance\u00a0activities. \u00a0
Performance fee\u00a0income is variable,\u00a0and the consideration\u00a0is based on the accumulated return on the underlying\u00a0asset, determined\u00a0at a specific date, \u00a0
such as the end of the year. The accumulated\u00a0return is highly susceptible\u00a0to external\u00a0factors, such as the development\u00a0in the financial markets. Fee income \u00a0
is recognised once the fee to be received is known. The fee income relates to investment\u00a0activities. \u00a0
Fee income\u00a02023 \u00a0
Financial \u00a0
highlights - net \u00a0
IFRS - net fee \u00a0
IFRS - gross fee \u00a0
(DKK millions) \u00a0
fee income \u00a0
Reclassifications \u00a0
income \u00a0
Fee expense \u00a0
income \u00a0
Investment \u00a0
4,450 \u00a0
629 \u00a0
5,079 \u00a0
3,285 \u00a0
8,364 \u00a0
Money transfers, account fee, cash management and other fees \u00a0
3,833 \u00a0
-189 \u00a0
3,644 \u00a0
1,061 \u00a0
4,705 \u00a0
Lending and Guarantees \u00a0
2,159 \u00a0
510 \u00a0
2,669 \u00a0
135 \u00a0
2,804 \u00a0
Capital markets \u00a0
1,265 \u00a0
-1,027 \u00a0
237 \u00a0
-
237 \u00a0
Total \u00a0
11,707 \u00a0
-77 \u00a0
11,630 \u00a0
4,481 \u00a0
16,111 \u00a0
Fee income\u00a02022 \u00a0
Financial \u00a0
highlights - net \u00a0
IFRS - net fee \u00a0
IFRS - gross fee \u00a0
(DKK millions) \u00a0
fee income \u00a0
income \u00a0
Fee expense \u00a0
income \u00a0
Reclassifications \u00a0
Investment* \u00a0
4,807 \u00a0
550 \u00a0
5,357 \u00a0
3,393 \u00a0
8,749 \u00a0
Money transfers, account fee, cash management and other fees \u00a0
3,813 \u00a0
-235 \u00a0
3,578 \u00a0
1,299 \u00a0
4,877 \u00a0
Lending and Guarantees \u00a0
2,741 \u00a0
484 \u00a0
3,225 \u00a0
132 \u00a0
3,357 \u00a0
Capital markets \u00a0
1,229 \u00a0
-908 \u00a0
321 \u00a0
-
321 \u00a0
Total \u00a0
12,590 \u00a0
-109 \u00a0
12,481 \u00a0
4,824 \u00a0
17,305 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
The reclassifications between Financial highlights and IFRS are explained in notes G1(d) and G3(b). \u00a0
Fees for financial instruments\u00a0not recognised at fair value relates primarily to fees on loans, guarantees and issued bonds. In the table above, such fees \u00a0
are included\u00a0as fee income or expense from lending\u00a0and guarantee\u00a0activities. Fee\u00a0income on\u00a0loans and guarantees amounted to DKK 1,767 million (2022: \u00a0
DKK 1,891 million)\u00a0of which DKK\u00a0885 million relates to financial instruments\u00a0not recognised\u00a0at fair value\u00a0(2022: 616 million), whereas expenses \u00a0
amounted to DKK 97 million (2022: DKK 90\u00a0million). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFeeAndCommissionIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4234": {
"value": "G6. Fee income and expenses \u00a0
Fee income\u00a0and expenses are presented\u00a0on a net fee income basis as presented in the Management\u2019s report, representing the presentation provided to \u00a0
key management for decision making purposes. Net fee income is broken down by fee type on the basis of the underlying\u00a0activity, and\u00a0by business\u00a0segment. \u00a0
Accounting policy \u00a0
Fee income \u00a0
Fee income is recognised to reflect the transfer of services to customers at an\u00a0amount that reflects the consideration\u00a0that is\u00a0expected to be received \u00a0
in exchange\u00a0for such services. The\u00a0Group identifies\u00a0the performance obligation,\u00a0i.e. the services agreed with the customer, and the consideration, and \u00a0
recognises income in line with the transfer of services, the performance obligation, agreed with the customer. \u00a0
For each performance obligation\u00a0identified, the Group determines at contract inception\u00a0whether it satisfies\u00a0the performance obligation over time or\u00a0at \u00a0
a point\u00a0in time, and whether\u00a0the consideration is fixed or\u00a0variable, including whether consideration is\u00a0constrained by, for\u00a0instance, external\u00a0factors \u00a0
outside the Group\u2019s influence. The consideration is subsequently allocated to the identified performance obligation. \u00a0
When income\u00a0is highly\u00a0susceptible to\u00a0external factors, such as the development\u00a0in the financial markets, the income is recognised once the \u00a0
consideration to\u00a0be received is known and it is probable that a significant reversal of the consideration will not occur. \u00a0
For income\u00a0derived from the provision of agency services the consideration\u00a0is presented\u00a0on a net basis. \u00a0
Fee expense \u00a0
Fee expense for services provided\u00a0over a period of time, such as guarantee commissions\u00a0and investment\u00a0management fees, are accrued over the period. \u00a0
Transaction fees,\u00a0such as brokerage and custody fees, are recognised on settlement of the individual\u00a0transaction. Fees\u00a0that form\u00a0an integral part of the \u00a0
effective rates of interest on\u00a0financial liabilities\u00a0measured at\u00a0amortised cost, such as origination\u00a0fees, are carried under interest expense. Similar fees \u00a0
related to\u00a0financial liabilities\u00a0at fair value\u00a0through profit\u00a0or loss are recognised when the financial liability\u00a0is established\u00a0and are carried under fee \u00a0
expense. \u00a0
(a) Presentation by activity \u00a0
Fee income\u00a0is managed internally\u00a0net of fee expenses, and on the basis of the underlying\u00a0activity, i.e. \u00a0
\u2022
Investment \u00a0
\u2022
Money transfers, account fees, cash management and other fees \u00a0
\u2022
Lending and guarantees \u00a0
\u2022
Capital markets \u00a0
See note G3\u00a0for net fee income per business segment. A description\u00a0of each activity\u00a0by business segment is provided below: \u00a0
Banking units \u00a0
Fee income in the banking\u00a0units relates to Personal Customers and Business Customers, General Banking in LC&I, and\u00a0Northern Ireland, and it primarily \u00a0
relates to the provision of general banking\u00a0services to\u00a0customers, i.e.: \u00a0
Fee income from investment activities, for\u00a0example for\u00a0executing customer security purchase orders,\u00a0is recognised at the time of the transaction.\u00a0When \u00a0
the service is provided over time, for example fee income for managed accounts,\u00a0fee income is recognised over time. \u00a0
Fee income from money transfers, account fees, cash management\u00a0and other\u00a0activities, is\u00a0generally recognised when the service is provided.\u00a0For \u00a0
transactions such\u00a0as money\u00a0transfers and card transactions,\u00a0fee income\u00a0is recognised at the time of the transaction. Fee income charged for services \u00a0
provided over time, for\u00a0example subscription fees,\u00a0account packages\u00a0and cash deposit\u00a0services, is recognised over time\u00a0as the service is provided to the \u00a0
customer. \u00a0
Fee income from lending and guarantee activities, such\u00a0as services provided in relation\u00a0to mortgage loans recognised at fair value, and the provision of \u00a0
trade finance guarantees, is recognised when the service has been provided\u00a0to the customer at a point\u00a0in time.\u00a0For fee income for establishing\u00a0loans \u00a0
recognised at amortised cost, although the performance obligation\u00a0is satisfied when the loan is granted, the fee income is recognised over time (the \u00a0
expected maturity of the loan), in accordance with IFRS 9 and classified as interest income. The same applies to the Group\u2019s participation in\u00a0syndicate d \u00a0
loan transactions. \u00a0
LC&I \u00a0
Net fee income in LC&I relates to income derived from General Banking\u00a0(see above description\u00a0of Banking units) and from\u00a0Markets and\u00a0Investme n t \u00a0
Banking &\u00a0Securities. \u00a0
Fee income derived\u00a0from Markets\u00a0is reclassified\u00a0to net trading income or loss in the segment reporting, however, Markets\u00a0share of margins on customer \u00a0
derivatives is\u00a0presented as part of fee income (note G3 provides further information).\u00a0Except for margins on customer derivatives,\u00a0fee income\u00a0consists \u00a0
mainly of\u00a0fees received\u00a0for services provided\u00a0at a point\u00a0in time. \u00a0
G6. Fee income and expenses\u00a0continued \u00a0
Fee income\u00a0in Investment\u00a0Banking & Securities primarily\u00a0consists of: \u00a0
Fee income from investment\u00a0activities, for\u00a0example executing share trades on\u00a0behalf of customers and securities\u00a0lending, is recognised when the service \u00a0
is provided at\u00a0a point in time. \u00a0
Fee income from lending and guarantee\u00a0activities is primarily derived from coordinating\u00a0and arranging\u00a0syndicated loan transactions, as well as issuing \u00a0
bonds on behalf of customers. Such income is recognised at a point in time,\u00a0once the agreed performance obligation has been fulfilled. \u00a0
Fee income from capital\u00a0markets activities is primarily derived from arranging transactions on\u00a0behalf of customers. Such income is recognised\u00a0when the \u00a0
individual performance\u00a0obligation has\u00a0been fulfilled. \u00a0
Asset Management\u00a0(part of LC&I) \u00a0
Fee income for asset management\u00a0services is recognised over time when the service is provided to the customer provided that it is probable\u00a0that a \u00a0
significant reversal of the consideration will not occur. Such income relates to investment,\u00a0pension and insurance\u00a0activities. \u00a0
Performance fee\u00a0income is variable,\u00a0and the consideration\u00a0is based on the accumulated return on the underlying\u00a0asset, determined\u00a0at a specific date, \u00a0
such as the end of the year. The accumulated\u00a0return is highly susceptible\u00a0to external\u00a0factors, such as the development\u00a0in the financial markets. Fee income \u00a0
is recognised once the fee to be received is known. The fee income relates to investment\u00a0activities. \u00a0
Fee income\u00a02023 \u00a0
Financial \u00a0
highlights - net \u00a0
IFRS - net fee \u00a0
IFRS - gross fee \u00a0
(DKK millions) \u00a0
fee income \u00a0
Reclassifications \u00a0
income \u00a0
Fee expense \u00a0
income \u00a0
Investment \u00a0
4,450 \u00a0
629 \u00a0
5,079 \u00a0
3,285 \u00a0
8,364 \u00a0
Money transfers, account fee, cash management and other fees \u00a0
3,833 \u00a0
-189 \u00a0
3,644 \u00a0
1,061 \u00a0
4,705 \u00a0
Lending and Guarantees \u00a0
2,159 \u00a0
510 \u00a0
2,669 \u00a0
135 \u00a0
2,804 \u00a0
Capital markets \u00a0
1,265 \u00a0
-1,027 \u00a0
237 \u00a0
-
237 \u00a0
Total \u00a0
11,707 \u00a0
-77 \u00a0
11,630 \u00a0
4,481 \u00a0
16,111 \u00a0
Fee income\u00a02022 \u00a0
Financial \u00a0
highlights - net \u00a0
IFRS - net fee \u00a0
IFRS - gross fee \u00a0
(DKK millions) \u00a0
fee income \u00a0
income \u00a0
Fee expense \u00a0
income \u00a0
Reclassifications \u00a0
Investment* \u00a0
4,807 \u00a0
550 \u00a0
5,357 \u00a0
3,393 \u00a0
8,749 \u00a0
Money transfers, account fee, cash management and other fees \u00a0
3,813 \u00a0
-235 \u00a0
3,578 \u00a0
1,299 \u00a0
4,877 \u00a0
Lending and Guarantees \u00a0
2,741 \u00a0
484 \u00a0
3,225 \u00a0
132 \u00a0
3,357 \u00a0
Capital markets \u00a0
1,229 \u00a0
-908 \u00a0
321 \u00a0
-
321 \u00a0
Total \u00a0
12,590 \u00a0
-109 \u00a0
12,481 \u00a0
4,824 \u00a0
17,305 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
The reclassifications between Financial highlights and IFRS are explained in notes G1(d) and G3(b). \u00a0
Fees for financial instruments\u00a0not recognised at fair value relates primarily to fees on loans, guarantees and issued bonds. In the table above, such fees \u00a0
are included\u00a0as fee income or expense from lending\u00a0and guarantee\u00a0activities. Fee\u00a0income on\u00a0loans and guarantees amounted to DKK 1,767 million (2022: \u00a0
DKK 1,891 million)\u00a0of which DKK\u00a0885 million relates to financial instruments\u00a0not recognised\u00a0at fair value\u00a0(2022: 616 million), whereas expenses \u00a0
amounted to DKK 97 million (2022: DKK 90\u00a0million). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4235": {
"value": "Accounting policy \u00a0
Fee income \u00a0
Fee income is recognised to reflect the transfer of services to customers at an\u00a0amount that reflects the consideration\u00a0that is\u00a0expected to be received \u00a0
in exchange\u00a0for such services. The\u00a0Group identifies\u00a0the performance obligation,\u00a0i.e. the services agreed with the customer, and the consideration, and \u00a0
recognises income in line with the transfer of services, the performance obligation, agreed with the customer. \u00a0
For each performance obligation\u00a0identified, the Group determines at contract inception\u00a0whether it satisfies\u00a0the performance obligation over time or\u00a0at \u00a0
a point\u00a0in time, and whether\u00a0the consideration is fixed or\u00a0variable, including whether consideration is\u00a0constrained by, for\u00a0instance, external\u00a0factors \u00a0
outside the Group\u2019s influence. The consideration is subsequently allocated to the identified performance obligation. \u00a0
When income\u00a0is highly\u00a0susceptible to\u00a0external factors, such as the development\u00a0in the financial markets, the income is recognised once the \u00a0
consideration to\u00a0be received is known and it is probable that a significant reversal of the consideration will not occur. \u00a0
For income\u00a0derived from the provision of agency services the consideration\u00a0is presented\u00a0on a net basis. \u00a0
Fee expense \u00a0
Fee expense for services provided\u00a0over a period of time, such as guarantee commissions\u00a0and investment\u00a0management fees, are accrued over the period. \u00a0
Transaction fees,\u00a0such as brokerage and custody fees, are recognised on settlement of the individual\u00a0transaction. Fees\u00a0that form\u00a0an integral part of the \u00a0
effective rates of interest on\u00a0financial liabilities\u00a0measured at\u00a0amortised cost, such as origination\u00a0fees, are carried under interest expense. Similar fees \u00a0
related to\u00a0financial liabilities\u00a0at fair value\u00a0through profit\u00a0or loss are recognised when the financial liability\u00a0is established\u00a0and are carried under fee \u00a0
expense. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFeeAndCommissionIncomeAndExpenseExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4236": {
"value": "Accounting policy \u00a0
Fee income \u00a0
Fee income is recognised to reflect the transfer of services to customers at an\u00a0amount that reflects the consideration\u00a0that is\u00a0expected to be received \u00a0
in exchange\u00a0for such services. The\u00a0Group identifies\u00a0the performance obligation,\u00a0i.e. the services agreed with the customer, and the consideration, and \u00a0
recognises income in line with the transfer of services, the performance obligation, agreed with the customer. \u00a0
For each performance obligation\u00a0identified, the Group determines at contract inception\u00a0whether it satisfies\u00a0the performance obligation over time or\u00a0at \u00a0
a point\u00a0in time, and whether\u00a0the consideration is fixed or\u00a0variable, including whether consideration is\u00a0constrained by, for\u00a0instance, external\u00a0factors \u00a0
outside the Group\u2019s influence. The consideration is subsequently allocated to the identified performance obligation. \u00a0
When income\u00a0is highly\u00a0susceptible to\u00a0external factors, such as the development\u00a0in the financial markets, the income is recognised once the \u00a0
consideration to\u00a0be received is known and it is probable that a significant reversal of the consideration will not occur. \u00a0
For income\u00a0derived from the provision of agency services the consideration\u00a0is presented\u00a0on a net basis. \u00a0
Fee expense \u00a0
Fee expense for services provided\u00a0over a period of time, such as guarantee commissions\u00a0and investment\u00a0management fees, are accrued over the period. \u00a0
Transaction fees,\u00a0such as brokerage and custody fees, are recognised on settlement of the individual\u00a0transaction. Fees\u00a0that form\u00a0an integral part of the \u00a0
effective rates of interest on\u00a0financial liabilities\u00a0measured at\u00a0amortised cost, such as origination\u00a0fees, are carried under interest expense. Similar fees \u00a0
related to\u00a0financial liabilities\u00a0at fair value\u00a0through profit\u00a0or loss are recognised when the financial liability\u00a0is established\u00a0and are carried under fee \u00a0
expense. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4241": {
"value": "G7. Net insurance result \u00a0
Insurance contracts are contracts entered into by Danica Pension that entail significant insurance risks or entitle policyholders to a\u00a0bonus (discretionary \u00a0
participation feature). \u00a0
Contracts that do not entail significant insurance risk are recognised as investment\u00a0contracts with premiums recognised directly in the balance sheet. Note \u00a0
G17 provides more information on the accounting for investment contracts. \u00a0
Accounting policy \u00a0
Insurance revenue \u00a0
The Group recognises insurance\u00a0revenue as it provides\u00a0insurance services. Insurance revenue reflects the amount of consideration\u00a0the Group expects \u00a0
to be entitled\u00a0to in exchange for those services provided.\u00a0For insurance contracts\u00a0under the Premium Allocation\u00a0Approach (PAA), insurance revenue\u00a0is \u00a0
based on the expected\u00a0premium for the period. \u00a0
The contractual service margin (CSM) is\u00a0recognised in insurance revenue as insurance contracts services are\u00a0provided. \u00a0
Insurance service expenses \u00a0
Insurance service expenses comprise incurred claims and other incurred insurance expenses. \u00a0
Net finance income or expense from insurance contracts \u00a0
Net investment\u00a0return for insurance comprises the return on assets backing insurance activities,\u00a0and Net finance income or expense from insurance, \u00a0
which comprises the change in carrying amount of groups of insurance contracts arising from the effect of time value of money\u00a0and the effect of financial \u00a0
risk of groups of insurance\u00a0contracts. \u00a0
(a) Insurance revenue (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Insurance revenue from contracts not under PAA \u00a0
Contractual service margin recognised for the services provided \u00a0
1,591 \u00a0
1,686 \u00a0
Change in risk adjustment\u00a0for non-financial risk for the\u00a0risk expired \u00a0
28 \u00a0
-1 \u00a0
Expected incurred claims and directly attributable expenses \u00a0
2,366 \u00a0
1,798 \u00a0
Insurance revenue\u00a0from contracts\u00a0not under\u00a0PAA \u00a0
3,985 \u00a0
3,483 \u00a0
Insurance revenue\u00a0from contracts\u00a0under PAA \u00a0
1,750 \u00a0
1,643 \u00a0
Total insurance revenue \u00a0
5,735 \u00a0
5,126 \u00a0
The Group implemented IFRS 17 on 1 January 2023, as described in note G2. \u00a0
(b) Insurance service expenses\u00a0(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Incurred claims and other incurred insurance service expenses \u00a0
2,319 \u00a0
1,924 \u00a0
Insurance service\u00a0expenses from\u00a0contracts not\u00a0under PAA \u00a0
2,319 \u00a0
1,924 \u00a0
Insurance service\u00a0expenses from\u00a0contracts under\u00a0PAA \u00a0
2,775 \u00a0
1,680 \u00a0
Total insurance service expenses \u00a0
5,094 \u00a0
3,604 \u00a0
The Group implemented IFRS 17 on 1 January 2023, as described in note G2. \u00a0
2023 \u00a0
2022 \u00a0
(c) Net investment return for insurance\u00a0(DKK millions) \u00a0
Net return on investments backing insurance liabilities \u00a0
Income from investment\u00a0property \u00a0
766 \u00a0
737 \u00a0
Interest income and dividends \u00a0
83,066 \u00a0
33,520 \u00a0
Value adjustments \u00a0
27,606 \u00a0
-77,469 \u00a0
Income from holdings in associates and joint\u00a0ventures \u00a0
-609 \u00a0
928 \u00a0
Interest expenses \u00a0
-74,171 \u00a0
-27,281 \u00a0
Tax on pension returns \u00a0
-729 \u00a0
9,951 \u00a0
Other \u00a0
-701 \u00a0
-688 \u00a0
Net return\u00a0on investments\u00a0backing insurance liabilities \u00a0
35,228 \u00a0
-60,302 \u00a0
Net finance income or expense from insurance contracts \u00a0
Finance income or expense from insurance contracts \u00a0
-32,444 \u00a0
57,856 \u00a0
Movement in\u00a0investment contracts liabilities \u00a0
-2,169 \u00a0
768 \u00a0
Net finance\u00a0income or\u00a0expense from\u00a0insurance contracts \u00a0
-34,613 \u00a0
58,624 \u00a0
Net investment\u00a0return for insurance \u00a0
615 \u00a0
-1,678 \u00a0
The Group implemented IFRS 17 on 1 January 2023, as described in note G2. \u00a0
G18. Assets and liabilities under insurance contracts \u00a0
Insurance contracts are\u00a0contracts under which the Group accepts significant insurance risk\u00a0from a policyholder,\u00a0by agreeing to\u00a0compensate the \u00a0
policyholder if a\u00a0specified uncertain future event adversely affects the policyholder.\u00a0The Group issues contracts for life insurance and health and accident \u00a0
insurance. \u00a0
Assets under insurance contracts comprise assets earmarked for\u00a0policyholders because\u00a0most of the return accrues to policyholders.\u00a0As the assets can \u00a0
be used only for payment of insurance\u00a0liabilities, they are\u00a0presented as\u00a0a single line in the balance sheet. \u00a0
Liabilities under\u00a0insurance contracts\u00a0comprise liabilities\u00a0as defined\u00a0by IFRS\u00a017 and other other liabilities\u00a0in the insurance business. \u00a0
Accounting policy \u00a0
Assets under insurance contracts \u00a0
Assets under insurance contracts are managed on a fair\u00a0value basis with\u00a0no short-term profit taking. The business model for managing the assets is \u00a0
therefore neither \u2018held to collect\u2019 nor\u00a0\u2018held to\u00a0collect and sell\u2019 and the financial assets are therefore man\u00a0datorily recognised\u00a0at fair value through profit \u00a0
or loss.\u00a0The valuation\u00a0technique used matches the Group\u2019s accounting policy for\u00a0similar assets\u00a0. \u00a0
The Group has\u00a0elected to\u00a0not deduct own\u00a0shares and own bonds\u00a0from equity\u00a0and liabilities\u00a0respectively that are underlying\u00a0items of insurance \u00a0
contracts with\u00a0direct participation\u00a0features. Therefore total Assets under insurance contracts includes these own shares and\u00a0own bonds. \u00a0
Liabilities under\u00a0insurance contracts \u00a0
The Group has\u00a0divided all\u00a0insurance contracts into portfolios and\u00a0groups and determined measurement methods for\u00a0the individua\u00a0l groups\u00a0of \u00a0
contracts. The classification of\u00a0insurance contracts in the four\u00a0portfolios is based on\u00a0an assessment of similar\u00a0risks and on an overall\u00a0management \u00a0
approach: \u00a0
-
An average-rate\u00a0portfolio \u00a0
-
A unit-linked\u00a0portfolio \u00a0
-
A portfolio\u00a0of legacy life insurance products\u00a0in run-off \u00a0
-
A portfolio\u00a0containing health and\u00a0accident insurance contracts. \u00a0
The Group applies the annual cohort exemption from\u00a0the EU to the average-rate portfolio. \u00a0
The Group measures liabilities\u00a0under insurance contracts using the General Measurement\u00a0Model (GMM),\u00a0Variable Fee\u00a0Approach (VFA) or Premium \u00a0
Allocation Approach (PAA). The majority\u00a0of the Group\u2019s life insurance contracts\u00a0are measured\u00a0using VFA because they meet the definition\u00a0of \u00a0
insurance contracts with direct participation\u00a0features. GMM is\u00a0used for legacy life insurance\u00a0products in run\u00a0-off. \u00a0
Insurance contracts measured using GMM\u00a0or VFA are initially\u00a0measured as the total of fulfilment cash flows (which comprise es\u00a0timated future cash \u00a0
flows, an adjustment\u00a0for time value\u00a0of money and effect of financial risks, and a risk adjustment\u00a0for non-financial\u00a0risk) and contractual service margin \u00a0
(CSM; unearned profit that will be recognised as the Group provides insurance contract services).\u00a0At each reporting\u00a0date, th\u00a0e group of insurance \u00a0
contracts is\u00a0subsequently measured\u00a0as the sum of the liability\u00a0for remaining\u00a0coverage (comprising fulfilment cash\u00a0flows relating to\u00a0future se\u00a0rvice and \u00a0
CSM) and liability\u00a0for incurred claims\u00a0(comprising fulfilment cash flows relating\u00a0to past service). \u00a0
PAA is\u00a0applied to the Health and accident insurance portfolio, which comprises only one\u00a0-year insurance contracts. \u00a0
G18. Assets and liabilities under insurance contracts continued \u00a0
(a) Assets under insurance contracts\u00a0(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Due from credit institutions \u00a0
6,922 \u00a0
2,094 \u00a0
Investment securities \u00a0
468,312 \u00a0
472,975 \u00a0
Holdings in associates \u00a0
11,612 \u00a0
11,162 \u00a0
Investment property \u00a0
21,716 \u00a0
27,373 \u00a0
Tangible assets \u00a0
-
45 \u00a0
Reinsurance contract assets \u00a0
213 \u00a0
23 \u00a0
Other assets \u00a0
9,780 \u00a0
16,200 \u00a0
Total \u00a0
518,555 \u00a0
529,872 \u00a0
including \u00a0
own bonds \u00a0
5,984 \u00a0
7,302 \u00a0
other intra-group balances \u00a0
16,540 \u00a0
19,575 \u00a0
Total assets under insurance contracts \u00a0
496,031 \u00a0
502,995 \u00a0
* Comparative information has been restated, as described in note G2(a) and G2(b). \u00a0
Assets under insurance contracts include DKK 27,794 million of own\u00a0bonds that are\u00a0not eliminated\u00a0(2022: DKK 26,535 million)\u00a0a nd\u00a0DKK 1,040 \u00a0
million of\u00a0own shares that are not eliminated (2022: DKK 782 million). \u00a0
Investment properties held on\u00a0behalf of\u00a0insurance customers amount to DKK 21,716 million (2022: DKK 27,373 million). Changes in the fair value of \u00a0
these investment\u00a0properties will only to a limited extent affect the Group\u2019s net profit. The valuation is based on the same p\u00a0rinciples as investments\u00a0made \u00a0
for own investment\u00a0purposes. The required rate of return ranged between 2.5-7.0% (2022: 2.5-7.0%) and averaged 4.8% (2022: 4.6%). An increase in \u00a0
the required rate of return of 1.0 percentage point would reduce fair value at\u00a0the end of 2023 by DKK 3,93\u00a07 million (2022: DKK 4,112 million). \u00a0
Investment securities\u00a0under insurance\u00a0contracts (DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Listed bonds \u00a0
191,938 \u00a0
196,557 \u00a0
Unlisted bonds \u00a0
2,458 \u00a0
3,608 \u00a0
Listed shares \u00a0
146,591 \u00a0
112,276 \u00a0
Unlisted shares \u00a0
34,755 \u00a0
36,376 \u00a0
Unit trust certificates \u00a0
27,742 \u00a0
30,490 \u00a0
Other securities \u00a0
64,828 \u00a0
93,668 \u00a0
Total \u00a0
468,312 \u00a0
472,975 \u00a0
* Comparative information has been restated, as described in note G2(a) and G2(b). \u00a0
(b) Liabilities\u00a0under insurance contracts (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Life insurance \u00a0
399,330 \u00a0
379,358 \u00a0
Health and accident \u00a0
16,084 \u00a0
15,424 \u00a0
Total liabilities under insurance contracts \u00a0
415,414 \u00a0
394,782 \u00a0
Other insurance-related liabilities \u00a0
78,130 \u00a0
112,344 \u00a0
Total \u00a0
493,544 \u00a0
507,126 \u00a0
including \u00a0
Intra-group balances \u00a0
10,914 \u00a0
18,235 \u00a0
Total liabilities\u00a0under insurance\u00a0contracts \u00a0
482,630 \u00a0
488,891 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Other insurance-related\u00a0liabilities are\u00a0those held within the insurance business. They comprise mostly derivatives\u00a0and liabilities\u00a0due to cre dit institution\u00a0s , \u00a0
and are measured in accordance with the Group\u2019s accounting\u00a0policies for\u00a0such liability\u00a0types. \u00a0
G18. Assets and liabilities under insurance contracts continued \u00a0
(c) Liabilities under insurance contracts\u00a0\u2013 Life insurance \u00a0
Analysis by\u00a0remaining coverage\u00a0and incurred\u00a0claims \u00a0
2023 \u00a0
2022 \u00a0
Liabilities for\u00a0Liabilities for \u00a0
Liabilities for\u00a0Liabilities for \u00a0
remaining \u00a0
incurred \u00a0
remaining \u00a0
incurred \u00a0
(DKK millions) \u00a0
coverage \u00a0
claims \u00a0
Total \u00a0
coverage \u00a0
claims \u00a0
Total \u00a0
Balance as at\u00a01 January \u00a0
379,358 \u00a0
-
379,358 \u00a0
433,571 \u00a0
-
433,571 \u00a0
Insurance revenue \u00a0
-3,826 \u00a0
-
-3,826 \u00a0
-3,349 \u00a0
-
-3,349 \u00a0
Insurance service expenses \u00a0
Incurred claims and other insurance service expenses \u00a0
-
2,096 \u00a0
2,096 \u00a0
-
1,620 \u00a0
1,620 \u00a0
Total insurance service expenses \u00a0
-
2,096 \u00a0
2,096 \u00a0
-
1,620 \u00a0
1,620 \u00a0
Investment component \u00a0
-25,545 \u00a0
25,545 \u00a0
-
-27,950 \u00a0
27,950 \u00a0
-
Net finance income or expense from insurance contracts \u00a0
issued \u00a0
31,859 \u00a0
-
31,859 \u00a0
-54,325 \u00a0
-
-54,325 \u00a0
Cash flows \u00a0
Premiums received \u00a0
33,547 \u00a0
-
33,547 \u00a0
31,192 \u00a0
-
31,192 \u00a0
Incurred claims and other insurance service expenses paid \u00a0
-
-27,641 \u00a0
-27,641 \u00a0
-
-29,570 \u00a0
-29,570 \u00a0
Changes in amounts due from policyholders \u00a0
221 \u00a0
-
221 \u00a0
-
-
-
Total cash flows \u00a0
33,768 \u00a0
-27,641 \u00a0
6,127 \u00a0
31,192 \u00a0
-29,570 \u00a0
1,622 \u00a0
Other \u00a0
-16,284 \u00a0
-
-16,284 \u00a0
219 \u00a0
-
219 \u00a0
Total as at 31 December \u00a0
399,330 \u00a0
-
399,330 \u00a0
379,358 \u00a0
-
379,358 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Danica Pension has changed an accounting policy in 2023 in relation to the recognition of deferred pensionreturns tax, which has resultedin an adjustment ofDKK11.4billion to Liabilities under \u00a0
insurance contracts in 2022. In the Group, this has been presented as an in-year adjustment to \u201cOther\u201d in 2023. See Annual Report 2023 for Danica Pension for more detail. \u00a0
The fair value approach was applied to insurance contracts on transition to IFRS 17, since the full retrospective approach was impracticable. DKK 3.6 \u00a0
billion of insurance revenue in 2023 relates to contracts that existed at the transition date (2022: DKK 2.7 billion). \u00a0
G18. Assets and liabilities under insurance contracts continued \u00a0
Estimated present \u00a0
Risk adjustment \u00a0
CSM for contracts \u00a0
Analysis by\u00a0measurement components \u00a0
value of future cash \u00a0
for non-financial\u00a0existing at\u00a0transition \u00a0
CSM for other \u00a0
(DKK millions) \u00a0
flows \u00a0
risk \u00a0
date \u00a0
contracts \u00a0
Total \u00a0
Balance as at\u00a01 January 2023 \u00a0
364,881 \u00a0
1,007 \u00a0
13,194 \u00a0
276 \u00a0
379,358 \u00a0
Changes that relate to current service \u00a0
CSM recognised for services provided \u00a0
-
-
-1,506 \u00a0
-85 \u00a0
-1,591 \u00a0
Change in risk adjustment\u00a0for non-financial risk \u00a0
for risk expired \u00a0
-
-28 \u00a0
-
-
-28 \u00a0
Experience adjustments \u00a0
-41 \u00a0
-
-
-
-41 \u00a0
Total changes that relate to current service \u00a0
-41 \u00a0
-28 \u00a0
-1,506 \u00a0
-85 \u00a0
-1,660 \u00a0
Changes that relate to future service \u00a0
Contracts initally recognised during the year \u00a0
-883 \u00a0
-
-
883 \u00a0
-
Changes in estimates that adjust the CSM \u00a0
-3,864 \u00a0
-77 \u00a0
3,060 \u00a0
881 \u00a0
-
Total changes that relate to future service \u00a0
-4,747 \u00a0
-77 \u00a0
3,060 \u00a0
1,764 \u00a0
-
Insurance service result \u00a0
-4,788 \u00a0
-105 \u00a0
1,554 \u00a0
1,679 \u00a0
-1,660 \u00a0
Net finance income or expense from insurance \u00a0
contracts issued \u00a0
31,851 \u00a0
8
-
-
31,859 \u00a0
Cash flows \u00a0
Premiums received \u00a0
33,547 \u00a0
-
-
-
33,547 \u00a0
Incurred claims and other insurance service \u00a0
expenses paid \u00a0
-27,641 \u00a0
-
-
-
-27,641 \u00a0
Changes in amounts due from policyholders \u00a0
221 \u00a0
-
-
-
221 \u00a0
Total cash flows \u00a0
6,127 \u00a0
-
-
-
6,127 \u00a0
Other \u00a0
-16,354 \u00a0
-16,354 \u00a0
Balance as at\u00a031 December 2023 \u00a0
381,717 \u00a0
910 \u00a0
14,748 \u00a0
1,955 \u00a0
399,330 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Danica Pension has changed an accounting policy in 2023 in relation to the recognition of deferred pensionreturns tax, whichhas resultedin an adjustment\u00a0ofDKK11.4billion to Liabilities under \u00a0
insurance contracts in 2022. In the Group, this has been presented as an in-year adjustment to \u201cOther\u201d in 2023. See Annual Report 2023 for Danica Pension for more detail. \u00a0
G18. Assets and liabilities under insurance contracts continued \u00a0
Estimated present \u00a0
CSM for contracts \u00a0
Analysis by\u00a0measurement components \u00a0
value of future\u00a0Risk adjustment for \u00a0
existing at \u00a0
CSM for other \u00a0
(DKK millions) \u00a0
cash flows \u00a0
non-financial risk \u00a0
transition date \u00a0
contracts \u00a0
Total \u00a0
Balance as at\u00a01 January 2022 \u00a0
415,827 \u00a0
1,426 \u00a0
16,318 \u00a0
-
433,571 \u00a0
Changes that relate to current service \u00a0
CSM recognised for services provided \u00a0
-
-
-1,670 \u00a0
-16 \u00a0
-1,686 \u00a0
Change in risk adjustment\u00a0for non- financial risk \u00a0
for risk expired \u00a0
-
1
-
-
1
Experience adjustments \u00a0
-44 \u00a0
-
-
-
-44 \u00a0
Total changes that relate to current service \u00a0
-44 \u00a0
1
-1,670 \u00a0
-16 \u00a0
-1,729 \u00a0
Changes that relate to future service \u00a0
Contracts initally recognised during the year \u00a0
-292 \u00a0
-
-
292 \u00a0
-
Changes in estimates that adjust the CSM \u00a0
1,848 \u00a0
-394 \u00a0
-1,454 \u00a0
-
-
Total changes that relate to future service \u00a0
1,556 \u00a0
-394 \u00a0
-1,454 \u00a0
292 \u00a0
-
Insurance service result \u00a0
1,512 \u00a0
-393 \u00a0
-3,124 \u00a0
276 \u00a0
-1,729 \u00a0
Net finance income or expense from insurance \u00a0
contracts issued \u00a0
-54,299 \u00a0
-26 \u00a0
-
-
-54,325 \u00a0
Cash flows \u00a0
Premiums received \u00a0
31,192 \u00a0
-
-
-
31,192 \u00a0
Incurred claims and other insurance\u00a0service \u00a0
expenses paid \u00a0
-29,570 \u00a0
-
-
-
-29,570 \u00a0
Changes in amounts due from policyholders \u00a0
-
-
-
-
-
Total cash flows \u00a0
1,622 \u00a0
-
-
-
1,622 \u00a0
Other \u00a0
219 \u00a0
-
-
-
219 \u00a0
Balance as at\u00a031 December 2022 \u00a0
364,881 \u00a0
1,007 \u00a0
13,194 \u00a0
276 \u00a0
379,358 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
The fair value approach was applied to insurance contracts on transition to IFRS 17, since the full retrospective approach wa s impracticable. As at 31 \u00a0
December 2023, DKK 14.8 billion of total CSM relates to contracts that existed at the transition date (31 December 2022: 13.2 billion). \u00a0
Life insurance\u00a0contracts issued during the\u00a0year (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Estimate of the present value of future cash outflows \u00a0
24,365 \u00a0
26,014 \u00a0
Estimate of the present value of future cash inflows \u00a0
-25,249 \u00a0
-26,306 \u00a0
Risk adjustment for non-financial risk \u00a0
-
-
Contractual service margin \u00a0
884 \u00a0
292 \u00a0
Increase in insurance contract liabilities\u00a0recognised during the year \u00a0
-
-
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Expected timing of\u00a0Contractual service\u00a0margin recognition (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Less than 1 year \u00a0
1,513 \u00a0
1,196 \u00a0
1 \u2013 5 years \u00a0
6,061 \u00a0
4,796 \u00a0
5 \u2013 10 years \u00a0
3,948 \u00a0
3,175 \u00a0
More than 10 years \u00a0
5,181 \u00a0
4,302 \u00a0
Total Contractual\u00a0service margin \u00a0
16,703 \u00a0
13,469 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
G18. Assets and liabilities under insurance contracts continued \u00a0
(d) Liabilities under insurance contracts\u00a0\u2013 Health and accident \u00a0
2023 \u00a0
2022 \u00a0
Analysis by remaining coverage and \u00a0
Liabilities for \u00a0
Liabilities for \u00a0
Liabilities for\u00a0Liabilities for incurred \u00a0
incurred claims\u00a0(DKK millions) \u00a0
remaining coverage \u00a0
incurred claims \u00a0
remaining coverage\u00a0claims \u00a0
Risk \u00a0
Risk \u00a0
Present adjustment \u00a0
Present adjustment \u00a0
Excluding \u00a0
value of \u00a0
for non- \u00a0
Excluding \u00a0
value of \u00a0
for non- \u00a0
loss \u00a0
Loss \u00a0
future \u00a0
financial \u00a0
loss \u00a0
Loss \u00a0
future \u00a0
financial \u00a0
(DKK millions) \u00a0
component component cash flows \u00a0
risk \u00a0
Total component component cash\u00a0flows \u00a0
risk \u00a0
Total \u00a0
Balance as at\u00a01 January \u00a0
62 \u00a0
1,196 \u00a0
13,094 \u00a0
1,072 \u00a0
15,424 \u00a0
81 \u00a0
1,825 \u00a0
14,583 \u00a0
1,109 \u00a0
17,598 \u00a0
Insurance revenue \u00a0
-1,750 \u00a0
-
-
-
-1,750 \u00a0
-1,579 \u00a0
-
-
-
-1,579 \u00a0
Insurance service expenses \u00a0
Incurred claims and other insurance \u00a0
service expenses \u00a0
-
-887 \u00a0
2,979 \u00a0
436 \u00a0
2,528 \u00a0
-1,402 \u00a0
2,214 \u00a0
554 \u00a0
1,366 \u00a0
Adjustments to\u00a0liabilities for \u00a0
-
-
-375 \u00a0
-682 \u00a0
-1,057 \u00a0
-
-
-229 \u00a0
-493 \u00a0
-722 \u00a0
incurred claims (past service) \u00a0
Losses and reversals of losses on \u00a0
onerous contracts (future service) \u00a0
-
1,303 \u00a0
-
-
1,303 \u00a0
-
986 \u00a0
-
-
986 \u00a0
Total insurance service expenses \u00a0
-
416 \u00a0
2,604 \u00a0
-246 \u00a0
2,774 \u00a0
-
-416 \u00a0
1,985 \u00a0
61 \u00a0
1,630 \u00a0
Investment component \u00a0
-
-57 \u00a0
553 \u00a0
-15 \u00a0
481 \u00a0
-213 \u00a0
-1,135 \u00a0
-98 \u00a0
-1,446 \u00a0
Net finance income or expense from \u00a0
insurance conracts issued \u00a0
-
-
-
-
-
-
-
-
-
-
Cash flows \u00a0
Premiums received \u00a0
1,752 \u00a0
-
-
-
1,752 \u00a0
1,560 \u00a0
-
-
-
1,560 \u00a0
Insurance acquisition\u00a0cash flows \u00a0
-
-
Incurred claims and other insurance \u00a0
service expenses paid \u00a0
-
-
-2,710 \u00a0
-
-2,710 \u00a0
-
-
-2,339 \u00a0
-
-2,339 \u00a0
Changes in amounts due from \u00a0
policyholders \u00a0
-
-
-3 \u00a0
-
-3 \u00a0
-
-
-
-
-
Total cash flows \u00a0
1,752 \u00a0
-
-2,713 \u00a0
-
-961 \u00a0
1,560 \u00a0
-
-2,339 \u00a0
-
-779 \u00a0
Other \u00a0
-
-5 \u00a0
121 \u00a0
-
116 \u00a0
-
-
-
-
-
Total as at 31 December \u00a0
64 \u00a0
1,550 \u00a0
13,659 \u00a0
811 \u00a0
16,084 \u00a0
62 \u00a0
1,196 \u00a0
13,094 \u00a0
1,072 \u00a0
15,424 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Danica Pension has changed an accounting policy in 2023 in relation to the recognition of deferred pensionreturns tax, which has resultedin an adjustment ofDKK11.4billion to Liabilities under \u00a0
insurance contracts in 2022. In the Group, this has been presented as an in-year adjustment to \u201cOther\u201d in 2023. See Annual Report 2023 for Danica Pension for more detail. \u00a0
The table below shows a maturity\u00a0analysis of the Group\u2019s insurance contracts, reflecting the timing of estimated present value of futur e cash flows. \u00a0
(e) Maturity analysis\u00a0of insurance contracts \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
1 year \u00a0
40,866 \u00a0
37,628 \u00a0
1-2 years \u00a0
35,284 \u00a0
32,124 \u00a0
2-3 years \u00a0
32,920 \u00a0
29,938 \u00a0
3-4 years \u00a0
30,546 \u00a0
27,796 \u00a0
4-5 years \u00a0
28,125 \u00a0
25,621 \u00a0
More than 5 years \u00a0
247,673 \u00a0
241,675 \u00a0
Total \u00a0
415,414 \u00a0
394,782 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Danica Pension has changed an accounting policy in 2023 in relation to the recognition of deferred pensionreturns tax, whichhas resultedin an adjustment ofDKK11.4billion to Liabilities under \u00a0
insurance contracts in 2022. In the Group, this has been presented as an in-year adjustment to \u201cOther\u201d in 2023. See Annual Report 2023 for Danica Pension for more detail. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInsuranceContractsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4244": {
"value": "(a) Insurance revenue (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Insurance revenue from contracts not under PAA \u00a0
Contractual service margin recognised for the services provided \u00a0
1,591 \u00a0
1,686 \u00a0
Change in risk adjustment\u00a0for non-financial risk for the\u00a0risk expired \u00a0
28 \u00a0
-1 \u00a0
Expected incurred claims and directly attributable expenses \u00a0
2,366 \u00a0
1,798 \u00a0
Insurance revenue\u00a0from contracts\u00a0not under\u00a0PAA \u00a0
3,985 \u00a0
3,483 \u00a0
Insurance revenue\u00a0from contracts\u00a0under PAA \u00a0
1,750 \u00a0
1,643 \u00a0
Total insurance revenue \u00a0
5,735 \u00a0
5,126 \u00a0
The Group implemented IFRS 17 on 1 January 2023, as described in note G2. \u00a0
G18. Assets and liabilities under insurance contracts continued \u00a0
(c) Liabilities under insurance contracts\u00a0\u2013 Life insurance \u00a0
Analysis by\u00a0remaining coverage\u00a0and incurred\u00a0claims \u00a0
2023 \u00a0
2022 \u00a0
Liabilities for\u00a0Liabilities for \u00a0
Liabilities for\u00a0Liabilities for \u00a0
remaining \u00a0
incurred \u00a0
remaining \u00a0
incurred \u00a0
(DKK millions) \u00a0
coverage \u00a0
claims \u00a0
Total \u00a0
coverage \u00a0
claims \u00a0
Total \u00a0
Balance as at\u00a01 January \u00a0
379,358 \u00a0
-
379,358 \u00a0
433,571 \u00a0
-
433,571 \u00a0
Insurance revenue \u00a0
-3,826 \u00a0
-
-3,826 \u00a0
-3,349 \u00a0
-
-3,349 \u00a0
Insurance service expenses \u00a0
Incurred claims and other insurance service expenses \u00a0
-
2,096 \u00a0
2,096 \u00a0
-
1,620 \u00a0
1,620 \u00a0
Total insurance service expenses \u00a0
-
2,096 \u00a0
2,096 \u00a0
-
1,620 \u00a0
1,620 \u00a0
Investment component \u00a0
-25,545 \u00a0
25,545 \u00a0
-
-27,950 \u00a0
27,950 \u00a0
-
Net finance income or expense from insurance contracts \u00a0
issued \u00a0
31,859 \u00a0
-
31,859 \u00a0
-54,325 \u00a0
-
-54,325 \u00a0
Cash flows \u00a0
Premiums received \u00a0
33,547 \u00a0
-
33,547 \u00a0
31,192 \u00a0
-
31,192 \u00a0
Incurred claims and other insurance service expenses paid \u00a0
-
-27,641 \u00a0
-27,641 \u00a0
-
-29,570 \u00a0
-29,570 \u00a0
Changes in amounts due from policyholders \u00a0
221 \u00a0
-
221 \u00a0
-
-
-
Total cash flows \u00a0
33,768 \u00a0
-27,641 \u00a0
6,127 \u00a0
31,192 \u00a0
-29,570 \u00a0
1,622 \u00a0
Other \u00a0
-16,284 \u00a0
-
-16,284 \u00a0
219 \u00a0
-
219 \u00a0
Total as at 31 December \u00a0
399,330 \u00a0
-
399,330 \u00a0
379,358 \u00a0
-
379,358 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Danica Pension has changed an accounting policy in 2023 in relation to the recognition of deferred pensionreturns tax, which has resultedin an adjustment ofDKK11.4billion to Liabilities under \u00a0
insurance contracts in 2022. In the Group, this has been presented as an in-year adjustment to \u201cOther\u201d in 2023. See Annual Report 2023 for Danica Pension for more detail. \u00a0
The fair value approach was applied to insurance contracts on transition to IFRS 17, since the full retrospective approach was impracticable. DKK 3.6 \u00a0
billion of insurance revenue in 2023 relates to contracts that existed at the transition date (2022: DKK 2.7 billion). \u00a0
G18. Assets and liabilities under insurance contracts continued \u00a0
Estimated present \u00a0
Risk adjustment \u00a0
CSM for contracts \u00a0
Analysis by\u00a0measurement components \u00a0
value of future cash \u00a0
for non-financial\u00a0existing at\u00a0transition \u00a0
CSM for other \u00a0
(DKK millions) \u00a0
flows \u00a0
risk \u00a0
date \u00a0
contracts \u00a0
Total \u00a0
Balance as at\u00a01 January 2023 \u00a0
364,881 \u00a0
1,007 \u00a0
13,194 \u00a0
276 \u00a0
379,358 \u00a0
Changes that relate to current service \u00a0
CSM recognised for services provided \u00a0
-
-
-1,506 \u00a0
-85 \u00a0
-1,591 \u00a0
Change in risk adjustment\u00a0for non-financial risk \u00a0
for risk expired \u00a0
-
-28 \u00a0
-
-
-28 \u00a0
Experience adjustments \u00a0
-41 \u00a0
-
-
-
-41 \u00a0
Total changes that relate to current service \u00a0
-41 \u00a0
-28 \u00a0
-1,506 \u00a0
-85 \u00a0
-1,660 \u00a0
Changes that relate to future service \u00a0
Contracts initally recognised during the year \u00a0
-883 \u00a0
-
-
883 \u00a0
-
Changes in estimates that adjust the CSM \u00a0
-3,864 \u00a0
-77 \u00a0
3,060 \u00a0
881 \u00a0
-
Total changes that relate to future service \u00a0
-4,747 \u00a0
-77 \u00a0
3,060 \u00a0
1,764 \u00a0
-
Insurance service result \u00a0
-4,788 \u00a0
-105 \u00a0
1,554 \u00a0
1,679 \u00a0
-1,660 \u00a0
Net finance income or expense from insurance \u00a0
contracts issued \u00a0
31,851 \u00a0
8
-
-
31,859 \u00a0
Cash flows \u00a0
Premiums received \u00a0
33,547 \u00a0
-
-
-
33,547 \u00a0
Incurred claims and other insurance service \u00a0
expenses paid \u00a0
-27,641 \u00a0
-
-
-
-27,641 \u00a0
Changes in amounts due from policyholders \u00a0
221 \u00a0
-
-
-
221 \u00a0
Total cash flows \u00a0
6,127 \u00a0
-
-
-
6,127 \u00a0
Other \u00a0
-16,354 \u00a0
-16,354 \u00a0
Balance as at\u00a031 December 2023 \u00a0
381,717 \u00a0
910 \u00a0
14,748 \u00a0
1,955 \u00a0
399,330 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Danica Pension has changed an accounting policy in 2023 in relation to the recognition of deferred pensionreturns tax, whichhas resultedin an adjustment\u00a0ofDKK11.4billion to Liabilities under \u00a0
insurance contracts in 2022. In the Group, this has been presented as an in-year adjustment to \u201cOther\u201d in 2023. See Annual Report 2023 for Danica Pension for more detail. \u00a0
G18. Assets and liabilities under insurance contracts continued \u00a0
Estimated present \u00a0
CSM for contracts \u00a0
Analysis by\u00a0measurement components \u00a0
value of future\u00a0Risk adjustment for \u00a0
existing at \u00a0
CSM for other \u00a0
(DKK millions) \u00a0
cash flows \u00a0
non-financial risk \u00a0
transition date \u00a0
contracts \u00a0
Total \u00a0
Balance as at\u00a01 January 2022 \u00a0
415,827 \u00a0
1,426 \u00a0
16,318 \u00a0
-
433,571 \u00a0
Changes that relate to current service \u00a0
CSM recognised for services provided \u00a0
-
-
-1,670 \u00a0
-16 \u00a0
-1,686 \u00a0
Change in risk adjustment\u00a0for non- financial risk \u00a0
for risk expired \u00a0
-
1
-
-
1
Experience adjustments \u00a0
-44 \u00a0
-
-
-
-44 \u00a0
Total changes that relate to current service \u00a0
-44 \u00a0
1
-1,670 \u00a0
-16 \u00a0
-1,729 \u00a0
Changes that relate to future service \u00a0
Contracts initally recognised during the year \u00a0
-292 \u00a0
-
-
292 \u00a0
-
Changes in estimates that adjust the CSM \u00a0
1,848 \u00a0
-394 \u00a0
-1,454 \u00a0
-
-
Total changes that relate to future service \u00a0
1,556 \u00a0
-394 \u00a0
-1,454 \u00a0
292 \u00a0
-
Insurance service result \u00a0
1,512 \u00a0
-393 \u00a0
-3,124 \u00a0
276 \u00a0
-1,729 \u00a0
Net finance income or expense from insurance \u00a0
contracts issued \u00a0
-54,299 \u00a0
-26 \u00a0
-
-
-54,325 \u00a0
Cash flows \u00a0
Premiums received \u00a0
31,192 \u00a0
-
-
-
31,192 \u00a0
Incurred claims and other insurance\u00a0service \u00a0
expenses paid \u00a0
-29,570 \u00a0
-
-
-
-29,570 \u00a0
Changes in amounts due from policyholders \u00a0
-
-
-
-
-
Total cash flows \u00a0
1,622 \u00a0
-
-
-
1,622 \u00a0
Other \u00a0
219 \u00a0
-
-
-
219 \u00a0
Balance as at\u00a031 December 2022 \u00a0
364,881 \u00a0
1,007 \u00a0
13,194 \u00a0
276 \u00a0
379,358 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Expected timing of\u00a0Contractual service\u00a0margin recognition (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Less than 1 year \u00a0
1,513 \u00a0
1,196 \u00a0
1 \u2013 5 years \u00a0
6,061 \u00a0
4,796 \u00a0
5 \u2013 10 years \u00a0
3,948 \u00a0
3,175 \u00a0
More than 10 years \u00a0
5,181 \u00a0
4,302 \u00a0
Total Contractual\u00a0service margin \u00a0
16,703 \u00a0
13,469 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
G18. Assets and liabilities under insurance contracts continued \u00a0
(d) Liabilities under insurance contracts\u00a0\u2013 Health and accident \u00a0
2023 \u00a0
2022 \u00a0
Analysis by remaining coverage and \u00a0
Liabilities for \u00a0
Liabilities for \u00a0
Liabilities for\u00a0Liabilities for incurred \u00a0
incurred claims\u00a0(DKK millions) \u00a0
remaining coverage \u00a0
incurred claims \u00a0
remaining coverage\u00a0claims \u00a0
Risk \u00a0
Risk \u00a0
Present adjustment \u00a0
Present adjustment \u00a0
Excluding \u00a0
value of \u00a0
for non- \u00a0
Excluding \u00a0
value of \u00a0
for non- \u00a0
loss \u00a0
Loss \u00a0
future \u00a0
financial \u00a0
loss \u00a0
Loss \u00a0
future \u00a0
financial \u00a0
(DKK millions) \u00a0
component component cash flows \u00a0
risk \u00a0
Total component component cash\u00a0flows \u00a0
risk \u00a0
Total \u00a0
Balance as at\u00a01 January \u00a0
62 \u00a0
1,196 \u00a0
13,094 \u00a0
1,072 \u00a0
15,424 \u00a0
81 \u00a0
1,825 \u00a0
14,583 \u00a0
1,109 \u00a0
17,598 \u00a0
Insurance revenue \u00a0
-1,750 \u00a0
-
-
-
-1,750 \u00a0
-1,579 \u00a0
-
-
-
-1,579 \u00a0
Insurance service expenses \u00a0
Incurred claims and other insurance \u00a0
service expenses \u00a0
-
-887 \u00a0
2,979 \u00a0
436 \u00a0
2,528 \u00a0
-1,402 \u00a0
2,214 \u00a0
554 \u00a0
1,366 \u00a0
Adjustments to\u00a0liabilities for \u00a0
-
-
-375 \u00a0
-682 \u00a0
-1,057 \u00a0
-
-
-229 \u00a0
-493 \u00a0
-722 \u00a0
incurred claims (past service) \u00a0
Losses and reversals of losses on \u00a0
onerous contracts (future service) \u00a0
-
1,303 \u00a0
-
-
1,303 \u00a0
-
986 \u00a0
-
-
986 \u00a0
Total insurance service expenses \u00a0
-
416 \u00a0
2,604 \u00a0
-246 \u00a0
2,774 \u00a0
-
-416 \u00a0
1,985 \u00a0
61 \u00a0
1,630 \u00a0
Investment component \u00a0
-
-57 \u00a0
553 \u00a0
-15 \u00a0
481 \u00a0
-213 \u00a0
-1,135 \u00a0
-98 \u00a0
-1,446 \u00a0
Net finance income or expense from \u00a0
insurance conracts issued \u00a0
-
-
-
-
-
-
-
-
-
-
Cash flows \u00a0
Premiums received \u00a0
1,752 \u00a0
-
-
-
1,752 \u00a0
1,560 \u00a0
-
-
-
1,560 \u00a0
Insurance acquisition\u00a0cash flows \u00a0
-
-
Incurred claims and other insurance \u00a0
service expenses paid \u00a0
-
-
-2,710 \u00a0
-
-2,710 \u00a0
-
-
-2,339 \u00a0
-
-2,339 \u00a0
Changes in amounts due from \u00a0
policyholders \u00a0
-
-
-3 \u00a0
-
-3 \u00a0
-
-
-
-
-
Total cash flows \u00a0
1,752 \u00a0
-
-2,713 \u00a0
-
-961 \u00a0
1,560 \u00a0
-
-2,339 \u00a0
-
-779 \u00a0
Other \u00a0
-
-5 \u00a0
121 \u00a0
-
116 \u00a0
-
-
-
-
-
Total as at 31 December \u00a0
64 \u00a0
1,550 \u00a0
13,659 \u00a0
811 \u00a0
16,084 \u00a0
62 \u00a0
1,196 \u00a0
13,094 \u00a0
1,072 \u00a0
15,424 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Danica Pension has changed an accounting policy in 2023 in relation to the recognition of deferred pensionreturns tax, which has resultedin an adjustment ofDKK11.4billion to Liabilities under \u00a0
insurance contracts in 2022. In the Group, this has been presented as an in-year adjustment to \u201cOther\u201d in 2023. See Annual Report 2023 for Danica Pension for more detail. \u00a0
The table below shows a maturity\u00a0analysis of the Group\u2019s insurance contracts, reflecting the timing of estimated present value of futur e cash flows. \u00a0
(e) Maturity analysis\u00a0of insurance contracts \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
1 year \u00a0
40,866 \u00a0
37,628 \u00a0
1-2 years \u00a0
35,284 \u00a0
32,124 \u00a0
2-3 years \u00a0
32,920 \u00a0
29,938 \u00a0
3-4 years \u00a0
30,546 \u00a0
27,796 \u00a0
4-5 years \u00a0
28,125 \u00a0
25,621 \u00a0
More than 5 years \u00a0
247,673 \u00a0
241,675 \u00a0
Total \u00a0
415,414 \u00a0
394,782 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Danica Pension has changed an accounting policy in 2023 in relation to the recognition of deferred pensionreturns tax, whichhas resultedin an adjustment ofDKK11.4billion to Liabilities under \u00a0
insurance contracts in 2022. In the Group, this has been presented as an in-year adjustment to \u201cOther\u201d in 2023. See Annual Report 2023 for Danica Pension for more detail. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInsurancePremiumRevenueExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4245": {
"value": "(b) Insurance service expenses\u00a0(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Incurred claims and other incurred insurance service expenses \u00a0
2,319 \u00a0
1,924 \u00a0
Insurance service\u00a0expenses from\u00a0contracts not\u00a0under PAA \u00a0
2,319 \u00a0
1,924 \u00a0
Insurance service\u00a0expenses from\u00a0contracts under\u00a0PAA \u00a0
2,775 \u00a0
1,680 \u00a0
Total insurance service expenses \u00a0
5,094 \u00a0
3,604 \u00a0
The Group implemented IFRS 17 on 1 January 2023, as described in note G2. \u00a0
G18. Assets and liabilities under insurance contracts continued \u00a0
(c) Liabilities under insurance contracts\u00a0\u2013 Life insurance \u00a0
Analysis by\u00a0remaining coverage\u00a0and incurred\u00a0claims \u00a0
2023 \u00a0
2022 \u00a0
Liabilities for\u00a0Liabilities for \u00a0
Liabilities for\u00a0Liabilities for \u00a0
remaining \u00a0
incurred \u00a0
remaining \u00a0
incurred \u00a0
(DKK millions) \u00a0
coverage \u00a0
claims \u00a0
Total \u00a0
coverage \u00a0
claims \u00a0
Total \u00a0
Balance as at\u00a01 January \u00a0
379,358 \u00a0
-
379,358 \u00a0
433,571 \u00a0
-
433,571 \u00a0
Insurance revenue \u00a0
-3,826 \u00a0
-
-3,826 \u00a0
-3,349 \u00a0
-
-3,349 \u00a0
Insurance service expenses \u00a0
Incurred claims and other insurance service expenses \u00a0
-
2,096 \u00a0
2,096 \u00a0
-
1,620 \u00a0
1,620 \u00a0
Total insurance service expenses \u00a0
-
2,096 \u00a0
2,096 \u00a0
-
1,620 \u00a0
1,620 \u00a0
Investment component \u00a0
-25,545 \u00a0
25,545 \u00a0
-
-27,950 \u00a0
27,950 \u00a0
-
Net finance income or expense from insurance contracts \u00a0
issued \u00a0
31,859 \u00a0
-
31,859 \u00a0
-54,325 \u00a0
-
-54,325 \u00a0
Cash flows \u00a0
Premiums received \u00a0
33,547 \u00a0
-
33,547 \u00a0
31,192 \u00a0
-
31,192 \u00a0
Incurred claims and other insurance service expenses paid \u00a0
-
-27,641 \u00a0
-27,641 \u00a0
-
-29,570 \u00a0
-29,570 \u00a0
Changes in amounts due from policyholders \u00a0
221 \u00a0
-
221 \u00a0
-
-
-
Total cash flows \u00a0
33,768 \u00a0
-27,641 \u00a0
6,127 \u00a0
31,192 \u00a0
-29,570 \u00a0
1,622 \u00a0
Other \u00a0
-16,284 \u00a0
-
-16,284 \u00a0
219 \u00a0
-
219 \u00a0
Total as at 31 December \u00a0
399,330 \u00a0
-
399,330 \u00a0
379,358 \u00a0
-
379,358 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Danica Pension has changed an accounting policy in 2023 in relation to the recognition of deferred pensionreturns tax, which has resultedin an adjustment ofDKK11.4billion to Liabilities under \u00a0
insurance contracts in 2022. In the Group, this has been presented as an in-year adjustment to \u201cOther\u201d in 2023. See Annual Report 2023 for Danica Pension for more detail. \u00a0
The fair value approach was applied to insurance contracts on transition to IFRS 17, since the full retrospective approach was impracticable. DKK 3.6 \u00a0
billion of insurance revenue in 2023 relates to contracts that existed at the transition date (2022: DKK 2.7 billion). \u00a0
G18. Assets and liabilities under insurance contracts continued \u00a0
Estimated present \u00a0
Risk adjustment \u00a0
CSM for contracts \u00a0
Analysis by\u00a0measurement components \u00a0
value of future cash \u00a0
for non-financial\u00a0existing at\u00a0transition \u00a0
CSM for other \u00a0
(DKK millions) \u00a0
flows \u00a0
risk \u00a0
date \u00a0
contracts \u00a0
Total \u00a0
Balance as at\u00a01 January 2023 \u00a0
364,881 \u00a0
1,007 \u00a0
13,194 \u00a0
276 \u00a0
379,358 \u00a0
Changes that relate to current service \u00a0
CSM recognised for services provided \u00a0
-
-
-1,506 \u00a0
-85 \u00a0
-1,591 \u00a0
Change in risk adjustment\u00a0for non-financial risk \u00a0
for risk expired \u00a0
-
-28 \u00a0
-
-
-28 \u00a0
Experience adjustments \u00a0
-41 \u00a0
-
-
-
-41 \u00a0
Total changes that relate to current service \u00a0
-41 \u00a0
-28 \u00a0
-1,506 \u00a0
-85 \u00a0
-1,660 \u00a0
Changes that relate to future service \u00a0
Contracts initally recognised during the year \u00a0
-883 \u00a0
-
-
883 \u00a0
-
Changes in estimates that adjust the CSM \u00a0
-3,864 \u00a0
-77 \u00a0
3,060 \u00a0
881 \u00a0
-
Total changes that relate to future service \u00a0
-4,747 \u00a0
-77 \u00a0
3,060 \u00a0
1,764 \u00a0
-
Insurance service result \u00a0
-4,788 \u00a0
-105 \u00a0
1,554 \u00a0
1,679 \u00a0
-1,660 \u00a0
Net finance income or expense from insurance \u00a0
contracts issued \u00a0
31,851 \u00a0
8
-
-
31,859 \u00a0
Cash flows \u00a0
Premiums received \u00a0
33,547 \u00a0
-
-
-
33,547 \u00a0
Incurred claims and other insurance service \u00a0
expenses paid \u00a0
-27,641 \u00a0
-
-
-
-27,641 \u00a0
Changes in amounts due from policyholders \u00a0
221 \u00a0
-
-
-
221 \u00a0
Total cash flows \u00a0
6,127 \u00a0
-
-
-
6,127 \u00a0
Other \u00a0
-16,354 \u00a0
-16,354 \u00a0
Balance as at\u00a031 December 2023 \u00a0
381,717 \u00a0
910 \u00a0
14,748 \u00a0
1,955 \u00a0
399,330 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Danica Pension has changed an accounting policy in 2023 in relation to the recognition of deferred pensionreturns tax, whichhas resultedin an adjustment\u00a0ofDKK11.4billion to Liabilities under \u00a0
insurance contracts in 2022. In the Group, this has been presented as an in-year adjustment to \u201cOther\u201d in 2023. See Annual Report 2023 for Danica Pension for more detail. \u00a0
G18. Assets and liabilities under insurance contracts continued \u00a0
Estimated present \u00a0
CSM for contracts \u00a0
Analysis by\u00a0measurement components \u00a0
value of future\u00a0Risk adjustment for \u00a0
existing at \u00a0
CSM for other \u00a0
(DKK millions) \u00a0
cash flows \u00a0
non-financial risk \u00a0
transition date \u00a0
contracts \u00a0
Total \u00a0
Balance as at\u00a01 January 2022 \u00a0
415,827 \u00a0
1,426 \u00a0
16,318 \u00a0
-
433,571 \u00a0
Changes that relate to current service \u00a0
CSM recognised for services provided \u00a0
-
-
-1,670 \u00a0
-16 \u00a0
-1,686 \u00a0
Change in risk adjustment\u00a0for non- financial risk \u00a0
for risk expired \u00a0
-
1
-
-
1
Experience adjustments \u00a0
-44 \u00a0
-
-
-
-44 \u00a0
Total changes that relate to current service \u00a0
-44 \u00a0
1
-1,670 \u00a0
-16 \u00a0
-1,729 \u00a0
Changes that relate to future service \u00a0
Contracts initally recognised during the year \u00a0
-292 \u00a0
-
-
292 \u00a0
-
Changes in estimates that adjust the CSM \u00a0
1,848 \u00a0
-394 \u00a0
-1,454 \u00a0
-
-
Total changes that relate to future service \u00a0
1,556 \u00a0
-394 \u00a0
-1,454 \u00a0
292 \u00a0
-
Insurance service result \u00a0
1,512 \u00a0
-393 \u00a0
-3,124 \u00a0
276 \u00a0
-1,729 \u00a0
Net finance income or expense from insurance \u00a0
contracts issued \u00a0
-54,299 \u00a0
-26 \u00a0
-
-
-54,325 \u00a0
Cash flows \u00a0
Premiums received \u00a0
31,192 \u00a0
-
-
-
31,192 \u00a0
Incurred claims and other insurance\u00a0service \u00a0
expenses paid \u00a0
-29,570 \u00a0
-
-
-
-29,570 \u00a0
Changes in amounts due from policyholders \u00a0
-
-
-
-
-
Total cash flows \u00a0
1,622 \u00a0
-
-
-
1,622 \u00a0
Other \u00a0
219 \u00a0
-
-
-
219 \u00a0
Balance as at\u00a031 December 2022 \u00a0
364,881 \u00a0
1,007 \u00a0
13,194 \u00a0
276 \u00a0
379,358 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
G18. Assets and liabilities under insurance contracts continued \u00a0
(d) Liabilities under insurance contracts\u00a0\u2013 Health and accident \u00a0
2023 \u00a0
2022 \u00a0
Analysis by remaining coverage and \u00a0
Liabilities for \u00a0
Liabilities for \u00a0
Liabilities for\u00a0Liabilities for incurred \u00a0
incurred claims\u00a0(DKK millions) \u00a0
remaining coverage \u00a0
incurred claims \u00a0
remaining coverage\u00a0claims \u00a0
Risk \u00a0
Risk \u00a0
Present adjustment \u00a0
Present adjustment \u00a0
Excluding \u00a0
value of \u00a0
for non- \u00a0
Excluding \u00a0
value of \u00a0
for non- \u00a0
loss \u00a0
Loss \u00a0
future \u00a0
financial \u00a0
loss \u00a0
Loss \u00a0
future \u00a0
financial \u00a0
(DKK millions) \u00a0
component component cash flows \u00a0
risk \u00a0
Total component component cash\u00a0flows \u00a0
risk \u00a0
Total \u00a0
Balance as at\u00a01 January \u00a0
62 \u00a0
1,196 \u00a0
13,094 \u00a0
1,072 \u00a0
15,424 \u00a0
81 \u00a0
1,825 \u00a0
14,583 \u00a0
1,109 \u00a0
17,598 \u00a0
Insurance revenue \u00a0
-1,750 \u00a0
-
-
-
-1,750 \u00a0
-1,579 \u00a0
-
-
-
-1,579 \u00a0
Insurance service expenses \u00a0
Incurred claims and other insurance \u00a0
service expenses \u00a0
-
-887 \u00a0
2,979 \u00a0
436 \u00a0
2,528 \u00a0
-1,402 \u00a0
2,214 \u00a0
554 \u00a0
1,366 \u00a0
Adjustments to\u00a0liabilities for \u00a0
-
-
-375 \u00a0
-682 \u00a0
-1,057 \u00a0
-
-
-229 \u00a0
-493 \u00a0
-722 \u00a0
incurred claims (past service) \u00a0
Losses and reversals of losses on \u00a0
onerous contracts (future service) \u00a0
-
1,303 \u00a0
-
-
1,303 \u00a0
-
986 \u00a0
-
-
986 \u00a0
Total insurance service expenses \u00a0
-
416 \u00a0
2,604 \u00a0
-246 \u00a0
2,774 \u00a0
-
-416 \u00a0
1,985 \u00a0
61 \u00a0
1,630 \u00a0
Investment component \u00a0
-
-57 \u00a0
553 \u00a0
-15 \u00a0
481 \u00a0
-213 \u00a0
-1,135 \u00a0
-98 \u00a0
-1,446 \u00a0
Net finance income or expense from \u00a0
insurance conracts issued \u00a0
-
-
-
-
-
-
-
-
-
-
Cash flows \u00a0
Premiums received \u00a0
1,752 \u00a0
-
-
-
1,752 \u00a0
1,560 \u00a0
-
-
-
1,560 \u00a0
Insurance acquisition\u00a0cash flows \u00a0
-
-
Incurred claims and other insurance \u00a0
service expenses paid \u00a0
-
-
-2,710 \u00a0
-
-2,710 \u00a0
-
-
-2,339 \u00a0
-
-2,339 \u00a0
Changes in amounts due from \u00a0
policyholders \u00a0
-
-
-3 \u00a0
-
-3 \u00a0
-
-
-
-
-
Total cash flows \u00a0
1,752 \u00a0
-
-2,713 \u00a0
-
-961 \u00a0
1,560 \u00a0
-
-2,339 \u00a0
-
-779 \u00a0
Other \u00a0
-
-5 \u00a0
121 \u00a0
-
116 \u00a0
-
-
-
-
-
Total as at 31 December \u00a0
64 \u00a0
1,550 \u00a0
13,659 \u00a0
811 \u00a0
16,084 \u00a0
62 \u00a0
1,196 \u00a0
13,094 \u00a0
1,072 \u00a0
15,424 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Danica Pension has changed an accounting policy in 2023 in relation to the recognition of deferred pensionreturns tax, which has resultedin an adjustment ofDKK11.4billion to Liabilities under \u00a0
insurance contracts in 2022. In the Group, this has been presented as an in-year adjustment to \u201cOther\u201d in 2023. See Annual Report 2023 for Danica Pension for more detail. \u00a0
The table below shows a maturity\u00a0analysis of the Group\u2019s insurance contracts, reflecting the timing of estimated present value of futur e cash flows. \u00a0
(e) Maturity analysis\u00a0of insurance contracts \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
1 year \u00a0
40,866 \u00a0
37,628 \u00a0
1-2 years \u00a0
35,284 \u00a0
32,124 \u00a0
2-3 years \u00a0
32,920 \u00a0
29,938 \u00a0
3-4 years \u00a0
30,546 \u00a0
27,796 \u00a0
4-5 years \u00a0
28,125 \u00a0
25,621 \u00a0
More than 5 years \u00a0
247,673 \u00a0
241,675 \u00a0
Total \u00a0
415,414 \u00a0
394,782 \u00a0
The Group implemented IFRS 17 on 1 January 2023. Refer to note G2 for details on the implementation. \u00a0
Danica Pension has changed an accounting policy in 2023 in relation to the recognition of deferred pensionreturns tax, whichhas resultedin an adjustment ofDKK11.4billion to Liabilities under \u00a0
insurance contracts in 2022. In the Group, this has been presented as an in-year adjustment to \u201cOther\u201d in 2023. See Annual Report 2023 for Danica Pension for more detail. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfClaimsAndBenefitsPaidExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4247": {
"value": "G8. Gain or loss on sale of disposal groups and Other income \u00a0
The Group uses quantitative\u00a0and qualitative\u00a0materiality considerations when\u00a0aggregating line items in the income statement that are not considered \u00a0
individually material.\u00a0Such line items are presented under Other income. Similarly,\u00a0the materiality\u00a0assessments includes presenting additional\u00a0line items \u00a0
in the income statement. Other income includes rental income and lease payments\u00a0under operating\u00a0leases (when the Group is a\u00a0lessor), fair value \u00a0
adjustments of\u00a0investment property,\u00a0income from\u00a0holdings in\u00a0associates, and amounts received on the sale of lease assets and income from real-estate \u00a0
brokerage. \u00a0
Accounting policy \u00a0
Income from lease assets and investment\u00a0property \u00a0
Income from lease assets and\u00a0investment property includes income from assets let under operating leases. Lease\u00a0payments are recognised on a \u00a0
straight line basis over the period of the lease term. The accounting\u00a0policy for lease assets is further described in note G24. \u00a0
Income from holdings in\u00a0associates \u00a0
Associates are\u00a0accounted for\u00a0using the equity method. Further information is provided in note G38. \u00a0
(a) Gain or loss on sale of disposal groups \u00a0
In 2023, gain or loss on sale of disposal groups includes\u00a0a loss of DKK 693 million\u00a0in relation\u00a0to the\u00a0expected loss and expected costs directly attributab\u00a0le \u00a0
to the sale of the personal customers business in Norway, as announced in\u00a0July 2023,\u00a0and a gain of DKK 104 million\u00a0on the sale of Danske\u00a0IT. In 2022, \u00a0
gain or loss on sale of disposal groups included gains of DKK 421 million from the sale of the Group\u2019s\u00a0activities in\u00a0Luxembou rg, gains\u00a0of DKK 415 millio\u00a0n \u00a0
from the sale of Danica Pensjonforsikring\u00a0AS (Danica Pension business segment in Norway), gains of DKK 415 million from the sale of\u00a0MobilePay and \u00a0
gains of DKK 170 million from the sale of Sanist\u00e5l A/S. \u00a0
(b) Other income\u00a0(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Income from lease assets and investment\u00a0property \u00a0
4,295 \u00a0
4,344 \u00a0
Income from real-estate brokerage \u00a0
82 \u00a0
83 \u00a0
Income from holdings in associates \u00a0
-110 \u00a0
9
Other income \u00a0
179 \u00a0
349 \u00a0
Total \u00a0
4,446 \u00a0
4,785 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Income from lease assets and investment property primarily\u00a0includes the proceeds from\u00a0the sale of operating\u00a0lease assets. The proceeds from the sale \u00a0
is disclosed in the reclassification table in\u00a0G3 in the column \u2018Operating leases\u00a0and impairment\u00a0charges\u2019. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4251": {
"value": "Income from lease assets and investment\u00a0property \u00a0
Income from lease assets and\u00a0investment property includes income from assets let under operating leases. Lease\u00a0payments are recognised on a \u00a0
straight line basis over the period of the lease term. The accounting\u00a0policy for lease assets is further described in note G24. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentPropertyExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4252": {
"value": "Income from holdings in\u00a0associates \u00a0
Associates are\u00a0accounted for\u00a0using the equity method. Further information is provided in note G38. \u00a0
Accounting policy \u00a0
Joint ventures and associates are entities other than group undertakings in which the Group has holdings and joint\u00a0control with one\u00a0or more parties\u00a0or \u00a0
significant but not controlling\u00a0influence, respectively. The Group generally classifies entities as\u00a0joint ventures/associates if Danske Bank A/S, directly or \u00a0
indirectly, holds 20-50% of the share capital and has influence over management and operating policy decisions. Holdings in joint ventures and associates \u00a0
are recognised at cost at the\u00a0date of acquisition and are subsequently measured according to the equity method. The proportionate share of the net profit or \u00a0
loss of the individual\u00a0entity is\u00a0included under Income from holdings in associates. The share is calculated on the basis of data from financial statements with \u00a0
balance sheet\u00a0dates no earlier than three months before the Group\u2019s balance sheet date. If objective evidence of impairment exists, the investment is \u00a0
recognised at the\u00a0lower of carrying amount and the present value of future cash flows. \u00a0
The proportionate share of the profit or loss on transactions between associates/joint ventures and group undertakings\u00a0is eliminated. \u00a0
Ownership shares held by the Group\u2019s insurance business are treated as held by a venture capital organisation and are measured at fair value. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4253": {
"value": "Income from holdings in\u00a0associates \u00a0
Associates are\u00a0accounted for\u00a0using the equity method. Further information is provided in note G38. \u00a0
Accounting policy \u00a0
Joint ventures and associates are entities other than group undertakings in which the Group has holdings and joint\u00a0control with one\u00a0or more parties\u00a0or \u00a0
significant but not controlling\u00a0influence, respectively. The Group generally classifies entities as\u00a0joint ventures/associates if Danske Bank A/S, directly or \u00a0
indirectly, holds 20-50% of the share capital and has influence over management and operating policy decisions. Holdings in joint ventures and associates \u00a0
are recognised at cost at the\u00a0date of acquisition and are subsequently measured according to the equity method. The proportionate share of the net profit or \u00a0
loss of the individual\u00a0entity is\u00a0included under Income from holdings in associates. The share is calculated on the basis of data from financial statements with \u00a0
balance sheet\u00a0dates no earlier than three months before the Group\u2019s balance sheet date. If objective evidence of impairment exists, the investment is \u00a0
recognised at the\u00a0lower of carrying amount and the present value of future cash flows. \u00a0
The proportionate share of the profit or loss on transactions between associates/joint ventures and group undertakings\u00a0is eliminated. \u00a0
Ownership shares held by the Group\u2019s insurance business are treated as held by a venture capital organisation and are measured at fair value. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4254": {
"value": "(a) Gain or loss on sale of disposal groups \u00a0
In 2023, gain or loss on sale of disposal groups includes\u00a0a loss of DKK 693 million\u00a0in relation\u00a0to the\u00a0expected loss and expected costs directly attributab\u00a0le \u00a0
to the sale of the personal customers business in Norway, as announced in\u00a0July 2023,\u00a0and a gain of DKK 104 million\u00a0on the sale of Danske\u00a0IT. In 2022, \u00a0
gain or loss on sale of disposal groups included gains of DKK 421 million from the sale of the Group\u2019s\u00a0activities in\u00a0Luxembou rg, gains\u00a0of DKK 415 millio\u00a0n \u00a0
from the sale of Danica Pensjonforsikring\u00a0AS (Danica Pension business segment in Norway), gains of DKK 415 million from the sale of\u00a0MobilePay and \u00a0
gains of DKK 170 million from the sale of Sanist\u00e5l A/S. \u00a0
G23. Assets held for sale and Liabilities in disposal groups \u00a0
Assets held for sale and Liabilities\u00a0in disposal groups held for sale includes\u00a0assets and\u00a0liabilities that\u00a0fall under IFRS 5. \u00a0
Accounting policy \u00a0
Assets held for sale and Liabilities\u00a0in disposal groups \u00a0
Assets held\u00a0for sale are disposal groups of assets actively\u00a0marketed for\u00a0sale and for\u00a0which a sale is expected to occur withi\u00a0n 12 months. A disposal \u00a0
group is a group of assets that will be disposed of in a single transaction\u00a0and includes\u00a0any directly\u00a0associated liabilities.\u00a0A disposal group in\u00a0cludes for \u00a0
example companies (subsidiaries) or\u00a0properties taken\u00a0over under non-performing loan agreements. Further, loans that are marketed for sale are \u00a0
transferred to Assets held for sale. The loans\u00a0are written\u00a0down to their\u00a0expected selling\u00a0price. \u00a0
The net assets in the disposal group are remeasured at the lower of the carrying amount of the net assets in the disposal group at the time of \u00a0
reclassification and fair value less expected cost to sell. \u00a0
If a disposal group of assets and liabilities\u00a0represents a separate\u00a0major line of business (typically\u00a0a reportable\u00a0segment) o\u00a0r a geographical area of \u00a0
operation or\u00a0is a subsidiary\u00a0acquired exclusively with a\u00a0view of resale, it is presented as a discontinued\u00a0operation. For a discontinued\u00a0operation, net \u00a0
profit is presented as a single item \u2018Net profit from discontinued\u00a0operations\u2019 in\u00a0the income statement, i.e. no longer includ\u00a0ed as\u00a0income and expenses \u00a0
from the Group\u2019s\u00a0continuing operations. \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Assets held for sale \u00a0
Loans held for sale \u00a0
110,415 \u00a0
-
Other \u00a0
289 \u00a0
350 \u00a0
Total \u00a0
110,704 \u00a0
350 \u00a0
Liabilities in disposal\u00a0groups \u00a0
Deposits held for sale \u00a0
30,599 \u00a0
-
Issued bonds at amortised cost \u00a0
25,877 \u00a0
-
Total \u00a0
56,476 \u00a0
-
Loans held for sale and associated\u00a0deposits consists of\u00a0loan portfolios\u00a0where the Group\u00a0has entered\u00a0into sales agreements.\u00a0As announced in July 2023, \u00a0
Danske Bank has entered into an agreement to sell its personal customers business Norway. The sale will include loans, deposits and issued bonds at \u00a0
amortised cost. On reclassification\u00a0to held for sale, a loss of DKK 0.7 billion\u00a0was recognised in relation\u00a0to the expected loss and the expected costs directly \u00a0
attributable to\u00a0the sale, and is included in Gain or loss on sale of disposal groups. \u00a0
In June\u00a02023, Danske\u00a0Bank also announced\u00a0that it would sell Danske IT, a fully-owned subsidiary of Danske\u00a0Bank, to Infosys. The sale, which include\u00a0d \u00a0
approximately DKK 0.3\u00a0billion of assets\u00a0and DKK 0.2\u00a0billion of\u00a0liabilities, settled\u00a0in the third quarter of 2023. \u00a0
Assets held\u00a0for sale also includes\u00a0lease assets (where the\u00a0Group acts as lessor) put up for sale at the end of the lease and\u00a0properties taken over by the \u00a0
Group under non-performing loan agreements. The Group expects to sell the properties through a real es\u00a0tate agent within 12 months from\u00a0the date of \u00a0
acquisition. The\u00a0properties comprise properties in Denmark and in other countries. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4255": {
"value": "(b) Other income\u00a0(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Income from lease assets and investment\u00a0property \u00a0
4,295 \u00a0
4,344 \u00a0
Income from real-estate brokerage \u00a0
82 \u00a0
83 \u00a0
Income from holdings in associates \u00a0
-110 \u00a0
9
Other income \u00a0
179 \u00a0
349 \u00a0
Total \u00a0
4,446 \u00a0
4,785 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Income from lease assets and investment property primarily\u00a0includes the proceeds from\u00a0the sale of operating\u00a0lease assets. The proceeds from the sale \u00a0
is disclosed in the reclassification table in\u00a0G3 in the column \u2018Operating leases\u00a0and impairment\u00a0charges\u2019. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4256": {
"value": "G9. Operating expenses \u00a0
Operating expenses include staff\u00a0costs, administrative\u00a0expenses (including Resolution fund) and\u00a0depreciation, amortisation\u00a0and impairment\u00a0charges. \u00a0
Note G19 provides\u00a0more information on intangible assets. \u00a0
Accounting policy \u00a0
Staff costs \u00a0
This item includes salaries, performance-based pay, expenses for share-based payments, holiday allowances, anniversary\u00a0bonuses, pension costs\u00a0and \u00a0
other remuneration. Salaries and other remuneration that\u00a0the Group expects to pay are expensed when the employees render the services. \u00a0
Performance-based remuneration\u00a0is expensed\u00a0as it is earned. \u00a0
Share-based payment \u00a0
Part of the performance-based remuneration\u00a0for the year is paid in the form of conditional\u00a0shares. Rights to conditional\u00a0shares vest up to four years \u00a0
after the grant date, provided that the employee, with the exception of retirement, has not resigned from the Group. In addition to this requirement, the \u00a0
vesting of rights is conditional\u00a0on certain targets being met. The fair value of share-based payments\u00a0at the\u00a0grant date\u00a0is expensed over the vesting period \u00a0
with the intrinsic\u00a0value expensed in the year in which the share-based payments are earned, and the time value\u00a0(if any) accrued over the remaining \u00a0
service period. Expenses are set off against shareholders\u2019 equity. Fair\u00a0value adjustments after\u00a0the grant\u00a0date are not recognised in the income \u00a0
statement. \u00a0
Pension obligations \u00a0
The Group\u2019s contributions to\u00a0defined contribution\u00a0pension plans are recognised in the income statement as they are earned by\u00a0the employees. For \u00a0
defined benefit pension plans, the Group expenses the standard cost.\u00a0Actuarial gains or losses as a result of the difference between expected trends in \u00a0
pension assets\u00a0and benefits\u00a0and actual\u00a0trends are recognised under Other comprehensive\u00a0income. \u00a0
Amortisation, depreciation and\u00a0impairment charges \u00a0
In addition to amortisation,\u00a0depreciation and\u00a0impairment charges for intangible, tangible and right-of-use assets,\u00a0the Group expenses the carrying \u00a0
amount of\u00a0lease assets sold at the expiry of a lease agreement. \u00a0
(a) Staff costs, administrative\u00a0expenses, depreciations\u00a0and impairment charges (DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Staff costs \u00a0
15,729 \u00a0
15,085 \u00a0
Administrative expenses \u00a0
8,156 \u00a0
9,738 \u00a0
Amortisation/depreciation and impairment charges of intangible, tangible and right-of-use assets excluding goodwill \u00a0
impairment charges \u00a0
5,023 \u00a0
5,429 \u00a0
Total \u00a0
28,908 \u00a0
30,252 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
No impairment charges on goodwill were recognised during 2023 (2022: DKK 1,627 million). An impairment loss of DKK 26 million was recognised in \u00a0
2023 on software development costs (2022: DKK 41\u00a0million) and\u00a0is included in the table above. See note G19 for further information. \u00a0
Staff costs* \u00a0
2023 \u00a0
2022** \u00a0
Salaries \u00a0
11,931 \u00a0
11,482 \u00a0
Share-based payments \u00a0
172 \u00a0
57 \u00a0
Pension, defined contribution\u00a0plans \u00a0
1,403 \u00a0
1,361 \u00a0
Pension, defined benefit plans \u00a0
10 \u00a0
66 \u00a0
Severance payments \u00a0
378 \u00a0
321 \u00a0
Financial services employer tax and social security costs \u00a0
1,837 \u00a0
1,798 \u00a0
Total \u00a0
15,729 \u00a0
15,085 \u00a0
*Staff costs does not include staff costs directly attributable to insurance contracts. These are included within Insurance service expenses. See note G 7. \u00a0
** Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Total salary costs amounted to DKK 13.9 billion (2022: DKK 13.3. billion), with variable remuneration accounting for\u00a08.5% of this amount (2022: 5.4%). \u00a0
Note G35 provides\u00a0more information on share-based payments. \u00a0
G9. Operating expenses\u00a0continued \u00a0
(b) Pension plans \u00a0
Most of the Group\u2019s pension plans are defined contribution plans under which the Group pays contributions\u00a0to insurance companies, including Danica Pension. \u00a0
Such payments\u00a0are expensed regularly. The Group has, to a minor extent, entered into defined benefit pension plans. Under defined benefit pension plans, the \u00a0
Group is under an obligation to pay defined future benefits from the time of retirement. Defined benefit\u00a0pension plans are typically funded\u00a0by ordinary \u00a0
contributions made by employers and employees to separate pension funds investing the contributions on behalf of the members to fund future pension \u00a0
obligations. Defined benefit pension plans in Northern Ireland and Ireland account\u00a0for most\u00a0of the Group\u2019s obligations under such\u00a0plans, but the Group also \u00a0
has a small number of defined benefit pension plans in Denmark and Sweden. The plans in these countries do not accept new members and, for most of the \u00a0
plans, contributions payable by existing members have been discontinued. \u00a0
At 31 December 2023, the net present value of pension obligations was DKK 11,880 million (2022: DKK 11,260 million), and the fair value of plan assets \u00a0
was DKK 12,385 million (2022: DKK 12,380 million). The present value of obligations under defined benefit pension plans less the fair value of pension assets \u00a0
is recognised for each plan under Other assets and Other liabilities.\u00a0Pension plan net assets amounted to DKK 806 million (2022: DKK 1,486 million) and \u00a0
pension plan net liabilities amounted to DKK 301 million (2022: DKK 366 million). \u00a0
The Group recognises\u00a0the service cost and interest on the net defined benefit pension asset/liability\u00a0in the income statement, whereas actuarial gains or \u00a0
losses are recognised under Other comprehensive income. \u00a0
During 2023,\u00a0a bulk annuity-buy-in policy covering deferred pension liabilities\u00a0of DKK 2.5 billion was purchased in relation to the defined benefit plan in \u00a0
Northern Ireland. This led to a loss on plan assets of DKK\u00a00.8 billion, which is recognised in Other comprehensive income, as the liabilities\u00a0under IFRS were \u00a0
lower than the premium paid. \u00a0
The calculation of the net obligation is based on valuations\u00a0made by external actuaries. These valuations\u00a0rely on assumptions about a number of variables, \u00a0
including discount and mortality rates and salary increases. The measurement of the net obligation\u00a0is particularly sensitive\u00a0to changes\u00a0in the\u00a0discount rate. \u00a0
The discount rate is determined by reference to yields on high-quality corporate bonds with terms matching the terms of the pension obligations. If the dis\u00a0c ount \u00a0
rate was lowered half a percentage point, the gross pension obligation\u00a0would increase DKK\u00a00.8 billion (2022: DKK 0.8 billion). The amount would be \u00a0
recognised under Other comprehensive income. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4257": {
"value": "G9. Operating expenses \u00a0
Operating expenses include staff\u00a0costs, administrative\u00a0expenses (including Resolution fund) and\u00a0depreciation, amortisation\u00a0and impairment\u00a0charges. \u00a0
Note G19 provides\u00a0more information on intangible assets. \u00a0
Accounting policy \u00a0
Staff costs \u00a0
This item includes salaries, performance-based pay, expenses for share-based payments, holiday allowances, anniversary\u00a0bonuses, pension costs\u00a0and \u00a0
other remuneration. Salaries and other remuneration that\u00a0the Group expects to pay are expensed when the employees render the services. \u00a0
Performance-based remuneration\u00a0is expensed\u00a0as it is earned. \u00a0
Share-based payment \u00a0
Part of the performance-based remuneration\u00a0for the year is paid in the form of conditional\u00a0shares. Rights to conditional\u00a0shares vest up to four years \u00a0
after the grant date, provided that the employee, with the exception of retirement, has not resigned from the Group. In addition to this requirement, the \u00a0
vesting of rights is conditional\u00a0on certain targets being met. The fair value of share-based payments\u00a0at the\u00a0grant date\u00a0is expensed over the vesting period \u00a0
with the intrinsic\u00a0value expensed in the year in which the share-based payments are earned, and the time value\u00a0(if any) accrued over the remaining \u00a0
service period. Expenses are set off against shareholders\u2019 equity. Fair\u00a0value adjustments after\u00a0the grant\u00a0date are not recognised in the income \u00a0
statement. \u00a0
Pension obligations \u00a0
The Group\u2019s contributions to\u00a0defined contribution\u00a0pension plans are recognised in the income statement as they are earned by\u00a0the employees. For \u00a0
defined benefit pension plans, the Group expenses the standard cost.\u00a0Actuarial gains or losses as a result of the difference between expected trends in \u00a0
pension assets\u00a0and benefits\u00a0and actual\u00a0trends are recognised under Other comprehensive\u00a0income. \u00a0
Amortisation, depreciation and\u00a0impairment charges \u00a0
In addition to amortisation,\u00a0depreciation and\u00a0impairment charges for intangible, tangible and right-of-use assets,\u00a0the Group expenses the carrying \u00a0
amount of\u00a0lease assets sold at the expiry of a lease agreement. \u00a0
(a) Staff costs, administrative\u00a0expenses, depreciations\u00a0and impairment charges (DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Staff costs \u00a0
15,729 \u00a0
15,085 \u00a0
Administrative expenses \u00a0
8,156 \u00a0
9,738 \u00a0
Amortisation/depreciation and impairment charges of intangible, tangible and right-of-use assets excluding goodwill \u00a0
impairment charges \u00a0
5,023 \u00a0
5,429 \u00a0
Total \u00a0
28,908 \u00a0
30,252 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
No impairment charges on goodwill were recognised during 2023 (2022: DKK 1,627 million). An impairment loss of DKK 26 million was recognised in \u00a0
2023 on software development costs (2022: DKK 41\u00a0million) and\u00a0is included in the table above. See note G19 for further information. \u00a0
Staff costs* \u00a0
2023 \u00a0
2022** \u00a0
Salaries \u00a0
11,931 \u00a0
11,482 \u00a0
Share-based payments \u00a0
172 \u00a0
57 \u00a0
Pension, defined contribution\u00a0plans \u00a0
1,403 \u00a0
1,361 \u00a0
Pension, defined benefit plans \u00a0
10 \u00a0
66 \u00a0
Severance payments \u00a0
378 \u00a0
321 \u00a0
Financial services employer tax and social security costs \u00a0
1,837 \u00a0
1,798 \u00a0
Total \u00a0
15,729 \u00a0
15,085 \u00a0
*Staff costs does not include staff costs directly attributable to insurance contracts. These are included within Insurance service expenses. See note G 7. \u00a0
** Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Total salary costs amounted to DKK 13.9 billion (2022: DKK 13.3. billion), with variable remuneration accounting for\u00a08.5% of this amount (2022: 5.4%). \u00a0
Note G35 provides\u00a0more information on share-based payments. \u00a0
G9. Operating expenses\u00a0continued \u00a0
(b) Pension plans \u00a0
Most of the Group\u2019s pension plans are defined contribution plans under which the Group pays contributions\u00a0to insurance companies, including Danica Pension. \u00a0
Such payments\u00a0are expensed regularly. The Group has, to a minor extent, entered into defined benefit pension plans. Under defined benefit pension plans, the \u00a0
Group is under an obligation to pay defined future benefits from the time of retirement. Defined benefit\u00a0pension plans are typically funded\u00a0by ordinary \u00a0
contributions made by employers and employees to separate pension funds investing the contributions on behalf of the members to fund future pension \u00a0
obligations. Defined benefit pension plans in Northern Ireland and Ireland account\u00a0for most\u00a0of the Group\u2019s obligations under such\u00a0plans, but the Group also \u00a0
has a small number of defined benefit pension plans in Denmark and Sweden. The plans in these countries do not accept new members and, for most of the \u00a0
plans, contributions payable by existing members have been discontinued. \u00a0
At 31 December 2023, the net present value of pension obligations was DKK 11,880 million (2022: DKK 11,260 million), and the fair value of plan assets \u00a0
was DKK 12,385 million (2022: DKK 12,380 million). The present value of obligations under defined benefit pension plans less the fair value of pension assets \u00a0
is recognised for each plan under Other assets and Other liabilities.\u00a0Pension plan net assets amounted to DKK 806 million (2022: DKK 1,486 million) and \u00a0
pension plan net liabilities amounted to DKK 301 million (2022: DKK 366 million). \u00a0
The Group recognises\u00a0the service cost and interest on the net defined benefit pension asset/liability\u00a0in the income statement, whereas actuarial gains or \u00a0
losses are recognised under Other comprehensive income. \u00a0
During 2023,\u00a0a bulk annuity-buy-in policy covering deferred pension liabilities\u00a0of DKK 2.5 billion was purchased in relation to the defined benefit plan in \u00a0
Northern Ireland. This led to a loss on plan assets of DKK\u00a00.8 billion, which is recognised in Other comprehensive income, as the liabilities\u00a0under IFRS were \u00a0
lower than the premium paid. \u00a0
The calculation of the net obligation is based on valuations\u00a0made by external actuaries. These valuations\u00a0rely on assumptions about a number of variables, \u00a0
including discount and mortality rates and salary increases. The measurement of the net obligation\u00a0is particularly sensitive\u00a0to changes\u00a0in the\u00a0discount rate. \u00a0
The discount rate is determined by reference to yields on high-quality corporate bonds with terms matching the terms of the pension obligations. If the dis\u00a0c ount \u00a0
rate was lowered half a percentage point, the gross pension obligation\u00a0would increase DKK\u00a00.8 billion (2022: DKK 0.8 billion). The amount would be \u00a0
recognised under Other comprehensive income. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4259": {
"value": "Accounting policy \u00a0
Staff costs \u00a0
This item includes salaries, performance-based pay, expenses for share-based payments, holiday allowances, anniversary\u00a0bonuses, pension costs\u00a0and \u00a0
other remuneration. Salaries and other remuneration that\u00a0the Group expects to pay are expensed when the employees render the services. \u00a0
Performance-based remuneration\u00a0is expensed\u00a0as it is earned. \u00a0
Share-based payment \u00a0
Part of the performance-based remuneration\u00a0for the year is paid in the form of conditional\u00a0shares. Rights to conditional\u00a0shares vest up to four years \u00a0
after the grant date, provided that the employee, with the exception of retirement, has not resigned from the Group. In addition to this requirement, the \u00a0
vesting of rights is conditional\u00a0on certain targets being met. The fair value of share-based payments\u00a0at the\u00a0grant date\u00a0is expensed over the vesting period \u00a0
with the intrinsic\u00a0value expensed in the year in which the share-based payments are earned, and the time value\u00a0(if any) accrued over the remaining \u00a0
service period. Expenses are set off against shareholders\u2019 equity. Fair\u00a0value adjustments after\u00a0the grant\u00a0date are not recognised in the income \u00a0
statement. \u00a0
Pension obligations \u00a0
The Group\u2019s contributions to\u00a0defined contribution\u00a0pension plans are recognised in the income statement as they are earned by\u00a0the employees. For \u00a0
defined benefit pension plans, the Group expenses the standard cost.\u00a0Actuarial gains or losses as a result of the difference between expected trends in \u00a0
pension assets\u00a0and benefits\u00a0and actual\u00a0trends are recognised under Other comprehensive\u00a0income. \u00a0
Amortisation, depreciation and\u00a0impairment charges \u00a0
In addition to amortisation,\u00a0depreciation and\u00a0impairment charges for intangible, tangible and right-of-use assets,\u00a0the Group expenses the carrying \u00a0
amount of\u00a0lease assets sold at the expiry of a lease agreement. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4261": {
"value": "Staff costs \u00a0
This item includes salaries, performance-based pay, expenses for share-based payments, holiday allowances, anniversary\u00a0bonuses, pension costs\u00a0and \u00a0
other remuneration. Salaries and other remuneration that\u00a0the Group expects to pay are expensed when the employees render the services. \u00a0
Performance-based remuneration\u00a0is expensed\u00a0as it is earned. \u00a0
Pension obligations \u00a0
The Group\u2019s contributions to\u00a0defined contribution\u00a0pension plans are recognised in the income statement as they are earned by\u00a0the employees. For \u00a0
defined benefit pension plans, the Group expenses the standard cost.\u00a0Actuarial gains or losses as a result of the difference between expected trends in \u00a0
pension assets\u00a0and benefits\u00a0and actual\u00a0trends are recognised under Other comprehensive\u00a0income. \u00a0
Accounting policy \u00a0
Defined benefit\u00a0pension plans \u00a0
When the Group has entered into defined benefit pension plans, the amounts payable are recognised on the basis of an actuarial computation\u00a0of the \u00a0
present value of expected benefits. The present value is calculated on the basis of expected future trends in salaries and interest rates, the time of \u00a0
retirement, mortality rates\u00a0and other factors. The present value of pension benefits less the fair value of pension assets is recognised as a pension \u00a0
obligation for\u00a0each plan under Other liabilities.\u00a0If the net amount of a defined benefit pension plan is positive\u00a0and may be repaid to the Group or reduce \u00a0
its future contributions\u00a0to the plan, the net amount is recognised under Other assets. The discount rate is determined by reference to yields on high- \u00a0
quality corporate bonds with terms matching the terms of\u00a0the pension obligations. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4262": {
"value": "Share-based payment \u00a0
Part of the performance-based remuneration\u00a0for the year is paid in the form of conditional\u00a0shares. Rights to conditional\u00a0shares vest up to four years \u00a0
after the grant date, provided that the employee, with the exception of retirement, has not resigned from the Group. In addition to this requirement, the \u00a0
vesting of rights is conditional\u00a0on certain targets being met. The fair value of share-based payments\u00a0at the\u00a0grant date\u00a0is expensed over the vesting period \u00a0
with the intrinsic\u00a0value expensed in the year in which the share-based payments are earned, and the time value\u00a0(if any) accrued over the remaining \u00a0
service period. Expenses are set off against shareholders\u2019 equity. Fair\u00a0value adjustments after\u00a0the grant\u00a0date are not recognised in the income \u00a0
statement. \u00a0
Share-based payments \u00a0
Share-based payments\u00a0by the Group are settled in Danske Bank shares. The fair value at the grant date is expensed over the vesting period and set off \u00a0
against equity.\u00a0At the time of exercise, payments\u00a0by employees\u00a0are recognised as an increase in equity.\u00a0As with other purchases of Danske Bank shares, \u00a0
shares acquired for hedging\u00a0purposes reduce equity by\u00a0the amount paid. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4264": {
"value": "Amortisation, depreciation and\u00a0impairment charges \u00a0
In addition to amortisation,\u00a0depreciation and\u00a0impairment charges for intangible, tangible and right-of-use assets,\u00a0the Group expenses the carrying \u00a0
amount of\u00a0lease assets sold at the expiry of a lease agreement. \u00a0
Tangible assets \u00a0
Tangible assets include domicile property and plant and equipment.\u00a0Plant and equipment\u00a0cover equipment,\u00a0vehicles, furniture, fixtures and\u00a0leasehold \u00a0
improvements. Tangible assets\u00a0also include lease assets, i.e. assets let under operating leases, except real property. Lease assets includes cars, lorries \u00a0
and equipement.\u00a0Tangible assets\u00a0are measured\u00a0at cost and depreciated\u00a0over the estimated useful\u00a0life. The estimated useful life is 20-50 years for \u00a0
domicile property, 3-10 years for plant and equipment and three years for\u00a0lease assets. Depreciation\u00a0charges are recognised under Operating expenses. \u00a0
Tangible assets are\u00a0tested for\u00a0impairment if indications of impairment exist. An impaired asset is written down to its recoverable amount, which is\u00a0the \u00a0
higher of its fair value less costs to sell and its value in use. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4265": {
"value": "(a) Staff costs, administrative\u00a0expenses, depreciations\u00a0and impairment charges (DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Staff costs \u00a0
15,729 \u00a0
15,085 \u00a0
Administrative expenses \u00a0
8,156 \u00a0
9,738 \u00a0
Amortisation/depreciation and impairment charges of intangible, tangible and right-of-use assets excluding goodwill \u00a0
impairment charges \u00a0
5,023 \u00a0
5,429 \u00a0
Total \u00a0
28,908 \u00a0
30,252 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
No impairment charges on goodwill were recognised during 2023 (2022: DKK 1,627 million). An impairment loss of DKK 26 million was recognised in \u00a0
2023 on software development costs (2022: DKK 41\u00a0million) and\u00a0is included in the table above. See note G19 for further information. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4266": {
"value": "(a) Staff costs, administrative\u00a0expenses, depreciations\u00a0and impairment charges (DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Staff costs \u00a0
15,729 \u00a0
15,085 \u00a0
Administrative expenses \u00a0
8,156 \u00a0
9,738 \u00a0
Amortisation/depreciation and impairment charges of intangible, tangible and right-of-use assets excluding goodwill \u00a0
impairment charges \u00a0
5,023 \u00a0
5,429 \u00a0
Total \u00a0
28,908 \u00a0
30,252 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
No impairment charges on goodwill were recognised during 2023 (2022: DKK 1,627 million). An impairment loss of DKK 26 million was recognised in \u00a0
2023 on software development costs (2022: DKK 41\u00a0million) and\u00a0is included in the table above. See note G19 for further information. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4267": {
"value": "(a) Staff costs, administrative\u00a0expenses, depreciations\u00a0and impairment charges (DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Staff costs \u00a0
15,729 \u00a0
15,085 \u00a0
Administrative expenses \u00a0
8,156 \u00a0
9,738 \u00a0
Amortisation/depreciation and impairment charges of intangible, tangible and right-of-use assets excluding goodwill \u00a0
impairment charges \u00a0
5,023 \u00a0
5,429 \u00a0
Total \u00a0
28,908 \u00a0
30,252 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
No impairment charges on goodwill were recognised during 2023 (2022: DKK 1,627 million). An impairment loss of DKK 26 million was recognised in \u00a0
2023 on software development costs (2022: DKK 41\u00a0million) and\u00a0is included in the table above. See note G19 for further information. \u00a0
In 2023, the Group\u00a0recognised software development costs of DKK 1,546 million as an\u00a0asset (2022: DKK\u00a01,529 million)\u00a0and expensed\u00a0DKK 2,531 \u00a0
million (2022:\u00a0DKK 2,563 million). An impairment loss of DKK 26 million was recognised in 2023 on software development costs (2022: DKK 41 million)\u00a0. \u00a0
(b) Further explanation of impairment testing of goodwill \u00a0
The Group\u2019s goodwill is tested for\u00a0impairment at least once\u00a0a year by testing\u00a0at the\u00a0level of\u00a0identifiable cash-generating units to\u00a0which goodwill has been \u00a0
allocated. Further, if goodwill in a cash-generating unit is fully impaired,\u00a0a further\u00a0impairment loss\u00a0is recognised as an impairment\u00a0loss on intangible\u00a0or \u00a0
tangible assets, if\u00a0any. \u00a0
The impairment tests\u00a0conducted in\u00a02023 resulted in no impairment charges on goodwill. In 2022, impairment charges of DKK 1.6 billion was, due to \u00a0
increasing discount\u00a0rates and lower financial outlook, recognised to the goodwill in Danica Pension amounting\u00a0to DKK\u00a01.6 billion. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4268": {
"value": "Staff costs* \u00a0
2023 \u00a0
2022** \u00a0
Salaries \u00a0
11,931 \u00a0
11,482 \u00a0
Share-based payments \u00a0
172 \u00a0
57 \u00a0
Pension, defined contribution\u00a0plans \u00a0
1,403 \u00a0
1,361 \u00a0
Pension, defined benefit plans \u00a0
10 \u00a0
66 \u00a0
Severance payments \u00a0
378 \u00a0
321 \u00a0
Financial services employer tax and social security costs \u00a0
1,837 \u00a0
1,798 \u00a0
Total \u00a0
15,729 \u00a0
15,085 \u00a0
*Staff costs does not include staff costs directly attributable to insurance contracts. These are included within Insurance service expenses. See note G 7. \u00a0
** Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Total salary costs amounted to DKK 13.9 billion (2022: DKK 13.3. billion), with variable remuneration accounting for\u00a08.5% of this amount (2022: 5.4%). \u00a0
Note G35 provides\u00a0more information on share-based payments. \u00a0
G9. Operating expenses\u00a0continued \u00a0
(b) Pension plans \u00a0
Most of the Group\u2019s pension plans are defined contribution plans under which the Group pays contributions\u00a0to insurance companies, including Danica Pension. \u00a0
Such payments\u00a0are expensed regularly. The Group has, to a minor extent, entered into defined benefit pension plans. Under defined benefit pension plans, the \u00a0
Group is under an obligation to pay defined future benefits from the time of retirement. Defined benefit\u00a0pension plans are typically funded\u00a0by ordinary \u00a0
contributions made by employers and employees to separate pension funds investing the contributions on behalf of the members to fund future pension \u00a0
obligations. Defined benefit pension plans in Northern Ireland and Ireland account\u00a0for most\u00a0of the Group\u2019s obligations under such\u00a0plans, but the Group also \u00a0
has a small number of defined benefit pension plans in Denmark and Sweden. The plans in these countries do not accept new members and, for most of the \u00a0
plans, contributions payable by existing members have been discontinued. \u00a0
At 31 December 2023, the net present value of pension obligations was DKK 11,880 million (2022: DKK 11,260 million), and the fair value of plan assets \u00a0
was DKK 12,385 million (2022: DKK 12,380 million). The present value of obligations under defined benefit pension plans less the fair value of pension assets \u00a0
is recognised for each plan under Other assets and Other liabilities.\u00a0Pension plan net assets amounted to DKK 806 million (2022: DKK 1,486 million) and \u00a0
pension plan net liabilities amounted to DKK 301 million (2022: DKK 366 million). \u00a0
The Group recognises\u00a0the service cost and interest on the net defined benefit pension asset/liability\u00a0in the income statement, whereas actuarial gains or \u00a0
losses are recognised under Other comprehensive income. \u00a0
During 2023,\u00a0a bulk annuity-buy-in policy covering deferred pension liabilities\u00a0of DKK 2.5 billion was purchased in relation to the defined benefit plan in \u00a0
Northern Ireland. This led to a loss on plan assets of DKK\u00a00.8 billion, which is recognised in Other comprehensive income, as the liabilities\u00a0under IFRS were \u00a0
lower than the premium paid. \u00a0
The calculation of the net obligation is based on valuations\u00a0made by external actuaries. These valuations\u00a0rely on assumptions about a number of variables, \u00a0
including discount and mortality rates and salary increases. The measurement of the net obligation\u00a0is particularly sensitive\u00a0to changes\u00a0in the\u00a0discount rate. \u00a0
The discount rate is determined by reference to yields on high-quality corporate bonds with terms matching the terms of the pension obligations. If the dis\u00a0c ount \u00a0
rate was lowered half a percentage point, the gross pension obligation\u00a0would increase DKK\u00a00.8 billion (2022: DKK 0.8 billion). The amount would be \u00a0
recognised under Other comprehensive income. \u00a0
G24. Other assets and Other liabilities continued \u00a0
(a) Other assets\u00a0and other liabilities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Other assets \u00a0
Accrued interest and commissions due \u00a0
7,264 \u00a0
2,256 \u00a0
Prepayments, accruals and other amounts due \u00a0
10,811 \u00a0
17,048 \u00a0
Defined benefit\u00a0pension plan, net assets \u00a0
806 \u00a0
1,486 \u00a0
Investment property \u00a0
157 \u00a0
146 \u00a0
Tangible assets \u00a0
7,418 \u00a0
7,586 \u00a0
Right of use lease assets \u00a0
4,010 \u00a0
2,615 \u00a0
Holdings in associates \u00a0
612 \u00a0
536 \u00a0
Total \u00a0
31,079 \u00a0
31,673 \u00a0
Other liabilities \u00a0
Sundry creditors \u00a0
33,005 \u00a0
35,823 \u00a0
Estonia settlement \u00a0
-
15,300 \u00a0
Accrued interest and commissions due \u00a0
12,902 \u00a0
7,634 \u00a0
Defined benefit\u00a0pension plans, net liabilities \u00a0
301 \u00a0
366 \u00a0
Other staff commitments \u00a0
1,175 \u00a0
1,804 \u00a0
Lease liabilities \u00a0
4,102 \u00a0
2,743 \u00a0
Loan commitments\u00a0and guarantees etc. \u00a0
3,161 \u00a0
2,627 \u00a0
Reserves subject to a reimbursement obligation \u00a0
2
4
Provisions, including litigations \u00a0
2,398 \u00a0
2,676 \u00a0
Total \u00a0
57,046 \u00a0
68,978 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4269": {
"value": "Staff costs* \u00a0
2023 \u00a0
2022** \u00a0
Salaries \u00a0
11,931 \u00a0
11,482 \u00a0
Share-based payments \u00a0
172 \u00a0
57 \u00a0
Pension, defined contribution\u00a0plans \u00a0
1,403 \u00a0
1,361 \u00a0
Pension, defined benefit plans \u00a0
10 \u00a0
66 \u00a0
Severance payments \u00a0
378 \u00a0
321 \u00a0
Financial services employer tax and social security costs \u00a0
1,837 \u00a0
1,798 \u00a0
Total \u00a0
15,729 \u00a0
15,085 \u00a0
*Staff costs does not include staff costs directly attributable to insurance contracts. These are included within Insurance service expenses. See note G 7. \u00a0
** Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Total salary costs amounted to DKK 13.9 billion (2022: DKK 13.3. billion), with variable remuneration accounting for\u00a08.5% of this amount (2022: 5.4%). \u00a0
Note G35 provides\u00a0more information on share-based payments. \u00a0
(d) Share-based\u00a0payment \u00a0
The total expense recognised as Operating\u00a0expenses in 2023 arising from share-based payments\u00a0was DKK 172 million (2022: DKK 57 million). All \u00a0
share-based payments\u00a0are equity-settled.\u00a0The exact number of shares granted for 2023\u00a0will be determined\u00a0at the end of March, 2024. \u00a0
The Group has granted rights to conditional\u00a0shares under the bonus structure\u00a0for material\u00a0risk takers and other employees\u00a0as part of their variable \u00a0
remuneration. Such\u00a0employees have a\u00a0performance agreement based on the performance of the Group, the busines\u00a0s unit\u00a0and the individual\u00a0employee. \u00a0
Part of the Danske\u00a0Bank shares granted to material risk takers\u00a0are deferred, as required by the EBA (see section (c) above on variable\u00a0payment). The fair \u00a0
value at\u00a0the grant date is measured at the monetary value of the underlying\u00a0performance agreement. \u00a0
The variable remuneration\u00a0of the Executive\u00a0Leadership Team is\u00a0provided as part of a short-term\u00a0incentive- and\u00a0a long-term\u00a0incentive programme. \u00a0
The short-term incentive programme is structured similarly\u00a0to that of other material\u00a0risk takers, as described above. However,\u00a0the righ ts\u00a0to Danske Bank \u00a0
shares are deferred for five years, followed by a one year retention period before shares are available\u00a0to trade. \u00a0
The long-term incentive programme is\u00a0based on total shareholder return performance relative\u00a0to peers over\u00a0a three -year\u00a0performance period. In 2023, \u00a0
there were three long-term incentive\u00a0programmes running.. The programmes running during 2023 were the 2021\u00a0-2023, the 2022-2024 and the 2023- \u00a0
2025. After the vesting period of\u00a0three years, part of the shares will be paid out. The remaining shares are deferred for fiv\u00a0e years from the grant date \u00a0
followed by a one year retention period before shares are available\u00a0to trade. \u00a0
The remuneration\u00a0is subject\u00a0to backtesting and claw back. \u00a0
The fair value of the long-term incentive\u00a0programmes at the grant date was DKK 6.1 million for the 2023\u00a0-2025 programme and DKK 5.6 million for\u00a0the \u00a0
2022-2024 programme. The fair\u00a0value of\u00a0the shares is calculated at\u00a0the grant date and is based on relevant as\u00a0sumptions, which\u00a0relate to volatility \u00a0
relative to peers.\u00a0The fair value at\u00a0grant date is expensed over the three-year vesting period. \u00a0
G35. Remuneration of management and material risk takers continued \u00a0
Conditional shares \u00a0
Number \u00a0
Fair value \u00a0
Fair value \u00a0
Executive \u00a0
Other \u00a0
Employee payment \u00a0
At issue \u00a0
End of year \u00a0
Leadership Team \u00a0
staff \u00a0
Total \u00a0
price (DKK) \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
Granted in\u00a02016 \u00a0
1 January 2022 \u00a0
-
239 \u00a0
239 \u00a0
-
-
-
Vested 2022 \u00a0
-
-
-
-
Forfeited 2022 \u00a0
-
-
-
-
Other changes 2022 \u00a0
-
-
-
-
31 December 2022 \u00a0
-
239 \u00a0
239 \u00a0
-
-
-
Vested 2023 \u00a0
-
-
-
-
Forfeited 2023 \u00a0
-
-
-
-
Other changes 2023 \u00a0
-
-
-
-
31 December 2023 \u00a0
-
239 \u00a0
239 \u00a0
-
-
-
Granted in\u00a02017 \u00a0
1 January 2022 \u00a0
-
5,378 \u00a0
5,378 \u00a0
-
1.3 \u00a0
1.0 \u00a0
Vested 2022 \u00a0
-
-
-
-
Forfeited 2022 \u00a0
-
-
-
-
Other changes 2022 \u00a0
-
-
-
-
31 December 2022 \u00a0
-
5,378 \u00a0
5,378 \u00a0
-
1.3 \u00a0
1.0 \u00a0
Vested 2023 \u00a0
-
-2,998 \u00a0
-2,998 \u00a0
-
Forfeited 2023 \u00a0
-
-
-
-
Other changes 2023 \u00a0
-
-
-
-
31 December 2023 \u00a0
-
2,380 \u00a0
2,380 \u00a0
-
0.6 \u00a0
0.4 \u00a0
Granted in\u00a02018 \u00a0
1 January 2022 \u00a0
7,071 \u00a0
31,794 \u00a0
38,865 \u00a0
-
9.1 \u00a0
7.0 \u00a0
Vested 2022 \u00a0
-
-3,517 \u00a0
-3,517 \u00a0
-
Forfeited 2022 \u00a0
-
-
-
-
Other changes 2022 \u00a0
-6,009 \u00a0
-14,253 \u00a0
-20,262 \u00a0
-
31 December 2022 \u00a0
1,062 \u00a0
14,024 \u00a0
15,086 \u00a0
-
3.5 \u00a0
2.7 \u00a0
Vested 2023 \u00a0
-1,062 \u00a0
-10,391 \u00a0
-11,453 \u00a0
-
Forfeited 2023 \u00a0
-
-3,075 \u00a0
-3,075 \u00a0
-
Other changes 2023 \u00a0
-
-558 \u00a0
-558 \u00a0
-
31 December 2023 \u00a0
-
-
-
-
-
-
Granted in\u00a02019 \u00a0
1 January 2022 \u00a0
40,874 \u00a0
464,167 \u00a0
505,041 \u00a0
-
62.7 \u00a0
91.1 \u00a0
Vested 2022 \u00a0
-837 \u00a0
-357,950 \u00a0
-358,787 \u00a0
-
Forfeited 2022 \u00a0
-
-13,588 \u00a0
-13,588 \u00a0
-
Other changes 2022 \u00a0
-40,037 \u00a0
-61,507 \u00a0
-101,544 \u00a0
-
31 December 2022 \u00a0
-
31,122 \u00a0
31,122 \u00a0
-
3.9 \u00a0
5.6 \u00a0
Vested 2023 \u00a0
-
-9,390 \u00a0
-9,390 \u00a0
-
Forfeited 2023 \u00a0
-
-
-
-
Other changes 2023 \u00a0
-
-19,397 \u00a0
-19,397 \u00a0
-
31 December 2023 \u00a0
-
2,335 \u00a0
2,335 \u00a0
-
0.3 \u00a0
0.4 \u00a0
Granted in\u00a02020 \u00a0
1 January 2022 \u00a0
118,852 \u00a0
692,589 \u00a0
811,441 \u00a0
-
78.4 \u00a0
146.4 \u00a0
Vested 2022 \u00a0
-
-844 \u00a0
-844 \u00a0
-
Forfeited 2022 \u00a0
-
-13,579 \u00a0
-13,579 \u00a0
-
Other changes 2022 \u00a0
-38,632 \u00a0
38,632 \u00a0
-
-
31 December 2022 \u00a0
80,220 \u00a0
716,798 \u00a0
797,018 \u00a0
-
77.0 \u00a0
143.8 \u00a0
Vested 2023 \u00a0
-2,922 \u00a0
-526,301 \u00a0
-529,223 \u00a0
-
Forfeited 2023 \u00a0
-64,350 \u00a0
-133,887 \u00a0
-198,237 \u00a0
-
Other changes 2023 \u00a0
-6,543 \u00a0
3,347 \u00a0
-3,196 \u00a0
-
31 December 2023 \u00a0
6,405 \u00a0
59,957 \u00a0
66,362 \u00a0
-
6.4 \u00a0
12.0 \u00a0
G35. Remuneration of management and material risk takers continued \u00a0
Conditional shares \u00a0
Number \u00a0
Fair value \u00a0
Fair value \u00a0
Executive \u00a0
Other \u00a0
Employee payment \u00a0
At issue \u00a0
End of year \u00a0
Leadership Team \u00a0
staff \u00a0
Total \u00a0
price (DKK) \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
Granted in\u00a02021 \u00a0
1 January 2022 \u00a0
161,622 \u00a0
713,516 \u00a0
875,138 \u00a0
-
103.2 \u00a0
157.9 \u00a0
Vested 2022 \u00a0
-
-
-
-
Forfeited 2022 \u00a0
-
-36,838 \u00a0
-36,838 \u00a0
-
Other changes 2022 \u00a0
-48,001 \u00a0
42,061 \u00a0
-5,940 \u00a0
-
31 December 2022 \u00a0
113,621 \u00a0
718,739 \u00a0
832,360 \u00a0
-
98.7 \u00a0
150.2 \u00a0
Vested 2023 \u00a0
-
-5,523 \u00a0
-5,523 \u00a0
-
Forfeited 2023 \u00a0
-
-28,586 \u00a0
-28,586 \u00a0
-
Other changes 2023 \u00a0
-769 \u00a0
125 \u00a0
-644 \u00a0
-
31 December 2023 \u00a0
112,852 \u00a0
684,755 \u00a0
797,607 \u00a0
-
94.5 \u00a0
143.9 \u00a0
Granted in\u00a02022 \u00a0
1 January 2022 \u00a0
201,501 \u00a0
1,491,389 \u00a0
1,692,890 \u00a0
-
194.3 \u00a0
305.4 \u00a0
Vested 2022 \u00a0
-
-443,007 \u00a0
-443,007 \u00a0
-
Forfeited 2022 \u00a0
-
-23,465 \u00a0
-23,465 \u00a0
-
Other changes 2022 \u00a0
-28,873 \u00a0
28,873 \u00a0
-
-
31 December 2022 \u00a0
172,628 \u00a0
1,053,790 \u00a0
1,226,418 \u00a0
-
140.7 \u00a0
221.2 \u00a0
Vested 2023 \u00a0
-7,389 \u00a0
-299,858 \u00a0
-307,247 \u00a0
-
Forfeited 2023 \u00a0
-
-14,126 \u00a0
-14,126 \u00a0
-
Other changes 2023 \u00a0
-39,217 \u00a0
2,534 \u00a0
-36,683 \u00a0
-
31 December 2023 \u00a0
126,022 \u00a0
742,340 \u00a0
868,362 \u00a0
-
99.7 \u00a0
156.7 \u00a0
Granted in\u00a02023 \u00a0
Granted in 2023 \u00a0
140,524 \u00a0
633,671 \u00a0
774,195 \u00a0
-
109.6 \u00a0
139.7 \u00a0
Vested 2023 \u00a0
-549 \u00a0
-269,062 \u00a0
-269,611 \u00a0
-
Forfeited 2023 \u00a0
-
-11,834 \u00a0
-11,834 \u00a0
-
Other changes 2023 \u00a0
-12,396 \u00a0
15,451 \u00a0
3,055 \u00a0
-
31 December 2023 \u00a0
127,579 \u00a0
368,226 \u00a0
495,805 \u00a0
-
70.2 \u00a0
89.4 \u00a0
Other staff includes material risk takers and other employees eligible for share\u00a0-based payment. \u00a0
At the end of 2023, the Executive\u00a0Leadership Team held a\u00a0total of 372,858 conditional\u00a0shares with\u00a0fair value\u00a0of DKK 67.3 million (2022: 367,531 \u00a0
conditional shares\u00a0with fair\u00a0value of\u00a0DKK 50.5\u00a0million). See Remuneration Report 2023 for further details\u00a0of the Executive\u00a0Leadership Team\u2019s holdings. \u00a0
In 2023, the average price at the vesting date for rights to conditional shares was DKK\u00a0141.5 (2022: DKK 113.3). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4273": {
"value": "G10. Audit fees \u00a0
Audit fees (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Audit firms appointed by the general meeting \u00a0
Fees for statutory audit of the consolidated and parent company financial statements \u00a0
34 \u00a0
32 \u00a0
Fees for other assurance engagements \u00a0
12 \u00a0
9
Fees for tax advisory services \u00a0
1
-
Fees for other services \u00a0
3
2
Total \u00a0
50 \u00a0
43 \u00a0
Fees for non-audit services provided by Deloitte\u00a0Statsautoriseret Revisionspartnerselskab (Denmark) to the Group amounted to DKK 10 million (2022: DKK \u00a0
4 million) and covered various assurance reports, assurance on ESG reporting, review procedures with respect to recognition of profit in core capital, and \u00a0
advisory engagements such as target operating models. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4274": {
"value": "G11. Loan impairment\u00a0charges \u00a0
Loan impairment charges include impairment charges for\u00a0expected credit losses against loans, lease receivables,\u00a0bonds at\u00a0amortised cost\u00a0and fair value \u00a0
through other comprehensive\u00a0income, certain\u00a0loan commitments\u00a0and financial\u00a0guarantee contracts as\u00a0well as\u00a0fair value adjustments\u00a0of the credit risk on \u00a0
loans measured at fair value. \u00a0
The item also includes expected losses and realised gains and losses on assets (such as tangible\u00a0assets and group undertakings)\u00a0taken over by\u00a0the Group \u00a0
under non-performing loan\u00a0agreements. Further, the item includes external costs directly attributable\u00a0to the collection of amounts due under non- \u00a0
performing loans, such as legal costs. \u00a0
Accounting policy \u00a0
The accounting policy for\u00a0when a loan impairment\u00a0charge is recognised and how the charge is determined\u00a0is described under the relevant balance sheet \u00a0
line items. Notes G15, G16 and G24 provide more information. \u00a0
Loan impairment\u00a0charges \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
ECL impairment on Due from credit institutions and central banks \u00a0
-63 \u00a0
25 \u00a0
ECL impairment on Loans at amortised cost \u00a0
-157 \u00a0
979 \u00a0
ECL impairment on Loan commitments and guarantees etc. \u00a0
591 \u00a0
483 \u00a0
ECL impairment,\u00a0total \u00a0
371 \u00a0
1,487 \u00a0
Fair value credit risk adjustment on Loans at fair value \u00a0
-109 \u00a0
15 \u00a0
Total \u00a0
262 \u00a0
1,502 \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
ECL on new assets \u00a0
2,457 \u00a0
3,117 \u00a0
ECL on assets derecognised \u00a0
-2,595 \u00a0
-6,448 \u00a0
Impact of net remeasurement of ECL (incl. changes in models) \u00a0
1,014 \u00a0
3,271 \u00a0
Write-offs charged directly to income statement* \u00a0
594 \u00a0
2,050 \u00a0
Received on claims previously written off \u00a0
-902 \u00a0
-233 \u00a0
Interest income, effective interest method \u00a0
-306 \u00a0
-255 \u00a0
Total \u00a0
262 \u00a0
1,502 \u00a0
* Write-offs charged directly to income statement in 2022 includes DKK 0.7 billion of loans derecognised in relation to the Group\u2019s debt collection customers. \u00a0
Further information\u00a0on changes\u00a0in the allowance account can\u00a0be found in note G15. \u00a0
Impairment for expected credit losses \u00a0
The impairment\u00a0charge for expected\u00a0credit losses depends on whether the credit risk has increased significantly\u00a0since initial\u00a0recognition and follows a \u00a0
three stage model: \u00a0
\u2022
Stage 1: If the credit risk has not increased significantly,\u00a0the impairment\u00a0charge equals the expected credit losses resulting\u00a0from default\u00a0events \u00a0
that are possible within the next 12 months. \u00a0
\u2022
Stage 2: If the credit risk has increased significantly,\u00a0the loan is\u00a0transferred to stage 2 and an impairment\u00a0charge equal to the lifetime expected \u00a0
credit losses is recognised. \u00a0
\u2022
Stage 3: If the loan is in default, it is transferred\u00a0to stage 3, for which the impairment charge continues\u00a0to equal the lifetime expected credit losses \u00a0
but with interest income being recognised on\u00a0the net carrying\u00a0amount. \u00a0
The expected credit loss is calculated for all individual facilities\u00a0as a function\u00a0of the probability of default (PD), the exposure at\u00a0default (EAD) and the loss \u00a0
given default (LGD) and incorporates forward looking elements. For facilities in stages 2 and 3, the lifetime expected credit losses cover the expected \u00a0
remaining lifetime of\u00a0a facility. \u00a0
Expected credit\u00a0loss impairment charges are\u00a0booked in an\u00a0allowance account\u00a0and allocated to individual\u00a0exposures. \u00a0
(a) Loans at amortised cost \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Reverse transactions \u00a0
1,763 \u00a0
1,747 \u00a0
Other loans \u00a0
930,823 \u00a0
1,094,792 \u00a0
Allowance account \u00a0
13,958 \u00a0
13,721 \u00a0
Total at amortised cost \u00a0
918,628 \u00a0
1,082,818 \u00a0
Calculation of\u00a0expected credit losses \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as\u00a0a function of the probability\u00a0of default (PD), the exposure\u00a0at default\u00a0(EAD) and\u00a0the loss \u00a0
given default (LGD). In general, the Group\u2019s IFRS 9 impairment models and parameters draw on the bank\u2019s internal models in order to ensure alignment \u00a0
of models across the Group. New models and calculations\u00a0have been\u00a0developed especially\u00a0for IFRS 9 purposes, including\u00a0models for lifetime PD, \u00a0
prepayment and forward-looking LGD. All expected credit loss impairment charges\u00a0are allocated to individual\u00a0exposures. For significant loans in stage 3, \u00a0
the Group determines the expected credit losses individually. \u00a0
Expected remaining lifetime \u00a0
For most facilities,\u00a0the expected lifetime is limited to the remaining contractual maturity and is adjusted for expected prepayment. For exposures with \u00a0
weak credit quality, the likelihood\u00a0of prepayment\u00a0is not included. For\u00a0exposures that\u00a0include both a\u00a0loan and an undrawn commitment\u00a0and where a \u00a0
contractual ability to\u00a0demand prepayment\u00a0and cancellation\u00a0of the undrawn\u00a0commitment does not limit the Group\u2019s exposure to credit losses to the \u00a0
contractual notice period, the expected lifetime is the period during which the Group expects to be\u00a0exposed to credit losses. This period is\u00a0estimated on \u00a0
the basis of the normal credit risk management actions. Products identified\u00a0as in scope of an expected lifetime\u00a0longer than the remaining contractua\u00a0l \u00a0
maturity include credit\u00a0cards, overdraft balances\u00a0and certain revolving\u00a0credit facilities. \u00a0
G15. Loans\u00a0at amortised\u00a0cost continued \u00a0
Incorporation of\u00a0forward-looking information \u00a0
The forward-looking elements of\u00a0the calculation reflect the current expectations\u00a0of the Group\u2019s senior management.\u00a0The Group\u2019s independent \u00a0
macroeconomic research\u00a0unit in Markets\u00a0creates macroeconomic scenarios (base\u00a0case, upside and downside), including\u00a0an assessment\u00a0of the \u00a0
probability of\u00a0each scenario. The purpose of using multiple\u00a0scenarios is to model the non-linear\u00a0impact of assumptions about macroeconomic\u00a0factors on \u00a0
the expected credit losses Afterwards there is a\u00a0process to ensure a review and sign-off of the scenarios. Management\u2019s approval of\u00a0the scenarios can \u00a0
include adjustments\u00a0to the scenarios or to which scenarios are used, the assigned probability weighting\u00a0and post-model\u00a0adjustments to\u00a0cover the outlook \u00a0
for particular\u00a0high-risk portfolios which are not\u00a0provided by\u00a0the Group\u2019s macroeconomists. The\u00a0approved scenarios are\u00a0used to calculate\u00a0the impairment \u00a0
levels. Technically, the forward-looking information is\u00a0used directly\u00a0in the\u00a0PDs through\u00a0an estimate\u00a0of general changes\u00a0to the PDs and the LGDs in the \u00a0
expected credit loss calculation.\u00a0However, for\u00a0significant exposures in stage 3, an individual\u00a0assessment of the scenarios, changes to expected credit \u00a0
losses and the related probabilities\u00a0are performed by senior credit officers. \u00a0
The forward-looking\u00a0information is based on a three year forecast period converging to steady state in year seven. The base case\u00a0is based on the \u00a0
macroeconomic outlook as disclosed in the Group\u2019s Nordic Outlook\u00a0reports. Further information on the macroeconomic scenarios used can be\u00a0found in \u00a0
note G40. \u00a0
Sustainability risk \u00a0
Credit risk is deemed to be the risk type most materially\u00a0affected by sustainability\u00a0risk in the long term, of which climate\u00a0risk is currently\u00a0the most urgent \u00a0
of all ESG-related drivers capable of\u00a0affecting the Group\u2019s credit risk. \u00a0
The Group takes a risk-based approach in prioritising\u00a0risk management\u00a0efforts for credit portfolios that are likely to be most exposed to transition\u00a0and \u00a0
physical risks. For that purpose, the Group applies a mix of qualitative\u00a0and quantitative\u00a0input to define the credit exposures most exposed to transition \u00a0
and physical risks. \u00a0
High transition risk\u00a0exposures are identified\u00a0using a mix of insights, including financed emissions estimates, findings from conducting clima\u00a0te scenario \u00a0
analysis as\u00a0well as\u00a0qualitative judgment\u00a0to account for e.g., credible transition\u00a0plans, potential future technology an\u00a0d demand risks to a given sector. Most \u00a0
of the emissions\u00a0are attributable\u00a0to only a few sectors, e.g., Shipping,\u00a0Oil and Gas, which the Group actively monitors and m\u00a0anages. From the initia\u00a0l \u00a0
assessment of customers subject to high transition\u00a0risk, the exposure to the lagging transition category remains limited but will be monitored on an \u00a0
ongoing basis. \u00a0
The Group has identified flooding risk (river and coastal flooding) as the key physical\u00a0hazard applicable to the portfolio on the basis of\u00a0the report on high \u00a0
confidence of hazard\u00a0increase in Northern\u00a0Europe issued by the Intergovernmental\u00a0Panel on Climate\u00a0Change. The current analyses on\u00a0flooding risk\u00a0focus \u00a0
on residential and commercial property and the risk is assessed to be limited. \u00a0
Moreover, the\u00a0Group performs\u00a0ad-hoc climate stress tests to assess physical and transition\u00a0risks of climate changes. Stress tests in relation to physical \u00a0
risks cover collateral-related\u00a0exposures and are based on river and coastal flooding.\u00a0Stress tests in relation to transition\u00a0risks consider an introductio\u00a0n \u00a0
of carbon taxes. \u00a0
The Group will continue to refine its assessment methodology as more climate risk data becomes available to support the ident\u00a0ification of\u00a0both transitio\u00a0n \u00a0
and physical\u00a0risks for the purpose of determining\u00a0financial significance, however, conclusions have no\u00a0t led to adjustments\u00a0to staging or modelled\u00a0expected \u00a0
credit losses, as the impacts either manifest over a longer time period than loan maturities,\u00a0or as transition\u00a0risks are conc\u00a0entrated on\u00a0a few sectors with \u00a0
downside risks already recognised in the Group\u2019s modelled expected credit losses. Both transition and physical risks are\u00a0either managed through risk \u00a0
tolerances or\u00a0strategic targets, or\u00a0already have post model adjustments/management\u00a0overlays allocated covering the climate re\u00a0lated risks. \u00a0
Write-off policy \u00a0
Loans considered uncollectible\u00a0are written off. Write-offs are debited\u00a0to the allowance account. Loans are written off once the usual collection procedure \u00a0
has been completed and the loss on the individual\u00a0loan can be calculated.\u00a0If the full loss is not expected to be realised until after a number of years, for \u00a0
example in the event of administration\u00a0of complex estates, a partial write-off is recognised, reflecting the Group\u2019s claim less collateral,\u00a0estimated dividend \u00a0
and other cash flows. \u00a0
Modification \u00a0
When a loan is modified the Group assesses whether the modification\u00a0results in derecognition.\u00a0This depends on\u00a0whether the\u00a0changes to the contractua\u00a0l \u00a0
cash flows or other\u00a0contractual terms are\u00a0significant or not, or\u00a0whether they are\u00a0as a result of the Interest Rate Benchmark Reform. \u00a0
A change in the contractual\u00a0cash flows\u00a0that is\u00a0required by\u00a0the reform is accounted for by updating\u00a0the effective interest rat\u00a0e, without recognising a\u00a0gain \u00a0
or loss. This can only be applied\u00a0if the change is necessary as a direct consequence of the reform, a\u00a0nd the new basis for determining\u00a0the contractual cash \u00a0
flows is economically\u00a0equivalent to the previous basis. \u00a0
Otherwise, if the changes are not related to the reform and are significant, the modification\u00a0is accounted\u00a0for as derecognition\u00a0of the original\u00a0loan and \u00a0
recognition of\u00a0a new loan. If the changes are not significant, the modification\u00a0is accounted for as a\u00a0modification of\u00a0the original loan. The assessment is \u00a0
based on the following\u00a0considerations: \u00a0
\u2022
The Group differentiates between changes in the cash\u00a0flows or other terms within the original contract and modifications\u00a0of the contract, i.e. a new \u00a0
contract. \u00a0
\u2022
In general, a significant modification\u00a0is defined as a full credit process, a pricing decision\u00a0and the signing of a new contract. \u00a0
\u2022
An assessment of whether the modification\u00a0is caused as a forbearance measure or made on commercial terms. \u00a0
If the financial\u00a0asset is not derecognised, the original effective interest rate remains unchanged, and the net present value of the changed contractua\u00a0l \u00a0
cash flows\u00a0represents the gross carrying amount of the financial asset after the modification.\u00a0The difference between the net present value of the original \u00a0
contractual cash flows and the modified contractual cash flows is recognised in the income statement as a modification gain or loss. \u00a0
If the original financial asset is derecognised, a derecognition\u00a0gain or loss is recognised in the income statement.\u00a0The derecognition gain\u00a0or loss \u00a0
represents the difference between the carrying amount of the original financial asset (updated to reflect current expected credit losses) and the initia\u00a0l \u00a0
carrying amount of\u00a0the new financial asset plus/minus\u00a0any cash payments\u00a0between the parties in\u00a0relation to the modification. \u00a0
Modifications in\u00a0the form of forbearance measures include interest reduction schedules, interest only schedules, temporary pa\u00a0yment holidays,\u00a0term \u00a0
extensions, cancellation of\u00a0outstanding fees,\u00a0waiver of covenant enforcement and debt forgiveness. For modific\u00a0ations that are\u00a0not significant, the \u00a0
modification loss is recognised in the Income statement within Loan impairment charges. \u00a0
In terms of stage allocation,\u00a0a modification that leads to derecognition of the initial loan and recognition of a new loan, the lo\u00a0an will (unless the new loan is \u00a0
credit-impaired at\u00a0initial recognition) be recognised in stage\u00a01 at initial recognition, i.e.\u00a0the initial credit risk is reset. If the replacing\u00a0loan is considered\u00a0an \u00a0
amendment to the original loan, the initial\u00a0credit risk is not reset. Loans modified as part of the Group\u2019s forbearance policy, where the modification\u00a0does \u00a0
not result in derecognition,\u00a0the loss allowance on the forborne loans will generally\u00a0only be measured based on 12-months expected credit losses when \u00a0
there is evidence of the borrower\u2019s improved repayment behaviour. When a\u00a0loan in stage 3 is modified,\u00a0and the modification results in derecognition, the \u00a0
Group assesses if the new loan is originated\u00a0credit impaired. The assessment\u00a0includes factors\u00a0such as whether the customer\u2019s repayment behaviou\u00a0r \u00a0
has improved significantly prior to the modification\u00a0or not, and whether the pricing\u00a0on the new loan reflects the actual credit risk etc. New loans that are \u00a0
originated credit\u00a0impaired remains under a lifetime ECL calculation\u00a0for the remaining\u00a0term of the exposure. \u00a0
Reconciliation of\u00a0total allowance\u00a0account \u00a0
Loan commitments\u00a0and \u00a0
Loans at amortised cost \u00a0
Loans at fair value \u00a0
guarantees \u00a0
Total \u00a0
(DKK millions) \u00a0
Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
ECL allowance account as at 1 January \u00a0
2022 \u00a0
1,481 \u00a0
4,629 \u00a0
11,103 \u00a0
642 \u00a0
1,221 \u00a0
1,334 \u00a0
594 \u00a0
957 \u00a0
786 \u00a0
22,746 \u00a0
Transferred to stage 1 \u00a0
773 \u00a0
-734 \u00a0
-39 \u00a0
227 \u00a0
-189 \u00a0
-37 \u00a0
152 \u00a0
-145 \u00a0
-6 \u00a0
-
Transferred to stage 2 \u00a0
-242 \u00a0
547 \u00a0
-306 \u00a0
-112 \u00a0
202 \u00a0
-90 \u00a0
-52 \u00a0
84 \u00a0
-33 \u00a0
-
Transferred to stage 3 \u00a0
-9 \u00a0
-446 \u00a0
454 \u00a0
-16 \u00a0
-136 \u00a0
152 \u00a0
-1 \u00a0
-40 \u00a0
41 \u00a0
-
ECL on new assets \u00a0
404 \u00a0
1,299 \u00a0
600 \u00a0
127 \u00a0
216 \u00a0
27 \u00a0
99 \u00a0
127 \u00a0
217 \u00a0
3,117 \u00a0
ECL on assets derecognised \u00a0
-616 \u00a0
-1,200 \u00a0
-3,632 \u00a0
-148 \u00a0
-258 \u00a0
-88 \u00a0
-114 \u00a0
-52 \u00a0
-342 \u00a0
-6,448 \u00a0
Impact of net remeasurement of ECL (incl. \u00a0
changes in models) \u00a0
177 \u00a0
1,509 \u00a0
910 \u00a0
-93 \u00a0
317 \u00a0
-103 \u00a0
55 \u00a0
273 \u00a0
226 \u00a0
3,271 \u00a0
Write offs debited to the allowance \u00a0
account* \u00a0
-
-1 \u00a0
-2,958 \u00a0
-
-2 \u00a0
-56 \u00a0
-
-
-
-3,016 \u00a0
Foreign exchange adjustments \u00a0
-44 \u00a0
-86 \u00a0
117 \u00a0
-
-
-
-7 \u00a0
-21 \u00a0
-57 \u00a0
-99 \u00a0
Other \u00a0
-3 \u00a0
5
72 \u00a0
-
-
112 \u00a0
-
3
-115 \u00a0
74 \u00a0
As at 31 December\u00a02022 \u00a0
1,922 \u00a0
5,524 \u00a0
6,322 \u00a0
627 \u00a0
1,372 \u00a0
1,251 \u00a0
724 \u00a0
1,186 \u00a0
717 \u00a0
19,645 \u00a0
Transferred to stage 1 \u00a0
1,317 \u00a0
-1,237 \u00a0
-80 \u00a0
749 \u00a0
-722 \u00a0
-28 \u00a0
340 \u00a0
-315 \u00a0
-24 \u00a0
-
Transferred to stage 2 \u00a0
-118 \u00a0
401 \u00a0
-283 \u00a0
-15 \u00a0
37 \u00a0
-22 \u00a0
-78 \u00a0
230 \u00a0
-152 \u00a0
-
Transferred to stage 3 \u00a0
-18 \u00a0
-404 \u00a0
421 \u00a0
-3 \u00a0
-29 \u00a0
32 \u00a0
-2 \u00a0
-72 \u00a0
74 \u00a0
-
ECL on new assets \u00a0
354 \u00a0
1,025 \u00a0
501 \u00a0
141 \u00a0
45 \u00a0
22 \u00a0
106 \u00a0
179 \u00a0
85 \u00a0
2,457 \u00a0
ECL on assets derecognised \u00a0
-306 \u00a0
-846 \u00a0
-802 \u00a0
-146 \u00a0
-149 \u00a0
-50 \u00a0
-61 \u00a0
-147 \u00a0
-88 \u00a0
-2,595 \u00a0
Impact of net remeasurement of ECL (incl. \u00a0
-1,277 \u00a0
1,073 \u00a0
775 \u00a0
-272 \u00a0
107 \u00a0
165 \u00a0
-374 \u00a0
213 \u00a0
604 \u00a0
1,014 \u00a0
changes in models) \u00a0
Write offs debited to the allowance account \u00a0
-5 \u00a0
-
-327 \u00a0
-
-
-37 \u00a0
-
-
-
-370 \u00a0
Foreign exchange adjustments \u00a0
-15 \u00a0
17 \u00a0
-2 \u00a0
-
-
-
-3 \u00a0
6
-24 \u00a0
-22 \u00a0
Other \u00a0
-1 \u00a0
-49 \u00a0
92 \u00a0
-1 \u00a0
49 \u00a0
-119 \u00a0
6
-6 \u00a0
39 \u00a0
10 \u00a0
As at 31 December\u00a02023 \u00a0
1,854 \u00a0
5,503 \u00a0
6,617 \u00a0
1,080 \u00a0
710 \u00a0
1,215 \u00a0
658 \u00a0
1,273 \u00a0
1,230 \u00a0
20,140 \u00a0
* DKK 1.0 billion of Write-offs debited to the allowance account in 2022 relates to the Group\u2019s debt collection customers. \u00a0
The movements on the allowance account are\u00a0determined by\u00a0comparing the\u00a0classification and amount in the balance sheet at the beginning and\u00a0the end \u00a0
of the year. The table above excludes the allowance account of\u00a0DKK 4\u00a0million (2022: DKK 4\u00a0million) relating to bonds at\u00a0amortised cost\u00a0or fair value \u00a0
through other comprehensive income (all in stage\u00a01). It also excludes\u00a0the adjustment for credit risk on Loans held for sale (loan portfolios\u00a0within the non\u00a0- \u00a0
core segment where the Group has entered into sales agreements).\u00a0For further\u00a0information on the decomposition\u00a0of the allowance\u00a0account on\u00a0facilitie s \u00a0
in stages 1-3, see the notes on credit risk. \u00a0
(d) Significant accounting estimates\u00a0related to expected credit losses \u00a0
For information\u00a0on significant\u00a0accounting estimates related to\u00a0expected credit\u00a0losses, see note G1(b). \u00a0
Expected credit losses (allowance account) in core\u00a0activities \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as\u00a0a function of the probability\u00a0of default (PD), the exposure\u00a0at default\u00a0(EAD) and\u00a0the loss \u00a0
given default (LGD). In general, the Group\u2019s IFRS 9 impairment models and parameters draw on the bank\u2019s internal models in order to ensure alignment \u00a0
of models across the Group. New models and calculations\u00a0have been\u00a0developed especially\u00a0for IFRS 9 purposes, including\u00a0models for lifetime PD, \u00a0
prepayment and forward-looking\u00a0LGD. All expected credit loss impairments\u00a0are allocated to individual\u00a0exposures. For significant stage 3 exposures, the \u00a0
Group determines\u00a0the expected credit losses individually. \u00a0
(DKK millions) \u00a0
Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Total \u00a0
ECL allowance account as at 1 January 2022 \u00a0
2,733 \u00a0
6,804 \u00a0
12,397 \u00a0
21,935 \u00a0
Transferred to stage 1 during the period \u00a0
1,144 \u00a0
-1,062 \u00a0
-83 \u00a0
-
Transferred to stage 2 during the period \u00a0
-405 \u00a0
834 \u00a0
-428 \u00a0
-
Transferred to stage 3 during the period \u00a0
-26 \u00a0
-617 \u00a0
642 \u00a0
-
ECL on new assets \u00a0
630 \u00a0
1,643 \u00a0
844 \u00a0
3,116 \u00a0
ECL on assets derecognised \u00a0
-870 \u00a0
-1,487 \u00a0
-3,971 \u00a0
-6,329 \u00a0
Impact of net remeasurement of ECL (incl. changes in\u00a0models) \u00a0
120 \u00a0
2,101 \u00a0
1,032 \u00a0
3,253 \u00a0
Write-offs debited to the allowance account \u00a0
-
-2 \u00a0
-2,195 \u00a0
-2,198 \u00a0
Foreign exchange adjustments \u00a0
-51 \u00a0
-107 \u00a0
-15 \u00a0
-173 \u00a0
Other changes \u00a0
-1 \u00a0
-26 \u00a0
27 \u00a0
1
ECL allowance account as at\u00a031 December\u00a02022 \u00a0
3,273 \u00a0
8,082 \u00a0
8,251 \u00a0
19,605 \u00a0
ECL allowance account as at 1 January 2023 \u00a0
3,273 \u00a0
8,082 \u00a0
8,251 \u00a0
19,605 \u00a0
Transferred to stage 1 during the period \u00a0
2,406 \u00a0
-2,274 \u00a0
-132 \u00a0
-
Transferred to stage 2 during the period \u00a0
-211 \u00a0
668 \u00a0
-457 \u00a0
-
Transferred to stage 3 during\u00a0the period \u00a0
-22 \u00a0
-505 \u00a0
527 \u00a0
-
ECL on new assets \u00a0
601 \u00a0
1,249 \u00a0
607 \u00a0
2,457 \u00a0
ECL on assets derecognised \u00a0
-513 \u00a0
-1,142 \u00a0
-936 \u00a0
-2,591 \u00a0
Impact of net remeasurement of ECL (incl. changes in models) \u00a0
-1,923 \u00a0
1,393 \u00a0
1,579 \u00a0
1,048 \u00a0
Write-offs debited to the allowance account \u00a0
-5 \u00a0
-
-364 \u00a0
-370 \u00a0
Foreign exchange adjustments \u00a0
-18 \u00a0
23 \u00a0
-26 \u00a0
-22 \u00a0
Other changes \u00a0
5
-7 \u00a0
12 \u00a0
10 \u00a0
ECL allowance account as at\u00a031 December\u00a02023 \u00a0
3,592 \u00a0
7,486 \u00a0
9,062 \u00a0
20,140 \u00a0
The stage 3 allowance account includes DKK 1.9 billion (2022: DKK 2.5 billion) relating to originated credit impaired financial assets. Originated\u00a0credit \u00a0
impaired financial assets are granted as\u00a0part of\u00a0restructuring non-performing loan\u00a0exposures, and are otherwise outside the Group\u2019s credit\u00a0policy. The \u00a0
Group has not acquired any credit impaired financial assets. \u00a0
Expected credit\u00a0losses (allowance account) in\u00a0core activities\u00a0broken down by segment \u00a0
Large \u00a0
Personal \u00a0
Business \u00a0
Corporates & \u00a0
Northern \u00a0
Group \u00a0
Allowance \u00a0
(DKK millions) \u00a0
Customers \u00a0
Customers \u00a0
Institutions \u00a0
Ireland \u00a0
Functions \u00a0
account Total \u00a0
ECL allowance account as at 1 January 2022 \u00a0
5,654 \u00a0
10,186 \u00a0
5,227 \u00a0
850 \u00a0
17 \u00a0
21,935 \u00a0
ECL on new assets \u00a0
606 \u00a0
2,107 \u00a0
330 \u00a0
67 \u00a0
6
3,116 \u00a0
ECL on assets derecognised \u00a0
-713 \u00a0
-2,100 \u00a0
-3,383 \u00a0
-128 \u00a0
-4 \u00a0
-6,329 \u00a0
Impact on remeasurement of ECL (incl. change in models) \u00a0
837 \u00a0
663 \u00a0
1,494 \u00a0
244 \u00a0
15 \u00a0
3,253 \u00a0
Write-offs debited to allowance account \u00a0
-946 \u00a0
-438 \u00a0
-684 \u00a0
-129 \u00a0
-
-2,198 \u00a0
Foreign currency translation \u00a0
-32 \u00a0
-166 \u00a0
67 \u00a0
-41 \u00a0
-1 \u00a0
-173 \u00a0
Other changes \u00a0
22 \u00a0
-16 \u00a0
-2 \u00a0
-
-3 \u00a0
1
ECL allowance account as at\u00a031 December\u00a02022 \u00a0
5,427 \u00a0
10,235 \u00a0
3,050 \u00a0
863 \u00a0
31 \u00a0
19,605 \u00a0
ECL on new assets \u00a0
483 \u00a0
1,544 \u00a0
351 \u00a0
84 \u00a0
-4 \u00a0
2,457 \u00a0
ECL on assets derecognised \u00a0
-673 \u00a0
-1,825 \u00a0
-43 \u00a0
-44 \u00a0
-5 \u00a0
-2,591 \u00a0
Impact on remeasurement of ECL (incl. change in models) \u00a0
265 \u00a0
874 \u00a0
16 \u00a0
-115 \u00a0
9
1,048 \u00a0
Write-offs debited to allowance account \u00a0
-172 \u00a0
-150 \u00a0
-32 \u00a0
-15 \u00a0
-
-370 \u00a0
Foreign currency translation \u00a0
-8 \u00a0
5
-39 \u00a0
21 \u00a0
-1 \u00a0
-22 \u00a0
Other changes \u00a0
-16 \u00a0
22 \u00a0
7
-
-3 \u00a0
10 \u00a0
ECL allowance account as at\u00a031 December\u00a02023 \u00a0
5,306 \u00a0
10,705 \u00a0
3,308 \u00a0
794 \u00a0
26 \u00a0
20,140 \u00a0
The method used\u00a0for calculating expected credit losses\u00a0is described in detail in note G15. \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
Gross credit exposure in core\u00a0activities \u00a0
(DKK millions) \u00a0
Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Total \u00a0
Gross carrying amount at 1 January 2022 \u00a0
2,560,945 \u00a0
130,588 \u00a0
46,012 2,737,545 \u00a0
Transferred to stage 1 \u00a0
24,028 \u00a0
-21,990 \u00a0
-2,038 \u00a0
-
Transferred to stage 2 \u00a0
-67,270 \u00a0
72,996 \u00a0
-5,726 \u00a0
-
Transferred to stage 3 \u00a0
-1,991 \u00a0
-3,614 \u00a0
5,605 \u00a0
-
New assets \u00a0
874,798 \u00a0
48,923 \u00a0
7,588 \u00a0
931,309 \u00a0
Assets derecognised \u00a0
-938,904 \u00a0
-41,249 \u00a0
-15,928 -996,081 \u00a0
Changes due to modifications that did not result in derecognition \u00a0
-3 \u00a0
-
-14 -17 \u00a0
Other changes \u00a0
-127,364 \u00a0
-9,620 \u00a0
-3,366 -140,350 \u00a0
As at 31 December\u00a02022 \u00a0
2,324,240 \u00a0
176,034 \u00a0
32,132 2,532,406 \u00a0
Transferred to stage 1 \u00a0
48,832 \u00a0
-47,483 \u00a0
-1,348 \u00a0
-
Transferred to stage 2 \u00a0
-45,901 \u00a0
48,605 \u00a0
-2,704 \u00a0
-
Transferred to stage 3 \u00a0
-4,232 \u00a0
-4,443 \u00a0
8,676 \u00a0
-
New assets \u00a0
558,458 \u00a0
28,512 \u00a0
6,420 \u00a0
593,390 \u00a0
Assets derecognised \u00a0
-520,788 \u00a0
-49,712 \u00a0
-9,618 -580,117 \u00a0
Changes due to modifications that did not result in derecognition \u00a0
-4 \u00a0
-
-303 \u00a0
-308 \u00a0
Other changes \u00a0
30,219 \u00a0
-7,289 \u00a0
-568 \u00a0
22,361 \u00a0
As at 31 December\u00a02023 \u00a0
2,390,822 \u00a0
144,224 \u00a0
32,686 2,567,733 \u00a0
In the\u00a0table above, \u2018Changes due to modifications\u00a0that did not result in derecognition\u2019 includes partial forgiveness of\u00a0debt assessed to be uncollectible\u00a0. \u00a0
The modification loss\u00a0is recognised within the income statement as part of Loan impairment charges. The contractual amount of loans written off in 2023 \u00a0
and for which the Group retains the right to enforce its claims amounted to DKK\u00a01,873 million (2022: DKK 3,300\u00a0million). \u00a0
Allowance account\u00a0in core activities\u00a0broken down by balance\u00a0sheet item \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Due from credit institutions\u00a0and central banks \u00a0
15 \u00a0
47 \u00a0
Loans at amortised cost \u00a0
13,959 \u00a0
13,682 \u00a0
Loan commitments\u00a0and guarantees \u00a0
3,161 \u00a0
2,627 \u00a0
ECL Impairment,\u00a0Total \u00a0
17,134 \u00a0
16,356 \u00a0
Fair value credit risk adjustment on loans at fair value \u00a0
3,005 \u00a0
3,250 \u00a0
Total \u00a0
20,140 \u00a0
19,605 \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
Forward-looking information \u00a0
The incorporation\u00a0of forward-looking\u00a0information reflects the expectations\u00a0of the Group\u2019s\u00a0senior management and involves\u00a0both macroeconomic \u00a0
scenarios (base\u00a0case, upside and downside scenarios), including\u00a0an assessment of the probability\u00a0for each scenario ,\u00a0and post-model adjustments.\u00a0The \u00a0
purpose of using multiple\u00a0scenarios is\u00a0to model the non-linear impact of assumptions about macroeconomic factors on\u00a0the expected credit losses. Post- \u00a0
model adjustments\u00a0are used to capture specific risks which are not fully covered by the macroeconomic scenarios, as well as the process related risk, \u00a0
which could lead to an underestimation\u00a0of the expected\u00a0credit losses. \u00a0
Given the long-term nature of\u00a0climate scenario analysis, it is not included in the three\u00a0-year macroeconomic scenarios used to calculate expected credit \u00a0
loss. See Sustainability\u00a0risk section of this note for further information. \u00a0
Macroeconomic scenarios \u00a0
The forward-looking information\u00a0is based on a three-year forecast period converging\u00a0to steady state\u00a0in year seven. That is, after the forecast period, the \u00a0
macroeconomic scenarios revert slowly towards a\u00a0steady state. \u00a0
The applied scenarios that drive the expected credit loss calculation\u00a0in 2023 have been updated with the latest macroeconomic\u00a0data. Compared to the \u00a0
end of 2022, the base case and upside scenarios have been revised to reflect expectations\u00a0of higher GDP and\u00a0lower unemployment, but also higher \u00a0
interest rates\u00a0and lower house prices outside Denmark.\u00a0The scenario weighting have been updated to increase the weight on the\u00a0upside scenario to 20% \u00a0
(10% in 2022), by decreasing the weight on the base case scenario to 60% (70% in 2022). The weight on the downside scenario\u00a0remains at\u00a020% (20% \u00a0
in 2022) despite the use of a severe stagflation scenario. \u00a0
The base case is an extension\u00a0of the\u00a0Group\u2019s official\u00a0view of the Nordic economies (the Nordic Outlook report). At 31 Decembe\u00a0r 2023,\u00a0the base case \u00a0
scenario reflects a slowdown in the Nordic economies however, with a soft landing. Inflation is expected to c\u00a0ome down and interest rates will slowly begin \u00a0
to decrease. GDP growth will remain weak across the Nordic economies and labour markets remain tight with only modest increas\u00a0es in unemployment. \u00a0
Interest rates is\u00a0expected to continue to\u00a0weigh on house prices, however,\u00a0the worst\u00a0part is expected to\u00a0be behind us. \u00a0
The upside scenario represents a slightly better outlook than the base case scenario across the macroeconomic parameters. In this\u00a0scenario, sentiment \u00a0
improves, and consumers follow the US in running down a significant proportion of the savings\u00a0accumulated during the\u00a0pandemic .\u00a0The consumer-led \u00a0
recovery causes inflation\u00a0to take longer to return to target, prompting further policy rate hikes and high rates for longer. Higher demand sup\u00a0ports the \u00a0
housing markets, but higher interest rates become an\u00a0increasing headwind. The housing market fares\u00a0somewhat better\u00a0than in the base case. \u00a0
The Group\u2019s downside scenario is the severe recession with high interest rates scenario (reflecting a stagflation scenario) applied in\u00a0the Group\u2019s ICAAP \u00a0
processes, and it is similar\u00a0in nature\u00a0to regulatory\u00a0stress tests.\u00a0The severe recession scenario reflected negative growth, i\u00a0ncreasing interest\u00a0rates, and \u00a0
falling property prices for\u00a0a longer period. A trigger of the economic setback could be continued macroeconomic\u00a0worsening and challenges linked to high \u00a0
business costs while inflation remain elevated. This adversely impacts the labour market, results in higher and more\u00a0persistent unemployment.\u00a0This \u00a0
would lead to a severe slowdown in the economies\u00a0in which the Group is represented. \u00a0
The main macroeconomic parameters in the base case, upside and downside scenarios entering into the ECL calculation for the forecast horizon across \u00a0
the Group\u2019s Nordic markets are included below. \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
Denmark \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
1.0 \u00a0
1.6 \u00a0
1.6 \u00a0
-3.4 \u00a0
-2.0 \u00a0
-
2.5 \u00a0
1.8 \u00a0
0.4 \u00a0
Unemployment \u00a0
3.1 \u00a0
3.3 \u00a0
3.4 \u00a0
6.3 \u00a0
7.5 \u00a0
7.9 \u00a0
2.7 \u00a0
2.6 \u00a0
3.2 \u00a0
Inflation \u00a0
2.0 \u00a0
1.9 \u00a0
1.8 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
2.4 \u00a0
2.5 \u00a0
1.4 \u00a0
Property prices - Residential \u00a0
1.5 \u00a0
2.0 \u00a0
2.1 \u00a0
-19.7 \u00a0
-11.0 \u00a0
-6.0 \u00a0
3.5 \u00a0
3.0 \u00a0
2.1 \u00a0
Interest rate - 3 month \u00a0
3.1 \u00a0
2.3 \u00a0
2.0 \u00a0
5.4 \u00a0
6.4 \u00a0
3.9 \u00a0
4.3 \u00a0
3.5 \u00a0
2.5 \u00a0
Sweden \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
1.2 \u00a0
1.8 \u00a0
2.4 \u00a0
-3.5 \u00a0
-3.4 \u00a0
-1.0 \u00a0
2.6 \u00a0
2.1 \u00a0
1.3 \u00a0
Unemployment \u00a0
8.2 \u00a0
8.0 \u00a0
7.9 \u00a0
9.4 \u00a0
10.3 \u00a0
10.7 \u00a0
7.9 \u00a0
7.5 \u00a0
7.7 \u00a0
Inflation \u00a0
1.9 \u00a0
1.3 \u00a0
1.6 \u00a0
4.9 \u00a0
3.9 \u00a0
2.9 \u00a0
2.0 \u00a0
1.6 \u00a0
1.5 \u00a0
Property prices - Residential \u00a0
-1.0 \u00a0
4.0 \u00a0
5.0 \u00a0
-22.0 \u00a0
-13.0 \u00a0
-7.0 \u00a0
1.0 \u00a0
5.0 \u00a0
5.0 \u00a0
Interest rate - 3 month \u00a0
3.4 \u00a0
2.3 \u00a0
2.0 \u00a0
5.7 \u00a0
5.7 \u00a0
3.7 \u00a0
4.6 \u00a0
3.6 \u00a0
2.6 \u00a0
Norway \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
1.1 \u00a0
2.1 \u00a0
1.5 \u00a0
-2.7 \u00a0
-1.1 \u00a0
0.6 \u00a0
2.5 \u00a0
2.4 \u00a0
0.4 \u00a0
Unemployment \u00a0
2.3 \u00a0
2.5 \u00a0
2.5 \u00a0
5.5 \u00a0
6.4 \u00a0
6.5 \u00a0
2.0 \u00a0
2.0 \u00a0
2.3 \u00a0
Inflation \u00a0
3.0 \u00a0
2.0 \u00a0
2.0 \u00a0
4.5 \u00a0
3.0 \u00a0
2.0 \u00a0
3.2 \u00a0
2.3 \u00a0
1.8 \u00a0
Property prices - Residential \u00a0
-1.0 \u00a0
5.0 \u00a0
4.0 \u00a0
-19.0 \u00a0
-13.0 \u00a0
-7.0 \u00a0
-
6.0 \u00a0
4.0 \u00a0
Interest rate - 3 month \u00a0
3.7 \u00a0
2.9 \u00a0
2.5 \u00a0
6.3 \u00a0
6.3 \u00a0
4.3 \u00a0
5.0 \u00a0
4.0 \u00a0
3.0 \u00a0
Finland \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
0.3 \u00a0
1.9 \u00a0
1.3 \u00a0
-2.4 \u00a0
-2.0 \u00a0
-0.3 \u00a0
1.3 \u00a0
2.2 \u00a0
0.4 \u00a0
Unemployment \u00a0
-0.1 \u00a0
2.0 \u00a0
1.5 \u00a0
9.9 \u00a0
10.9 \u00a0
10.9 \u00a0
7.6 \u00a0
6.9 \u00a0
6.4 \u00a0
Inflation \u00a0
7.8 \u00a0
7.2 \u00a0
6.5 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
2.2 \u00a0
1.8 \u00a0
1.7 \u00a0
Property prices - Residential \u00a0
1.9 \u00a0
1.5 \u00a0
2.0 \u00a0
-14.2 \u00a0
-7.0 \u00a0
-5.0 \u00a0
3.0 \u00a0
4.0 \u00a0
2.0 \u00a0
Interest rate - 3 month \u00a0
0.5 \u00a0
1.2 \u00a0
1.3 \u00a0
5.1 \u00a0
5.1 \u00a0
3.1 \u00a0
4.3 \u00a0
3.5 \u00a0
2.5 \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
At 31 December\u00a02022, the following base case and downside scenarios were used: \u00a0
Denmark \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
-0.6 \u00a0
0.5 \u00a0
1.5 \u00a0
-3.7 \u00a0
-2.1 \u00a0
-
0.4 \u00a0
1.6 \u00a0
1.1 \u00a0
Unemployment \u00a0
3.2 \u00a0
3.8 \u00a0
3.8 \u00a0
6.0 \u00a0
7.0 \u00a0
7.4 \u00a0
3.0 \u00a0
3.3 \u00a0
3.3 \u00a0
Inflation \u00a0
4.9 \u00a0
2.5 \u00a0
1.8 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
4.0 \u00a0
1.9 \u00a0
1.9 \u00a0
Property prices - Residential \u00a0
-5.9 \u00a0
-4.0 \u00a0
1.5 \u00a0
-19.7 \u00a0
-12.7 \u00a0
-8.0 \u00a0
-2.9 \u00a0
-2.0 \u00a0
2.5 \u00a0
Interest rate - 3 month \u00a0
2.8 \u00a0
2.5 \u00a0
2.0 \u00a0
3.3 \u00a0
4.3 \u00a0
3.8 \u00a0
2.3 \u00a0
1.8 \u00a0
1.8 \u00a0
Sweden \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
-1.2 \u00a0
1.1 \u00a0
1.8 \u00a0
-3.8 \u00a0
-3.6 \u00a0
-1.0 \u00a0
-0.6 \u00a0
2.1 \u00a0
1.7 \u00a0
Unemployment \u00a0
8.2 \u00a0
8.0 \u00a0
7.5 \u00a0
8.9 \u00a0
9.9 \u00a0
10.3 \u00a0
8.2 \u00a0
7.8 \u00a0
7.3 \u00a0
Inflation \u00a0
6.2 \u00a0
1.5 \u00a0
1.7 \u00a0
4.9 \u00a0
3.9 \u00a0
2.9 \u00a0
5.4 \u00a0
0.9 \u00a0
1.3 \u00a0
Property prices - Residential \u00a0
-8.0 \u00a0
-
2.0 \u00a0
-23.6 \u00a0
-14.6 \u00a0
-10.0 \u00a0
-5.0 \u00a0
2.0 \u00a0
3.0 \u00a0
Interest rate - 3 month \u00a0
2.8 \u00a0
2.5 \u00a0
2.0 \u00a0
3.8 \u00a0
4.8 \u00a0
4.3 \u00a0
2.3 \u00a0
1.8 \u00a0
1.8 \u00a0
Norway \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
0.9 \u00a0
1.7 \u00a0
1.5 \u00a0
-2.9 \u00a0
-1.2 \u00a0
0.6 \u00a0
1.5 \u00a0
2.5 \u00a0
1.7 \u00a0
Unemployment \u00a0
2.4 \u00a0
2.5 \u00a0
2.2 \u00a0
5.2 \u00a0
6.1 \u00a0
6.2 \u00a0
2.3 \u00a0
2.2 \u00a0
1.9 \u00a0
Inflation \u00a0
3.4 \u00a0
1.8 \u00a0
2.0 \u00a0
4.5 \u00a0
3.0 \u00a0
2.0 \u00a0
2.4 \u00a0
1.3 \u00a0
1.9 \u00a0
Property prices - Residential \u00a0
-2.1 \u00a0
2.0 \u00a0
2.5 \u00a0
-20.5 \u00a0
-14.5 \u00a0
-8.0 \u00a0
0.9 \u00a0
3.0 \u00a0
3.5 \u00a0
Interest rate - 3 month \u00a0
3.1 \u00a0
2.9 \u00a0
2.4 \u00a0
4.4 \u00a0
5.4 \u00a0
4.9 \u00a0
2.6 \u00a0
2.1 \u00a0
2.1 \u00a0
Finland \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
-0.2 \u00a0
1.0 \u00a0
1.3 \u00a0
-2.7 \u00a0
-2.2 \u00a0
-0.3 \u00a0
0.5 \u00a0
2.0 \u00a0
1.3 \u00a0
Unemployment \u00a0
7.3 \u00a0
7.4 \u00a0
7.0 \u00a0
9.4 \u00a0
10.4 \u00a0
10.4 \u00a0
7.3 \u00a0
7.3 \u00a0
6.9 \u00a0
Inflation \u00a0
3.7 \u00a0
2.1 \u00a0
1.8 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
2.9 \u00a0
1.4 \u00a0
1.6 \u00a0
Property prices - Residential \u00a0
-1.0 \u00a0
1.0 \u00a0
2.0 \u00a0
-14.2 \u00a0
-9.2 \u00a0
-5.0 \u00a0
1.0 \u00a0
2.0 \u00a0
3.0 \u00a0
Interest rate - 3 month \u00a0
2.6 \u00a0
2.3 \u00a0
1.8 \u00a0
3.2 \u00a0
4.2 \u00a0
3.7 \u00a0
2.1 \u00a0
1.6 \u00a0
1.6 \u00a0
At 31 December\u00a02023, the upside scenario represented a slightly better outlook than the base case scenario across the macroecono\u00a0mic parameters. \u00a0
The base case scenario enters with a probability\u00a0of 60% (2022: 70%), the upside scenario with a probability of 20% (2022: 10%\u00a0) and\u00a0the downside \u00a0
scenario with a probability\u00a0of 20% (2022: 20%). On the basis of these assessments,\u00a0the allowance\u00a0account as at 3 1 December 2023 amounted\u00a0to DKK \u00a0
20.1 billion (2022: DKK 19.6 billion).\u00a0If the base case scenario was assigned a probability\u00a0of 100%, the allowance\u00a0account would d\u00a0ecrease DKK\u00a02.0 \u00a0
billion (2022: DKK 2.1 billion). Compared to\u00a0the base\u00a0case scenario, the allow\u00a0ance account\u00a0would increase DKK 10.2 billion (2022: DKK 10.9 billion), if \u00a0
the downside scenario was assigned a probability\u00a0of 100%.\u00a0The increase reflects primarily the transfer of\u00a0exposures from stag\u00a0e 1 to stage 2 and \u00a0
increased expected credit losses within stage 2. If instead the upside scenario was assigned a probability of 100%, the allowance account would decrease \u00a0
by DKK\u00a00.2 billion (2022: DKK 0.4\u00a0billion) compared to the base case\u00a0scenario. It should be noted that the expected credit losses in the\u00a0individu a l \u00a0
scenarios (i.e. without the weighting)\u00a0do not represent forecasts of expected credit losses (ECL). \u00a0
Expected credit losses (allowance account) in core activities continued \u00a0
Post-model adjustments \u00a0
Management applies judgement when determining the need for\u00a0post-model adjustments.\u00a0At 31 December\u00a02023, the post-model adjustments amounte\u00a0d \u00a0
to DKK 6.7 billion (2022: DKK 6.6\u00a0billion). The post-model adjustments\u00a0primarily relate to the following types of risks: \u00a0
\u2022
specific macroeconomic risks on\u00a0certain industries not fully captured by the expected credit loss model, for\u00a0instance the Agr\u00a0iculture industry. For \u00a0
such industries,\u00a0supplementary calculations are\u00a0made to ensure sufficient impairment coverage. This also inc ludes\u00a0post-model adjustments\u00a0relating \u00a0
to secondary effects from the high macroeconomic\u00a0uncertainty. \u00a0
\u2022
non-linear downside risk, for\u00a0instance on\u00a0the property market in Copenhagen and other high growth areas for which the macroeconom\u00a0ic forecasts \u00a0
used in the models are based on the property market as a whole. \u00a0
\u2022
portfolios where\u00a0the credit risk assessment process has identified\u00a0an underestimation\u00a0of the expected credit losses\u00a0. \u00a0
Following the significant impact on the expected credit losses from post-model adjustments,\u00a0the table below provides\u00a0more information about the \u00a0
adjustments. \u00a0
Post-model adjustments\u00a0by type\u00a0and mostly\u00a0impacted industries \u00a0
31 December \u00a0
31 December \u00a0
(DKK billions) \u00a0
2023 \u00a0
2022 \u00a0
Coverage of individual\u00a0industries and types \u00a0
Agriculture \u00a0
0.8 \u00a0
0.8 \u00a0
Commercial Property \u00a0
1.9 \u00a0
1.8 \u00a0
Construction and building materials \u00a0
1.0 \u00a0
0.5 \u00a0
Personal customers (including\u00a0other retail exposures) \u00a0
1.6 \u00a0
1.4 \u00a0
Others* \u00a0
1.4 \u00a0
2.1 \u00a0
Total \u00a0
6.7 \u00a0
6.6 \u00a0
* No individual industry included in Others exceeds DKK 0.2 billion at 31 December 2023 (2022: DKK 0.3 billion). \u00a0
The total balance of post-model adjustments\u00a0displayed a\u00a0very modest increase in\u00a02023 compared to the end\u00a0of 2022. \u00a0
The Group continues to have significant post-model adjustments related to the current macroeconomic uncertainties\u00a0characterised by\u00a0the slowing \u00a0
growth environment,\u00a0labour shortages, interest rate hikes and inflation\u00a0giving rise\u00a0to a new set of challenges that affect ec\u00a0onomic and business activity. \u00a0
The post-model adjustments\u00a0cut across industries\u00a0that are sensitive to price rises on energy, e.g.\u00a0agriculture and\u00a0metals, and industr\u00a0ies vulnerable to \u00a0
business cycles and increasing interest rates including refinancing risks, which have been assessed\u00a0for idiosyncratic\u00a0risks to ensure a prudent coverage \u00a0
of expected\u00a0credit loss in the Group\u2019s\u00a0portfolios. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4276": {
"value": "Accounting policy \u00a0
The accounting policy for\u00a0when a loan impairment\u00a0charge is recognised and how the charge is determined\u00a0is described under the relevant balance sheet \u00a0
line items. Notes G15, G16 and G24 provide more information. \u00a0
Impairment for expected credit losses \u00a0
The impairment\u00a0charge for expected\u00a0credit losses depends on whether the credit risk has increased significantly\u00a0since initial\u00a0recognition and follows a \u00a0
three stage model: \u00a0
\u2022
Stage 1: If the credit risk has not increased significantly,\u00a0the impairment\u00a0charge equals the expected credit losses resulting\u00a0from default\u00a0events \u00a0
that are possible within the next 12 months. \u00a0
\u2022
Stage 2: If the credit risk has increased significantly,\u00a0the loan is\u00a0transferred to stage 2 and an impairment\u00a0charge equal to the lifetime expected \u00a0
credit losses is recognised. \u00a0
\u2022
Stage 3: If the loan is in default, it is transferred\u00a0to stage 3, for which the impairment charge continues\u00a0to equal the lifetime expected credit losses \u00a0
but with interest income being recognised on\u00a0the net carrying\u00a0amount. \u00a0
The expected credit loss is calculated for all individual facilities\u00a0as a function\u00a0of the probability of default (PD), the exposure at\u00a0default (EAD) and the loss \u00a0
given default (LGD) and incorporates forward looking elements. For facilities in stages 2 and 3, the lifetime expected credit losses cover the expected \u00a0
remaining lifetime of\u00a0a facility. \u00a0
Expected credit\u00a0loss impairment charges are\u00a0booked in an\u00a0allowance account\u00a0and allocated to individual\u00a0exposures. \u00a0
Calculation of\u00a0expected credit losses \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as\u00a0a function of the probability\u00a0of default (PD), the exposure\u00a0at default\u00a0(EAD) and\u00a0the loss \u00a0
given default (LGD). In general, the Group\u2019s IFRS 9 impairment models and parameters draw on the bank\u2019s internal models in order to ensure alignment \u00a0
of models across the Group. New models and calculations\u00a0have been\u00a0developed especially\u00a0for IFRS 9 purposes, including\u00a0models for lifetime PD, \u00a0
prepayment and forward-looking LGD. All expected credit loss impairment charges\u00a0are allocated to individual\u00a0exposures. For significant loans in stage 3, \u00a0
the Group determines the expected credit losses individually. \u00a0
Expected remaining lifetime \u00a0
For most facilities,\u00a0the expected lifetime is limited to the remaining contractual maturity and is adjusted for expected prepayment. For exposures with \u00a0
weak credit quality, the likelihood\u00a0of prepayment\u00a0is not included. For\u00a0exposures that\u00a0include both a\u00a0loan and an undrawn commitment\u00a0and where a \u00a0
contractual ability to\u00a0demand prepayment\u00a0and cancellation\u00a0of the undrawn\u00a0commitment does not limit the Group\u2019s exposure to credit losses to the \u00a0
contractual notice period, the expected lifetime is the period during which the Group expects to be\u00a0exposed to credit losses. This period is\u00a0estimated on \u00a0
the basis of the normal credit risk management actions. Products identified\u00a0as in scope of an expected lifetime\u00a0longer than the remaining contractua\u00a0l \u00a0
maturity include credit\u00a0cards, overdraft balances\u00a0and certain revolving\u00a0credit facilities. \u00a0
G15. Loans\u00a0at amortised\u00a0cost continued \u00a0
Incorporation of\u00a0forward-looking information \u00a0
The forward-looking elements of\u00a0the calculation reflect the current expectations\u00a0of the Group\u2019s senior management.\u00a0The Group\u2019s independent \u00a0
macroeconomic research\u00a0unit in Markets\u00a0creates macroeconomic scenarios (base\u00a0case, upside and downside), including\u00a0an assessment\u00a0of the \u00a0
probability of\u00a0each scenario. The purpose of using multiple\u00a0scenarios is to model the non-linear\u00a0impact of assumptions about macroeconomic\u00a0factors on \u00a0
the expected credit losses Afterwards there is a\u00a0process to ensure a review and sign-off of the scenarios. Management\u2019s approval of\u00a0the scenarios can \u00a0
include adjustments\u00a0to the scenarios or to which scenarios are used, the assigned probability weighting\u00a0and post-model\u00a0adjustments to\u00a0cover the outlook \u00a0
for particular\u00a0high-risk portfolios which are not\u00a0provided by\u00a0the Group\u2019s macroeconomists. The\u00a0approved scenarios are\u00a0used to calculate\u00a0the impairment \u00a0
levels. Technically, the forward-looking information is\u00a0used directly\u00a0in the\u00a0PDs through\u00a0an estimate\u00a0of general changes\u00a0to the PDs and the LGDs in the \u00a0
expected credit loss calculation.\u00a0However, for\u00a0significant exposures in stage 3, an individual\u00a0assessment of the scenarios, changes to expected credit \u00a0
losses and the related probabilities\u00a0are performed by senior credit officers. \u00a0
The forward-looking\u00a0information is based on a three year forecast period converging to steady state in year seven. The base case\u00a0is based on the \u00a0
macroeconomic outlook as disclosed in the Group\u2019s Nordic Outlook\u00a0reports. Further information on the macroeconomic scenarios used can be\u00a0found in \u00a0
note G40. \u00a0
Sustainability risk \u00a0
Credit risk is deemed to be the risk type most materially\u00a0affected by sustainability\u00a0risk in the long term, of which climate\u00a0risk is currently\u00a0the most urgent \u00a0
of all ESG-related drivers capable of\u00a0affecting the Group\u2019s credit risk. \u00a0
The Group takes a risk-based approach in prioritising\u00a0risk management\u00a0efforts for credit portfolios that are likely to be most exposed to transition\u00a0and \u00a0
physical risks. For that purpose, the Group applies a mix of qualitative\u00a0and quantitative\u00a0input to define the credit exposures most exposed to transition \u00a0
and physical risks. \u00a0
High transition risk\u00a0exposures are identified\u00a0using a mix of insights, including financed emissions estimates, findings from conducting clima\u00a0te scenario \u00a0
analysis as\u00a0well as\u00a0qualitative judgment\u00a0to account for e.g., credible transition\u00a0plans, potential future technology an\u00a0d demand risks to a given sector. Most \u00a0
of the emissions\u00a0are attributable\u00a0to only a few sectors, e.g., Shipping,\u00a0Oil and Gas, which the Group actively monitors and m\u00a0anages. From the initia\u00a0l \u00a0
assessment of customers subject to high transition\u00a0risk, the exposure to the lagging transition category remains limited but will be monitored on an \u00a0
ongoing basis. \u00a0
The Group has identified flooding risk (river and coastal flooding) as the key physical\u00a0hazard applicable to the portfolio on the basis of\u00a0the report on high \u00a0
confidence of hazard\u00a0increase in Northern\u00a0Europe issued by the Intergovernmental\u00a0Panel on Climate\u00a0Change. The current analyses on\u00a0flooding risk\u00a0focus \u00a0
on residential and commercial property and the risk is assessed to be limited. \u00a0
Moreover, the\u00a0Group performs\u00a0ad-hoc climate stress tests to assess physical and transition\u00a0risks of climate changes. Stress tests in relation to physical \u00a0
risks cover collateral-related\u00a0exposures and are based on river and coastal flooding.\u00a0Stress tests in relation to transition\u00a0risks consider an introductio\u00a0n \u00a0
of carbon taxes. \u00a0
The Group will continue to refine its assessment methodology as more climate risk data becomes available to support the ident\u00a0ification of\u00a0both transitio\u00a0n \u00a0
and physical\u00a0risks for the purpose of determining\u00a0financial significance, however, conclusions have no\u00a0t led to adjustments\u00a0to staging or modelled\u00a0expected \u00a0
credit losses, as the impacts either manifest over a longer time period than loan maturities,\u00a0or as transition\u00a0risks are conc\u00a0entrated on\u00a0a few sectors with \u00a0
downside risks already recognised in the Group\u2019s modelled expected credit losses. Both transition and physical risks are\u00a0either managed through risk \u00a0
tolerances or\u00a0strategic targets, or\u00a0already have post model adjustments/management\u00a0overlays allocated covering the climate re\u00a0lated risks. \u00a0
Write-off policy \u00a0
Loans considered uncollectible\u00a0are written off. Write-offs are debited\u00a0to the allowance account. Loans are written off once the usual collection procedure \u00a0
has been completed and the loss on the individual\u00a0loan can be calculated.\u00a0If the full loss is not expected to be realised until after a number of years, for \u00a0
example in the event of administration\u00a0of complex estates, a partial write-off is recognised, reflecting the Group\u2019s claim less collateral,\u00a0estimated dividend \u00a0
and other cash flows. \u00a0
Modification \u00a0
When a loan is modified the Group assesses whether the modification\u00a0results in derecognition.\u00a0This depends on\u00a0whether the\u00a0changes to the contractua\u00a0l \u00a0
cash flows or other\u00a0contractual terms are\u00a0significant or not, or\u00a0whether they are\u00a0as a result of the Interest Rate Benchmark Reform. \u00a0
A change in the contractual\u00a0cash flows\u00a0that is\u00a0required by\u00a0the reform is accounted for by updating\u00a0the effective interest rat\u00a0e, without recognising a\u00a0gain \u00a0
or loss. This can only be applied\u00a0if the change is necessary as a direct consequence of the reform, a\u00a0nd the new basis for determining\u00a0the contractual cash \u00a0
flows is economically\u00a0equivalent to the previous basis. \u00a0
Otherwise, if the changes are not related to the reform and are significant, the modification\u00a0is accounted\u00a0for as derecognition\u00a0of the original\u00a0loan and \u00a0
recognition of\u00a0a new loan. If the changes are not significant, the modification\u00a0is accounted for as a\u00a0modification of\u00a0the original loan. The assessment is \u00a0
based on the following\u00a0considerations: \u00a0
\u2022
The Group differentiates between changes in the cash\u00a0flows or other terms within the original contract and modifications\u00a0of the contract, i.e. a new \u00a0
contract. \u00a0
\u2022
In general, a significant modification\u00a0is defined as a full credit process, a pricing decision\u00a0and the signing of a new contract. \u00a0
\u2022
An assessment of whether the modification\u00a0is caused as a forbearance measure or made on commercial terms. \u00a0
If the financial\u00a0asset is not derecognised, the original effective interest rate remains unchanged, and the net present value of the changed contractua\u00a0l \u00a0
cash flows\u00a0represents the gross carrying amount of the financial asset after the modification.\u00a0The difference between the net present value of the original \u00a0
contractual cash flows and the modified contractual cash flows is recognised in the income statement as a modification gain or loss. \u00a0
If the original financial asset is derecognised, a derecognition\u00a0gain or loss is recognised in the income statement.\u00a0The derecognition gain\u00a0or loss \u00a0
represents the difference between the carrying amount of the original financial asset (updated to reflect current expected credit losses) and the initia\u00a0l \u00a0
carrying amount of\u00a0the new financial asset plus/minus\u00a0any cash payments\u00a0between the parties in\u00a0relation to the modification. \u00a0
Modifications in\u00a0the form of forbearance measures include interest reduction schedules, interest only schedules, temporary pa\u00a0yment holidays,\u00a0term \u00a0
extensions, cancellation of\u00a0outstanding fees,\u00a0waiver of covenant enforcement and debt forgiveness. For modific\u00a0ations that are\u00a0not significant, the \u00a0
modification loss is recognised in the Income statement within Loan impairment charges. \u00a0
In terms of stage allocation,\u00a0a modification that leads to derecognition of the initial loan and recognition of a new loan, the lo\u00a0an will (unless the new loan is \u00a0
credit-impaired at\u00a0initial recognition) be recognised in stage\u00a01 at initial recognition, i.e.\u00a0the initial credit risk is reset. If the replacing\u00a0loan is considered\u00a0an \u00a0
amendment to the original loan, the initial\u00a0credit risk is not reset. Loans modified as part of the Group\u2019s forbearance policy, where the modification\u00a0does \u00a0
not result in derecognition,\u00a0the loss allowance on the forborne loans will generally\u00a0only be measured based on 12-months expected credit losses when \u00a0
there is evidence of the borrower\u2019s improved repayment behaviour. When a\u00a0loan in stage 3 is modified,\u00a0and the modification results in derecognition, the \u00a0
Group assesses if the new loan is originated\u00a0credit impaired. The assessment\u00a0includes factors\u00a0such as whether the customer\u2019s repayment behaviou\u00a0r \u00a0
has improved significantly prior to the modification\u00a0or not, and whether the pricing\u00a0on the new loan reflects the actual credit risk etc. New loans that are \u00a0
originated credit\u00a0impaired remains under a lifetime ECL calculation\u00a0for the remaining\u00a0term of the exposure. \u00a0
(d) Significant accounting estimates\u00a0related to expected credit losses \u00a0
For information\u00a0on significant\u00a0accounting estimates related to\u00a0expected credit\u00a0losses, see note G1(b). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4279": {
"value": "Accounting policy \u00a0
The trading\u00a0portfolio is recognised at fair value\u00a0through profit\u00a0or loss. Realised and unrealised\u00a0capital gains and losses and dividends\u00a0are recognised in \u00a0
the income statement\u00a0under Net trading\u00a0income or loss. Fair value\u00a0is the\u00a0amount for which a financial asset can be sold or a financial liability\u00a0be \u00a0
transferred to a knowledgeable,\u00a0willing third\u00a0party. Note G33 provides information\u00a0about fair value measurement and fair value adjustments. \u00a0
The Group uses the option in IFRS 9 to continue using the fair value hedge accounting model in IAS 39.\u00a0The derivatives used\u00a0as hedging instruments \u00a0
are presented\u00a0in the balance sheet together with other derivatives. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4285": {
"value": "(c) Explanation of derivatives \u00a0
The Group\u2019s activities in\u00a0the financial markets include trading in derivatives.\u00a0Derivatives are\u00a0financial instruments\u00a0whose value depends on the value of \u00a0
an underlying\u00a0instrument or index etc. Derivatives\u00a0can be used to manage market risk exposure, for example.\u00a0The Group trades a considerable\u00a0volume of \u00a0
the most commonly used interest rate, currency and\u00a0equity derivatives,\u00a0including \u00a0
\u2022
swaps \u00a0
\u2022
forwards and\u00a0futures \u00a0
\u2022
options \u00a0
The Group trades a\u00a0limited number of swaps\u00a0whose value depends on\u00a0developments in\u00a0specific credit or commodity\u00a0risks, or inflation\u00a0indices. \u00a0
The Group trades derivatives\u00a0as part of servicing\u00a0customers\u2019 needs as individual\u00a0transactions or as\u00a0integral parts of other services, such as the issuance \u00a0
of bonds with yields\u00a0that depend on developments\u00a0in equity\u00a0or currency indices. The Group also uses derivatives\u00a0to manage the Group\u2019s own exposure\u00a0to \u00a0
foreign exchange, interest rate, equity market and credit risks. Note G40 provide\u00a0additional information about\u00a0the Group\u2019s risk management policy.\u00a0Large \u00a0
Corporates &\u00a0Institutions is\u00a0responsible for\u00a0the day-to-day management and hedging of the Group\u2019s market risks. \u00a0
Derivatives are\u00a0recognised and measured at fair\u00a0value. Some of the Group\u2019s loans, deposits, issued bonds, etc. in the Group\u2019s banking units\u00a0and Group \u00a0
Treasury carry\u00a0fixed rates. Generally,\u00a0such fixed-rate items are recognised\u00a0at amortised\u00a0cost. Further,\u00a0the Group\u00a0classifies certain bonds as \u2018hold to \u00a0
collect and sell\u2019 financial assets. Unrealised value adjustments\u00a0of such bonds are recognised under Other comprehensive\u00a0income. The Group uses fair \u00a0
value hedge accounting\u00a0if the interest rate risk on fixed-rate financial assets and liabilities\u00a0or bonds measured at\u00a0fair value through other comprehensive \u00a0
income is hedged by derivatives. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4287": {
"value": "Derivatives \u00a0
2023 \u00a0
2022 \u00a0
Notional \u00a0
Positive \u00a0
Negative \u00a0
Notional \u00a0
Positive \u00a0
Negative \u00a0
(DKK millions) \u00a0
amount \u00a0
fair value \u00a0
fair value \u00a0
amount \u00a0
fair value \u00a0
fair value \u00a0
Currency contracts \u00a0
Forwards and swaps \u00a0
7,296,753 \u00a0
109,089 \u00a0
126,236 \u00a0
7,214,105 \u00a0
121,850 \u00a0
135,218 \u00a0
Options \u00a0
241,234 \u00a0
1,180 \u00a0
1,411 \u00a0
153,739 \u00a0
989 \u00a0
1,247 \u00a0
Interest rate contracts \u00a0
Forwards/swaps/FRAs \u00a0
26,216,460 \u00a0
193,870 \u00a0
161,656 \u00a0
27,145,285 \u00a0
243,706 \u00a0
215,787 \u00a0
Options \u00a0
3,163,676 \u00a0
35,177 \u00a0
31,289 \u00a0
3,480,220 \u00a0
54,471 \u00a0
54,875 \u00a0
Equity contracts \u00a0
Forwards \u00a0
216,008 \u00a0
3,122 \u00a0
3,846 \u00a0
217,605 \u00a0
2,619 \u00a0
3,341 \u00a0
Options \u00a0
227,452 \u00a0
2,980 \u00a0
3,462 \u00a0
124,041 \u00a0
2,964 \u00a0
3,144 \u00a0
Other contracts \u00a0
Commodity contracts \u00a0
-
-
-
28 \u00a0
-
-
Credit derivatives bought \u00a0
438 \u00a0
-
96 \u00a0
1,429 \u00a0
97 \u00a0
48 \u00a0
Credit derivatives sold \u00a0
696 \u00a0
96 \u00a0
-29 \u00a0
1,626 \u00a0
48 \u00a0
105 \u00a0
Total derivatives\u00a0held for trading purposes \u00a0
-
345,515 \u00a0
327,968 \u00a0
-
426,743 \u00a0
413,764 \u00a0
Hedging derivatives \u00a0
Currency contracts \u00a0
1,839 \u00a0
6
92 \u00a0
1,956 \u00a0
9
119 \u00a0
Interest rate contracts \u00a0
537,923 \u00a0
6,201 \u00a0
12,858 \u00a0
513,852 \u00a0
3,371 \u00a0
21,258 \u00a0
Total derivatives \u00a0
351,722 \u00a0
340,918 \u00a0
430,123 \u00a0
435,141 \u00a0
Positive and negative fair\u00a0values of\u00a0derivatives are\u00a0offset if certain\u00a0criteria are fulfilled. Note G32 provides more information. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4289": {
"value": "(d) Explanation of hedge accounting \u00a0
An overview over the risks the Group is exposed to and how they are defined is provided on the first page of note G40. For some of those risks hedge \u00a0
accounting is\u00a0applied. The Group uses fair\u00a0value hedge accounting for\u00a0hedges of interest rate risk. Further, the Group hedges part of the foreign currency \u00a0
risk on net investment\u00a0in foreign entities. \u00a0
Hedge of interest rate risk \u00a0
The Group manages the fixed interest rate risk on\u00a0financial assets and liabilities\u00a0measured at amortised cost as a combination\u00a0of economic hedges \u00a0
(matching of interest rate risk from assets and liabilities\u00a0at amortised cost across the Group\u2019s banking units) and hedges using interest rate swaps. \u00a0
Group Treasury is\u00a0responsible for the risk management of the interest rate risk (the so-called interest rate risk in the banking\u00a0book). In\u00a0the risk \u00a0
management process,\u00a0economic hedges are established\u00a0and/or identified.\u00a0This includes the\u00a0acquisition of\u00a0\u2018hold to collect\u2019 fixed interest\u00a0rate bonds in \u00a0
Group Treasury and\u00a0the identification\u00a0of fixed-rate loans extended by the Group\u2019s banking units to\u00a0hedge the fixed interest rate risk on liabilities\u00a0(including \u00a0
core demand deposits). Interest rate risk on fixed-rate liabilities\u00a0(such as long\u00a0dated funding via bond issuance) is generally hedged by interest rate swaps \u00a0
and the interest rate risk on certain fixed-rate assets can be hedged using derivatives\u00a0as well. For further information\u00a0see the\u00a0sections Market risk\u00a0in \u00a0
relation to non-trading portfolios at Group Treasury and Interest rate risk in the banking book (IRRBB) in G40. \u00a0
When the Group uses swaps to hedge the fixed interest rate risk on financial instruments,\u00a0the Group applies fair\u00a0value hedge accounting using the\u00a0optio n \u00a0
in IFRS 9 to continue\u00a0to apply\u00a0the fair value\u00a0hedge accounting\u00a0provisions in\u00a0IAS 39. Fair value hedge accounting can\u00a0be applied if changes in the fair value \u00a0
of the hedging swaps are expected to be effective in offsetting changes in the fair value of the hedged fixed interest rate risk. This requires (1) a\u00a0formal \u00a0
designation and documentation\u00a0of the hedging\u00a0relationship, including a\u00a0risk management objective and strategy for the hedge, (2)\u00a0that the hedge is \u00a0
expected to be highly effective in achieving\u00a0offsetting changes in fair value of the hedged interest rate risk, (3) the effectiveness of the hedge can be reliably \u00a0
measured and (4) the hedge on an ongoing basis has proven to be effective in actually offsetting of changes in fair value. With effective hedging, the hedged \u00a0
interest rate\u00a0risk on hedged assets and liabilities\u00a0is measured at fair value\u00a0and recognised as a value adjustment\u00a0of the hedged items. Value\u00a0adjustments \u00a0
on the hedged item and the hedging swaps are presented in the income statement\u00a0under Net trading\u00a0income or\u00a0loss. Any ineffective portion of a\u00a0hedge \u00a0
that lies within the range for effective hedging\u00a0is therefore also included under Net trading income or loss. \u00a0
The interest rate is considered fixed\u00a0if the interest rate resets to a reference rate with a term longer than three months. Once a financial instrument\u00a0has \u00a0
been designated\u00a0as a hedged item it will remain as hedged item for the life of the instrument.\u00a0For hedged assets and liabilities\u00a0to which a fixed rate of \u00a0
interest applies for\u00a0a specified period of time\u00a0starting at the commencement date of the agreement, future interest payments are split into basis interes\u00a0t \u00a0
and a customer margin and into periods of time. By entering into swaps or forwards with matching payment profiles in the same currencies and for the \u00a0
same periods, the Group hedges the risk at portfolio level from the commencement date of the hedged items. The fair values of the hedged interest rate \u00a0
risk and\u00a0the hedging derivatives\u00a0to ensure that changes\u00a0in the fair value of the hedged interest\u00a0rate risk lie within a band of 80-125% of the changes in \u00a0
the fair value\u00a0of the hedging derivatives.\u00a0Portfolios of\u00a0hedging derivatives\u00a0are adjusted if\u00a0necessary. \u00a0
The primary reasons\u00a0for changes in\u00a0the fair value of fixed interest rate financial assets are changes in the interest rate risk and the credit risk. \u00a0
Hedge ineffectiveness relates to the fact that fair value changes on the hedged items are\u00a0measured based on the interest rate curve relevant for each \u00a0
hedged item while the fair value of the fixed legs of the hedging derivatives\u00a0are measured based on a swap curve. Further, the adjustment\u00a0of the portfolio s \u00a0
of hedging derivatives\u00a0to changes in hedged positions is not done instantly,\u00a0and some hedge ineffectiveness\u00a0can therefore\u00a0exist. \u00a0
The Interest Rate Benchmark Reform is progressively replacing inter-bank offered\u00a0rates (IBORs) with alternative\u00a0risk-free rates. The Group had \u00a0
established an IBOR Transition\u00a0Programme, the main objectives\u00a0being to\u00a0identify how the IBOR transition would affect the Group financially and \u00a0
operationally, and\u00a0to identify how\u00a0cessation of IBOR publications\u00a0would affect the Group\u2019s\u00a0ability to service its customer base. The IBOR Transitio\u00a0n \u00a0
programme has achieved its aims and\u00a0will be\u00a0wound down during\u00a0the first\u00a0quarter of\u00a02024. Interest rate developments\u00a0are continuously\u00a0monitored, and \u00a0
any future introduction\u00a0of new risk-free rates will be managed and resourced as required. \u00a0
As at 31 December\u00a02023, there are no derivatives\u00a0that are yet to transition to alternative\u00a0benchmark rates (31\u00a0December 2022: DKK 2,738 million). \u00a0
G12. Trading portfolio assets and liabilities continued \u00a0
The tables below show the hedging derivatives\u00a0and the hedged fixed interest rate financial instruments. \u00a0
Changes in fair value \u00a0
used for calculating \u00a0
Hedging derivatives \u00a0
Nominal amount \u00a0
Carrying amount \u00a0
hedge ineffectiveness \u00a0
(DKK millions) \u00a0
Assets \u00a0
Liabilities \u00a0
Interest rate swaps, 2023 \u00a0
Total \u00a0
539,762 \u00a0
6,207 \u00a0
12,950 \u00a0
12,381 \u00a0
Interest rate swaps, 2022 \u00a0
Total \u00a0
515,807 \u00a0
3,380 \u00a0
21,377 \u00a0
-21,295 \u00a0
Profile of the timing\u00a0of the nominal amount\u00a0of the hedging\u00a0derivatives \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
< 12 months \u00a0
168,795 \u00a0
151,844 \u00a0
1-5 years \u00a0
358,068 \u00a0
348,754 \u00a0
> 5 years \u00a0
12,899 \u00a0
15,210 \u00a0
Total \u00a0
539,762 \u00a0
515,807 \u00a0
Accumulated amount of fair \u00a0
value hedge adjustments on the \u00a0
Change in fair \u00a0
hedged item included in the \u00a0
value used for \u00a0
carrying amount of the hedged \u00a0
calculating hedge \u00a0
Hedged fixed\u00a0interest rate risk \u00a0
Carrying amount\u00a0of hedged items \u00a0
item \u00a0
ineffectiveness \u00a0
(DKK millions) \u00a0
Assets \u00a0
Liabilities \u00a0
Assets \u00a0
Liabilities \u00a0
2023 \u00a0
Amounts due from credit institutions \u00a0
-
-
-
Loans \u00a0
11,232 \u00a0
-537 \u00a0
293 \u00a0
Bonds 'held to collect and sell' \u00a0
749 \u00a0
68 \u00a0
-8 \u00a0
Amounts due to credit institutions \u00a0
8,587 \u00a0
3
-9 \u00a0
Deposits \u00a0
18,899 \u00a0
105 \u00a0
-128 \u00a0
Issued bonds \u00a0
200,015 \u00a0
-5,044 \u00a0
-9,204 \u00a0
Non-preferred senior debt \u00a0
87,166 \u00a0
-2,537 \u00a0
-2,669 \u00a0
Subordinated debt \u00a0
22,974 \u00a0
-997 \u00a0
-846 \u00a0
Total \u00a0
11,980 \u00a0
337,641 \u00a0
-470 \u00a0
-8,470 \u00a0
-12,572 \u00a0
2022 \u00a0
Amounts due from credit institutions \u00a0
-
-
-
Loans \u00a0
13,706 \u00a0
-844 \u00a0
-2,260 \u00a0
Bonds 'held to collect and sell' \u00a0
837 \u00a0
76 \u00a0
-24 \u00a0
Amounts due to credit institutions \u00a0
2,432 \u00a0
-6 \u00a0
10 \u00a0
Deposits \u00a0
4,205 \u00a0
-24 \u00a0
23 \u00a0
Issued bonds \u00a0
155,541 \u00a0
-14,296 \u00a0
15,760 \u00a0
Non-preferred senior debt \u00a0
83,028 \u00a0
-5,206 \u00a0
5,889 \u00a0
Subordinated debt \u00a0
22,069 \u00a0
-1,843 \u00a0
1,871 \u00a0
Total \u00a0
14,544 \u00a0
267,276 \u00a0
-768 \u00a0
-21,375 \u00a0
21,270 \u00a0
Hedge ineffectiveness recognised in the income statement, 2023 \u00a0
-191 \u00a0
Hedge ineffectiveness recognised in the income statement, 2022 \u00a0
-26 \u00a0
G12. Trading portfolio assets and liabilities continued \u00a0
Hedge of foreign exchange risk on net investments\u00a0in foreign entities \u00a0
The Group hedges its foreign exchange risk on net investments\u00a0in foreign currency units. Foreign exchange risk is defined as risk of losses from translatin\u00a0g \u00a0
the net investments\u00a0in foreign entities\u00a0that are\u00a0denominated in a\u00a0foreign currency other than DKK. The net investment\u00a0in foreign currency\u00a0units include\u00a0s \u00a0
the net assets and goodwill of the units. The Group has granted loans in the currency of the foreign unit to its branches in Sweden, Norway and Finland \u00a0
for a total of DKK 37,999 million\u00a0(2022: 34,573 million). The loans represent the capital allocated to these units. The settlement of the loans is\u00a0neithe r \u00a0
planned nor likely to occur in the foreseeable future and they are a\u00a0part of\u00a0the net investment\u00a0in those units.\u00a0Further, Danske Bank\u00a0A/S has\u00a0granted the \u00a0
subsidiary Northern Bank an additional\u00a0tier 1 capital instrument\u00a0that together with shareholders\u2019 equity in Northern Bank is\u00a0considered part\u00a0of the net \u00a0
investment in\u00a0Northern Bank.\u00a0The exchange differences from translating net profit in the foreign\u00a0units at\u00a0the date of underlying\u00a0transactions and assets \u00a0
and liabilities\u00a0at the closing rate and from translating\u00a0the opening net assets at a closing rate that differs from the previous closing rate are recognised \u00a0
in Other comprehensive\u00a0income (translation differences). \u00a0
The Group hedges the foreign exchange risk of net investments\u00a0in branches and subsidiaries\u00a0outside Denmark by designating\u00a0funding arrangements in \u00a0
the matching currencies as\u00a0a hedge of the foreign exchange risk on the net investments.\u00a0The foreign exchange differences on the funding arrangements \u00a0
are recognised in Other comprehensive income to offset\u00a0the exchange differences on the net investments.\u00a0The funding\u00a0arrangements consist primarily \u00a0
of issued bonds. Realised net profit is hedged in the beginning\u00a0of the next month. The Group does not\u00a0hedge the expected financial results of units outsid\u00a0e \u00a0
Denmark or\u00a0other future transactions.\u00a0In terms\u00a0of assessing hedge effectiveness, this is applied by comparing the nominal value of the funding \u00a0
arrangement to the nominal value of\u00a0the net\u00a0investments. Hedge ineffectiveness can\u00a0arise to the extent the funding arrangements exceed the net \u00a0
investments. However, when\u00a0the net investments\u00a0are decreased, e.g. when the net investments\u00a0are reduced by paying\u00a0out dividend,\u00a0the same amount of \u00a0
funding arrangements are de-designated as hedges and the funding arrangements designated as hedges will therefore, in general, not exceed the net \u00a0
investments. \u00a0
Part of the funding of the loans granted to the branches in Sweden, Norway and Finland is in DKK in order to create a so-called structural FX hedge \u00a0
position in\u00a0accordance with banking\u00a0regulation, i.e.\u00a0to reduce the impact on capital ratios resulting\u00a0from changes in the risk exposure amount due to \u00a0
changes in currency rates. The Group\u2019s net investment\u00a0in its\u00a0subsidiaries Danske Hypotek AB\u00a0(Sweden) and\u00a0Danske Mortgage Bank\u00a0Plc (Finland)\u00a0is \u00a0
included in\u00a0the structural hedge\u00a0position to extend the hedge to the risk exposure amount measured by\u00a0currency for EUR, NOK a\u00a0nd SEK across the entir\u00a0e \u00a0
Group balance sheet, although with constraints\u00a0to the size of the loans to the foreign branches and the n\u00a0et investment\u00a0in the foreign subsidiaries.\u00a0This \u00a0
strategy of\u00a0partly hedging the sensitivity\u00a0to capital ratios from\u00a0volatility in\u00a0foreign currency rates, increases the volatility\u00a0in Other comprehensive\u00a0income \u00a0
and the Foreign currency translation reserve in equity under IFRS since it decrease the hedge of the currency risk on the net investments\u00a0in those\u00a0units . \u00a0
At the end of 2023, the structural FX hedge position totalled DKK 37,641 million (2022: DKK 41,350 million) and a\u00a0loss of DKK 730 million has been \u00a0
recognised in Other comprehensive\u00a0income due to a\u00a0weakening of the NOK against the DKK, of which, a\u00a0loss of DKK 786 million h\u00a0as been realised and \u00a0
reclassified from Other comprehensive\u00a0income to the Income statement (and therefore has no impact on total\u00a0shareholders\u2019 equity). This is due to an \u00a0
adjustment made\u00a0for the structural FX hedge position held in NOK, to reflect\u00a0the reduction in long term risk exposure amount\u00a0(REA) in\u00a0NOK coming from \u00a0
the announced sale of personal customer business in Norway. For comparison, a loss of DKK 2,071 million was recognised in Other comprehensive \u00a0
income during 2022 mainly due to a\u00a0weakening of\u00a0the SEK against the DKK. For\u00a0further information, see\u00a0the section on Market risk \u2013 Structural FX risk \u00a0
in G40. \u00a0
The cumulative exchange differences on\u00a0the hedging instrument\u00a0and the translation\u00a0differences related to the net\u00a0investment are\u00a0reclassified from\u00a0Other \u00a0
comprehensive income to\u00a0the income statement on\u00a0the disposal of the foreign entities. \u00a0
The table below provides information on the hedge of net investments\u00a0in foreign entities. \u00a0
Hedging of foreign entities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Net investment\u00a0in foreign units \u00a0
47,909 \u00a0
44,585 \u00a0
Funding arrangements designated as a hedge of net investments\u00a0in foreign units* \u00a0
10,269 \u00a0
3,236 \u00a0
Portion of net investment\u00a0in foreign\u00a0units not hedged, structural FX position \u00a0
37,641 \u00a0
41,350 \u00a0
Hedge ineffectiveness \u00a0
Exchange differences on the hedging instruments \u00a0
589 \u00a0
2,463 \u00a0
Exchange differences on the net investment used for recognising hedge ineffectiveness \u00a0
-589 \u00a0
-2,463 \u00a0
Hedge ineffectiveness recognised in the income statement (net trading income) \u00a0
-
-
Hedging gains or losses recognised in OCI \u00a0
589 \u00a0
2,463 \u00a0
Reclassified to the income statement on disposal of foreign units** \u00a0
806 \u00a0
-
*Primarily included on the line item \u2018Issued bonds at amortised cost\u2019 \u00a0
**Included in the item \u2018Net trading income in the Income statement\u2019 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4294": {
"value": "G12. Trading portfolio assets and liabilities continued \u00a0
Hedge of foreign exchange risk on net investments\u00a0in foreign entities \u00a0
The Group hedges its foreign exchange risk on net investments\u00a0in foreign currency units. Foreign exchange risk is defined as risk of losses from translatin\u00a0g \u00a0
the net investments\u00a0in foreign entities\u00a0that are\u00a0denominated in a\u00a0foreign currency other than DKK. The net investment\u00a0in foreign currency\u00a0units include\u00a0s \u00a0
the net assets and goodwill of the units. The Group has granted loans in the currency of the foreign unit to its branches in Sweden, Norway and Finland \u00a0
for a total of DKK 37,999 million\u00a0(2022: 34,573 million). The loans represent the capital allocated to these units. The settlement of the loans is\u00a0neithe r \u00a0
planned nor likely to occur in the foreseeable future and they are a\u00a0part of\u00a0the net investment\u00a0in those units.\u00a0Further, Danske Bank\u00a0A/S has\u00a0granted the \u00a0
subsidiary Northern Bank an additional\u00a0tier 1 capital instrument\u00a0that together with shareholders\u2019 equity in Northern Bank is\u00a0considered part\u00a0of the net \u00a0
investment in\u00a0Northern Bank.\u00a0The exchange differences from translating net profit in the foreign\u00a0units at\u00a0the date of underlying\u00a0transactions and assets \u00a0
and liabilities\u00a0at the closing rate and from translating\u00a0the opening net assets at a closing rate that differs from the previous closing rate are recognised \u00a0
in Other comprehensive\u00a0income (translation differences). \u00a0
The Group hedges the foreign exchange risk of net investments\u00a0in branches and subsidiaries\u00a0outside Denmark by designating\u00a0funding arrangements in \u00a0
the matching currencies as\u00a0a hedge of the foreign exchange risk on the net investments.\u00a0The foreign exchange differences on the funding arrangements \u00a0
are recognised in Other comprehensive income to offset\u00a0the exchange differences on the net investments.\u00a0The funding\u00a0arrangements consist primarily \u00a0
of issued bonds. Realised net profit is hedged in the beginning\u00a0of the next month. The Group does not\u00a0hedge the expected financial results of units outsid\u00a0e \u00a0
Denmark or\u00a0other future transactions.\u00a0In terms\u00a0of assessing hedge effectiveness, this is applied by comparing the nominal value of the funding \u00a0
arrangement to the nominal value of\u00a0the net\u00a0investments. Hedge ineffectiveness can\u00a0arise to the extent the funding arrangements exceed the net \u00a0
investments. However, when\u00a0the net investments\u00a0are decreased, e.g. when the net investments\u00a0are reduced by paying\u00a0out dividend,\u00a0the same amount of \u00a0
funding arrangements are de-designated as hedges and the funding arrangements designated as hedges will therefore, in general, not exceed the net \u00a0
investments. \u00a0
Part of the funding of the loans granted to the branches in Sweden, Norway and Finland is in DKK in order to create a so-called structural FX hedge \u00a0
position in\u00a0accordance with banking\u00a0regulation, i.e.\u00a0to reduce the impact on capital ratios resulting\u00a0from changes in the risk exposure amount due to \u00a0
changes in currency rates. The Group\u2019s net investment\u00a0in its\u00a0subsidiaries Danske Hypotek AB\u00a0(Sweden) and\u00a0Danske Mortgage Bank\u00a0Plc (Finland)\u00a0is \u00a0
included in\u00a0the structural hedge\u00a0position to extend the hedge to the risk exposure amount measured by\u00a0currency for EUR, NOK a\u00a0nd SEK across the entir\u00a0e \u00a0
Group balance sheet, although with constraints\u00a0to the size of the loans to the foreign branches and the n\u00a0et investment\u00a0in the foreign subsidiaries.\u00a0This \u00a0
strategy of\u00a0partly hedging the sensitivity\u00a0to capital ratios from\u00a0volatility in\u00a0foreign currency rates, increases the volatility\u00a0in Other comprehensive\u00a0income \u00a0
and the Foreign currency translation reserve in equity under IFRS since it decrease the hedge of the currency risk on the net investments\u00a0in those\u00a0units . \u00a0
At the end of 2023, the structural FX hedge position totalled DKK 37,641 million (2022: DKK 41,350 million) and a\u00a0loss of DKK 730 million has been \u00a0
recognised in Other comprehensive\u00a0income due to a\u00a0weakening of the NOK against the DKK, of which, a\u00a0loss of DKK 786 million h\u00a0as been realised and \u00a0
reclassified from Other comprehensive\u00a0income to the Income statement (and therefore has no impact on total\u00a0shareholders\u2019 equity). This is due to an \u00a0
adjustment made\u00a0for the structural FX hedge position held in NOK, to reflect\u00a0the reduction in long term risk exposure amount\u00a0(REA) in\u00a0NOK coming from \u00a0
the announced sale of personal customer business in Norway. For comparison, a loss of DKK 2,071 million was recognised in Other comprehensive \u00a0
income during 2022 mainly due to a\u00a0weakening of\u00a0the SEK against the DKK. For\u00a0further information, see\u00a0the section on Market risk \u2013 Structural FX risk \u00a0
in G40. \u00a0
The cumulative exchange differences on\u00a0the hedging instrument\u00a0and the translation\u00a0differences related to the net\u00a0investment are\u00a0reclassified from\u00a0Other \u00a0
comprehensive income to\u00a0the income statement on\u00a0the disposal of the foreign entities. \u00a0
The table below provides information on the hedge of net investments\u00a0in foreign entities. \u00a0
Hedging of foreign entities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Net investment\u00a0in foreign units \u00a0
47,909 \u00a0
44,585 \u00a0
Funding arrangements designated as a hedge of net investments\u00a0in foreign units* \u00a0
10,269 \u00a0
3,236 \u00a0
Portion of net investment\u00a0in foreign\u00a0units not hedged, structural FX position \u00a0
37,641 \u00a0
41,350 \u00a0
Hedge ineffectiveness \u00a0
Exchange differences on the hedging instruments \u00a0
589 \u00a0
2,463 \u00a0
Exchange differences on the net investment used for recognising hedge ineffectiveness \u00a0
-589 \u00a0
-2,463 \u00a0
Hedge ineffectiveness recognised in the income statement (net trading income) \u00a0
-
-
Hedging gains or losses recognised in OCI \u00a0
589 \u00a0
2,463 \u00a0
Reclassified to the income statement on disposal of foreign units** \u00a0
806 \u00a0
-
*Primarily included on the line item \u2018Issued bonds at amortised cost\u2019 \u00a0
**Included in the item \u2018Net trading income in the Income statement\u2019 \u00a0
Foreign currency translation\u00a0reserve \u00a0
Assets and liabilities\u00a0of units outside\u00a0Denmark are\u00a0translated into\u00a0DKK at the applicable\u00a0exchange rates at\u00a0the balance sheet date. Income and expenses \u00a0
are translated\u00a0at the applicable\u00a0exchange rates at the transaction date. Gains and losses arising at the translation\u00a0of net investments\u00a0in units outside \u00a0
Denmark are recognised under Other comprehensive\u00a0income and recognised in the foreign currency translation reserve in\u00a0equity. Net\u00a0investments \u00a0
include the net\u00a0assets and goodwill of\u00a0the units as well as holdings in the form of\u00a0subordinated loan\u00a0capital and other loans to the units\u00a0for which\u00a0settlement \u00a0
is neither planned nor likely to occur in the foreseeable future. Exchange rate adjustments\u00a0of financial\u00a0liabilities used\u00a0for hedging the Group\u2019s net \u00a0
investments are\u00a0also recognised under Other comprehensive\u00a0income and in the foreign currency translation\u00a0reserve. Further information\u00a0can be found \u00a0
in Note G12(d). \u00a0
If the net investment\u00a0in \u00a0
a
unit outside Denmark is sold, translation\u00a0differences, including\u00a0the impact from hedge,\u00a0are reclassified from Other \u00a0
comprehensive income to\u00a0the income statement. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4295": {
"value": "G13. Investment securities \u00a0
Investment securities\u00a0consist of bonds and shares held by non-trading\u00a0units in\u00a0the Group. It consists primarily\u00a0of the liquidity\u00a0portfolio managed by Group \u00a0
Treasury. The liquidity\u00a0portfolio includes different\u00a0portfolios with different\u00a0business models. Some portfolios are managed on a fair\u00a0value basis and \u00a0
mandatorily measured\u00a0at fair value\u00a0through profit\u00a0or loss under IFRS 9, whereas other portfolios\u00a0are either\u00a0\u2018hold to collect and sell\u2019 and measured at fair \u00a0
value through other comprehensive\u00a0income or \u2018hold to collect\u2019. \u00a0
Accounting policy \u00a0
Financial assets measured at fair value through profit or loss (FVPL) \u00a0
Financial assets measured at fair\u00a0value include securities that are\u00a0managed on a fair value basis with no short-term profit taking. Realised and unrealise\u00a0d \u00a0
capital gains and losses and dividends\u00a0are carried in the income statement under Net\u00a0trading income or loss. Further, all shares (including\u00a0unliste d \u00a0
shares) and bonds held in Group Treasury that do not have contractual\u00a0cash flows that are solely payments of principal and interest\u00a0on the principa\u00a0l \u00a0
amount outstanding (i.e. that does not pass the SPPI test in IFRS 9) are mandatorily\u00a0measured at FVPL and, consequently,\u00a0included in this category. \u00a0
Financial assets measured at fair value through other comprehensive income (FVOCI) \u00a0
This category comprises bonds only, and primarily bonds listed in a liquid market, as the Group does not use the option to designate equity instruments \u00a0
at FVOCI.\u00a0The bonds are held within\u00a0a business\u00a0model for the purpose of collecting contractual\u00a0cash flows\u00a0and selling\u00a0(hold to collect\u00a0and sell). The bonds \u00a0
have cash\u00a0flows that are solely payments of principal and interest on the principal\u00a0amount outstanding\u00a0(i.e. that pass the SPPI test in IFRS 9). FVOCI \u00a0
results in\u00a0the assets being recognised at\u00a0fair value in the balance sheet and at amortised cost in the income statement,\u00a0including the\u00a0recognition of \u00a0
expected credit losses as described in note G15. Gains and losses, except for expected credit losses and foreign exchanges gains and losses, are \u00a0
therefore recognised in\u00a0other comprehensive income until the bond is derecognised. When a\u00a0fixed interest rate risk is hedged in a hedge that qualifie\u00a0s \u00a0
for fair value\u00a0hedge accounting, the fair value changes of the hedged interest risk are presented in the income statement under Net trading income or \u00a0
loss. When bonds are sold unrealised value\u00a0adjustments recognised\u00a0under Other comprehensive\u00a0income are reclassified to the income statement and \u00a0
presented under Net trading income or loss.\u00a0The Group recognises interest income according to the effective interest method, including amortisatio\u00a0n \u00a0
of the difference between cost and the redemption value over the term to maturity\u00a0of the bonds. \u00a0
Financial assets measured at amortised cost (AMC) \u00a0
This category consists of\u00a0bonds held within\u00a0a business\u00a0model for the purpose of collecting the contractual\u00a0cash flows (hold to collect) and with cash \u00a0
flows that\u00a0are solely\u00a0payments of principal and interest on the principal amount outstanding (i.e. that pass the SPPI test in IFRS 9). The bonds are \u00a0
measured at\u00a0amortised cost.\u00a0Interest income is\u00a0recognised according to the effective interest method, including\u00a0amortisation of\u00a0the difference between \u00a0
cost and the redemption\u00a0value over the term to maturity of the bonds. A change in the contractual cash flows that is required by the Interest Rate \u00a0
Benchmark Reform is accounted for\u00a0by updating\u00a0the effective interest rate, without\u00a0recognising a gain or loss. This can only\u00a0be applied\u00a0if the change is \u00a0
necessary as a direct consequence of the reform, and the new basis for determining\u00a0the contractual\u00a0cash flows is economically equivalent\u00a0to the \u00a0
previous basis. The bonds are\u00a0subject to\u00a0the expected credit model in IFRS 9 as described in note G15. The interest rate risk on fixed-rate bonds is not \u00a0
hedged. \u00a0
(a) Investment securities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Financial assets at fair value through profit or loss \u00a0
Listed bonds \u00a0
20,798 \u00a0
18,234 \u00a0
Unlisted shares \u00a0
493 \u00a0
1,187 \u00a0
Total financial assets designated\u00a0at fair value through profit or loss \u00a0
21,291 \u00a0
19,421 \u00a0
Bonds hold to collect and sell (FVOCI) \u00a0
Listed bonds \u00a0
107,226 \u00a0
116,429 \u00a0
Total bonds hold to collect and sell (FVOCI) \u00a0
107,226 \u00a0
116,429 \u00a0
Total at fair value \u00a0
128,517 \u00a0
135,850 \u00a0
Bonds hold to collect (AMC) \u00a0
Listed bonds \u00a0
155,398 \u00a0
151,573 \u00a0
Total investment securities \u00a0
283,914 \u00a0
287,423 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
Listed green bonds held for liquidity\u00a0purposes amounted to DKK 15,669 million at\u00a0the end of 2023 (2022: 15,775 million).\u00a0The green\u00a0bonds held are \u00a0
central and local government bonds, quasi-government\u00a0bonds, Danish mortgage\u00a0bonds and covered bonds (Swedish\u00a0and other). The green\u00a0bonds are \u00a0
measured at FVPL, FVOCI and AMC. \u00a0
G13. Investment\u00a0securities continued \u00a0
(b) Further explanation \u00a0
Investment securities\u00a0consist of\u00a0the liquidity\u00a0portfolio held by Group Treasury. The liquidity\u00a0portfolio is\u00a0part of the balance sheet management to optimis\u00a0e \u00a0
the balance sheet composition,\u00a0to hedge the interest rate risk in the banking\u00a0book and to manage the Group\u2019s liquidity need.\u00a0The management of the \u00a0
interest rate risk\u00a0in the banking\u00a0book is carried out through a combination\u00a0of hedges with derivatives\u00a0and partly\u00a0through matching the duration on the \u00a0
fixed interest\u00a0rate deposits (the interest\u00a0risk on core deposits)\u00a0with bond holdings\u00a0with a matching\u00a0duration. The\u00a0latter is carried out through the \u00a0
acquisition of\u00a0portfolios of\u00a0bonds. \u00a0
Financial assets measured at fair value through profit or loss (FVPL) \u00a0
This portfolio includes the part\u00a0of the liquidity bond portfolio that is actively traded although less frequently than what is required to be classified as a \u00a0
held-for-trading portfolio. These\u00a0bonds are held in a\u00a0business model being neither \u2018hold to collect\u2019 nor \u2018hold to collect and sell\u2019 and are therefore mandatorily \u00a0
recognised at fair value through profit or loss under IFRS 9. \u00a0
The portfolio comprises primarily Danish mortgage bonds. Further, the portfolio includes listed and unlisted shares. \u00a0
Financial assets measured at fair value through other comprehensive income (FVOCI) \u00a0
This portfolio includes the part\u00a0of the liquidity\u00a0bond portfolio where both the collection of the contractual cash flows and sales are an integral part of \u00a0
achieving the objectives with the acquired bond portfolio. Further, the\u00a0bonds included in the portfolio have contractual cash flows that pass the SPPI\u00a0test. \u00a0
The performance of\u00a0the portfolio is measured on a combination of the collection of the contractual cash flows and sales proceeds. Sales typically\u00a0occur \u00a0
when market opportunities\u00a0arise, or when there is a need to adjust the portfolio to hedge part of the interest rate risk on the Group\u2019s core deposits. There \u00a0
is no objective\u00a0of short-term profit taking and the performance reporting related to this portfolio reflects a combination of the collection of the contractua\u00a0l \u00a0
cash flows and realising\u00a0fair value\u00a0changes. The business\u00a0model is therefore \u2018hold to collect and sell\u2019. \u00a0
The portfolio comprises primarily highly-rated\u00a0covered, sovereign, supranational\u00a0and agency bonds. \u00a0
Financial assets measured at amortised cost (AMC) \u00a0
This portfolio includes the part of\u00a0the liquidity\u00a0bond portfolio\u00a0that is held in a business model being \u2018hold to collect\u2019, i.e.\u00a0with the purpose of generating a \u00a0
return until maturity.\u00a0Further, the bonds included in the portfolio have contractual cash\u00a0flows that pass the SPPI test. \u00a0
The performance is\u00a0measured based on\u00a0the collection of\u00a0the contractual\u00a0cash flows.\u00a0The fair value of the portfolio is monitored for\u00a0liquidity purposes\u00a0as \u00a0
the bonds can be used in repo transactions.\u00a0Sales from the portfolio\u00a0are infrequent.\u00a0When sales are made, they reflect: \u00a0
\u2022
sales close to maturity\u00a0(the proceeds from the sale approximate\u00a0the collection of\u00a0contractual cash flows) \u00a0
\u2022
sales are made to manage risk concentration (e.g. the sale of bonds is made due to a concentration of currency risk) \u00a0
\u2022
sales made due to increase in credit risk above\u00a0a certain\u00a0level (i.e. outside\u00a0the investment\u00a0policy) \u00a0
The bonds are primarily Danish mortgage bonds, government bonds and government-guaranteed\u00a0bonds. Some 94.0% of the portfolio\u00a0is rated AA or \u00a0
higher (2022: 95.5%), while the remaining portfolio has\u00a0investment grade\u00a0ratings. \u00a0
SPPI test applied\u00a0for bonds at FVOCI or AMC \u00a0
The SPPI\u00a0test is applied\u00a0for each bond\u00a0to assess whether the contractual\u00a0cash flows represent repayment\u00a0of principal\u00a0amount and interest\u00a0on the principa l \u00a0
amount outstanding. Bonds that are\u00a0included in the portfolios at\u00a0FVOCI or\u00a0AMC are generally plain vanilla bonds that: \u00a0
\u2022
have a fixed maturity,\u00a0i.e. no perpetual\u00a0bonds \u00a0
\u2022
do not have terms that introduce\u00a0exposure to risk or volatility,\u00a0e.g. by a yield that refers to changes in equity or commodity prices \u00a0
\u2022
are not subordinated\u00a0or convertible\u00a0bonds \u00a0
\u2022
can be prepaid (e.g. at par plus accrued interest), with the fair value of the prepayment option being insignificant\u00a0at initial\u00a0recognition. In\u00a0general, this \u00a0
will be the case if the premium/discount\u00a0to the contractual\u00a0par amount\u00a0is insignificant\u00a0at initial recognition \u00a0
Bonds that are\u00a0not compliant with the SPPI\u00a0test are included in the portfolio of bonds at\u00a0FVPL. \u00a0
G14. Due from\u00a0credit institutions\u00a0and central banks \u00a0
The item due from credit institutions\u00a0and central banks\u00a0includes both balances that are measured at amortised cost\u00a0and balances that are measured at \u00a0
fair value through profit or loss, depending\u00a0on the\u00a0business model\u00a0for the management\u00a0of the amounts\u00a0due from credit institutions. \u00a0
Accounting policy \u00a0
For balances due from\u00a0credit institutions\u00a0in the Group\u2019s banking units (Personal & Business Customers, General Banking\u00a0in Large Corporates \u00a0
&
Institutions, Northern\u00a0Ireland and\u00a0Non-core), the business model is \u2018hold to collect\u2019. As the contractual cash flows represent basic lending\u00a0feature, these \u00a0
balances are measured at amortised cost. For further\u00a0information on the accounting policy etc., see\u00a0note G15. \u00a0
For balances due from credit institutions\u00a0and central banks in the Group\u2019s trading units (Markets and\u00a0Investment Banking &\u00a0Securities in\u00a0Large \u00a0
Corporates &\u00a0Institutions) the\u00a0business model\u00a0is neither\u00a0\u2018hold to collect\u2019 nor \u2018hold to collect and sell\u2019 and these balances are mandatorily\u00a0recognised at \u00a0
fair value through profit or loss. For further information\u00a0on the\u00a0accounting policy, see\u00a0note G16. \u00a0
Cash in\u00a0hand and\u00a0demand deposits with central banks \u00a0
Includes cash\u00a0in hand of DKK 6,419 million (2022: DKK 6,630 million)\u00a0and demand\u00a0deposits of DKK 252,737\u00a0million (2022:\u00a0DKK 168,422 million) \u00a0
(measured at amortised cost). \u00a0
Due from credit institutions\u00a0and central banks \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Due from credit institutions\u00a0and central banks measured at fair value through profit or loss: \u00a0
Reverse transactions \u00a0
92,389 \u00a0
37,379 \u00a0
Other amounts due \u00a0
595 \u00a0
768 \u00a0
Total at fair value through profit or loss \u00a0
92,984 \u00a0
38,147 \u00a0
Due from credit institutions\u00a0and central banks measured at amortised cost: \u00a0
Reverse transactions \u00a0
3,727 \u00a0
-
Other amounts due \u00a0
18,118 \u00a0
22,686 \u00a0
Allowance account \u00a0
16 \u00a0
47 \u00a0
Total at amortised cost \u00a0
21,829 \u00a0
22,639 \u00a0
Due from credit institutions\u00a0and central banks, total \u00a0
114,813 \u00a0
60,786 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Due from credit institutions\u00a0and central banks includes amounts due within three months and totalled DKK 106,453 million\u00a0at the end of 2023 (2022: \u00a0
DKK 57,479 million). This amount is\u00a0included under Cash and cash equivalents in the cash flow statement. \u00a0
G20. Due to credit institutions and central banks and Deposits \u00a0
Amounts due to credit institutions\u00a0and central banks\u00a0and Deposits\u00a0also include amounts received under repo transactions (sales of securities which the \u00a0
Group agrees to repurchase at a later date). Such transactions are presented as collateralised borrowings. \u00a0
Accounting policy \u00a0
Amounts due to credit institutions\u00a0and central banks and Deposits in the Group\u2019s trading units\u00a0(Markets and Investment Banking\u00a0& Securities\u00a0in LC&I) \u00a0
are designated at fair value through profit or loss. However, the amount of the change in fair value attributable\u00a0to the Group\u2019s own credit risk is \u00a0
recognised in other comprehensive\u00a0income. \u00a0
All other\u00a0balances are measured at amortised\u00a0cost. If fixed-rate\u00a0deposits are hedged effectively by derivatives,\u00a0the fair value\u00a0of the hedged interest rate \u00a0
risk is added to the amortised cost of the liabilities. \u00a0
(a) Due to credit institutions\u00a0and central banks (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Designated at\u00a0fair value: \u00a0
Repo transactions \u00a0
80,108 \u00a0
47,618 \u00a0
Other amounts due \u00a0
5,440 \u00a0
4,634 \u00a0
Total designated at\u00a0fair value \u00a0
85,548 \u00a0
52,252 \u00a0
Amortised cost: \u00a0
Repo transactions \u00a0
3,727 \u00a0
-
Other amounts due \u00a0
65,333 \u00a0
86,525 \u00a0
Total amortised cost \u00a0
69,060 \u00a0
86,525 \u00a0
Total \u00a0
154,608 \u00a0
138,777 \u00a0
(b) Deposits (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Designated at\u00a0fair value: \u00a0
Repo transactions \u00a0
113,306 \u00a0
90,168 \u00a0
Time deposits \u00a0
6,907 \u00a0
7,749 \u00a0
Total designated at\u00a0fair value \u00a0
120,213 \u00a0
97,917 \u00a0
Amortised cost: \u00a0
Repo transactions \u00a0
-
134 \u00a0
Transaction accounts \u00a0
930,083 \u00a0
1,023,795 \u00a0
Time deposits \u00a0
158,222 \u00a0
124,872 \u00a0
Pension savings\u00a0etc. \u00a0
13,685 \u00a0
15,574 \u00a0
Total amortised cost \u00a0
1,101,990 \u00a0
1,164,375 \u00a0
Total \u00a0
1,222,203 \u00a0
1,262,293 \u00a0
(c) Further explanation\u00a0on balances\u00a0designated at\u00a0fair value\u00a0through profit\u00a0or loss \u00a0
Any changes in the fair value that is attributable\u00a0to changes in the Group\u2019s own credit risk of the liabilities are recognised in other comprehensive income. As \u00a0
the deposits are collateralised and/or with a short maturity, no change in the fair value is attributable\u00a0to changes in the Group\u2019s own credit risk.\u00a0The amount \u00a0
that the\u00a0Group would be contractually required to pay at maturity amounts to DKK 85.5 billion (2022: DKK 52.3 billion) for Due to credit institutions\u00a0and \u00a0
central banks\u00a0and DKK\u00a0120.2 billion (2022: DKK 97.9 billion) for Deposits. \u00a0
G22. Issued bonds \u00a0
The issued bonds presented in this note consist of preferred senior, non-preferred senior and subordinated bonds issued by the Group, with the exception of \u00a0
additional tier\u00a01 capital accounted for as equity. Note G16 provides more information about issued bonds measured at fair value through profit or loss and \u00a0
note G25 provides more information about additional\u00a0tier 1 capital accounted for as equity. \u00a0
Preferred senior bonds are presented under the balance sheet item Issued bonds at amortised cost, while non-preferred senior and subordinated bonds are \u00a0
presented as separate line items in the balance sheet. Non-preferred senior bonds rank senior to subordindated debt and junior to other debt. Subordinated \u00a0
bonds are liabilities in the form of subordinated loan capital and other capital instruments which, in case of the Group\u2019s voluntary or\u00a0compulsory winding-up, \u00a0
will not be repaid until\u00a0the claims of its ordinary and non-preferred senior creditors have been met. Subordinated bonds include additional tier 1 capital that \u00a0
converts into a variable number of ordinary shares if the common equity tier 1 capital ratio falls below 7% for Danske Bank A/S or Danske\u00a0Bank Group (the \u00a0
trigger event). The number of shares the additional tier 1 capital could potentially\u00a0convert into a function of the share price at the time of conversion, however, \u00a0
minimised to USD 23.97 per share (a maximum of 62.6 million\u00a0shares for the outstanding amount of the capital of USD 1.5 billi\u00a0on). This capital utilises 70% \u00a0
of the Board of Directors\u2019 authorisation\u00a0to issue shares without pre-emption rights. For further information on the Group\u2019s additional tier 1 capital, see note \u00a0
G25. \u00a0
Accounting policy \u00a0
Issued bonds, both senior, non-preferred senior and subordinated\u00a0bonds, are at initial\u00a0recognition measured at fair value less transaction\u00a0costs and \u00a0
subsequently measured\u00a0at amortised\u00a0cost plus\u00a0the fair value of\u00a0the hedged interest rate risk. Interest expense is recognised according to the effective \u00a0
interest rate method, including amortisation\u00a0of any difference between the amount received on\u00a0issue and the redemption amount. \u00a0
The Group issues perpetual bonds with discretionary\u00a0interest payments that fulfil the requirements\u00a0for additional\u00a0tier 1 capital under the Capital \u00a0
Requirements Regulation (CRR).\u00a0If a\u00a0trigger event occurs,\u00a0those bonds must be\u00a0either written down temporarily or converted into a variable number of \u00a0
ordinary shares, depending on the terms of the individual\u00a0bond issue. Bonds that convert into a\u00a0variable number of\u00a0ordinary shares are accounted for \u00a0
as liabilities,\u00a0while bonds that are temporarily written down are accounted for as equity. For liability\u00a0accounted bonds, the interest expense is recognised \u00a0
in the income statement, i.e. the bonds are accounted for as liabilities\u00a0in their entirety. \u00a0
The yield on some issued bonds depends on an index that is not closely linked to the bonds\u2019 financial characteristics, for example an equity or commodity index. \u00a0
Such embedded derivatives\u00a0are bifurcated and measured at fair value in the trading portfolio. \u00a0
(a) Other\u00a0issued bonds \u00a0
Issued bonds\u00a0at fair value \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Bonds issued by Realkredit Danmark (covered bonds) \u00a0
741,062 \u00a0
711,773 \u00a0
Commercial papers and certificates of deposits \u00a0
5,228 \u00a0
9,119 \u00a0
Structured retail\u00a0notes \u00a0
2,489 \u00a0
3,032 \u00a0
Issued bonds\u00a0at fair value, total \u00a0
748,780 \u00a0
723,923 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
Bonds issued by Realkredit Danmark under the Group\u2019s green finance framework amounted to a nominal value of DKK 27,153 million outstanding at the end \u00a0
of 2023 (2022: DKK 21,544 million). \u00a0
Issued bonds\u00a0at amortised\u00a0cost \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Commercial papers and certificates of deposits \u00a0
24,419 \u00a0
-
Preferred senior bonds* \u00a0
63,345 \u00a0
48,356 \u00a0
Covered bonds \u00a0
124,703 \u00a0
140,829 \u00a0
Structured retail\u00a0notes* \u00a0
1,766 \u00a0
3,498 \u00a0
Issued bonds\u00a0at amortised\u00a0cost, total \u00a0
214,234 \u00a0
192,682 \u00a0
Non-preferred senior bonds \u00a0
93,194 \u00a0
93,235 \u00a0
* DKK 3.5 billion of Structured retail bonds that were included within Preferred senior bonds as at 31 December 2022 have been reclassified in the table above. There is no change to the total \u00a0
balance of Issued bonds at amortised cost as at 31 December 2022. \u00a0
Further information on issued bonds at fair value through profit or loss can be found in note G16. The issuance and redemption of bonds (including commercial \u00a0
papers and certificates of deposits at fair value) during the year and the maturity\u00a0of the outstanding bonds are presented in the tables below. \u00a0
G22. Issued bonds\u00a0continued \u00a0
Foreign \u00a0
Nominal value \u00a0
1 January \u00a0
currency \u00a0
31 December \u00a0
(DKK millions) \u00a0
2023 \u00a0
Issued \u00a0
Redeemed* \u00a0
translation \u00a0
2023 \u00a0
Commercial papers and certificate of deposits \u00a0
9,128 \u00a0
66,432 \u00a0
36,812 \u00a0
-9,135 \u00a0
29,613 \u00a0
Preferred senior bonds** \u00a0
59,348 \u00a0
39,700 \u00a0
27,843 \u00a0
-1,583 \u00a0
69,621 \u00a0
Covered bonds \u00a0
156,740 \u00a0
33,000 \u00a0
65,850 \u00a0
5,529 \u00a0
129,419 \u00a0
Non-preferred senior bonds \u00a0
100,586 \u00a0
22,500 \u00a0
23,700 \u00a0
-1,486 \u00a0
97,900 \u00a0
Other issued bonds \u00a0
325,801 \u00a0
161,633 \u00a0
154,206 \u00a0
-6,675 \u00a0
326,553 \u00a0
*Redeemed covered bonds includes DKK 25,8 billion of covered bonds that have been reclassified to Liabilities in disposal groups held for sale. See note G23 for more detail. \u00a0
** Preferred senior bonds includes structured retail notes. \u00a0
Foreign \u00a0
Nominal value \u00a0
1 January \u00a0
currency 31\u00a0December \u00a0
(DKK millions) \u00a0
2022 \u00a0
Issued \u00a0
Redeemed \u00a0
translation \u00a0
2022 \u00a0
Commercial papers and certificate of deposits \u00a0
23,712 \u00a0
13,445 \u00a0
26,709 \u00a0
-1,321 \u00a0
9,128 \u00a0
Preferred senior bonds* \u00a0
67,724 \u00a0
1,400 \u00a0
14,630 \u00a0
4,854 \u00a0
59,348 \u00a0
Covered bonds \u00a0
165,067 \u00a0
39,600 \u00a0
39,605 \u00a0
-8,322 \u00a0
156,740 \u00a0
Non-preferred senior bonds \u00a0
108,104 \u00a0
20,100 \u00a0
30,530 \u00a0
2,913 \u00a0
100,586 \u00a0
Other issued bonds \u00a0
364,607 \u00a0
74,545 \u00a0
111,475 \u00a0
-1,876 \u00a0
325,801 \u00a0
* Preferred senior bonds includes structured retail notes. \u00a0
The Group has issued non-preferred senior bonds and preferred senior bonds in accordance with the Group\u2019s green bond framework. At the end of 2023, the \u00a0
nominal value of green non-preferred senior bonds issued amounted to DKK 24,223 million (2022: DKK 13,014), and the nominal value of green preferred \u00a0
senior bonds issued amounted to DKK 9,134 million (2022: DKK\u00a00 million). \u00a0
Broken down\u00a0by maturity \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Redeemed bonds 2023 \u00a0
92,355 \u00a0
2024 \u00a0
96,248 \u00a0
70,143 \u00a0
2025 \u00a0
69,343 \u00a0
57,229 \u00a0
2026 or later \u00a0
160,961 \u00a0
106,075 \u00a0
Nominal value of other issued bonds \u00a0
326,553 \u00a0
325,801 \u00a0
Fair value hedging of interest rate risk \u00a0
-7,389 \u00a0
-19,351 \u00a0
Premium/discount \u00a0
-432 \u00a0
18 \u00a0
Own holding\u00a0of bonds issued \u00a0
3,586 \u00a0
8,401 \u00a0
Total other issued bonds \u00a0
315,145 \u00a0
298,068 \u00a0
G22. Issued bonds\u00a0continued \u00a0
(b) Subordinated\u00a0debt \u00a0
Subordinated debt\u00a0consists of\u00a0liabilities in\u00a0the form of issued subordinated bonds. Some of these bonds (presented as liability\u00a0accounted additional tier \u00a0
1 capital below) rank below other subordinated\u00a0bonds. Early redemption of\u00a0subordinated debt\u00a0must be approved by the Danish FSA. Subordinated\u00a0debt \u00a0
is included in total capital in\u00a0accordance with\u00a0the CRR. \u00a0
The issuance and redemption of subordinated\u00a0debt during the year and the maturity\u00a0of the outstanding\u00a0debt are presented in the tables\u00a0below. \u00a0
Foreign \u00a0
1 January \u00a0
currency 31\u00a0December \u00a0
Nominal value\u00a0(DKK millions) \u00a0
2023 \u00a0
Issued \u00a0
Redeemed \u00a0
translation \u00a0
2023 \u00a0
Subordinated debt, excluding liability accounted \u00a0
additional tier 1 capital \u00a0
24,837 \u00a0
-
-
58 \u00a0
24,895 \u00a0
Liability accounted additional tier 1 capital \u00a0
15,676 \u00a0
-
-
-503 \u00a0
15,174 \u00a0
Total subordinated debt \u00a0
40,514 \u00a0
-
-
-445 \u00a0
40,069 \u00a0
Foreign \u00a0
1 January \u00a0
currency 31\u00a0December \u00a0
Nominal value\u00a0(DKK millions) \u00a0
2022 \u00a0
Issued \u00a0
Redeemed \u00a0
translation \u00a0
2022 \u00a0
Subordinated debt, excluding liability accounted \u00a0
additional tier 1 capital \u00a0
24,895 \u00a0
-
-
-58 \u00a0
24,837 \u00a0
Liability accounted additional tier 1 capital \u00a0
14,754 \u00a0
-
-
922 \u00a0
15,676 \u00a0
Total subordinated debt \u00a0
39,649 \u00a0
-
-
864 \u00a0
40,514 \u00a0
Nominal \u00a0
Interest Year\u00a0of \u00a0
Redemption \u00a0
2023 \u00a0
2022 \u00a0
Currency \u00a0
Borrower Note \u00a0
(millions) \u00a0
rate \u00a0
issue \u00a0
Maturity \u00a0
price \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
Subordinated debt, excluding liability accounted additional tier 1 capital \u00a0
Redeemed loans 2023 \u00a0
-
EUR \u00a0
Danica \u00a0
a
500 \u00a0
4.375 \u00a0
2015 29.09.2045 \u00a0
100 \u00a0
3,727 \u00a0
3,718 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
b
750 \u00a0
2.50 \u00a0
2019 21.06.2029 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
SEK \u00a0
Danske Bank A/S \u00a0
c
1,000 \u00a0
var \u00a0
2019 14.11.2029 \u00a0
100 \u00a0
672 \u00a0
669 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
d
750 \u00a0
1.375 \u00a0
2019 12.02.2030 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
e
500 \u00a0
1.50 \u00a0
2020 02.09.2030 \u00a0
100 \u00a0
3,727 \u00a0
3,718 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
f
750 \u00a0
1.00 \u00a0
2021 15.05.2031 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
Subordinated debt,\u00a0excluding liability \u00a0
accounted additional\u00a0tier 1 capital \u00a0
24,895 \u00a0
24,837 \u00a0
Liability accounted additional tier 1 capital \u00a0
USD \u00a0
Danske Bank A/S \u00a0
g
750 \u00a0
6.125 \u00a0
2017 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
USD \u00a0
Danske Bank A/S \u00a0
h
750 \u00a0
7.00 \u00a0
2018 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
USD \u00a0
Danske Bank A/S \u00a0
i
750 \u00a0
4.375 \u00a0
2021 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
Liability accounted\u00a0additional tier 1 \u00a0
capital \u00a0
15,174 \u00a0
15,676 \u00a0
Nominal subordinated debt \u00a0
40,069 \u00a0
40,514 \u00a0
Discount \u00a0
-72 \u00a0
-128 \u00a0
Fair value hedging of interest rate risk \u00a0
-997 \u00a0
-1,843 \u00a0
Own holding\u00a0of subordinated debt \u00a0
-226 \u00a0
-193 \u00a0
Total subordinated debt \u00a0
38,774 \u00a0
38,350 \u00a0
Portion included\u00a0in total\u00a0capital as \u00a0
additional tier\u00a01 or tier\u00a02 capital \u00a0
instruments \u00a0
36,342 \u00a0
36,795 \u00a0
As at 31 December\u00a02023, the Group has no additional tier 1 bond issues accounted for as equity (31 December 2022: DKK 0 billion). \u00a0
G22. Issued bonds\u00a0continued \u00a0
a
Optional redemption from\u00a0September 2025. If the debt is not redeemed, the annual interest rate will be reset at 4.38 percentage points above the \u00a0
10-year EUR swap\u00a0rate every tenth year until maturity. Solvency II compliant tier 2 capital and included in Danica\u2019s capital bas\u00a0e. \u00a0
b
Optional redemption in June 2024. If the\u00a0debt is not redeemed, the annual interest rate will be reset at 2.50 percentage\u00a0points above the 5 year EUR \u00a0
swap rate for the remaining five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
c
Optional redemption in\u00a0November 2024. If\u00a0the debt is\u00a0not redeemed, the quarterly interest\u00a0rate will be reset\u00a0at 1.90 percentage points\u00a0above the 3- \u00a0
month STIBOR rate\u00a0for the remaining five years until maturity. CRR compliant\u00a0tier 2 capital. \u00a0
d
Optional redemption in February 2025. If the debt is not redeemed, the annual interest rate will be reset\u00a0at 1.70 percentage\u00a0points above the 5-year \u00a0
EUR swap\u00a0rate for the remaining\u00a0five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
e
Optional redemption in September 2025. If\u00a0the debt\u00a0is not redeemed,\u00a0the annual interest rate will be\u00a0reset at 1.90 percentage points above the 5- \u00a0
year EUR swap rate for the remaining\u00a0five years until maturity.\u00a0CRR compliant tier 2\u00a0capital. \u00a0
f
Optional redemption in May 2026. If the debt is not redeemed, the annual interest rate will be reset at 1.40 percentage point\u00a0s above the 5-year EUR \u00a0
swap rate for the remaining five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
g
Optional redemption from\u00a0March 2024.\u00a0If the debt is not redeemed, the annual interest rate will be reset at 3.896 percentage\u00a0points above 7-year \u00a0
USD swap rate. CRR compliant\u00a0tier 1 capital.\u00a0The capital converts\u00a0into a variable\u00a0number of shares if Danske Bank Group\u2019s or Danske Bank A/S\u2019 \u00a0
common equity tier 1 capital ratio falls below 7%. The instrument is included as a CRR compliant additional\u00a0tier 1 capital instrum ent\u00a0in the statemen\u00a0t \u00a0
of capital. \u00a0
h
Optional redemption from\u00a0June 2025. If the debt is not redeemed, the annual interest rate will be reset at 4.130 percentage p\u00a0oints above 5-year \u00a0
CMT rate.\u00a0CRR compliant tier 1\u00a0capital. The capital converts\u00a0into a\u00a0variable number of\u00a0shares if Danske\u00a0Bank Group\u2019s or Danske Bank A/S\u2019\u00a0comm on \u00a0
equity tier 1\u00a0capital ratio falls below 7%. The instrument is included as a CRR compliant additional tier 1 capital instrumen\u00a0t in\u00a0the statement of \u00a0
capital. \u00a0
i
Optional redemption from\u00a0May 2026. If the debt is not redeemed,\u00a0the annual\u00a0interest r\u00a0ate will be reset at 3.387 percentage points\u00a0above the 5 year \u00a0
CMT rate. The capital converts into a variable\u00a0number of shares if Danske\u00a0Bank Group\u2019s or Danske Bank A/S\u2019s common equity tier 1 capital ratio \u00a0
falls below 7%. The\u00a0instrument is included as\u00a0a CRR compliant additional\u00a0tier 1 capital instrument\u00a0in the statement\u00a0of capita l. \u00a0
G33. Fair value information\u00a0for financial instruments \u00a0
Financial instruments\u00a0are carried in the balance sheet at fair value or amortised cost. The Group breaks down its financial instruments\u00a0according to the \u00a0
valuation method\u00a0(note G1 provides\u00a0additional information). \u00a0
2023 \u00a0
2022* \u00a0
(DKK millions) \u00a0
Fair value \u00a0
Amortised cost \u00a0
Fair value \u00a0
Amortised cost \u00a0
Financial assets \u00a0
Cash in hand and demand deposits with central banks \u00a0
-
259,156 \u00a0
-
175,052 \u00a0
Due from credit institutions\u00a0and central banks \u00a0
92,985 \u00a0
21,829 \u00a0
38,147 \u00a0
22,639 \u00a0
Trading portfolio assets \u00a0
548,189 \u00a0
-
638,799 \u00a0
-
Investment securities held at amortised cost \u00a0
-
155,398 \u00a0
-
151,573 \u00a0
Investment securities held at fair value \u00a0
128,516 \u00a0
-
135,850 \u00a0
-
Loans at amortised cost \u00a0
-
918,628 \u00a0
-
1,082,818 \u00a0
Loans at fair value \u00a0
928,239 \u00a0
-
932,677 \u00a0
-
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
70,900 \u00a0
-
66,739 \u00a0
-
Assets under insurance contracts \u00a0
460,747 \u00a0
-
465,720 \u00a0
-
Loans held for sale \u00a0
-
110,415 \u00a0
-
-
Total \u00a0
2,229,576 \u00a0
1,465,426 \u00a0
2,277,932 \u00a0
1,432,082 \u00a0
Financial liabilities \u00a0
Due to credit institutions and central banks \u00a0
85,548 \u00a0
69,060 \u00a0
52,252 \u00a0
86,525 \u00a0
Trading portfolio liabilities \u00a0
454,487 \u00a0
-
554,321 \u00a0
-
Deposits \u00a0
120,213 \u00a0
1,101,990 \u00a0
97,917 \u00a0
1,164,375 \u00a0
Issued bonds at fair value \u00a0
748,780 \u00a0
-
723,923 \u00a0
-
Issued bonds at amortised cost \u00a0
-
214,234 \u00a0
-
192,682 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
71,253 \u00a0
-
66,725 \u00a0
-
Liabilities held for sale \u00a0
-
56,476 \u00a0
-
-
Non-preferred senior bonds \u00a0
-
93,194 \u00a0
-
93,235 \u00a0
Subordinated debt \u00a0
-
38,774 \u00a0
-
38,350 \u00a0
Loan commitments\u00a0and guarantees \u00a0
-
3,161 \u00a0
-
2,627 \u00a0
Total \u00a0
1,480,281 \u00a0
1,576,889 \u00a0
1,495,138 \u00a0
1,577,795 \u00a0
* Comparative information has been restated as described in note G2(a). \u00a0
Liabilties under insurance contracts are measured using the General Measurement Model, Variable Fee Approach or\u00a0Premium Allocation Appro\u00a0ach in \u00a0
line with IFRS 17. Liabilities under insurance contracts are\u00a0therefore not included in the table above. \u00a0
(a) Financial\u00a0instruments at fair value \u00a0
The fair value is the amount for which a financial asset or a financial liability\u00a0can be exchanged\u00a0between knowledgeable,\u00a0willing parties. Fair value is \u00a0
measured on the basis of the following hierarchy: \u00a0
The fair value hierarchy \u00a0
\u2022
Quoted price\u00a0(level 1) consists of financial instruments\u00a0that are quoted in an active market.\u00a0The Group uses the price quoted in the principal market. \u00a0
\u2022
Valuation based\u00a0on observable input (level 2) consists of financial instruments\u00a0valued substantially\u00a0on the\u00a0basis of observable input other than a \u00a0
quoted price for the instrument\u00a0itself. If a financial instrument\u00a0is quoted\u00a0in a market\u00a0that is not active, the Group bases its measurement on the most \u00a0
recent transaction\u00a0price. Adjustment\u00a0is made for subsequent changes to market conditions,\u00a0for instance,\u00a0by including transactions\u00a0in similar \u00a0
financial instruments that are\u00a0assumed to be motivated by normal business considerations. For a\u00a0number of financial assets and liabilities,\u00a0no \u00a0
market exists. In such cases, the Group uses recent transactions\u00a0in similar instruments\u00a0and discounted cash flows or other generally accepted \u00a0
estimation and\u00a0valuation techniques\u00a0based on market conditions at the balance sheet date to calculate an estimated\u00a0value. This category covers \u00a0
instruments such\u00a0as derivatives\u00a0valued on\u00a0the basis of observable\u00a0yield curves and exchange rates and illiquid\u00a0mortgage bonds valued by reference \u00a0
to the value of similar\u00a0liquid bonds. \u00a0
\u2022
Valuation based on\u00a0significant non-observable input\u00a0(level 3): The valuation\u00a0of certain financial instruments\u00a0is based substantially\u00a0on non-observable \u00a0
input. Such\u00a0instruments include unlisted shares,\u00a0some unlisted bonds and a\u00a0limited portion of\u00a0the derivatives\u00a0portfolio (2%). \u00a0
If, at the balance sheet date, a financial instrument\u2019s classification differs\u00a0from its classification at the beginning of the year, the classification of the \u00a0
instrument changes.\u00a0Changes are\u00a0considered to have taken place at the balance sheet date. Developments\u00a0in the financial markets have resulted in \u00a0
reclassifications between\u00a0the categories. Some bonds have become illiquid and have therefore been\u00a0moved from\u00a0the Quoted\u00a0prices to\u00a0the Observable \u00a0
input category, while other bonds have instead become liquid and have been moved from the Observable input to the\u00a0Quoted prices category. \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
Valuation techniques \u00a0
The most frequently\u00a0used valuation\u00a0techniques include the pricing of transactions with future settlement and swap\u00a0models that apply present value \u00a0
calculations, credit\u00a0pricing models and options models, such as Black & Scholes models. As part of the Group\u2019s\u00a0control environment, valuation models are \u00a0
validated by\u00a0units that\u00a0are independent\u00a0of the business units\u00a0that develop\u00a0the models and trade in the products covered by\u00a0th e\u00a0models. Validation\u00a0is made \u00a0
to test the implementation,\u00a0quality and operating stability\u00a0of models\u00a0to ensure that the models can be used for pricing and risk management of financial \u00a0
products. \u00a0
Loans granted and bonds issued by Realkredit Danmark\u00a0are recognised at the fair value of the issued bonds (the quoted price in an active market). The \u00a0
Group adjusts\u00a0for changes to the fair value of the credit risk on borrowers\u00a0etc. The adjustment\u00a0is described further\u00a0in note\u00a0G16. \u00a0
The value of derivatives,\u00a0primarily long-term contracts, is determined on\u00a0observable yields extrapolated\u00a0to yield curves for the full duration of the contracts. \u00a0
Moreover, the very limited portfolio of\u00a0credit derivatives\u00a0is valued\u00a0on the basis of observable\u00a0input as\u00a0well as assumptions\u00a0about the probability\u00a0of default \u00a0
(recovery rate).\u00a0Unlisted shares\u00a0are measured at fair value in accordance with the International\u00a0Private Equity and Venture C\u00a0apital Valuation Guideline\u00a0s \u00a0
(IPEV) which are compliant with IFRS. IPEV guides the calculation of the estimated fair\u00a0value of\u00a0unlisted shares as the price\u00a0that would be received to sell \u00a0
an asset or paid to transfer a liability\u00a0in an orderly transaction between market participants\u00a0at the measurement\u00a0date. Valua\u00a0tion methods include \u00a0
discounted cash flow models and pricing based on a multiple\u00a0of earnings or equity. \u00a0
Fair value adjustments \u00a0
Management estimates underlie the\u00a0valuation of\u00a0financial instruments\u00a0for which the value is based on valuation\u00a0techniques. The Group makes fair value \u00a0
adjustments to\u00a0cover changes in counterparty\u00a0risk (CVA) on derivatives,\u00a0funding risk (FVA and ColVA),\u00a0bid-offer spreads on\u00a0the net\u00a0open position of \u00a0
portfolios with\u00a0offsetting market risk, and model risk on level 3 derivatives. \u00a0
Credit value\u00a0adjustment (CVA)\u00a0and funding value adjustment\u00a0(FVA and ColVA) \u00a0
The Group makes a\u00a0fair value adjustment to cover the counterparty credit risk on derivatives\u00a0with a positive fair value (CVA). For\u00a0a given counterparty\u2019 s \u00a0
portfolio of\u00a0derivatives, CVA\u00a0is calculated as\u00a0a function\u00a0of the probability\u00a0of default\u00a0(PD), the expected\u00a0positive exposure (EPE) and the loss given default in \u00a0
the event of bankruptcy\u00a0(LGD). The Group enters into derivatives\u00a0transactions mainly with counterparties\u00a0in the Scandinavian\u00a0market. \u00a0
The PDs used in the CVA model are derived\u00a0from single name liquid credit default swap (CDS). If this is not available,\u00a0the PDs are derived using proxy- \u00a0
mapping to a CDS index. For the calculation of EPE, the Group uses simulations\u00a0to estimate\u00a0the expected positive exposures to\u00a0the counterparty\u2019s portfolio \u00a0
over the term of\u00a0the derivatives.\u00a0The exposure model is\u00a0based fully on market-implied\u00a0data. For\u00a0the calculation\u00a0of LGD, the Group uses market compliant \u00a0
LGD. However, for customers classified in stage 3 in relation to the expected credit loss impairment, CVA is calculated\u00a0as if the\u00a0derivatives were\u00a0loans \u00a0
subject to\u00a0impairment because\u00a0of credit losses. \u00a0
A fair value adjustment\u00a0for derivatives\u00a0to cover expected funding costs (FVA\u00a0and ColVA) is calculated.\u00a0FVA primarily\u00a0arises from the cost or benefit of \u00a0
funding uncollateralised\u00a0derivatives. The adjustment is\u00a0a function\u00a0of the unsecured funding curve and expected future exposures. ColVA takes into account \u00a0
the funding cost and benefit on collateralised\u00a0derivatives. The ColVA adjustment is a function of expected collateral balance\u00a0s and cross-currency\u00a0basis \u00a0
and repo spreads. \u00a0
At the end of 2023, CVA, DVA,\u00a0FVA and ColVA came to a net amount of DKK\u00a0153 million (2022: DKK -94\u00a0million), including the adjustment for\u00a0credit risk \u00a0
on derivatives\u00a0in stage 3. \u00a0
Bid-offer spread \u00a0
For portfolios\u00a0of assets and liabilities\u00a0with offsetting market risk, the Group bases its measurement of the portfolios on mid-market prices and\u00a0makes fair \u00a0
value adjustments\u00a0to recognise net assets at the bid price and net liabilities\u00a0at the\u00a0offer price (exit prices). At the end of 2023, these fair value adjustmen\u00a0ts \u00a0
totalled DKK 138 million (2022: DKK 151 million). \u00a0
Model risk \u00a0
To account for the uncertainty\u00a0associated with measuring\u00a0the value of derivatives\u00a0on the basis of non-observable\u00a0input (level 3\u00a0in the fair value\u00a0hierarchy), \u00a0
the Group has established guidelines to quantify risk. The Group calculates and\u00a0monitors the reserve\u00a0on an ongoing basis. At the end of 2023, the reserve \u00a0
totalled DKK 1\u00a0million (2022: DKK 0\u00a0million). \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
Amortisation of\u00a0initial margin \u00a0
If, at the time of acquisition,\u00a0a difference\u00a0arises between the model value of\u00a0a financial instrument,\u00a0calculated on\u00a0the basi\u00a0s of\u00a0non-observable input\u00a0and \u00a0
actual cost (day-one profit or\u00a0loss), and the difference is not the result of transaction\u00a0costs, the Group adjusts model parameters to actual cost to take \u00a0
the initial\u00a0margin into account. Accordingly,\u00a0the valuation\u00a0of derivatives\u00a0includes amortisation of\u00a0the value of initial\u00a0margins over the remaining term to \u00a0
maturity. The initial margins relate to elements not covered by\u00a0the above CVA and FVA adjustments,\u00a0such as future administrative\u00a0expenses and capital \u00a0
consumption. At 31\u00a0December 2023,\u00a0the value of\u00a0unamortised initial margins was DKK 1,176 million\u00a0(2022: DKK\u00a01,101 million). \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Unamortised initial margins at\u00a01 January \u00a0
1,101 \u00a0
1,381 \u00a0
Amortised to the income statement during the year \u00a0
-342 \u00a0
-592 \u00a0
Initial margins on new derivatives contracts \u00a0
596 \u00a0
530 \u00a0
Terminated derivatives contracts \u00a0
-179 \u00a0
-218 \u00a0
Unamortised initial\u00a0margins as\u00a0at 31 December \u00a0
1,176 \u00a0
1,101 \u00a0
Observable Non-observable \u00a0
(DKK millions) \u00a0
Quoted prices \u00a0
input \u00a0
input \u00a0
Total \u00a0
31 December 2023 \u00a0
Financial assets \u00a0
Due from credit institutions\u00a0and central banks \u00a0
-
92,985 \u00a0
-
92,985 \u00a0
Derivatives \u00a0
6,723 \u00a0
343,134 \u00a0
1,865 \u00a0
351,722 \u00a0
Interest rate contracts \u00a0
6,723 \u00a0
232,885 \u00a0
1,014 \u00a0
240,621 \u00a0
Currency contracts etc. \u00a0
-
110,250 \u00a0
851 \u00a0
111,101 \u00a0
Trading portfolio bonds \u00a0
168,031 \u00a0
9,532 \u00a0
-
177,563 \u00a0
Trading portfolio shares \u00a0
18,785 \u00a0
-
119 \u00a0
18,904 \u00a0
Investment securities, bonds \u00a0
100,554 \u00a0
27,470 \u00a0
-
128,023 \u00a0
Investment securities, shares \u00a0
-
-
493 \u00a0
493 \u00a0
Loans at fair value \u00a0
-
928,239 \u00a0
-
928,239 \u00a0
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
70,900 \u00a0
-
-
70,900 \u00a0
Assets under insurance contracts, bonds \u00a0
189,297 \u00a0
22,318 \u00a0
2,458 \u00a0
214,073 \u00a0
Danish mortgage bonds \u00a0
92,182 \u00a0
10,865 \u00a0
334 \u00a0
103,381 \u00a0
Other covered bonds \u00a0
97,115 \u00a0
11,453 \u00a0
2,124 \u00a0
110,692 \u00a0
Assets under insurance contracts, shares \u00a0
153,310 \u00a0
5,121 \u00a0
34,755 \u00a0
193,186 \u00a0
Assets under insurance contracts, derivatives \u00a0
141 \u00a0
52,436 \u00a0
911 \u00a0
53,488 \u00a0
Total \u00a0
707,741 \u00a0
1,481,235 \u00a0
40,601 \u00a0
2,229,576 \u00a0
Financial liabilities \u00a0
Due to credit institutions and central banks \u00a0
-
85,548 \u00a0
-
85,548 \u00a0
Derivatives \u00a0
7,360 \u00a0
331,954 \u00a0
1,604 \u00a0
340,918 \u00a0
Interest rate contracts \u00a0
7,360 \u00a0
204,035 \u00a0
803 \u00a0
212,198 \u00a0
Currency contracts etc. \u00a0
-
127,919 \u00a0
801 \u00a0
128,720 \u00a0
Obligations to repurchase securities \u00a0
111,657 \u00a0
1,853 \u00a0
59 \u00a0
113,569 \u00a0
Deposits \u00a0
-
120,213 \u00a0
-
120,213 \u00a0
Issued bonds at fair value \u00a0
748,780 \u00a0
-
-
748,780 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
-
71,253 \u00a0
-
71,253 \u00a0
Total \u00a0
867,797 \u00a0
610,821 \u00a0
1,663 \u00a0
1,480,281 \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
Observable Non-observable \u00a0
(DKK millions) \u00a0
Quoted prices \u00a0
input \u00a0
input \u00a0
Total \u00a0
31 December 2022* \u00a0
Financial assets \u00a0
Due from credit institutions\u00a0and central banks \u00a0
-
38,147 \u00a0
-
38,147 \u00a0
Derivatives \u00a0
6,942 \u00a0
421,917 \u00a0
1,263 \u00a0
430,123 \u00a0
Interest rate contracts \u00a0
6,942 \u00a0
298,988 \u00a0
317 \u00a0
306,248 \u00a0
Currency contracts etc. \u00a0
-
122,929 \u00a0
946 \u00a0
123,875 \u00a0
Trading portfolio\u00a0bonds \u00a0
183,205 \u00a0
17,190 \u00a0
-
200,395 \u00a0
Trading portfolio\u00a0shares \u00a0
8,198 \u00a0
-
83 \u00a0
8,281 \u00a0
Investment securities, bonds \u00a0
97,209 \u00a0
37,454 \u00a0
-
134,663 \u00a0
Investment securities, shares \u00a0
-
-
1,187 \u00a0
1,187 \u00a0
Loans at fair value \u00a0
-
932,677 \u00a0
-
932,677 \u00a0
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
66,739 \u00a0
-
-
66,739 \u00a0
Assets under insurance contracts, bonds \u00a0
188,260 \u00a0
23,834 \u00a0
3,369 \u00a0
215,463 \u00a0
Danish mortgage bonds \u00a0
82,523 \u00a0
13,308 \u00a0
327 \u00a0
96,158 \u00a0
Other covered bonds \u00a0
105,737 \u00a0
10,526 \u00a0
3,042 \u00a0
119,305 \u00a0
Assets under insurance contracts, shares \u00a0
124,338 \u00a0
4,788 \u00a0
47,045 \u00a0
176,171 \u00a0
Assets under insurance contracts, derivatives \u00a0
817 \u00a0
72,406 \u00a0
863 \u00a0
74,086 \u00a0
Total \u00a0
675,708 \u00a0
1,548,413 \u00a0
53,810 \u00a0
2,277,932 \u00a0
Financial liabilities \u00a0
Due to credit institutions and central banks \u00a0
-
52,252 \u00a0
-
52,252 \u00a0
Derivatives \u00a0
4,967 \u00a0
429,138 \u00a0
1,036 \u00a0
435,141 \u00a0
Interest rate contracts \u00a0
4,967 \u00a0
292,552 \u00a0
332 \u00a0
297,852 \u00a0
Currency contracts etc. \u00a0
-
136,585 \u00a0
704 \u00a0
137,289 \u00a0
Obligations to repurchase securities \u00a0
113,830 \u00a0
5,327 \u00a0
23 \u00a0
119,180 \u00a0
Deposits \u00a0
-
97,917 \u00a0
-
97,917 \u00a0
Issued bonds at fair value \u00a0
723,923 \u00a0
-
-
723,923 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
-
66,725 \u00a0
-
66,725 \u00a0
Total \u00a0
842,721 \u00a0
651,358 \u00a0
1,059 \u00a0
1,495,138 \u00a0
* Comparative information has been restated as described in note G2(a) \u00a0
Financial instruments valued on\u00a0the basis\u00a0of non-observable input \u00a0
The tables below shows financial instruments valued on the basis of non-observable input. \u00a0
Sensitivity \u00a0
(change in fair \u00a0
Gains/losses \u00a0
value) \u00a0
for the period \u00a0
(DKK millions) \u00a0
Carrying amount \u00a0
Increase \u00a0
Decrease \u00a0
Realised \u00a0
Unrealised \u00a0
31 December 2023 \u00a0
Unlisted shares \u00a0
allocated to insurance contract policyholders \u00a0
34,755 \u00a0
-
-
472 \u00a0
-522 \u00a0
other \u00a0
553 \u00a0
55 \u00a0
55 \u00a0
352 \u00a0
-160 \u00a0
Illiquid bonds \u00a0
2,458 \u00a0
56 \u00a0
56 \u00a0
2
-152 \u00a0
Derivatives, net\u00a0fair value \u00a0
1,172 \u00a0
-
-
-
234 \u00a0
31 December 2022 \u00a0
Unlisted shares \u00a0
allocated to insurance contract policyholders \u00a0
47,045 \u00a0
-
-
6,423 \u00a0
-706 \u00a0
other \u00a0
1,247 \u00a0
125 \u00a0
125 \u00a0
175 \u00a0
-31 \u00a0
Illiquid bonds \u00a0
3,369 \u00a0
67 \u00a0
67 \u00a0
-128 \u00a0
-61 \u00a0
Derivatives, net\u00a0fair value \u00a0
1,090 \u00a0
-
-
-
-420 \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
For unlisted\u00a0shares allocated to insurance contract policyholders, the policyholders assume most of the risk on the shares. T\u00a0herefore, changes in the fair \u00a0
value of those shares will only to a\u00a0limited extent\u00a0affect the\u00a0Group\u2019s net\u00a0profit. The Group\u2019s remain\u00a0ing portfolio\u00a0of unlisted shares consists primarily of \u00a0
banking-related investments and\u00a0holdings in\u00a0private equity funds.\u00a0The sensitivity\u00a0of the fair value\u00a0measurement to\u00a0changes in\u00a0the uno\u00a0bservable input \u00a0
disclosed in the table is calculated as a 10% increase or 10 % decrease in fair value. Under\u00a0current market conditions, a\u00a010 % decrease in the fair value \u00a0
is considered\u00a0to be below a possible\u00a0alternative estimate of\u00a0the fair value at the end of the period.\u00a0The unrealised adjustments\u00a0in 2023 were attributab\u00a0le \u00a0
to various unlisted\u00a0shares. \u00a0
The estimated fair value of\u00a0illiquid bonds\u00a0depends significantly\u00a0on the estimated credit spre\u00a0ad. In the\u00a0table, the sensitivity\u00a0of the fair value measurement \u00a0
to changes in non-observable\u00a0input is\u00a0calculated as a\u00a050bps widening or\u00a0narrowing of the credit spread. \u00a0
A substantial\u00a0number of derivatives\u00a0valued on the basis of non-observable input are hedged by similar derivatives\u00a0or are used for hedging\u00a0the credit risk \u00a0
on bonds also valued\u00a0on the basis of non-observable\u00a0input. Changing one\u00a0or more of the non-observable\u00a0inputs to\u00a0reflect reasonable,\u00a0possible alternative \u00a0
assumptions would\u00a0not change the fair value of the derivatives\u00a0significantly above what\u00a0is already covered by the reserve rel\u00a0ated to fair value\u00a0adjustment \u00a0
for model risk. \u00a0
Shares, bonds and derivatives valued on the basis of non-observable input \u00a0
Reconciliation from\u00a0beginning to\u00a0end of period \u00a0
2023 \u00a0
2022 \u00a0
(DKK millions) \u00a0
Shares \u00a0
Bonds \u00a0
Derivatives \u00a0
Shares \u00a0
Bonds \u00a0
Derivatives \u00a0
Fair value at 1 January \u00a0
48,292 \u00a0
3,369 \u00a0
1,090 \u00a0
46,573 \u00a0
5,300 \u00a0
2,504 \u00a0
Value adjustment through profit or loss \u00a0
142 \u00a0
-150 \u00a0
234 \u00a0
5,861 \u00a0
-189 \u00a0
-420 \u00a0
Acquisitions \u00a0
3,152 \u00a0
161 \u00a0
-250 \u00a0
20,800 \u00a0
107 \u00a0
186 \u00a0
Sale and redemption \u00a0
-16,278 \u00a0
-922 \u00a0
-272 \u00a0
-24,942 \u00a0
-1,849 \u00a0
-42 \u00a0
Transferred from quoted prices and observable input \u00a0
-
-
295 \u00a0
-
-
-
Transferred to quoted prices and observable input \u00a0
-
-
74 \u00a0
-
-
-1,136 \u00a0
Fair value\u00a0end of period \u00a0
35,308 \u00a0
2,458 \u00a0
1,172 \u00a0
48,292 \u00a0
3,369 \u00a0
1,090 \u00a0
The value adjustment through profit or loss\u00a0is recognised under Net trading\u00a0income or loss. The transfer of derivatives\u00a0to the Observable input category \u00a0
consists primarily\u00a0of maturity\u00a0reductions, implying that the yield curves have become observable. \u00a0
(b) Financial instruments at amortised\u00a0cost \u00a0
In this section, the fair value of financial instruments recognised at amortised cost is presented. The fair value is based on quoted market prices, if \u00a0
available. If\u00a0quoted prices are not available,\u00a0the value is approximated\u00a0to reflect\u00a0the price that would have been fixed had the terms been agreed at the \u00a0
balance sheet date. \u00a0
The fair values disclosed below are\u00a0determined on the basis of the following principles: \u00a0
Investment securities\u00a0(bonds classified as\u00a0held-to-collect), other issued bonds and subordinated\u00a0debt \u00a0
Quoted prices in an active market exist for a significant part of these financial instruments.\u00a0If quoted prices in an active market do not exist, the Group \u00a0
uses an\u00a0estimate of\u00a0the current return required by the market to estimate the fair value. \u00a0
Other financial instruments \u00a0
The determination\u00a0of the fair value of financial instruments\u00a0recognised at amortised cost is based on the following\u00a0preconditions relating to\u00a0interest rate \u00a0
risk: \u00a0
\u2022
For a significant\u00a0number of the Group\u2019s deposits and loans, the interest rate depends on the standard variable rate fixed by the Group. The rate is \u00a0
adjusted only\u00a0upon certain changes in market conditions.\u00a0Such deposits\u00a0and loans are considered\u00a0to carry interest\u00a0at a variable\u00a0rate, as the standard \u00a0
variable rate fixed by the Group at any time applies to both new and existing arrangements. \u00a0
\u2022
The interest\u00a0rate risk on some fixed-rate loans extended\u00a0by the Group is designated as a\u00a0hedge of\u00a0the interest\u00a0rate risk on liabilities.\u00a0Interest rate \u00a0
risk not hedging the interest rate risk on liabilities\u00a0is hedged by derivatives.\u00a0Such hedges are accounted for\u00a0as fair value\u00a0hedges, and the fair value \u00a0
of the hedged\u00a0interest risk is adjusted in the carrying amount of the hedged financial instruments. Consequently,\u00a0only fair value changes related to \u00a0
fixed-rate loans not hedged by derivatives\u00a0are adjusted in the fair values presented in the table below. \u00a0
For financial instruments\u00a0that are only to a\u00a0limited extent\u00a0influenced by\u00a0changes in\u00a0credit risk, the amortised\u00a0cost, including the adjustment for\u00a0the fair \u00a0
value hedge accounting of the interest rate risk, is a reasonable approximation\u00a0of fair value. This is the case for Due from/to credit institutions\u00a0and central \u00a0
banks and Deposits. \u00a0
It is assessed that the expected credit loss impairment\u00a0model used for loans\u00a0measured at amortised cost is a reasonable proxy for the fair value of the \u00a0
credit risk. \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
In the table below, fair value is presented for classes of financial\u00a0instruments for\u00a0which the carrying amount is not a reasonable approximation\u00a0of fair \u00a0
value. \u00a0
Carrying \u00a0
Observable Non-observable \u00a0
2023 \u00a0
amount \u00a0
Fair value \u00a0
Quoted prices \u00a0
input \u00a0
input \u00a0
(DKK millions) \u00a0
Financial assets \u00a0
Investment securities \u00a0
155,398 \u00a0
148,908 \u00a0
141,789 \u00a0
7,119 \u00a0
-
Loans at amortised cost \u00a0
918,628 \u00a0
918,474 \u00a0
-
150 \u00a0
918,324 \u00a0
Financial liabilities \u00a0
Issued bonds, including non-preferred senior bonds \u00a0
307,428 \u00a0
307,523 \u00a0
273,830 \u00a0
19,286 \u00a0
14,406 \u00a0
Subordinated debt \u00a0
38,774 \u00a0
38,172 \u00a0
37,924 \u00a0
248 \u00a0
-
2022 \u00a0
(DKK millions) \u00a0
Financial assets \u00a0
Investment securities \u00a0
151,573 \u00a0
139,815 \u00a0
128,391 \u00a0
11,424 \u00a0
-
Loans at amortised cost \u00a0
1,082,818 \u00a0
1,075,778 \u00a0
-
7,972 \u00a0
1,067,807 \u00a0
Financial liabilities \u00a0
Issued bonds, including non-preferred senior bonds \u00a0
285,918 \u00a0
285,755 \u00a0
259,335 \u00a0
8,230 \u00a0
18,189 \u00a0
Subordinated debt \u00a0
38,350 \u00a0
36,579 \u00a0
37,091 \u00a0
-512 \u00a0
-
For investment\u00a0securities classified as hold-to-collect,\u00a0amortised cost\u00a0exceeded fair value\u00a0as at 31 December 2023 by DKK\u00a06,489 million (31 December \u00a0
2022: DKK 11,758 million). This portfolio mainly contains Danish mortgage bonds and central and local government bonds, and h\u00a0as a weighted average \u00a0
rating factor of 4.8 following Moody\u2019s numerical rating factor to scale,\u00a0which corresponds to a\u00a0strong Aa1 rating. The interest rate risk duriation\u00a0for the \u00a0
portfolio is 3.3 years. Without any reinvestments,\u00a0respectively 24%,\u00a057% and 19% of this portfolio will reach maturity\u00a0within a\u00a0period of\u00a01 year, 1 to 5 \u00a0
years, and after 5 years. The difference between amortised cost and fair value will reduce along with time to maturity\u00a0of the\u00a0bonds running off. \u00a0
(c) Impact\u00a0of IBOR Reform on financial instruments \u00a0
The Interest Rate Benchmark Reform is progressively replacing inter-bank offered\u00a0rates (IBORs) with alternative\u00a0risk-free rates. The Group had \u00a0
established an IBOR Transition\u00a0Programme, the main objectives\u00a0being to\u00a0identify how the IBOR transition would aff\u00a0ect the Group financially and \u00a0
operationally, and\u00a0to identify how\u00a0cessation of IBOR publications\u00a0would affect the Group\u2019s\u00a0ability to service its customer base.\u00a0The IBOR\u00a0Transitio n \u00a0
programme has achieved its aims and\u00a0will be\u00a0wound down during\u00a0the first\u00a0quarter of\u00a02024. Interest rate developments\u00a0are continuously\u00a0monitored, and \u00a0
any future introduction\u00a0of new risk-free rates will be managed and resourced as required. \u00a0
As at 31 December 2023, there are\u00a0no non-derivative\u00a0financial assets or non-derivative\u00a0financial liabilities\u00a0that are yet to transition\u00a0to alternative \u00a0
benchmark rates (31\u00a0December 2022: DKK 5,191 million and 2,608 million respectively). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4299": {
"value": "Financial assets measured at fair value through other comprehensive income (FVOCI) \u00a0
This category comprises bonds only, and primarily bonds listed in a liquid market, as the Group does not use the option to designate equity instruments \u00a0
at FVOCI.\u00a0The bonds are held within\u00a0a business\u00a0model for the purpose of collecting contractual\u00a0cash flows\u00a0and selling\u00a0(hold to collect\u00a0and sell). The bonds \u00a0
have cash\u00a0flows that are solely payments of principal and interest on the principal\u00a0amount outstanding\u00a0(i.e. that pass the SPPI test in IFRS 9). FVOCI \u00a0
results in\u00a0the assets being recognised at\u00a0fair value in the balance sheet and at amortised cost in the income statement,\u00a0including the\u00a0recognition of \u00a0
expected credit losses as described in note G15. Gains and losses, except for expected credit losses and foreign exchanges gains and losses, are \u00a0
therefore recognised in\u00a0other comprehensive income until the bond is derecognised. When a\u00a0fixed interest rate risk is hedged in a hedge that qualifie\u00a0s \u00a0
for fair value\u00a0hedge accounting, the fair value changes of the hedged interest risk are presented in the income statement under Net trading income or \u00a0
loss. When bonds are sold unrealised value\u00a0adjustments recognised\u00a0under Other comprehensive\u00a0income are reclassified to the income statement and \u00a0
presented under Net trading income or loss.\u00a0The Group recognises interest income according to the effective interest method, including amortisatio\u00a0n \u00a0
of the difference between cost and the redemption value over the term to maturity\u00a0of the bonds. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForAvailableforsaleFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4300": {
"value": "Financial assets measured at amortised cost (AMC) \u00a0
This category consists of\u00a0bonds held within\u00a0a business\u00a0model for the purpose of collecting the contractual\u00a0cash flows (hold to collect) and with cash \u00a0
flows that\u00a0are solely\u00a0payments of principal and interest on the principal amount outstanding (i.e. that pass the SPPI test in IFRS 9). The bonds are \u00a0
measured at\u00a0amortised cost.\u00a0Interest income is\u00a0recognised according to the effective interest method, including\u00a0amortisation of\u00a0the difference between \u00a0
cost and the redemption\u00a0value over the term to maturity of the bonds. A change in the contractual cash flows that is required by the Interest Rate \u00a0
Benchmark Reform is accounted for\u00a0by updating\u00a0the effective interest rate, without\u00a0recognising a gain or loss. This can only\u00a0be applied\u00a0if the change is \u00a0
necessary as a direct consequence of the reform, and the new basis for determining\u00a0the contractual\u00a0cash flows is economically equivalent\u00a0to the \u00a0
previous basis. The bonds are\u00a0subject to\u00a0the expected credit model in IFRS 9 as described in note G15. The interest rate risk on fixed-rate bonds is not \u00a0
hedged. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForHeldtomaturityInvestmentsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4302": {
"value": "(a) Investment securities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Financial assets at fair value through profit or loss \u00a0
Listed bonds \u00a0
20,798 \u00a0
18,234 \u00a0
Unlisted shares \u00a0
493 \u00a0
1,187 \u00a0
Total financial assets designated\u00a0at fair value through profit or loss \u00a0
21,291 \u00a0
19,421 \u00a0
Bonds hold to collect and sell (FVOCI) \u00a0
Listed bonds \u00a0
107,226 \u00a0
116,429 \u00a0
Total bonds hold to collect and sell (FVOCI) \u00a0
107,226 \u00a0
116,429 \u00a0
Total at fair value \u00a0
128,517 \u00a0
135,850 \u00a0
Bonds hold to collect (AMC) \u00a0
Listed bonds \u00a0
155,398 \u00a0
151,573 \u00a0
Total investment securities \u00a0
283,914 \u00a0
287,423 \u00a0
Financial assets measured at fair value through other comprehensive income (FVOCI) \u00a0
This portfolio includes the part\u00a0of the liquidity\u00a0bond portfolio where both the collection of the contractual cash flows and sales are an integral part of \u00a0
achieving the objectives with the acquired bond portfolio. Further, the\u00a0bonds included in the portfolio have contractual cash flows that pass the SPPI\u00a0test. \u00a0
The performance of\u00a0the portfolio is measured on a combination of the collection of the contractual cash flows and sales proceeds. Sales typically\u00a0occur \u00a0
when market opportunities\u00a0arise, or when there is a need to adjust the portfolio to hedge part of the interest rate risk on the Group\u2019s core deposits. There \u00a0
is no objective\u00a0of short-term profit taking and the performance reporting related to this portfolio reflects a combination of the collection of the contractua\u00a0l \u00a0
cash flows and realising\u00a0fair value\u00a0changes. The business\u00a0model is therefore \u2018hold to collect and sell\u2019. \u00a0
The portfolio comprises primarily highly-rated\u00a0covered, sovereign, supranational\u00a0and agency bonds. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAvailableforsaleAssetsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4306": {
"value": "G14. Due from\u00a0credit institutions\u00a0and central banks \u00a0
The item due from credit institutions\u00a0and central banks\u00a0includes both balances that are measured at amortised cost\u00a0and balances that are measured at \u00a0
fair value through profit or loss, depending\u00a0on the\u00a0business model\u00a0for the management\u00a0of the amounts\u00a0due from credit institutions. \u00a0
Accounting policy \u00a0
For balances due from\u00a0credit institutions\u00a0in the Group\u2019s banking units (Personal & Business Customers, General Banking\u00a0in Large Corporates \u00a0
&
Institutions, Northern\u00a0Ireland and\u00a0Non-core), the business model is \u2018hold to collect\u2019. As the contractual cash flows represent basic lending\u00a0feature, these \u00a0
balances are measured at amortised cost. For further\u00a0information on the accounting policy etc., see\u00a0note G15. \u00a0
For balances due from credit institutions\u00a0and central banks in the Group\u2019s trading units (Markets and\u00a0Investment Banking &\u00a0Securities in\u00a0Large \u00a0
Corporates &\u00a0Institutions) the\u00a0business model\u00a0is neither\u00a0\u2018hold to collect\u2019 nor \u2018hold to collect and sell\u2019 and these balances are mandatorily\u00a0recognised at \u00a0
fair value through profit or loss. For further information\u00a0on the\u00a0accounting policy, see\u00a0note G16. \u00a0
Cash in\u00a0hand and\u00a0demand deposits with central banks \u00a0
Includes cash\u00a0in hand of DKK 6,419 million (2022: DKK 6,630 million)\u00a0and demand\u00a0deposits of DKK 252,737\u00a0million (2022:\u00a0DKK 168,422 million) \u00a0
(measured at amortised cost). \u00a0
Due from credit institutions\u00a0and central banks \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Due from credit institutions\u00a0and central banks measured at fair value through profit or loss: \u00a0
Reverse transactions \u00a0
92,389 \u00a0
37,379 \u00a0
Other amounts due \u00a0
595 \u00a0
768 \u00a0
Total at fair value through profit or loss \u00a0
92,984 \u00a0
38,147 \u00a0
Due from credit institutions\u00a0and central banks measured at amortised cost: \u00a0
Reverse transactions \u00a0
3,727 \u00a0
-
Other amounts due \u00a0
18,118 \u00a0
22,686 \u00a0
Allowance account \u00a0
16 \u00a0
47 \u00a0
Total at amortised cost \u00a0
21,829 \u00a0
22,639 \u00a0
Due from credit institutions\u00a0and central banks, total \u00a0
114,813 \u00a0
60,786 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Due from credit institutions\u00a0and central banks includes amounts due within three months and totalled DKK 106,453 million\u00a0at the end of 2023 (2022: \u00a0
DKK 57,479 million). This amount is\u00a0included under Cash and cash equivalents in the cash flow statement. \u00a0
Credit risk \u00a0
The Group offers\u00a0loans, credits, guarantees and other products as part of its business\u00a0model and thus takes on credit risk. \u00a0
Credit risk is the risk of losses because debtors\u00a0or counterparties\u00a0fail to\u00a0meet all or part of their payment obligations\u00a0to the Group. \u00a0
In accordance with the Group\u2019s Credit Policy, the Group carefully assesses the financial situation of customers to ensure that loans granted are suited to their \u00a0
needs and financial capacity and that customers understand their financial obligations. \u00a0
In order to mitigate\u00a0credit risk, the Group uses a number of measures, including\u00a0collateral, guarantees and covenants. \u00a0
Further information\u00a0on the\u00a0Group\u2019s risk management\u00a0practices related to\u00a0credit risk can\u00a0be found in the report Risk Management 2023. \u00a0
Sustainabilit y\u00a0risk \u00a0
The Group may be exposed to sustainability\u00a0drivers. Credit risk is deemed to be the risk type most materially\u00a0affected by sustainability\u00a0drivers. \u00a0
Sustainability and\u00a0ESG considerations\u00a0are integrated into the Group\u2019s lending practices. \u00a0
Sustainability and\u00a0credit risk \u00a0
Sustainability risks\u00a0are identified,\u00a0assessed and monitored\u00a0at the portfolio level as part of the annual sector reviews, whic\u00a0h include\u00a0an in-depth \u00a0
assessment of sub-sectors and the largest customers. This enables the Group to map the most material sustaina\u00a0bility risks\u00a0facing the individua\u00a0l \u00a0
portfolios, monitor aggregate risk\u00a0levels on\u00a0an ongoing basis, and identify additional\u00a0Credit Risk Policy requirements. When\u00a0deemed necessary, the \u00a0
sustainability risk\u00a0findings are integrated into the Group\u2019s credit risk tolerance to allow for\u00a0portfolio management. \u00a0
Relationship managers use\u00a0a digital system to identify and assess each customer\u2019s sustainability\u00a0risk level through a set of\u00a0sector-specific environmenta\u00a0l, \u00a0
social and governance\u00a0questions for both new and existing business customers. The customer\u00a0-level sustainability risk\u00a0assessments serve as\u00a0input \u00a0
factors in the overall credit decision process and also enable the Group to monitor\u00a0the overall sustainability\u00a0risk level.\u00a0On the\u00a0back of\u00a0results from the \u00a0
ESG Tracker\u00a0tool, relationship\u00a0managers are required to engage with customers with a significant exposure and a high level of identified risks in order to \u00a0
agree on a future\u00a0action plan to mitigate these risks. \u00a0
The Group implemented\u00a0functional enhancements to facilitate customer engagement in human rights and\u00a0a more in\u00a0-depth analysis of\u00a0drivers of \u00a0
customers\u2019 ESG risk levels.\u00a0These bottom-up customer assessments will increasingly be\u00a0tied to the top-down portfolio\u00a0risk management efforts. This will \u00a0
ensure a consistent feedback loop between strategic and\u00a0customer considerations in\u00a0the Group\u2019s sustainability\u00a0risk management\u00a0. \u00a0
Climate risk\u00a0management \u00a0
Climate risk\u00a0is currently the most urgent of all ESG-related drivers\u00a0capable of\u00a0affecting the Group\u2019s credit risk. From\u00a0a financial significance\u00a0perspective , \u00a0
climate-related risks\u00a0have been\u00a0deemed most relevant for the Group\u2019s lending activities\u00a0and risk\u00a0practices are\u00a0being enhanced\u00a0in accordance with \u00a0
regulatory and industry developments. \u00a0
Climate risk\u00a0pertains to\u00a0transition risks, which are the risks associated with shifting to a low\u00a0-carbon economy, and to physical risks arising from projecte\u00a0d \u00a0
climate changes, including both long-term shifts (chronic changes) and\u00a0event-driven changes\u00a0(acute changes) to weather patterns. Credit risk will be \u00a0
affected by both of these climate-related\u00a0risks in the medium\u00a0and long\u00a0term, and efforts are being made to obtain\u00a0improved climate data to\u00a0refine the long\u00a0- \u00a0
term view of climate\u00a0risk across sectors. \u00a0
The Group has identified flooding risk (river and coastal flooding) as the key physical\u00a0hazard applicable to the portfolio on the basis of\u00a0the report on high \u00a0
confidence of hazard increase in Northern Europe issued by the Intergovernmental\u00a0Panel on Climate\u00a0Change. The current mapping of exposures subject \u00a0
to the risk of flooding focuses on residential and commercial property. \u00a0
The Group has taken into consideration\u00a0the financed emissions of the sector portfolios identified\u00a0as climate\u00a0change contribut\u00a0ors and\u00a0has identified\u00a0that \u00a0
most of the emissions\u00a0are attributable\u00a0to only\u00a0a few sectors, which the Group actively monitors\u00a0and manage.\u00a0For instance, this is evidenc ed by the decline \u00a0
in the oil and gas books in recent years. \u00a0
Moreover, the Group performs ad-hoc climate stress tests to assess physical and transition risks of climate changes. Stress tests in relation to physical ris ks \u00a0
cover collateral-related exposures and are based on river and coastal flooding. Stress tests in\u00a0relation to transition risks consider an introduction of carbon \u00a0
taxes. \u00a0
Customer transition risk\u00a0assessments \u00a0
Managing transition risks\u00a0takes place at both portfolio and customer levels. At the portfolio level, the Group sets long\u00a0-term targets for\u00a0sectors with high \u00a0
financed emissions such as for the segments Shipping, Utilities\u00a0etc. Climate risks are\u00a0also taken in\u00a0to consideration when\u00a0the Group determines its risk \u00a0
tolerance process\u00a0for high-risk\u00a0segments to further manage the portfolios. \u00a0
The Group has also developed a methodology\u00a0to assess transition\u00a0risks at the customer\u00a0level to gain a more granular overview\u00a0of transition\u00a0risks in \u00a0
relevant high-emitting sectors.\u00a0The methodology considers the\u00a0customers\u2019 current performance as well as their short-, medium-, and long-term ambition\u00a0s \u00a0
and plans to meet their decarbonisation\u00a0strategy and targets.\u00a0In addition,\u00a0the assessments include an evaluation\u00a0of the custo mers\u2019 risk\u00a0of not executing \u00a0
on their strategies because\u00a0of external factors that affect their ability\u00a0to transition, i.e.\u00a0technology and\u00a0government support\u00a0factors. \u00a0
On the basis of the alignment assessment, technology and government\u00a0factors, it is possible to break down transition\u00a0risk assessment scores i\u00a0nto four \u00a0
categories. The transition\u00a0risk assessments contribute\u00a0to the overall credit evaluation of customers. \u00a0
The Group has an intensified focus on customers that are considered to be lagging in the transition\u00a0process but have started\u00a0from weak financial positions . \u00a0
For these customers, the Group has identified relevant mitigating actions, including increased recog\u00a0nition of\u00a0the expected credit loss to anticipate\u00a0losses \u00a0
during the transition phase. From\u00a0the initial assessment of\u00a0customers subject to high transition risk, the exposure to the la\u00a0gging transition\u00a0category \u00a0
remains limited but will be\u00a0monitored on an\u00a0ongoing basis. \u00a0
See the Group\u2019s risk management report; Risk Management 2023 for more information\u00a0on Sustainability\u00a0risk and the Group\u2019s additional\u00a0Pillar III \u00a0
Disclosures for\u00a0more information on\u00a0Climate risk. The publications\u00a0are available\u00a0at danskebank.com/investor-relations.\u00a0The publications\u00a0are not covered \u00a0
by the statutory audit. \u00a0
Credit exposure continued \u00a0
Credit exposure \u00a0
Credit exposure consists of\u00a0balance sheet\u00a0items and off-balance-sheet items that carry credit risk. Most of the exposure derives from lending activitie\u00a0s \u00a0
in the form of secured and unsecured loans. The Non-core business unit is not considered part of Danske\u00a0Bank\u2019s core activities\u00a0and is stated separately. \u00a0
Securities positions taken by the\u00a0Group\u2019s trading and investment units also\u00a0entail credit risk and are presented as credit exposure from trading and \u00a0
investment securities as well as derivatives\u00a0and loans at the Group\u2019s trading\u00a0units. \u00a0
The overall management of\u00a0credit risk thus covers credit risk from direct lending\u00a0activities, counterparty\u00a0credit risk on\u00a0derivatives and\u00a0loans at the \u00a0
Group\u2019s trading units and credit risk from securities\u00a0positions. \u00a0
The Group\u2019s exposure to the risk on some balance sheet items is limited.\u00a0This is the case for assets under customer-funded\u00a0investment pools, unit-linke\u00a0d \u00a0
investment contracts\u00a0and insurance\u00a0contracts. The risk on\u00a0assets under pooled schemes and\u00a0unit-linked investment contracts\u00a0is assumed solely by the \u00a0
customers, while the risk on assets under insurance contracts is assumed primarily by the customers. The section on life insurance risk describes the \u00a0
Group\u2019s credit risk on\u00a0insurance contracts. \u00a0
Breakdown of credit exposure \u00a0
Lending activities \u00a0
Trading and \u00a0
Customer- \u00a0
(DKK billions) \u00a0
Counterparty \u00a0
investment \u00a0
funded \u00a0
31 December\u00a02023 \u00a0
Total \u00a0
Core \u00a0
Non-core \u00a0
credit risk \u00a0
securities investments \u00a0
Balance sheet items \u00a0
Demand deposits with central banks \u00a0
252.7 \u00a0
252.7 \u00a0
-
-
-
-
Due from credit institutions\u00a0and central banks \u00a0
114.8 \u00a0
21.8 \u00a0
-
93.0 \u00a0
-
-
Trading portfolio assets \u00a0
548.2 \u00a0
-
-
351.7 \u00a0
196.5 \u00a0
-
Investment securities \u00a0
283.9 \u00a0
-
-
-
283.9 \u00a0
-
Loans at amortised cost \u00a0
918.6 \u00a0
917.1 \u00a0
1.5 \u00a0
-
-
-
Loans at fair value \u00a0
928.2 \u00a0
753.3 \u00a0
-
175.0 \u00a0
-
-
Assets under pooled schemes and unit-linked investment \u00a0
contracts \u00a0
70.9 \u00a0
-
-
-
-
70.9 \u00a0
Assets under insurance contracts \u00a0
496.0 \u00a0
-
-
-
-
496.0 \u00a0
Assets held for sale \u00a0
110.4 \u00a0
110.4 \u00a0
-
-
-
-
Off-balance-sheet items \u00a0
Guarantees \u00a0
75.9 \u00a0
75.9 \u00a0
-
-
-
-
Loan commitments\u00a0shorter than 1 year \u00a0
197.0 \u00a0
196.1 \u00a0
0.9 \u00a0
-
-
-
Loan commitments\u00a0longer than 1 year \u00a0
220.3 \u00a0
220.3 \u00a0
-
-
-
-
Other unutilised commitments \u00a0
16.7 \u00a0
-
-
-
0.1 \u00a0
16.6 \u00a0
Total \u00a0
4,233.8 \u00a0
2,547.6 \u00a0
2.5 \u00a0
619.7 \u00a0
480.5 \u00a0
583.6 \u00a0
31 December 2022* \u00a0
Balance sheet items \u00a0
Demand deposits with central banks \u00a0
168.4 \u00a0
168.4 \u00a0
-
-
-
-
Due from credit institutions\u00a0and central banks \u00a0
60.8 \u00a0
22.7 \u00a0
-
38.1 \u00a0
-
-
Trading portfolio assets \u00a0
638.8 \u00a0
-
-
430.1 \u00a0
208.7 \u00a0
-
Investment securities \u00a0
287.4 \u00a0
-
-
-
287.4 \u00a0
-
Loans at amortised\u00a0cost \u00a0
1,082.8 \u00a0
1,081.7 \u00a0
1.2 \u00a0
-
-
-
Loans at fair value \u00a0
932.7 \u00a0
724.1 \u00a0
-
208.6 \u00a0
-
-
Assets under pooled schemes and unit-linked investment \u00a0
contracts \u00a0
66.7 \u00a0
-
-
-
-
66.7 \u00a0
Assets under insurance contracts \u00a0
503.0 \u00a0
-
-
-
-
503.0 \u00a0
Assets held for sale \u00a0
-
-
-
-
-
-
Off-balance-sheet items \u00a0
Guarantees \u00a0
81.4 \u00a0
81.4 \u00a0
-
-
-
-
Loan commitments\u00a0shorter than 1 year \u00a0
236.1 \u00a0
234.8 \u00a0
1.3 \u00a0
-
-
-
Loan commitments\u00a0longer than 1 year \u00a0
199.9 \u00a0
199.9 \u00a0
-
-
-
-
Other unutilised commitments \u00a0
15.2 \u00a0
-
-
-
0.1 \u00a0
15.1 \u00a0
Total \u00a0
4,273.2 \u00a0
2,512.8 \u00a0
2.5 \u00a0
676.9 \u00a0
496.2 \u00a0
584.8 \u00a0
* Comparative information has been restated as described in note G2(a). \u00a0
In addition to credit exposure from\u00a0lending activities, the Group had made uncommitted loan offers\u00a0and granted uncommitted\u00a0li nes\u00a0of credit of DKK 232 \u00a0
billion at\u00a031 December 2023 (2022: DKK 216 billion). These items are included in the calculation of the total risk exposure amount in accordance with \u00a0
the Capital Requirements Directive. \u00a0
Credit exposure continued \u00a0
Credit exposure from core\u00a0lending activities \u00a0
Credit exposure\u00a0from lending activities\u00a0in the Group\u2019s\u00a0core banking\u00a0business includes loans, amounts due\u00a0from credit institut\u00a0ions and\u00a0central banks, \u00a0
guarantees and\u00a0irrevocable loan\u00a0commitments. The\u00a0exposure is measured net of expected credit losses and inc\u00a0ludes repo loans at amortised cost. For \u00a0
reporting purposes,\u00a0all collateral values are net of haircuts and capped at the exposure amount. The credit exposure from Non\u00a0-core lending activities\u00a0is \u00a0
disclosed further on\u00a0in these notes. \u00a0
For details\u00a0about the Group\u2019s credit risk management and the use of information on expected credit losses for risk management\u00a0purposes, see Risk \u00a0
Management 2023. \u00a0
Classification of\u00a0customers \u00a0
The main objectives of risk classification are to rank the Group\u2019s customers according to risk and to estimate each customer\u2019 s probability of default (PD). As \u00a0
part of the credit process, the Group classifies customers according to risk and updates their classifications upon receipt of new information. Risk \u00a0
classification comprises rating and credit scoring of customers. While all large customers are rated, the Group uses fully automated and statistically-based \u00a0
scoring models for small customers such as personal customers and small businesses. Credit scores are updated monthly in a process subject to automated \u00a0
controls. \u00a0
The Group has\u00a0developed a number of classification models to\u00a0assess customer PD and to classify customers in various\u00a0segments . \u00a0
In its credit risk management, the Group uses point in time (PIT) PD estimates\u00a0for risk classification.\u00a0These PIT PD estimate\u00a0s express a\u00a0customer\u2019s \u00a0
probability of\u00a0default within\u00a0the next 12 months in the current economic situation.\u00a0The Group\u2019s classification scale consists of 11 main rating categories \u00a0
with fixed PD bands. During a\u00a0downturn, a\u00a0customer\u2019s PIT\u00a0PD may increase,\u00a0and the customer may migrate to a lower rating cate\u00a0gory. The effect\u00a0from a \u00a0
downturn is thus larger when PIT PD is used than if the classification were based on through-the-cycle\u00a0(TTC) PD, which the Group uses to calculate the \u00a0
risk exposure amount for credit risk. \u00a0
The classification\u00a0of facilities\u00a0between stage 1 and 2 for the\u00a0purpose of calculating\u00a0expected credit\u00a0losses under IFRS 9 dep\u00a0ends on whether the credit \u00a0
risk has increased significantly\u00a0since initial recognition.\u00a0The assessment of whether\u00a0the credit risk ha\u00a0s increased significantly\u00a0since initial recognition\u00a0is \u00a0
performed by\u00a0considering the\u00a0change in\u00a0the risk of default occurring over the remaining life of\u00a0the individual\u00a0facility and\u00a0i ncorporating\u00a0forward-looking \u00a0
information. A\u00a0facility is transferred from stage 1 to stage 2 on the basis of observed increases in the probability of default: \u00a0
\u2022
For facilities\u00a0originated below 1% in PD: an increase in the facility\u2019s 12-month PD\u00a0of at least 0.5 of a percentage point since initial\u00a0recognition and\u00a0a \u00a0
doubling in\u00a0the facility\u2019s lifetime PD since origination. \u00a0
\u2022
For facilities\u00a0originated above 1% in PD: an\u00a0increase in the facility\u2019s 12-month PD\u00a0of 2 percentage points\u00a0since origination or a\u00a0doubling of\u00a0the \u00a0
facility\u2019s lifetime PD\u00a0since origination. \u00a0
In addition,\u00a0facilities that\u00a0are more than 30 days past due are moved\u00a0to stage 2. 30 days past due is considered\u00a0a backstop.\u00a0Finally, customers subject to \u00a0
forbearance measures are placed in stage 2 if the Group, in the most likely outcome, expects no loss or the customers are in the two-year probation \u00a0
period for performing\u00a0forborne exposures. \u00a0
A facility is transferred from stage 2 to stage 3 when it becomes credit-impaired.\u00a0A facility becomes credit-impaired when one or more events that have \u00a0
a detrimental\u00a0impact on\u00a0the estimated future cash flows have occurred. This includes\u00a0observable data abo\u00a0ut (a) significant financial difficulty of the issuer \u00a0
or the borrower; (b) a breach of contract,\u00a0such as a default or past due event;\u00a0(c) the borrower, for financial or contractua\u00a0l reasons relating to the \u00a0
borrower\u2019s financial difficulty,\u00a0having been\u00a0granted a concession that would not otherwise have been considered; (d) it is becoming\u00a0probable that the \u00a0
borrower will\u00a0enter into bankruptcy\u00a0or other financial restructuring;\u00a0and (e) the purchase or origination\u00a0of a financial asse t at a deep discount that reflects \u00a0
the incurred credit loss. It may not be possible to identify\u00a0a single\u00a0discrete event \u2013 instead, the combined effect\u00a0of several events may cause a\u00a0financial \u00a0
asset to become credit-impaired.\u00a0Credit-impaired facilities are\u00a0placed in rating category 10\u00a0or 11. For customers\u00a0in rating\u00a0category 10, the stage 3 \u00a0
classification applies\u00a0only to customers where a loss is expected in the most likely\u00a0scenario. For rating category 11 (defaul\u00a0t), all\u00a0facilities are classified \u00a0
as stage 3 exposures. \u00a0
Exposures which\u00a0are considered to be in default for regulatory\u00a0purposes will always be categorised as\u00a0stage 3 exposures under IFRS 9. This applies to \u00a0
90-days-past-due considerations and\u00a0unlikely-to-pay factors\u00a0leading to regulatory default. \u00a0
Management applies judgement and recognises post-model adjustments\u00a0to cover risks that are not reflected sufficiently\u00a0in the Group\u2019s expected credit \u00a0
loss model. Besides\u00a0increasing the expected credit losses, the post-model adjustments\u00a0may lead to the transfer of part of the gross exposure covered by \u00a0
the post-model adjustments\u00a0from stage 1 to stage 2 through targeted PD pushes to the current point in time estimates\u00a0of PD (i.e. incre ases in the PD for \u00a0
the underlying\u00a0customers in\u00a0the selected portfolios covered by the post-model adjustments)\u00a0to ensure consistency between the methods used for \u00a0
disclosing information about\u00a0expected credit\u00a0losses and exposures subject to significant increase in credit risk. While the d\u00a0istribution of\u00a0customers \u00a0
between the Group\u2019s 11 rating categories is unchanged and reflects the current point-in-time estimate of\u00a0the underlying customers\u2019 PDs, the PD pushes \u00a0
may lead to the transfer of gross exposures to stage 2 as the assessment of the increase in credit risk is performed by compa\u00a0ring the initial PD with the \u00a0
current PD (after the adjustment\u00a0for the targeted PD pushes). \u00a0
Credit exposure continued \u00a0
Expected credit\u00a0losses \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as a\u00a0function of\u00a0the probability\u00a0of default\u00a0(PD), the exposure at default (EAD) and the loss \u00a0
given default (LGD). For\u00a0exposures in\u00a0stage 1,\u00a012- month\u00a0expected credit losses are recognised, while lifetime expected credit losses are recognised for \u00a0
exposures in stage 2-3. For further information see note G15. \u00a0
Credit portfolio\u00a0in core activities\u00a0broken down by rating\u00a0category \u00a0
The Group\u2019s definition of\u00a0default for accounting\u00a0aligns with\u00a0the regulatory purposes. All exposures in\u00a0stage 3 are considered\u00a0default. As a\u00a0result, all non- \u00a0
performing loans are considered default, and hence equal to the total of stage 3 exposures. \u00a0
Although Stage\u00a03 and\u00a0default (rating\u00a011) are generally aligned, a\u00a0small amount of\u00a0credit exposure in stage 3 can be found out\u00a0side default. This is\u00a0due to \u00a0
impairment staging being\u00a0updated monthly (after\u00a0each month-end),\u00a0whereas default is updated daily. For the same reason, some credit exposure in default \u00a0
is outside stage 3. \u00a0
For further details about the Group\u2019s credit risk management and the use of information\u00a0on expected credit losses for risk ma\u00a0nagement purposes, see \u00a0
Risk Management\u00a02023. \u00a0
The table below breaks down\u00a0the credit exposure by rating categories and stages. \u00a0
31 December 2023 \u00a0
PD level \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK billions) \u00a0
Upper Lower\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
1
-
0.01 \u00a0
127.3 \u00a0
0.1 \u00a0
-
-
-
-
127.3 \u00a0
0.1 \u00a0
-
108.9 \u00a0
-
-
2
0.01 \u00a0
0.03 \u00a0
287.2 \u00a0
0.3 \u00a0
-
-
-
-
287.2 \u00a0
0.3 \u00a0
-
178.3 \u00a0
-
-
3
0.03 \u00a0
0.06 \u00a0
536.9 \u00a0
0.7 \u00a0
-
0.1 \u00a0
-
-
536.8 \u00a0
0.6 \u00a0
-
263.2 \u00a0
0.4 \u00a0
-
4
0.06 \u00a0
0.14 \u00a0
607.8 \u00a0
1.9 \u00a0
-
0.2 \u00a0
-
-
607.6 \u00a0
1.9 \u00a0
-
274.9 \u00a0
0.5 \u00a0
-
5
0.14 \u00a0
0.31 \u00a0
434.8 \u00a0
8.1 \u00a0
0.1 \u00a0
0.4 \u00a0
-
-
434.5 \u00a0
8.0 \u00a0
0.1 \u00a0
136.5 \u00a0
5.5 \u00a0
-
6
0.31 \u00a0
0.63 \u00a0
290.0 \u00a0
36.9 \u00a0
0.1 \u00a0
0.7 \u00a0
0.6 \u00a0
-
289.3 \u00a0
36.3 \u00a0
0.1 \u00a0
87.2 \u00a0
18.7 \u00a0
-
7
0.63 \u00a0
1.90 \u00a0
92.3 \u00a0
47.3 \u00a0
0.1 \u00a0
1.2 \u00a0
1.9 \u00a0
-
91.1 \u00a0
45.3 \u00a0
0.1 \u00a0
27.9 \u00a0
17.7 \u00a0
-
8
1.90 \u00a0
7.98 \u00a0
12.2 \u00a0
28.1 \u00a0
0.4 \u00a0
0.9 \u00a0
2.8 \u00a0
-
11.3 \u00a0
25.2 \u00a0
0.4 \u00a0
1.7 \u00a0
6.3 \u00a0
0.2 \u00a0
9
7.98 25.70 \u00a0
1.0 \u00a0
4.8 \u00a0
-
-
1.0 \u00a0
-
1.0 \u00a0
3.8 \u00a0
-
0.2 \u00a0
1.0 \u00a0
-
10 \u00a0
25.70 99.99 \u00a0
0.6 \u00a0
14.8 \u00a0
1.3 \u00a0
-
1.0 \u00a0
0.5 \u00a0
0.6 \u00a0
13.8 \u00a0
0.8 \u00a0
0.2 \u00a0
3.7 \u00a0
0.5 \u00a0
11 (default) \u00a0
100.00 100.00 \u00a0
0.6 \u00a0
1.5 \u00a0
30.7 \u00a0
-
-
8.6 \u00a0
0.6 \u00a0
1.5 \u00a0
22.1 \u00a0
0.4 \u00a0
0.2 \u00a0
2.2 \u00a0
Total \u00a0
2,390.8 \u00a0
144.2 \u00a0
32.7 \u00a0
3.6 \u00a0
7.5 \u00a0
9.1 2,387.2 \u00a0
136.7 \u00a0
23.6 1,079.4 \u00a0
54.1 \u00a0
3.0 \u00a0
31 December 2022 \u00a0
PD level \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral* \u00a0
(DKK billions) \u00a0
Upper Lower\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
1
-
0.01 \u00a0
135.9 \u00a0
0.1 \u00a0
-
-
-
-
135.9 \u00a0
0.1 \u00a0
-
115.2 \u00a0
-
-
2
0.01 \u00a0
0.03 \u00a0
233.5 \u00a0
0.2 \u00a0
-
-
-
-
233.5 \u00a0
0.2 \u00a0
-
116.8 \u00a0
0.1 \u00a0
-
3
0.03 \u00a0
0.06 \u00a0
540.9 \u00a0
0.8 \u00a0
-
0.1 \u00a0
-
-
540.8 \u00a0
0.8 \u00a0
-
262.9 \u00a0
0.3 \u00a0
-
4
0.06 \u00a0
0.14 \u00a0
630.6 \u00a0
1.9 \u00a0
-
0.6 \u00a0
-
-
630.0 \u00a0
1.9 \u00a0
-
298.0 \u00a0
0.9 \u00a0
-
5
0.14 \u00a0
0.31 \u00a0
463.1 \u00a0
14.0 \u00a0
-
0.4 \u00a0
0.1 \u00a0
-
462.7 \u00a0
13.9 \u00a0
-
148.1 \u00a0
7.7 \u00a0
-
6
0.31 \u00a0
0.63 \u00a0
235.8 \u00a0
54.3 \u00a0
-
0.5 \u00a0
0.9 \u00a0
0.1 \u00a0
235.3 \u00a0
53.3 \u00a0
-
76.1 \u00a0
21.4 \u00a0
-
7
0.63 \u00a0
1.90 \u00a0
75.5 \u00a0
59.5 \u00a0
-
0.9 \u00a0
2.6 \u00a0
-
74.6 \u00a0
56.9 \u00a0
-
24.2 \u00a0
20.7 \u00a0
-
8
1.90 \u00a0
7.98 \u00a0
7.3 \u00a0
29.9 \u00a0
-
0.4 \u00a0
2.8 \u00a0
-
6.8 \u00a0
27.0 \u00a0
-
1.7 \u00a0
4.3 \u00a0
-
9
7.98 25.70 \u00a0
0.9 \u00a0
3.1 \u00a0
0.1 \u00a0
-
0.7 \u00a0
-
0.9 \u00a0
2.4 \u00a0
0.1 \u00a0
0.2 \u00a0
0.2 \u00a0
0.1 \u00a0
10 \u00a0
25.70 99.99 \u00a0
0.6 \u00a0
12.0 \u00a0
0.2 \u00a0
-
0.9 \u00a0
0.1 \u00a0
0.6 \u00a0
11.1 \u00a0
0.1 \u00a0
0.3 \u00a0
2.1 \u00a0
-
11 (default) \u00a0
100.00 100.00 \u00a0
0.2 \u00a0
0.4 \u00a0
31.6 \u00a0
0.3 \u00a0
-
8.1 \u00a0
-
0.4 \u00a0
23.5 \u00a0
-
0.1 \u00a0
1.3 \u00a0
Total \u00a0
2,324.2 \u00a0
176.0 \u00a0
32.1 \u00a0
3.3 \u00a0
8.1 \u00a0
8.3 2,321.0 \u00a0
168.0 \u00a0
23.9 1,043.5 \u00a0
58.0 \u00a0
1.4 \u00a0
* Net exposure, ex collateral as at 31 December 2022 has been restated. \u00a0
The stage 3 coverage ratio\u00a0is 75% (31 December 2022: 85%). \u00a0
Credit exposure continued \u00a0
Credit portfolio\u00a0in core activities\u00a0broken down by industry\u00a0(NACE) \u00a0
The table below breaks down credit exposure by industry. The industry\u00a0segmentation is based on\u00a0the classification principles of\u00a0the Sta\u00a0tistica l \u00a0
Classification of\u00a0Economic Activities\u00a0in the European\u00a0Community (NACE) standard adapted to\u00a0the Group\u2019s business risk appro\u00a0ach used for the active \u00a0
management of\u00a0the credit portfolio. \u00a0
31 December\u00a02023 \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK billions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Public institutions \u00a0
298.6 \u00a0
1.0 \u00a0
0.3 \u00a0
-
-
-
298.6 \u00a0
1.0 \u00a0
0.3 295.9 \u00a0
-
-
Financials \u00a0
147.5 \u00a0
3.4 \u00a0
0.4 \u00a0
0.1 \u00a0
0.1 \u00a0
0.1 147.5 \u00a0
3.3 \u00a0
0.2 131.7 \u00a0
2.7 \u00a0
0.2 \u00a0
Agriculture \u00a0
54.8 \u00a0
4.6 \u00a0
2.2 \u00a0
0.3 \u00a0
0.7 \u00a0
0.6 \u00a0
54.5 \u00a0
3.9 \u00a0
1.7 \u00a0
13.1 \u00a0
0.9 \u00a0
-
Automotive \u00a0
24.9 \u00a0
2.5 \u00a0
0.3 \u00a0
-
0.1 \u00a0
0.1 \u00a0
24.9 \u00a0
2.4 \u00a0
0.1 \u00a0
19.9 \u00a0
1.1 \u00a0
-
Capital goods \u00a0
82.7 \u00a0
13.3 \u00a0
1.2 \u00a0
0.1 \u00a0
0.3 \u00a0
0.5 \u00a0
82.6 \u00a0
13.0 \u00a0
0.7 \u00a0
74.3 \u00a0
10.9 \u00a0
0.3 \u00a0
Commercial property* \u00a0
258.0 \u00a0
32.4 \u00a0
4.7 \u00a0
0.8 \u00a0
1.8 \u00a0
0.9 257.3 \u00a0
30.6 \u00a0
3.8 \u00a0
28.8 \u00a0
4.7 \u00a0
0.4 \u00a0
Construction and building materials \u00a0
42.8 \u00a0
6.5 \u00a0
2.1 \u00a0
0.3 \u00a0
1.0 \u00a0
0.9 \u00a0
42.5 \u00a0
5.6 \u00a0
1.2 \u00a0
30.3 \u00a0
2.8 \u00a0
0.5 \u00a0
Consumer goods \u00a0
67.5 \u00a0
8.3 \u00a0
1.3 \u00a0
0.1 \u00a0
0.4 \u00a0
0.5 \u00a0
67.4 \u00a0
7.8 \u00a0
0.9 \u00a0
53.5 \u00a0
5.6 \u00a0
0.2 \u00a0
Hotels, restaurants and leisure \u00a0
12.7 \u00a0
1.8 \u00a0
0.7 \u00a0
-
0.1 \u00a0
0.2 \u00a0
12.7 \u00a0
1.8 \u00a0
0.5 \u00a0
3.0 \u00a0
0.5 \u00a0
0.1 \u00a0
Metals and mining \u00a0
14.6 \u00a0
1.2 \u00a0
-
-
-
-
14.6 \u00a0
1.2 \u00a0
-
12.6 \u00a0
0.9 \u00a0
-
Other commercials \u00a0
11.6 \u00a0
0.3 \u00a0
0.3 \u00a0
0.1 \u00a0
-
0.1 \u00a0
11.5 \u00a0
0.3 \u00a0
0.2 \u00a0
7.9 \u00a0
0.1 \u00a0
-
Pharma and medical devices \u00a0
44.1 \u00a0
2.9 \u00a0
-
-
-
-
44.0 \u00a0
2.9 \u00a0
-
40.6 \u00a0
2.5 \u00a0
-
Private housing co-ops and non-profit \u00a0
associations \u00a0
191.1 \u00a0
4.5 \u00a0
0.6 \u00a0
0.1 \u00a0
0.3 \u00a0
0.2 191.1 \u00a0
4.2 \u00a0
0.5 \u00a0
22.6 \u00a0
1.0 \u00a0
0.1 \u00a0
Pulp, paper and chemicals \u00a0
40.7 \u00a0
3.7 \u00a0
0.9 \u00a0
-
0.1 \u00a0
0.2 \u00a0
40.7 \u00a0
3.6 \u00a0
0.7 \u00a0
29.4 \u00a0
2.6 \u00a0
0.3 \u00a0
Retailing \u00a0
27.7 \u00a0
5.2 \u00a0
1.9 \u00a0
0.1 \u00a0
0.3 \u00a0
0.7 \u00a0
27.6 \u00a0
4.9 \u00a0
1.2 \u00a0
17.6 \u00a0
3.8 \u00a0
0.5 \u00a0
Services \u00a0
63.4 \u00a0
7.6 \u00a0
1.0 \u00a0
0.2 \u00a0
0.3 \u00a0
0.4 \u00a0
63.2 \u00a0
7.3 \u00a0
0.6 \u00a0
51.3 \u00a0
5.9 \u00a0
0.3 \u00a0
Shipping, oil and gas \u00a0
36.3 \u00a0
1.9 \u00a0
2.4 \u00a0
-
0.1 \u00a0
0.4 \u00a0
36.3 \u00a0
1.9 \u00a0
2.0 \u00a0
20.4 \u00a0
0.6 \u00a0
-
Social services \u00a0
29.5 \u00a0
1.3 \u00a0
0.3 \u00a0
-
0.1 \u00a0
0.1 \u00a0
29.4 \u00a0
1.2 \u00a0
0.2 \u00a0
13.0 \u00a0
0.7 \u00a0
-
Telecom and media \u00a0
23.7 \u00a0
0.8 \u00a0
1.7 \u00a0
-
0.1 \u00a0
0.7 \u00a0
23.7 \u00a0
0.7 \u00a0
0.9 \u00a0
18.4 \u00a0
0.6 \u00a0
-
Transportation \u00a0
15.6 \u00a0
2.1 \u00a0
0.4 \u00a0
-
0.1 \u00a0
0.1 \u00a0
15.6 \u00a0
2.0 \u00a0
0.3 \u00a0
7.2 \u00a0
0.7 \u00a0
-
Utilities and\u00a0infrastructure \u00a0
84.0 \u00a0
1.3 \u00a0
-
-
-
-
84.0 \u00a0
1.3 \u00a0
-
62.2 \u00a0
1.2 \u00a0
-
Personal customers \u00a0
819.0 \u00a0
37.7 \u00a0
10.2 \u00a0
1.4 \u00a0
1.6 \u00a0
2.5 817.5 \u00a0
36.1 \u00a0
7.7 125.5 \u00a0
4.2 \u00a0
-
Total \u00a0
2,390.8 144.2 \u00a0
32.7 \u00a0
3.6 \u00a0
7.5 \u00a0
9.1 2,387.2\u00a0136.7 \u00a0
23.6 1,079.4 \u00a0
54.1 \u00a0
3.0 \u00a0
* As at 31 December 2023, DKK 139\u00a0billion of the net exposure in Commercial property is towards residential assets. \u00a0
As at\u00a031 December 2023, oil and gas exposures (within the Shipping,\u00a0oil and gas industry)\u00a0represent a gross exposure\u00a0of DKK\u00a018.1 billion\u00a0(31 December \u00a0
2022: DKK 19.3\u00a0billion) and\u00a0expected credit\u00a0losses of DKK 0.3 billion (31 December 2022: DKK 0.7 billion). Those exposures represent the majority of \u00a0
the exposures in stage 3 within the Shipping, oil and gas industry at the end of 2023. \u00a0
Credit exposure continued \u00a0
Net exposure, ex \u00a0
31 December 2022 \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
collateral* \u00a0
(DKK billions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Public institutions \u00a0
225.8 \u00a0
1.3 \u00a0
-
-
-
-
225.8 \u00a0
1.3 \u00a0
-
223.1 \u00a0
-
-
Financials \u00a0
116.6 \u00a0
3.9 \u00a0
0.3 \u00a0
0.1 \u00a0
0.2 \u00a0
0.1 116.5 \u00a0
3.7 \u00a0
0.2 104.0 \u00a0
2.7 \u00a0
0.1 \u00a0
Agriculture \u00a0
54.9 \u00a0
5.9 \u00a0
2.9 \u00a0
0.2 \u00a0
0.9 \u00a0
0.8 \u00a0
54.6 \u00a0
5.1 \u00a0
2.1 \u00a0
14.1 \u00a0
0.8 \u00a0
-
Automotive \u00a0
25.4 \u00a0
2.3 \u00a0
0.2 \u00a0
-
0.1 \u00a0
0.1 \u00a0
25.4 \u00a0
2.2 \u00a0
0.1 \u00a0
20.7 \u00a0
0.9 \u00a0
-
Capital goods \u00a0
87.3 \u00a0
9.2 \u00a0
1.3 \u00a0
0.1 \u00a0
0.3 \u00a0
0.7 \u00a0
87.2 \u00a0
8.9 \u00a0
0.7 \u00a0
79.0 \u00a0
7.2 \u00a0
-
Commercial property \u00a0
250.6 \u00a0
46.9 \u00a0
3.6 \u00a0
0.4 \u00a0
2.2 \u00a0
0.7 250.3 \u00a0
44.7 \u00a0
2.9 \u00a0
44.9 \u00a0
7.9 \u00a0
-
Construction and building materials \u00a0
43.6 \u00a0
8.6 \u00a0
1.2 \u00a0
0.1 \u00a0
0.5 \u00a0
0.5 \u00a0
43.5 \u00a0
8.1 \u00a0
0.7 \u00a0
32.4 \u00a0
4.6 \u00a0
0.1 \u00a0
Consumer goods \u00a0
72.4 \u00a0
7.6 \u00a0
0.9 \u00a0
0.1 \u00a0
0.4 \u00a0
0.2 \u00a0
72.3 \u00a0
7.2 \u00a0
0.6 \u00a0
57.1 \u00a0
5.2 \u00a0
0.3 \u00a0
Hotels, restaurants and leisure \u00a0
10.3 \u00a0
4.2 \u00a0
1.0 \u00a0
-
0.1 \u00a0
0.3 \u00a0
10.3 \u00a0
4.0 \u00a0
0.8 \u00a0
5.1 \u00a0
0.8 \u00a0
0.1 \u00a0
Metals and mining \u00a0
13.9 \u00a0
1.1 \u00a0
-
-
-
-
13.9 \u00a0
1.1 \u00a0
-
11.8 \u00a0
0.8 \u00a0
-
Other commercials \u00a0
15.4 \u00a0
0.8 \u00a0
0.2 \u00a0
0.3 \u00a0
-
0.1 \u00a0
15.1 \u00a0
0.8 \u00a0
0.2 \u00a0
11.9 \u00a0
0.3 \u00a0
-
Pharma and medical devices \u00a0
42.3 \u00a0
3.7 \u00a0
-
-
0.1 \u00a0
-
42.2 \u00a0
3.6 \u00a0
-
39.6 \u00a0
3.2 \u00a0
-
Private housing co-ops and non-profit \u00a0
associations \u00a0
187.4 \u00a0
3.8 \u00a0
0.6 \u00a0
0.1 \u00a0
0.1 \u00a0
0.1 187.3 \u00a0
3.7 \u00a0
0.5 \u00a0
26.9 \u00a0
0.8 \u00a0
-
Pulp, paper and chemicals \u00a0
47.5 \u00a0
3.9 \u00a0
0.3 \u00a0
-
0.1 \u00a0
0.1 \u00a0
47.5 \u00a0
3.8 \u00a0
0.1 \u00a0
35.8 \u00a0
2.7 \u00a0
-
Retailing \u00a0
30.3 \u00a0
3.1 \u00a0
1.7 \u00a0
0.1 \u00a0
0.1 \u00a0
0.6 \u00a0
30.2 \u00a0
3.0 \u00a0
1.1 \u00a0
19.0 \u00a0
2.2 \u00a0
0.2 \u00a0
Services \u00a0
59.7 \u00a0
6.8 \u00a0
0.8 \u00a0
0.3 \u00a0
0.2 \u00a0
0.3 \u00a0
59.4 \u00a0
6.6 \u00a0
0.4 \u00a0
49.1 \u00a0
4.8 \u00a0
0.1 \u00a0
Shipping, oil and gas \u00a0
34.6 \u00a0
1.2 \u00a0
5.4 \u00a0
-
-
1.0 \u00a0
34.6 \u00a0
1.2 \u00a0
4.4 \u00a0
22.5 \u00a0
0.9 \u00a0
-
Social services \u00a0
26.9 \u00a0
0.8 \u00a0
0.7 \u00a0
-
0.1 \u00a0
0.1 \u00a0
26.8 \u00a0
0.7 \u00a0
0.6 \u00a0
12.9 \u00a0
0.3 \u00a0
-
Telecom and media \u00a0
23.1 \u00a0
1.0 \u00a0
0.2 \u00a0
-
-
0.1 \u00a0
23.1 \u00a0
0.9 \u00a0
0.1 \u00a0
17.8 \u00a0
0.6 \u00a0
-
Transportation \u00a0
13.7 \u00a0
2.6 \u00a0
0.5 \u00a0
-
0.1 \u00a0
0.1 \u00a0
13.6 \u00a0
2.4 \u00a0
0.3 \u00a0
6.3 \u00a0
0.9 \u00a0
0.1 \u00a0
Utilities and\u00a0infrastructure \u00a0
103.4 \u00a0
4.3 \u00a0
-
0.1 \u00a0
0.2 \u00a0
-
103.2 \u00a0
4.1 \u00a0
-
80.4 \u00a0
3.6 \u00a0
-
Personal customers \u00a0
839.3 \u00a0
52.8 \u00a0
10.3 \u00a0
1.2 \u00a0
2.0 \u00a0
2.3 838.1 \u00a0
50.8 \u00a0
8.0 129.2 \u00a0
7.0 \u00a0
-
Total \u00a0
2,324.2 176.0 \u00a0
32.1 \u00a0
3.3 \u00a0
8.1 \u00a0
8.3 2,321.0\u00a0168.0 \u00a0
23.9 1,043.5 \u00a0
58.0 \u00a0
1.4 \u00a0
* Net exposure, ex collateral as at 31 December 2022 has been restated \u00a0
Credit exposure continued \u00a0
The table below breaks down\u00a0credit exposure by core business\u00a0unit and underlying\u00a0segment. \u00a0
Credit portfolio\u00a0in core activities\u00a0broken down by business\u00a0unit \u00a0
31 December 2023 \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK billions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Stage 1\u00a0Stage 2 \u00a0
Stage 3 \u00a0
Personal Customers \u00a0
Personal Customers\u00a0DK \u00a0
424.0 \u00a0
18.6 \u00a0
6.2 \u00a0
1.0 \u00a0
0.9 \u00a0
1.3 \u00a0
423.0 \u00a0
17.7 \u00a0
4.9 \u00a0
49.4 \u00a0
1.8 \u00a0
-
Personal Customers \u00a0
Nordic \u00a0
304.6 \u00a0
12.9 \u00a0
2.8 \u00a0
0.3 \u00a0
0.5 \u00a0
0.8 \u00a0
304.2 \u00a0
12.3 \u00a0
1.9 \u00a0
66.4 \u00a0
1.3 \u00a0
-
Global Private Banking \u00a0
76.5 \u00a0
3.1 \u00a0
0.7 \u00a0
-
0.1 \u00a0
0.2 \u00a0
76.4 \u00a0
3.0 \u00a0
0.5 \u00a0
16.2 \u00a0
1.0 \u00a0
-
Total Personal \u00a0
Customers \u00a0
805.0 \u00a0
34.6 \u00a0
9.6 \u00a0
1.3 \u00a0
1.6 \u00a0
2.4 \u00a0
803.7 \u00a0
33.0 \u00a0
7.3 \u00a0
132.1 \u00a0
4.1 \u00a0
-
Business Customers \u00a0
Asset Finance \u00a0
52.7 \u00a0
9.4 \u00a0
1.4 \u00a0
0.1 \u00a0
0.5 \u00a0
0.5 \u00a0
52.6 \u00a0
8.8 \u00a0
0.9 \u00a0
19.5 \u00a0
1.6 \u00a0
-
Business Customers \u00a0
309.6 \u00a0
36.8 \u00a0
10.4 \u00a0
1.1 \u00a0
3.0 \u00a0
3.7 \u00a0
308.5 \u00a0
33.8 \u00a0
6.7 \u00a0
93.3 \u00a0
13.8 \u00a0
0.6 \u00a0
Commercial Real Estate \u00a0
308.0 \u00a0
24.9 \u00a0
2.3 \u00a0
0.4 \u00a0
1.1 \u00a0
0.3 \u00a0
307.6 \u00a0
23.8 \u00a0
2.0 \u00a0
44.8 \u00a0
3.9 \u00a0
0.1 \u00a0
Business Customers \u00a0
Other \u00a0
0.4 \u00a0
-
0.1 \u00a0
-
-
-
0.4 \u00a0
-
0.1 \u00a0
0.4 \u00a0
-
-
Total Business \u00a0
Customers \u00a0
670.6 \u00a0
71.1 \u00a0
14.2 \u00a0
1.6 \u00a0
4.7 \u00a0
4.5 \u00a0
669.0 \u00a0
66.4 \u00a0
9.7 \u00a0
158.0 \u00a0
19.3 \u00a0
0.6 \u00a0
Large Corporates\u00a0& \u00a0
Institutions \u00a0
595.9 \u00a0
33.8 \u00a0
6.9 \u00a0
0.4 \u00a0
1.1 \u00a0
1.8 \u00a0
595.5 \u00a0
32.7 \u00a0
5.1 \u00a0
511.5 \u00a0
29.8 \u00a0
2.1 \u00a0
Northern Ireland \u00a0
89.4 \u00a0
4.7 \u00a0
1.9 \u00a0
0.3 \u00a0
0.1 \u00a0
0.4 \u00a0
89.1 \u00a0
4.6 \u00a0
1.5 \u00a0
48.1 \u00a0
0.8 \u00a0
0.2 \u00a0
Group Functions \u00a0
229.8 \u00a0
0.1 \u00a0
-
-
-
-
229.8 \u00a0
0.1 \u00a0
-
229.7 \u00a0
-
-
Total \u00a0
2,390.8 \u00a0
144.2 \u00a0
32.7 \u00a0
3.6 \u00a0
7.5 \u00a0
9.1 2,387.2 \u00a0
136.7 \u00a0
23.6 1,079.4 \u00a0
54.1 \u00a0
3.0 \u00a0
31 December 2022 \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral* \u00a0
(DKK billions) \u00a0
Stage 1\u00a0Stage 2 \u00a0
Stage 3\u00a0Stage 1\u00a0Stage 2 \u00a0
Stage 3\u00a0Stage 1\u00a0Stage 2 \u00a0
Stage 3\u00a0Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Personal Customers** \u00a0
Personal Customers\u00a0DK \u00a0
404.3 \u00a0
25.5 \u00a0
6.1 \u00a0
0.9 \u00a0
1.4 \u00a0
1.2 \u00a0
403.3 \u00a0
24.0 \u00a0
4.9 \u00a0
45.8 \u00a0
2.2 \u00a0
-
Personal Customers \u00a0
Nordic \u00a0
349.4 \u00a0
15.9 \u00a0
3.2 \u00a0
0.2 \u00a0
0.3 \u00a0
0.8 \u00a0
349.2 \u00a0
15.6 \u00a0
2.4 \u00a0
72.2 \u00a0
2.0 \u00a0
-
Global Private Banking \u00a0
76.1 \u00a0
7.1 \u00a0
0.6 \u00a0
0.1 \u00a0
0.2 \u00a0
0.2 \u00a0
76.0 \u00a0
6.9 \u00a0
0.4 \u00a0
16.0 \u00a0
2.9 \u00a0
-
Total Personal \u00a0
Customers \u00a0
829.8 \u00a0
48.5 \u00a0
9.9 \u00a0
1.3 \u00a0
2.0 \u00a0
2.2 \u00a0
828.5 \u00a0
46.5 \u00a0
7.7 \u00a0
134.1 \u00a0
7.1 \u00a0
-
Business Customers \u00a0
Asset Finance \u00a0
47.6 \u00a0
12.9 \u00a0
1.2 \u00a0
0.1 \u00a0
0.5 \u00a0
0.3 \u00a0
47.4 \u00a0
12.4 \u00a0
0.8 \u00a0
18.6 \u00a0
2.4 \u00a0
-
Business Customers \u00a0
324.0 \u00a0
56.4 \u00a0
11.1 \u00a0
0.9 \u00a0
3.9 \u00a0
3.5 \u00a0
323.1 \u00a0
52.5 \u00a0
7.5 \u00a0
119.7 \u00a0
17.8 \u00a0
1.0 \u00a0
Commercial Real Esate \u00a0
279.1 \u00a0
22.1 \u00a0
1.3 \u00a0
0.2 \u00a0
0.6 \u00a0
0.3 \u00a0
278.9 \u00a0
21.5 \u00a0
1.0 \u00a0
43.4 \u00a0
3.9 \u00a0
0.2 \u00a0
Business Customers \u00a0
Other \u00a0
0.1 \u00a0
-
-
-
-
-
0.1 \u00a0
-
-
0.1 \u00a0
-
-
Total Business \u00a0
Customers \u00a0
650.7 \u00a0
91.4 \u00a0
13.6 \u00a0
1.2 \u00a0
4.9 \u00a0
4.2 \u00a0
649.5 \u00a0
86.4 \u00a0
9.4 \u00a0
181.7 \u00a0
24.1 \u00a0
1.2 \u00a0
Large Corporates\u00a0& \u00a0
Institutions \u00a0
615.2 \u00a0
29.1 \u00a0
7.0 \u00a0
0.5 \u00a0
1.0 \u00a0
1.5 \u00a0
614.7 \u00a0
28.1 \u00a0
5.5 \u00a0
535.3 \u00a0
25.5 \u00a0
-
Northern Ireland \u00a0
81.4 \u00a0
6.9 \u00a0
1.7 \u00a0
0.3 \u00a0
0.2 \u00a0
0.4 \u00a0
81.1 \u00a0
6.7 \u00a0
1.2 \u00a0
45.4 \u00a0
1.1 \u00a0
0.1 \u00a0
Group Functions \u00a0
147.1 \u00a0
0.2 \u00a0
-
-
-
-
147.1 \u00a0
0.2 \u00a0
-
146.9 \u00a0
0.2 \u00a0
-
Total \u00a0
2,324.2 \u00a0
176.0 \u00a0
32.1 \u00a0
3.3 \u00a0
8.1 \u00a0
8.3 2,321.0 \u00a0
168.0 \u00a0
23.9 1,043.5 \u00a0
58.0 \u00a0
1.4 \u00a0
* Net exposure, ex collateral as at 31 December 2022 has been restated. \u00a0
** Global Private Banking is a new sub-segment in Personal Customers in 2023. Comparatives have been reclassified from other sub-segments of Personal Customers. \u00a0
Concentration risk \u00a0
The Group has implemented a set of frameworks to manage the concentration risk to which the Group is exposed. These frameworks cover single-name \u00a0
concentrations, industry concentrations and geographical concentrations. \u00a0
Industry concentrations \u00a0
The Group manages industry concentrations\u00a0as part of its credit risk tolerance framework by setting exposure limits\u00a0on select\u00a0ed industries.\u00a0For \u00a0
commercial property, this also includes reducing the number of low\u00a0-quality customers\u00a0to ensure creditworthiness\u00a0within the concentration limits. The \u00a0
industry concentrations are updated on\u00a0an ongoing basis and at least once a year. The Group\u00a0accepts the risks on material con\u00a0centrations in\u00a0accordance \u00a0
with the industry-specific\u00a0guidelines that outline the use\u00a0of credit\u00a0policies within the industry. For personal customers, the Group also manages key \u00a0
concentrations in\u00a0relation to high loan-to-value\u00a0(LTV) ratios\u00a0and short-term interest loans, for example. \u00a0
Geographical concentrations \u00a0
Credit reporting includes a breakdown by\u00a0country. For\u00a0selected countries,\u00a0exposures to sovereigns, financial institutions\u00a0and counterparties\u00a0in derivativ e s \u00a0
trading are\u00a0managed within country limits. \u00a0
Single-name concentrations and\u00a0large exposures \u00a0
Limits are set on credit risk exposures to single names, thus protecting the Group from excessive losses resulting from the d efault of a single customer group. \u00a0
The limits on\u00a0large exposures are defined within the large exposure restrictions of article 391 of the Capital Requirements Regulation (EU) No 575/2013 \u00a0
(CRR): \u00a0
\u2022
an absolute limit on the largest single aggregate exposure \u00a0
\u2022
the sum of the 20 largest exposures \u00a0
Collateral \u00a0
The Group uses\u00a0a number\u00a0of measures to mitigate\u00a0credit risk, including\u00a0collateral, guarantees and\u00a0covenants. The main\u00a0method is\u00a0obtaining collateral. \u00a0
The value of collateral is monitored and reassessed by advisers, internal or external assessors, and automatic valuation mode ls to ensure it reflects current \u00a0
market prices. The Groups Collateral System supports this process by only accepting up-to-date values, thus ensuring that the Group complies with regulatory \u00a0
requirements. \u00a0
The validity of the internal and external inputs on which the valuation\u00a0models depend is assessed regularly and the performan ce of the models themselves is \u00a0
validated annually by\u00a0an independent unit, to assess their performance and highlight any deficiencies that need to be addressed. \u00a0
The market value of collateral is subject to a haircut to reflect the fact that the Group may not be able to obtain the estim ated market value upon the sale of \u00a0
the individual\u00a0asset in a distressed situation. Hence, the haircut includes a forced sale reduction, price volatility\u00a0during the sales period, realisation costs and \u00a0
maintenance costs. The haircut applied depends on the type of collateral. For regulatory purposes, the Group also applies mor e conservative haircuts in order \u00a0
to capture the risk of an economic downturn. \u00a0
Type of collateral\u00a0in core activities\u00a0(after haircuts) \u00a0
Personal \u00a0
Business \u00a0
Large Corporates & \u00a0
Other areas (ex - \u00a0
Customers \u00a0
Customers \u00a0
Institutions \u00a0
Northern Ireland\u00a0Group Functions) \u00a0
Total \u00a0
(DKK billions) \u00a0
2023 \u00a0
2022 2023 2022 \u00a0
2023 \u00a0
2022 2023 \u00a0
2022 2023 \u00a0
2022 \u00a0
2023 \u00a0
2022 \u00a0
Real property \u00a0
696.2 \u00a0
730.4 489.9 458.1 \u00a0
42.6 \u00a0
38.0 \u00a0
40.3 \u00a0
36.5 \u00a0
0.1 \u00a0
0.2 1,269.1 1,263.2 \u00a0
- Personal \u00a0
687.3 \u00a0
717.4 \u00a0
1.5 \u00a0
1.8 \u00a0
-
-
26.6 \u00a0
24.7 \u00a0
0.1 \u00a0
0.1 \u00a0
715.6 \u00a0
744.0 \u00a0
- Commercial \u00a0
6.8 \u00a0
10.8 452.4 419.3 \u00a0
40.7 \u00a0
36.4 \u00a0
11.4 \u00a0
9.8 \u00a0
-
0.1 \u00a0
511.4 \u00a0
476.3 \u00a0
- Agricultural \u00a0
2.0 \u00a0
2.2 \u00a0
36.0 \u00a0
37.0 \u00a0
1.9 \u00a0
1.6 \u00a0
2.2 \u00a0
2.1 \u00a0
-
-
42.1 \u00a0
42.9 \u00a0
Bank accounts \u00a0
0.2 \u00a0
0.2 \u00a0
0.4 \u00a0
0.4 \u00a0
-
0.1 \u00a0
-
-
-
-
0.6 \u00a0
0.7 \u00a0
Custody account and securities \u00a0
3.6 \u00a0
3.0 \u00a0
4.1 \u00a0
4.4 \u00a0
10.2 \u00a0
6.6 \u00a0
-
-
-
-
17.9 \u00a0
14.0 \u00a0
Vehicles \u00a0
2.0 \u00a0
1.8 \u00a0
19.7 \u00a0
19.0 \u00a0
3.2 \u00a0
2.8 \u00a0
-
-
-
-
24.9 \u00a0
23.6 \u00a0
Equipment \u00a0
-
-
12.2 \u00a0
11.7 \u00a0
3.4 \u00a0
3.3 \u00a0
2.5 \u00a0
2.5 \u00a0
-
-
18.1 \u00a0
17.5 \u00a0
Vessels \u00a0
-
-
1.1 \u00a0
1.0 \u00a0
18.1 \u00a0
13.3 \u00a0
-
-
-
-
19.2 \u00a0
14.3 \u00a0
Guarantees \u00a0
6.2 \u00a0
6.2 \u00a0
3.6 \u00a0
3.6 \u00a0
12.1 \u00a0
11.6 \u00a0
1.9 \u00a0
2.5 \u00a0
-
-
23.8 \u00a0
23.8 \u00a0
Amounts due \u00a0
0.1 \u00a0
0.2 \u00a0
2.3 \u00a0
2.5 \u00a0
0.8 \u00a0
0.6 \u00a0
0.2 \u00a0
0.2 \u00a0
-
-
3.3 \u00a0
3.5 \u00a0
Other assets \u00a0
0.1 \u00a0
-
29.2 \u00a0
29.8 \u00a0
3.5 \u00a0
3.4 \u00a0
1.4 \u00a0
1.3 \u00a0
-
-
34.3 \u00a0
34.4 \u00a0
Total collateral \u00a0
708.3 \u00a0
741.8 562.5\u00a0530.5 \u00a0
94.0 \u00a0
79.6 \u00a0
46.2 \u00a0
42.9 \u00a0
0.1 \u00a0
0.2 1,411.2 1,395.1 \u00a0
Total unsecured credit exposure \u00a0
135.7 \u00a0
140.8 182.7\u00a0214.8 \u00a0
539.3 \u00a0
568.7 \u00a0
49.0 \u00a0
46.2 \u00a0
-
-
906.7 \u00a0
970.6 \u00a0
Unsecured portion\u00a0of credit \u00a0
exposure (%) \u00a0
16.1 \u00a0
16.0 \u00a0
24.5 \u00a0
28.8 \u00a0
85.2 \u00a0
87.7 \u00a0
51.4 \u00a0
51.8 \u00a0
-
-
39.1 \u00a0
41.0 \u00a0
Past due amounts in core activities (excluding loans in rating category 10 and 11) \u00a0
Past due amounts \u00a0
Personal \u00a0
Business \u00a0
Large Corporates & \u00a0
Other areas (ex \u00a0
Total past due\u00a0Total due under \u00a0
Customers \u00a0
Customers \u00a0
Institutions \u00a0
Northern Ireland\u00a0Group Functions) \u00a0
amount loans \u00a0
(DKK millions) \u00a0
2023 2022 \u00a0
2023 2022 \u00a0
2023 2022 \u00a0
2023 2022 \u00a0
2023 2022\u00a02023 2022 2023 2022 \u00a0
6-30 days \u00a0
43 \u00a0
23 \u00a0
39 \u00a0
24 \u00a0
14 \u00a0
1
2
2
-
-
98 \u00a0
49 1,592 1,547 \u00a0
31-60 days \u00a0
23 \u00a0
20 \u00a0
17 \u00a0
3
3
-
2
-
-
-
44 \u00a0
24 \u00a0
588 \u00a0
467 \u00a0
> 60 days \u00a0
34 \u00a0
58 \u00a0
12 \u00a0
4
-
1
5
-
-
-
52 \u00a0
64 \u00a0
454 \u00a0
487 \u00a0
Total past due \u00a0
amounts \u00a0
100 \u00a0
101 \u00a0
68 \u00a0
31 \u00a0
17 \u00a0
2
8
2
-
-
194 \u00a0
136 \u00a0
-
Total due under \u00a0
loans \u00a0
1,640 1,627 \u00a0
887 \u00a0
788 \u00a0
17 \u00a0
2
89 \u00a0
83 \u00a0
1
2
2,634 2,501 \u00a0
For the past due amounts, the average unsecured portion of the claims recorded was 23.6% at the end of 2023 (2022: 22.0%). Real property accounted for \u00a0
59.7% of collateral provided (2022: 67.2%). \u00a0
Forbearance practices and repossessed assets \u00a0
The Group adopts forbearance plans to assist customers in financial difficulty. Concessions granted to customers include inte\u00a0rest-reduction schedules, \u00a0
interest-only schedules, temporary payment holidays, term extensions, cancellation of outstanding fees,\u00a0w aiver\u00a0of covenant enforcement\u00a0and debt \u00a0
forgiveness. Forbearance plans must comply with the Group\u2019s Credit Policy. They are used as an instrument to retain long\u00a0-term business relationships \u00a0
during economic downturns if\u00a0there is a realistic\u00a0possibility that\u00a0the customer will be able to meet its obligations\u00a0again, or are used for minimising\u00a0losses \u00a0
in the event of default. \u00a0
If it proves impossible\u00a0to improve\u00a0the customer\u2019s financial situation\u00a0by forbearance\u00a0measures, the Group will consider whethe\u00a0r to subject the customer\u2019s \u00a0
assets to a forced sale or whether the assets could be realised later at higher net proceeds.\u00a0At the\u00a0end of 2023,\u00a0the Group had recognised propertie\u00a0s \u00a0
taken over in\u00a0Denmark at\u00a0a carrying amount of DKK 17 million (2022: DKK 4 million), and\u00a0there were no properties\u00a0taken over in other countries (2022: \u00a0
DKK 0\u00a0million). The properties are\u00a0held for sale and included under Assets held for sale in the balance sheet. \u00a0
The Group applies the European Banking Authority\u2019s\u00a0(the EBA\u2019s) definition\u00a0of loans subject to forbearance measures. The EBA d\u00a0efinition states that a \u00a0
probation period of a minimum\u00a0of two years must pass from the date when forborne exposures are considered t\u00a0o be performing again. Forbearance \u00a0
measures lead to changes in staging for impairment\u00a0purposes, and impairments\u00a0relating to forborne exposures are handled accor\u00a0ding to the principle\u00a0s \u00a0
described in note G15. \u00a0
Exposures subject\u00a0to forbearance\u00a0measures \u00a0
31 December \u00a0
31 December \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Stage 1 \u00a0
297 \u00a0
367 \u00a0
Stage 2 \u00a0
5,279 \u00a0
3,029 \u00a0
Stage 3 \u00a0
7,023 \u00a0
6,165 \u00a0
Total \u00a0
12,598 \u00a0
9,561 \u00a0
Expected credit losses (allowance account) in core\u00a0activities \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as\u00a0a function of the probability\u00a0of default (PD), the exposure\u00a0at default\u00a0(EAD) and\u00a0the loss \u00a0
given default (LGD). In general, the Group\u2019s IFRS 9 impairment models and parameters draw on the bank\u2019s internal models in order to ensure alignment \u00a0
of models across the Group. New models and calculations\u00a0have been\u00a0developed especially\u00a0for IFRS 9 purposes, including\u00a0models for lifetime PD, \u00a0
prepayment and forward-looking\u00a0LGD. All expected credit loss impairments\u00a0are allocated to individual\u00a0exposures. For significant stage 3 exposures, the \u00a0
Group determines\u00a0the expected credit losses individually. \u00a0
(DKK millions) \u00a0
Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Total \u00a0
ECL allowance account as at 1 January 2022 \u00a0
2,733 \u00a0
6,804 \u00a0
12,397 \u00a0
21,935 \u00a0
Transferred to stage 1 during the period \u00a0
1,144 \u00a0
-1,062 \u00a0
-83 \u00a0
-
Transferred to stage 2 during the period \u00a0
-405 \u00a0
834 \u00a0
-428 \u00a0
-
Transferred to stage 3 during the period \u00a0
-26 \u00a0
-617 \u00a0
642 \u00a0
-
ECL on new assets \u00a0
630 \u00a0
1,643 \u00a0
844 \u00a0
3,116 \u00a0
ECL on assets derecognised \u00a0
-870 \u00a0
-1,487 \u00a0
-3,971 \u00a0
-6,329 \u00a0
Impact of net remeasurement of ECL (incl. changes in\u00a0models) \u00a0
120 \u00a0
2,101 \u00a0
1,032 \u00a0
3,253 \u00a0
Write-offs debited to the allowance account \u00a0
-
-2 \u00a0
-2,195 \u00a0
-2,198 \u00a0
Foreign exchange adjustments \u00a0
-51 \u00a0
-107 \u00a0
-15 \u00a0
-173 \u00a0
Other changes \u00a0
-1 \u00a0
-26 \u00a0
27 \u00a0
1
ECL allowance account as at\u00a031 December\u00a02022 \u00a0
3,273 \u00a0
8,082 \u00a0
8,251 \u00a0
19,605 \u00a0
ECL allowance account as at 1 January 2023 \u00a0
3,273 \u00a0
8,082 \u00a0
8,251 \u00a0
19,605 \u00a0
Transferred to stage 1 during the period \u00a0
2,406 \u00a0
-2,274 \u00a0
-132 \u00a0
-
Transferred to stage 2 during the period \u00a0
-211 \u00a0
668 \u00a0
-457 \u00a0
-
Transferred to stage 3 during\u00a0the period \u00a0
-22 \u00a0
-505 \u00a0
527 \u00a0
-
ECL on new assets \u00a0
601 \u00a0
1,249 \u00a0
607 \u00a0
2,457 \u00a0
ECL on assets derecognised \u00a0
-513 \u00a0
-1,142 \u00a0
-936 \u00a0
-2,591 \u00a0
Impact of net remeasurement of ECL (incl. changes in models) \u00a0
-1,923 \u00a0
1,393 \u00a0
1,579 \u00a0
1,048 \u00a0
Write-offs debited to the allowance account \u00a0
-5 \u00a0
-
-364 \u00a0
-370 \u00a0
Foreign exchange adjustments \u00a0
-18 \u00a0
23 \u00a0
-26 \u00a0
-22 \u00a0
Other changes \u00a0
5
-7 \u00a0
12 \u00a0
10 \u00a0
ECL allowance account as at\u00a031 December\u00a02023 \u00a0
3,592 \u00a0
7,486 \u00a0
9,062 \u00a0
20,140 \u00a0
The stage 3 allowance account includes DKK 1.9 billion (2022: DKK 2.5 billion) relating to originated credit impaired financial assets. Originated\u00a0credit \u00a0
impaired financial assets are granted as\u00a0part of\u00a0restructuring non-performing loan\u00a0exposures, and are otherwise outside the Group\u2019s credit\u00a0policy. The \u00a0
Group has not acquired any credit impaired financial assets. \u00a0
Expected credit\u00a0losses (allowance account) in\u00a0core activities\u00a0broken down by segment \u00a0
Large \u00a0
Personal \u00a0
Business \u00a0
Corporates & \u00a0
Northern \u00a0
Group \u00a0
Allowance \u00a0
(DKK millions) \u00a0
Customers \u00a0
Customers \u00a0
Institutions \u00a0
Ireland \u00a0
Functions \u00a0
account Total \u00a0
ECL allowance account as at 1 January 2022 \u00a0
5,654 \u00a0
10,186 \u00a0
5,227 \u00a0
850 \u00a0
17 \u00a0
21,935 \u00a0
ECL on new assets \u00a0
606 \u00a0
2,107 \u00a0
330 \u00a0
67 \u00a0
6
3,116 \u00a0
ECL on assets derecognised \u00a0
-713 \u00a0
-2,100 \u00a0
-3,383 \u00a0
-128 \u00a0
-4 \u00a0
-6,329 \u00a0
Impact on remeasurement of ECL (incl. change in models) \u00a0
837 \u00a0
663 \u00a0
1,494 \u00a0
244 \u00a0
15 \u00a0
3,253 \u00a0
Write-offs debited to allowance account \u00a0
-946 \u00a0
-438 \u00a0
-684 \u00a0
-129 \u00a0
-
-2,198 \u00a0
Foreign currency translation \u00a0
-32 \u00a0
-166 \u00a0
67 \u00a0
-41 \u00a0
-1 \u00a0
-173 \u00a0
Other changes \u00a0
22 \u00a0
-16 \u00a0
-2 \u00a0
-
-3 \u00a0
1
ECL allowance account as at\u00a031 December\u00a02022 \u00a0
5,427 \u00a0
10,235 \u00a0
3,050 \u00a0
863 \u00a0
31 \u00a0
19,605 \u00a0
ECL on new assets \u00a0
483 \u00a0
1,544 \u00a0
351 \u00a0
84 \u00a0
-4 \u00a0
2,457 \u00a0
ECL on assets derecognised \u00a0
-673 \u00a0
-1,825 \u00a0
-43 \u00a0
-44 \u00a0
-5 \u00a0
-2,591 \u00a0
Impact on remeasurement of ECL (incl. change in models) \u00a0
265 \u00a0
874 \u00a0
16 \u00a0
-115 \u00a0
9
1,048 \u00a0
Write-offs debited to allowance account \u00a0
-172 \u00a0
-150 \u00a0
-32 \u00a0
-15 \u00a0
-
-370 \u00a0
Foreign currency translation \u00a0
-8 \u00a0
5
-39 \u00a0
21 \u00a0
-1 \u00a0
-22 \u00a0
Other changes \u00a0
-16 \u00a0
22 \u00a0
7
-
-3 \u00a0
10 \u00a0
ECL allowance account as at\u00a031 December\u00a02023 \u00a0
5,306 \u00a0
10,705 \u00a0
3,308 \u00a0
794 \u00a0
26 \u00a0
20,140 \u00a0
The method used\u00a0for calculating expected credit losses\u00a0is described in detail in note G15. \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
Gross credit exposure in core\u00a0activities \u00a0
(DKK millions) \u00a0
Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Total \u00a0
Gross carrying amount at 1 January 2022 \u00a0
2,560,945 \u00a0
130,588 \u00a0
46,012 2,737,545 \u00a0
Transferred to stage 1 \u00a0
24,028 \u00a0
-21,990 \u00a0
-2,038 \u00a0
-
Transferred to stage 2 \u00a0
-67,270 \u00a0
72,996 \u00a0
-5,726 \u00a0
-
Transferred to stage 3 \u00a0
-1,991 \u00a0
-3,614 \u00a0
5,605 \u00a0
-
New assets \u00a0
874,798 \u00a0
48,923 \u00a0
7,588 \u00a0
931,309 \u00a0
Assets derecognised \u00a0
-938,904 \u00a0
-41,249 \u00a0
-15,928 -996,081 \u00a0
Changes due to modifications that did not result in derecognition \u00a0
-3 \u00a0
-
-14 -17 \u00a0
Other changes \u00a0
-127,364 \u00a0
-9,620 \u00a0
-3,366 -140,350 \u00a0
As at 31 December\u00a02022 \u00a0
2,324,240 \u00a0
176,034 \u00a0
32,132 2,532,406 \u00a0
Transferred to stage 1 \u00a0
48,832 \u00a0
-47,483 \u00a0
-1,348 \u00a0
-
Transferred to stage 2 \u00a0
-45,901 \u00a0
48,605 \u00a0
-2,704 \u00a0
-
Transferred to stage 3 \u00a0
-4,232 \u00a0
-4,443 \u00a0
8,676 \u00a0
-
New assets \u00a0
558,458 \u00a0
28,512 \u00a0
6,420 \u00a0
593,390 \u00a0
Assets derecognised \u00a0
-520,788 \u00a0
-49,712 \u00a0
-9,618 -580,117 \u00a0
Changes due to modifications that did not result in derecognition \u00a0
-4 \u00a0
-
-303 \u00a0
-308 \u00a0
Other changes \u00a0
30,219 \u00a0
-7,289 \u00a0
-568 \u00a0
22,361 \u00a0
As at 31 December\u00a02023 \u00a0
2,390,822 \u00a0
144,224 \u00a0
32,686 2,567,733 \u00a0
In the\u00a0table above, \u2018Changes due to modifications\u00a0that did not result in derecognition\u2019 includes partial forgiveness of\u00a0debt assessed to be uncollectible\u00a0. \u00a0
The modification loss\u00a0is recognised within the income statement as part of Loan impairment charges. The contractual amount of loans written off in 2023 \u00a0
and for which the Group retains the right to enforce its claims amounted to DKK\u00a01,873 million (2022: DKK 3,300\u00a0million). \u00a0
Allowance account\u00a0in core activities\u00a0broken down by balance\u00a0sheet item \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Due from credit institutions\u00a0and central banks \u00a0
15 \u00a0
47 \u00a0
Loans at amortised cost \u00a0
13,959 \u00a0
13,682 \u00a0
Loan commitments\u00a0and guarantees \u00a0
3,161 \u00a0
2,627 \u00a0
ECL Impairment,\u00a0Total \u00a0
17,134 \u00a0
16,356 \u00a0
Fair value credit risk adjustment on loans at fair value \u00a0
3,005 \u00a0
3,250 \u00a0
Total \u00a0
20,140 \u00a0
19,605 \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
Forward-looking information \u00a0
The incorporation\u00a0of forward-looking\u00a0information reflects the expectations\u00a0of the Group\u2019s\u00a0senior management and involves\u00a0both macroeconomic \u00a0
scenarios (base\u00a0case, upside and downside scenarios), including\u00a0an assessment of the probability\u00a0for each scenario ,\u00a0and post-model adjustments.\u00a0The \u00a0
purpose of using multiple\u00a0scenarios is\u00a0to model the non-linear impact of assumptions about macroeconomic factors on\u00a0the expected credit losses. Post- \u00a0
model adjustments\u00a0are used to capture specific risks which are not fully covered by the macroeconomic scenarios, as well as the process related risk, \u00a0
which could lead to an underestimation\u00a0of the expected\u00a0credit losses. \u00a0
Given the long-term nature of\u00a0climate scenario analysis, it is not included in the three\u00a0-year macroeconomic scenarios used to calculate expected credit \u00a0
loss. See Sustainability\u00a0risk section of this note for further information. \u00a0
Macroeconomic scenarios \u00a0
The forward-looking information\u00a0is based on a three-year forecast period converging\u00a0to steady state\u00a0in year seven. That is, after the forecast period, the \u00a0
macroeconomic scenarios revert slowly towards a\u00a0steady state. \u00a0
The applied scenarios that drive the expected credit loss calculation\u00a0in 2023 have been updated with the latest macroeconomic\u00a0data. Compared to the \u00a0
end of 2022, the base case and upside scenarios have been revised to reflect expectations\u00a0of higher GDP and\u00a0lower unemployment, but also higher \u00a0
interest rates\u00a0and lower house prices outside Denmark.\u00a0The scenario weighting have been updated to increase the weight on the\u00a0upside scenario to 20% \u00a0
(10% in 2022), by decreasing the weight on the base case scenario to 60% (70% in 2022). The weight on the downside scenario\u00a0remains at\u00a020% (20% \u00a0
in 2022) despite the use of a severe stagflation scenario. \u00a0
The base case is an extension\u00a0of the\u00a0Group\u2019s official\u00a0view of the Nordic economies (the Nordic Outlook report). At 31 Decembe\u00a0r 2023,\u00a0the base case \u00a0
scenario reflects a slowdown in the Nordic economies however, with a soft landing. Inflation is expected to c\u00a0ome down and interest rates will slowly begin \u00a0
to decrease. GDP growth will remain weak across the Nordic economies and labour markets remain tight with only modest increas\u00a0es in unemployment. \u00a0
Interest rates is\u00a0expected to continue to\u00a0weigh on house prices, however,\u00a0the worst\u00a0part is expected to\u00a0be behind us. \u00a0
The upside scenario represents a slightly better outlook than the base case scenario across the macroeconomic parameters. In this\u00a0scenario, sentiment \u00a0
improves, and consumers follow the US in running down a significant proportion of the savings\u00a0accumulated during the\u00a0pandemic .\u00a0The consumer-led \u00a0
recovery causes inflation\u00a0to take longer to return to target, prompting further policy rate hikes and high rates for longer. Higher demand sup\u00a0ports the \u00a0
housing markets, but higher interest rates become an\u00a0increasing headwind. The housing market fares\u00a0somewhat better\u00a0than in the base case. \u00a0
The Group\u2019s downside scenario is the severe recession with high interest rates scenario (reflecting a stagflation scenario) applied in\u00a0the Group\u2019s ICAAP \u00a0
processes, and it is similar\u00a0in nature\u00a0to regulatory\u00a0stress tests.\u00a0The severe recession scenario reflected negative growth, i\u00a0ncreasing interest\u00a0rates, and \u00a0
falling property prices for\u00a0a longer period. A trigger of the economic setback could be continued macroeconomic\u00a0worsening and challenges linked to high \u00a0
business costs while inflation remain elevated. This adversely impacts the labour market, results in higher and more\u00a0persistent unemployment.\u00a0This \u00a0
would lead to a severe slowdown in the economies\u00a0in which the Group is represented. \u00a0
The main macroeconomic parameters in the base case, upside and downside scenarios entering into the ECL calculation for the forecast horizon across \u00a0
the Group\u2019s Nordic markets are included below. \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
Denmark \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
1.0 \u00a0
1.6 \u00a0
1.6 \u00a0
-3.4 \u00a0
-2.0 \u00a0
-
2.5 \u00a0
1.8 \u00a0
0.4 \u00a0
Unemployment \u00a0
3.1 \u00a0
3.3 \u00a0
3.4 \u00a0
6.3 \u00a0
7.5 \u00a0
7.9 \u00a0
2.7 \u00a0
2.6 \u00a0
3.2 \u00a0
Inflation \u00a0
2.0 \u00a0
1.9 \u00a0
1.8 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
2.4 \u00a0
2.5 \u00a0
1.4 \u00a0
Property prices - Residential \u00a0
1.5 \u00a0
2.0 \u00a0
2.1 \u00a0
-19.7 \u00a0
-11.0 \u00a0
-6.0 \u00a0
3.5 \u00a0
3.0 \u00a0
2.1 \u00a0
Interest rate - 3 month \u00a0
3.1 \u00a0
2.3 \u00a0
2.0 \u00a0
5.4 \u00a0
6.4 \u00a0
3.9 \u00a0
4.3 \u00a0
3.5 \u00a0
2.5 \u00a0
Sweden \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
1.2 \u00a0
1.8 \u00a0
2.4 \u00a0
-3.5 \u00a0
-3.4 \u00a0
-1.0 \u00a0
2.6 \u00a0
2.1 \u00a0
1.3 \u00a0
Unemployment \u00a0
8.2 \u00a0
8.0 \u00a0
7.9 \u00a0
9.4 \u00a0
10.3 \u00a0
10.7 \u00a0
7.9 \u00a0
7.5 \u00a0
7.7 \u00a0
Inflation \u00a0
1.9 \u00a0
1.3 \u00a0
1.6 \u00a0
4.9 \u00a0
3.9 \u00a0
2.9 \u00a0
2.0 \u00a0
1.6 \u00a0
1.5 \u00a0
Property prices - Residential \u00a0
-1.0 \u00a0
4.0 \u00a0
5.0 \u00a0
-22.0 \u00a0
-13.0 \u00a0
-7.0 \u00a0
1.0 \u00a0
5.0 \u00a0
5.0 \u00a0
Interest rate - 3 month \u00a0
3.4 \u00a0
2.3 \u00a0
2.0 \u00a0
5.7 \u00a0
5.7 \u00a0
3.7 \u00a0
4.6 \u00a0
3.6 \u00a0
2.6 \u00a0
Norway \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
1.1 \u00a0
2.1 \u00a0
1.5 \u00a0
-2.7 \u00a0
-1.1 \u00a0
0.6 \u00a0
2.5 \u00a0
2.4 \u00a0
0.4 \u00a0
Unemployment \u00a0
2.3 \u00a0
2.5 \u00a0
2.5 \u00a0
5.5 \u00a0
6.4 \u00a0
6.5 \u00a0
2.0 \u00a0
2.0 \u00a0
2.3 \u00a0
Inflation \u00a0
3.0 \u00a0
2.0 \u00a0
2.0 \u00a0
4.5 \u00a0
3.0 \u00a0
2.0 \u00a0
3.2 \u00a0
2.3 \u00a0
1.8 \u00a0
Property prices - Residential \u00a0
-1.0 \u00a0
5.0 \u00a0
4.0 \u00a0
-19.0 \u00a0
-13.0 \u00a0
-7.0 \u00a0
-
6.0 \u00a0
4.0 \u00a0
Interest rate - 3 month \u00a0
3.7 \u00a0
2.9 \u00a0
2.5 \u00a0
6.3 \u00a0
6.3 \u00a0
4.3 \u00a0
5.0 \u00a0
4.0 \u00a0
3.0 \u00a0
Finland \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
0.3 \u00a0
1.9 \u00a0
1.3 \u00a0
-2.4 \u00a0
-2.0 \u00a0
-0.3 \u00a0
1.3 \u00a0
2.2 \u00a0
0.4 \u00a0
Unemployment \u00a0
-0.1 \u00a0
2.0 \u00a0
1.5 \u00a0
9.9 \u00a0
10.9 \u00a0
10.9 \u00a0
7.6 \u00a0
6.9 \u00a0
6.4 \u00a0
Inflation \u00a0
7.8 \u00a0
7.2 \u00a0
6.5 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
2.2 \u00a0
1.8 \u00a0
1.7 \u00a0
Property prices - Residential \u00a0
1.9 \u00a0
1.5 \u00a0
2.0 \u00a0
-14.2 \u00a0
-7.0 \u00a0
-5.0 \u00a0
3.0 \u00a0
4.0 \u00a0
2.0 \u00a0
Interest rate - 3 month \u00a0
0.5 \u00a0
1.2 \u00a0
1.3 \u00a0
5.1 \u00a0
5.1 \u00a0
3.1 \u00a0
4.3 \u00a0
3.5 \u00a0
2.5 \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
At 31 December\u00a02022, the following base case and downside scenarios were used: \u00a0
Denmark \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
-0.6 \u00a0
0.5 \u00a0
1.5 \u00a0
-3.7 \u00a0
-2.1 \u00a0
-
0.4 \u00a0
1.6 \u00a0
1.1 \u00a0
Unemployment \u00a0
3.2 \u00a0
3.8 \u00a0
3.8 \u00a0
6.0 \u00a0
7.0 \u00a0
7.4 \u00a0
3.0 \u00a0
3.3 \u00a0
3.3 \u00a0
Inflation \u00a0
4.9 \u00a0
2.5 \u00a0
1.8 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
4.0 \u00a0
1.9 \u00a0
1.9 \u00a0
Property prices - Residential \u00a0
-5.9 \u00a0
-4.0 \u00a0
1.5 \u00a0
-19.7 \u00a0
-12.7 \u00a0
-8.0 \u00a0
-2.9 \u00a0
-2.0 \u00a0
2.5 \u00a0
Interest rate - 3 month \u00a0
2.8 \u00a0
2.5 \u00a0
2.0 \u00a0
3.3 \u00a0
4.3 \u00a0
3.8 \u00a0
2.3 \u00a0
1.8 \u00a0
1.8 \u00a0
Sweden \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
-1.2 \u00a0
1.1 \u00a0
1.8 \u00a0
-3.8 \u00a0
-3.6 \u00a0
-1.0 \u00a0
-0.6 \u00a0
2.1 \u00a0
1.7 \u00a0
Unemployment \u00a0
8.2 \u00a0
8.0 \u00a0
7.5 \u00a0
8.9 \u00a0
9.9 \u00a0
10.3 \u00a0
8.2 \u00a0
7.8 \u00a0
7.3 \u00a0
Inflation \u00a0
6.2 \u00a0
1.5 \u00a0
1.7 \u00a0
4.9 \u00a0
3.9 \u00a0
2.9 \u00a0
5.4 \u00a0
0.9 \u00a0
1.3 \u00a0
Property prices - Residential \u00a0
-8.0 \u00a0
-
2.0 \u00a0
-23.6 \u00a0
-14.6 \u00a0
-10.0 \u00a0
-5.0 \u00a0
2.0 \u00a0
3.0 \u00a0
Interest rate - 3 month \u00a0
2.8 \u00a0
2.5 \u00a0
2.0 \u00a0
3.8 \u00a0
4.8 \u00a0
4.3 \u00a0
2.3 \u00a0
1.8 \u00a0
1.8 \u00a0
Norway \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
0.9 \u00a0
1.7 \u00a0
1.5 \u00a0
-2.9 \u00a0
-1.2 \u00a0
0.6 \u00a0
1.5 \u00a0
2.5 \u00a0
1.7 \u00a0
Unemployment \u00a0
2.4 \u00a0
2.5 \u00a0
2.2 \u00a0
5.2 \u00a0
6.1 \u00a0
6.2 \u00a0
2.3 \u00a0
2.2 \u00a0
1.9 \u00a0
Inflation \u00a0
3.4 \u00a0
1.8 \u00a0
2.0 \u00a0
4.5 \u00a0
3.0 \u00a0
2.0 \u00a0
2.4 \u00a0
1.3 \u00a0
1.9 \u00a0
Property prices - Residential \u00a0
-2.1 \u00a0
2.0 \u00a0
2.5 \u00a0
-20.5 \u00a0
-14.5 \u00a0
-8.0 \u00a0
0.9 \u00a0
3.0 \u00a0
3.5 \u00a0
Interest rate - 3 month \u00a0
3.1 \u00a0
2.9 \u00a0
2.4 \u00a0
4.4 \u00a0
5.4 \u00a0
4.9 \u00a0
2.6 \u00a0
2.1 \u00a0
2.1 \u00a0
Finland \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
-0.2 \u00a0
1.0 \u00a0
1.3 \u00a0
-2.7 \u00a0
-2.2 \u00a0
-0.3 \u00a0
0.5 \u00a0
2.0 \u00a0
1.3 \u00a0
Unemployment \u00a0
7.3 \u00a0
7.4 \u00a0
7.0 \u00a0
9.4 \u00a0
10.4 \u00a0
10.4 \u00a0
7.3 \u00a0
7.3 \u00a0
6.9 \u00a0
Inflation \u00a0
3.7 \u00a0
2.1 \u00a0
1.8 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
2.9 \u00a0
1.4 \u00a0
1.6 \u00a0
Property prices - Residential \u00a0
-1.0 \u00a0
1.0 \u00a0
2.0 \u00a0
-14.2 \u00a0
-9.2 \u00a0
-5.0 \u00a0
1.0 \u00a0
2.0 \u00a0
3.0 \u00a0
Interest rate - 3 month \u00a0
2.6 \u00a0
2.3 \u00a0
1.8 \u00a0
3.2 \u00a0
4.2 \u00a0
3.7 \u00a0
2.1 \u00a0
1.6 \u00a0
1.6 \u00a0
At 31 December\u00a02023, the upside scenario represented a slightly better outlook than the base case scenario across the macroecono\u00a0mic parameters. \u00a0
The base case scenario enters with a probability\u00a0of 60% (2022: 70%), the upside scenario with a probability of 20% (2022: 10%\u00a0) and\u00a0the downside \u00a0
scenario with a probability\u00a0of 20% (2022: 20%). On the basis of these assessments,\u00a0the allowance\u00a0account as at 3 1 December 2023 amounted\u00a0to DKK \u00a0
20.1 billion (2022: DKK 19.6 billion).\u00a0If the base case scenario was assigned a probability\u00a0of 100%, the allowance\u00a0account would d\u00a0ecrease DKK\u00a02.0 \u00a0
billion (2022: DKK 2.1 billion). Compared to\u00a0the base\u00a0case scenario, the allow\u00a0ance account\u00a0would increase DKK 10.2 billion (2022: DKK 10.9 billion), if \u00a0
the downside scenario was assigned a probability\u00a0of 100%.\u00a0The increase reflects primarily the transfer of\u00a0exposures from stag\u00a0e 1 to stage 2 and \u00a0
increased expected credit losses within stage 2. If instead the upside scenario was assigned a probability of 100%, the allowance account would decrease \u00a0
by DKK\u00a00.2 billion (2022: DKK 0.4\u00a0billion) compared to the base case\u00a0scenario. It should be noted that the expected credit losses in the\u00a0individu a l \u00a0
scenarios (i.e. without the weighting)\u00a0do not represent forecasts of expected credit losses (ECL). \u00a0
Expected credit losses (allowance account) in core activities continued \u00a0
Post-model adjustments \u00a0
Management applies judgement when determining the need for\u00a0post-model adjustments.\u00a0At 31 December\u00a02023, the post-model adjustments amounte\u00a0d \u00a0
to DKK 6.7 billion (2022: DKK 6.6\u00a0billion). The post-model adjustments\u00a0primarily relate to the following types of risks: \u00a0
\u2022
specific macroeconomic risks on\u00a0certain industries not fully captured by the expected credit loss model, for\u00a0instance the Agr\u00a0iculture industry. For \u00a0
such industries,\u00a0supplementary calculations are\u00a0made to ensure sufficient impairment coverage. This also inc ludes\u00a0post-model adjustments\u00a0relating \u00a0
to secondary effects from the high macroeconomic\u00a0uncertainty. \u00a0
\u2022
non-linear downside risk, for\u00a0instance on\u00a0the property market in Copenhagen and other high growth areas for which the macroeconom\u00a0ic forecasts \u00a0
used in the models are based on the property market as a whole. \u00a0
\u2022
portfolios where\u00a0the credit risk assessment process has identified\u00a0an underestimation\u00a0of the expected credit losses\u00a0. \u00a0
Following the significant impact on the expected credit losses from post-model adjustments,\u00a0the table below provides\u00a0more information about the \u00a0
adjustments. \u00a0
Post-model adjustments\u00a0by type\u00a0and mostly\u00a0impacted industries \u00a0
31 December \u00a0
31 December \u00a0
(DKK billions) \u00a0
2023 \u00a0
2022 \u00a0
Coverage of individual\u00a0industries and types \u00a0
Agriculture \u00a0
0.8 \u00a0
0.8 \u00a0
Commercial Property \u00a0
1.9 \u00a0
1.8 \u00a0
Construction and building materials \u00a0
1.0 \u00a0
0.5 \u00a0
Personal customers (including\u00a0other retail exposures) \u00a0
1.6 \u00a0
1.4 \u00a0
Others* \u00a0
1.4 \u00a0
2.1 \u00a0
Total \u00a0
6.7 \u00a0
6.6 \u00a0
* No individual industry included in Others exceeds DKK 0.2 billion at 31 December 2023 (2022: DKK 0.3 billion). \u00a0
The total balance of post-model adjustments\u00a0displayed a\u00a0very modest increase in\u00a02023 compared to the end\u00a0of 2022. \u00a0
The Group continues to have significant post-model adjustments related to the current macroeconomic uncertainties\u00a0characterised by\u00a0the slowing \u00a0
growth environment,\u00a0labour shortages, interest rate hikes and inflation\u00a0giving rise\u00a0to a new set of challenges that affect ec\u00a0onomic and business activity. \u00a0
The post-model adjustments\u00a0cut across industries\u00a0that are sensitive to price rises on energy, e.g.\u00a0agriculture and\u00a0metals, and industr\u00a0ies vulnerable to \u00a0
business cycles and increasing interest rates including refinancing risks, which have been assessed\u00a0for idiosyncratic\u00a0risks to ensure a prudent coverage \u00a0
of expected\u00a0credit loss in the Group\u2019s\u00a0portfolios. \u00a0
Credit exposure from Non-core lending activities \u00a0
The Non-core business unit includes certain customer segments that are no longer considered part of the core business. The Non\u00a0-core unit is responsible \u00a0
for the controlled winding-up of this part of the loan portfolio. The portfolio consists primarily liquidity facilities for Special Purpose Vehicles (SPVs) and conduit \u00a0
structures. \u00a0
Credit portfolio\u00a0in Non-core activities\u00a0broken down\u00a0by industry\u00a0(NACE) and stages \u00a0
31 December 2023 \u00a0
Gross exposure \u00a0
Expected credit loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK millions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Non-core banking \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
Non-core conduits etc. \u00a0
2,468 \u00a0
-
-
-
-
-
2,468 \u00a0
-
-
-
-
-
Total \u00a0
2,468 \u00a0
-
-
-
-
-
2,468 \u00a0
-
-
-
-
-
31 December 2022 \u00a0
Gross exposure \u00a0
Expected credit loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK millions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Non-core banking \u00a0
1
-
-
-
-
-
1
-
-
-
-
-
Non-core conduits etc. \u00a0
2,444 \u00a0
-
94 \u00a0
-
-
39 \u00a0
2,444 \u00a0
-
55 \u00a0
24 \u00a0
-
15 \u00a0
Total \u00a0
2,445 \u00a0
-
94 \u00a0
-
-
39 \u00a0
2,445 \u00a0
-
55 \u00a0
24 \u00a0
-
15 \u00a0
Credit exposure from Non-core lending activities continued \u00a0
Credit portfolio\u00a0in Non-core activities\u00a0broken down\u00a0by rating\u00a0category and stages \u00a0
31 December 2023 \u00a0
PD level \u00a0
Gross exposure \u00a0
Expected credit loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK millions) \u00a0
Upper Lower\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
1
-
0.01 \u00a0
568 \u00a0
-
-
-
-
-
568 \u00a0
-
-
-
-
-
2
0.01 \u00a0
0.03 \u00a0
908 \u00a0
-
-
-
-
-
908 \u00a0
-
-
-
-
-
3
0.03 \u00a0
0.06 \u00a0
992 \u00a0
-
-
-
-
-
992 \u00a0
-
-
-
-
-
4
0.06 \u00a0
0.14 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
5
0.14 \u00a0
0.31 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
6
0.31 \u00a0
0.63 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
7
0.63 \u00a0
1.90 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
8
1.90 \u00a0
7.98 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
9
7.98 25.70 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
10 \u00a0
25.70 99.99 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
11 (default) \u00a0
100.00 100.00 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
Total \u00a0
2,468 \u00a0
-
-
-
-
-
2,468 \u00a0
-
-
-
-
-
31 December 2022 \u00a0
PD level \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK millions) \u00a0
Upper Lower\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
1
-
0.01 \u00a0
817 \u00a0
-
-
-
-
-
817 \u00a0
-
-
-
-
-
2
0.01 \u00a0
0.03 1,163 \u00a0
-
-
-
-
-
1,163 \u00a0
-
-
24 \u00a0
-
-
3
0.03 \u00a0
0.06 \u00a0
453 \u00a0
-
-
-
-
-
453 \u00a0
-
-
-
-
-
4
0.06 \u00a0
0.14 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
5
0.14 \u00a0
0.31 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
6
0.31 \u00a0
0.63 \u00a0
12 \u00a0
-
-
-
-
-
12 \u00a0
-
-
-
-
-
7
0.63 \u00a0
1.90 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
8
1.90 \u00a0
7.98 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
9
7.98 25.70 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
10 \u00a0
25.70 99.99 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
11 (default) \u00a0
100.00 100.00 \u00a0
-
-
94 \u00a0
-
-
39 \u00a0
-
-
55 \u00a0
-
-
15 \u00a0
Total \u00a0
2,445 \u00a0
-
94 \u00a0
-
-
39 2,445 \u00a0
-
55 \u00a0
24 \u00a0
-
15 \u00a0
Counterparty credit risk \u00a0
Exposure to counterparty credit risk and\u00a0credit exposure from trading and investment\u00a0securities \u00a0
(DKK billions) \u00a0
2023 \u00a0
2022* \u00a0
Counterparty credit risk \u00a0
Derivatives with\u00a0positive fair value \u00a0
351.7 \u00a0
430.1 \u00a0
Reverse transactions and other loans at fair value1 \u00a0
267.9 \u00a0
246.8 \u00a0
Credit exposure from other trading and investment securities \u00a0
Bonds \u00a0
461.0 \u00a0
486.7 \u00a0
Shares \u00a0
19.4 \u00a0
10.2 \u00a0
Other unutilised commitments2 \u00a0
0.1 \u00a0
0.1 \u00a0
Total \u00a0
1,100.1 \u00a0
1,173.8 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
1 Reverse transactions andother loans at fair value included as counterparty credit risk are loans at the trading units of LargeCorporates& Institutions. Theseloans consist of reverse transactions \u00a0
of DKK 267.4 billion (2022: DKK 246.0billion), of which DKK 92.4 billion relates tocredit institutions and central banks(2022: DKK 37.4 billion), and other primarily short-term loans of DKK 0.6 \u00a0
billion (2022: DKK 0.8 billion), of which DKK 0.6 billion (2022: DKK 0.8 billion) relates to credit institutions and central banks. \u00a0
2 Other unutilised commitments comprise private equity investment commitments and other obligations. \u00a0
Counterparty credit\u00a0risk (derivatives) \u00a0
Counterparty credit\u00a0risk is the risk that the counterparty\u00a0to a transaction\u00a0defaults before the final settlement of the trans\u00a0action\u2019s cash\u00a0flows. It is a \u00a0
combination of\u00a0credit risk (a deterioration\u00a0in the creditworthiness\u00a0of a counterparty)\u00a0and market risk (the potential\u00a0value of derivatives\u00a0contracts). \u00a0
Derivatives are\u00a0subject to credit risk. Positive\u00a0and negative\u00a0fair values of derivatives\u00a0with the same counterparty are offset\u00a0in the balance\u00a0sheet if certain \u00a0
conditions are fulfilled. \u00a0
Danske Bank\u00a0Group takes on counterparty credit risk when it enters into\u00a0over-the-counter (OTC)\u00a0derivatives, securities\u00a0financing transactions (SFTs), \u00a0
and/or exchange-traded derivatives\u00a0(ETDs). \u00a0
The Group mitigates\u00a0counterparty credit\u00a0risk through pre-deal controls, post-deal monitoring,\u00a0clearing, close-out netting agreements and collatera\u00a0l \u00a0
agreements. Those agreements include rights to additional set-off in\u00a0the event of default by a counterparty,\u00a0they reduce\u00a0the exposure further, but they do \u00a0
not qualify for offsetting under IFRSs. The net current exposure to derivatives\u00a0with positive\u00a0market value after\u00a0offsetting under master netting\u00a0agreements \u00a0
amounted to DKK 89.5 billion (2022: DKK 89.1 billion) (see\u00a0note G32). The exposure is broken down by rating category in the table below. \u00a0
NET current exposure broken down by\u00a0category (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
1
14,293 \u00a0
15,039 \u00a0
2
16,110 \u00a0
14,741 \u00a0
3
43,279 \u00a0
47,198 \u00a0
4
11,946 \u00a0
9,195 \u00a0
5
2,309 \u00a0
2,153 \u00a0
6
921 \u00a0
627 \u00a0
7
463 \u00a0
98 \u00a0
8
86 \u00a0
74 \u00a0
9
1
-
10 \u00a0
24 \u00a0
5
11 \u00a0
18 \u00a0
8
Total \u00a0
89,450 \u00a0
89,139 \u00a0
The Group uses a range of measures to capture counterparty credit risk, including current exposure, potential\u00a0future exposure (PFE) and exposure at default \u00a0
(EAD). Current\u00a0exposure is a simple measure of counterparty credit risk exposure that takes into account only current mark-to-market values and collateral. \u00a0
Customer-level counterparty risk is managed by means of PFE lines on a set of maturity buckets. It is measured at the 97.5% percentile for a set of future \u00a0
time horizons. PFE lines are approved by the relevant credit unit and all transactions are assumed to be held to contractual maturity. The Group carries o\u00a0ut \u00a0
daily counterparty credit risk measurement and monitoring as well as intraday line utilisation\u00a0monitoring. \u00a0
The Danish FSA approved the Group\u2019s simulation model for calculating\u00a0the regulatory capital requirement for counterparty cred it risk in 2015. More advanced \u00a0
measures such as EAD, which is a regulatory measure, express potential future losses and are based o n internal models for future scenarios of market data. \u00a0
EAD figures\u00a0are provided in the Additional\u00a0Pillar III Disclosures\u00a0(accessible at danskebank.com/investor-relations). \u00a0
An overview of counterparty credit risk exposures (at counterparty and portfolio levels) is reported to the Executive\u00a0Leadership Team and other senior \u00a0
management on a monthly basis. The Group uses a simulation-based model to calculate counterparty credit risk exposure for the majority of its portfolio. \u00a0
The Group makes fair value adjustments to cover the counterparty credit risk on derivatives\u00a0with positive\u00a0fair value (CVA) that are recognised in the financial \u00a0
statements. For more information, see note G33. \u00a0
Bond portfolio \u00a0
Central and \u00a0
Quasi- \u00a0
Danish \u00a0
Swedish \u00a0
Other \u00a0
local govern- \u00a0
government \u00a0
mortgage \u00a0
covered \u00a0
covered \u00a0
Corporate \u00a0
(DKK millions) \u00a0
ment bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
Total \u00a0
31 December 2023 \u00a0
Held-for-trading (FVPL) \u00a0
117,986 \u00a0
1,179 \u00a0
29,084 \u00a0
20,862 \u00a0
3,272 \u00a0
5,179 \u00a0
177,563 \u00a0
Managed at\u00a0fair value (FVPL) \u00a0
1,845 \u00a0
291 \u00a0
17,069 \u00a0
1,307 \u00a0
286 \u00a0
-
20,798 \u00a0
Held to collect and sell (FVOCI) \u00a0
23,669 \u00a0
2,905 \u00a0
49,470 \u00a0
4,776 \u00a0
25,077 \u00a0
1,330 \u00a0
107,226 \u00a0
Held to collect (AMC) \u00a0
47,892 \u00a0
8,551 \u00a0
92,699 \u00a0
5,093 \u00a0
1,013 \u00a0
150 \u00a0
155,398 \u00a0
Total \u00a0
191,392 \u00a0
12,926 \u00a0
188,321 \u00a0
32,038 \u00a0
29,648 \u00a0
6,659 \u00a0
460,984 \u00a0
31 December 2022* \u00a0
Held-for-trading (FVPL) \u00a0
149,059 \u00a0
3,452 \u00a0
13,729 \u00a0
19,753 \u00a0
5,543 \u00a0
8,859 \u00a0
200,395 \u00a0
Managed at\u00a0fair value (FVPL) \u00a0
2,339 \u00a0
594 \u00a0
13,577 \u00a0
1,011 \u00a0
409 \u00a0
304 \u00a0
18,233 \u00a0
Held to collect and sell (FVOCI) \u00a0
15,730 \u00a0
4,597 \u00a0
63,108 \u00a0
6,695 \u00a0
25,045 \u00a0
1,253 \u00a0
116,429 \u00a0
Held to collect (AMC) \u00a0
53,681 \u00a0
9,292 \u00a0
81,991 \u00a0
5,599 \u00a0
1,011 \u00a0
-
151,573 \u00a0
Total \u00a0
220,809 \u00a0
17,935 \u00a0
172,405 \u00a0
33,057 \u00a0
32,007 \u00a0
10,417 \u00a0
486,630 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
At 31 December 2023, the Group had an additional bond portfolio, including bond-based unit trust certificates, worth DKK 214,073 million (2022: DKK \u00a0
215,463 million) recognised as assets under insurance contracts and thus not included\u00a0in the table above. The section on life insuran\u00a0ce risk\u00a0provide s \u00a0
more information. \u00a0
Bond portfolio continued \u00a0
Bond portfolio\u00a0broken down by geographical\u00a0area \u00a0
Central and \u00a0
Quasi- \u00a0
Danish \u00a0
Swedish \u00a0
Other \u00a0
local govern- \u00a0
government \u00a0
mortgage \u00a0
covered \u00a0
covered \u00a0
Corporate \u00a0
(DKK millions) \u00a0
ment bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
Total \u00a0
31 December 2023 \u00a0
Denmark \u00a0
28,754 \u00a0
-
188,321 \u00a0
-
-
870 \u00a0
217,945 \u00a0
Sweden \u00a0
61,267 \u00a0
-
-
32,038 \u00a0
-
1,362 \u00a0
94,667 \u00a0
UK \u00a0
11,141 \u00a0
291 \u00a0
-
-
3,518 \u00a0
1,009 \u00a0
15,959 \u00a0
Norway \u00a0
6,049 \u00a0
-
-
-
23,902 \u00a0
1,358 \u00a0
31,309 \u00a0
USA \u00a0
15,529 \u00a0
3,274 \u00a0
-
-
-
7
18,810 \u00a0
Spain \u00a0
1,243 \u00a0
-
-
-
1
-
1,244 \u00a0
France \u00a0
4,703 \u00a0
19 \u00a0
-
-
237 \u00a0
116 \u00a0
5,075 \u00a0
Luxembourg \u00a0
5,205 \u00a0
-
-
-
123 \u00a0
5,328 \u00a0
Finland \u00a0
10,224 \u00a0
2,954 \u00a0
-
-
1,089 \u00a0
909 \u00a0
15,176 \u00a0
Ireland \u00a0
550 \u00a0
-
-
-
-- \u00a0
94 \u00a0
643 \u00a0
Italy \u00a0
1,413 \u00a0
-
-
-
-
5
1,418 \u00a0
Portugal \u00a0
3
-
-
-
-
-
3
Austria \u00a0
4,513 \u00a0
-
-
-
66 \u00a0
113 \u00a0
4,691 \u00a0
Netherlands \u00a0
3,349 \u00a0
1
-
-
17 \u00a0
510 \u00a0
3,877 \u00a0
Germany \u00a0
42,152 \u00a0
-
-
-
216 \u00a0
96 \u00a0
42,465 \u00a0
Belgium \u00a0
503 \u00a0
442 \u00a0
-
-
1
-
946 \u00a0
Other \u00a0
-
740 \u00a0
-
-
602 \u00a0
87 \u00a0
1,429 \u00a0
Total \u00a0
191,392 \u00a0
12,926 \u00a0
188,321 \u00a0
32,038 \u00a0
29,648 \u00a0
6,659 \u00a0
460,984 \u00a0
31 December 2022* \u00a0
Denmark \u00a0
46,390 \u00a0
-
172,405 \u00a0
-
-
4,573 \u00a0
223,369 \u00a0
Sweden \u00a0
77,432 \u00a0
-
-
33,057 \u00a0
-
2,628 \u00a0
113,117 \u00a0
UK \u00a0
6,795 \u00a0
-
-
-
2,680 \u00a0
897 \u00a0
10,371 \u00a0
Norway \u00a0
3,902 \u00a0
-
-
-
28,163 \u00a0
-
32,065 \u00a0
USA \u00a0
16,534 \u00a0
4,361 \u00a0
-
-
-
-
20,895 \u00a0
Spain \u00a0
2,372 \u00a0
-
-
-
1
-
2,372 \u00a0
France \u00a0
11,163 \u00a0
17 \u00a0
-
-
229 \u00a0
96 \u00a0
11,505 \u00a0
Luxembourg \u00a0
-
6,123 \u00a0
-
-
-
82 \u00a0
6,205 \u00a0
Finland \u00a0
8,293 \u00a0
4,637 \u00a0
-
-
362 \u00a0
1,253 \u00a0
14,544 \u00a0
Ireland \u00a0
1,120 \u00a0
-
-
-
-
26 \u00a0
1,145 \u00a0
Italy \u00a0
1,322 \u00a0
-
-
-
-
2
1,324 \u00a0
Portugal \u00a0
14 \u00a0
-
-
-
-
-
14 \u00a0
Austria \u00a0
4,393 \u00a0
-
-
-
13 \u00a0
61 \u00a0
4,467 \u00a0
Netherlands \u00a0
3,261 \u00a0
2
-
-
16 \u00a0
512 \u00a0
3,791 \u00a0
Germany \u00a0
37,142 \u00a0
-
-
-
290 \u00a0
288 \u00a0
37,719 \u00a0
Belgium \u00a0
676 \u00a0
2,195 \u00a0
-
-
1
-
2,872 \u00a0
Other \u00a0
-
600 \u00a0
-
-
253 \u00a0
-
853 \u00a0
Total \u00a0
220,809 \u00a0
17,935 \u00a0
172,405 \u00a0
33,057 \u00a0
32,007 \u00a0
10,417 \u00a0
486,630 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
Risk Management\u00a02023 provides\u00a0additional details about\u00a0the risk on the Group\u2019s bond portfolio. The publication\u00a0is not covered by the statutory audit. \u00a0
Bond portfolio continued \u00a0
Bond portfolio broken\u00a0down by\u00a0external ratings \u00a0
Central and \u00a0
Quasi- \u00a0
Danish \u00a0
Swedish \u00a0
Other \u00a0
local govern- \u00a0
government \u00a0
mortgage \u00a0
covered \u00a0
covered \u00a0
Corporate \u00a0
(DKK millions) \u00a0
ment bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
Total \u00a0
31 December 2023 \u00a0
AAA \u00a0
137,601 \u00a0
12,461 \u00a0
187,903 \u00a0
32,017 \u00a0
28,925 \u00a0
1,623 \u00a0
400,530 \u00a0
AA+ \u00a0
27,061 \u00a0
442 \u00a0
-
-
28 \u00a0
2
27,533 \u00a0
AA \u00a0
8,556 \u00a0
-
-
21 \u00a0
692 \u00a0
965 \u00a0
10,234 \u00a0
AA- \u00a0
15,515 \u00a0
23 \u00a0
-
-
-
117 \u00a0
15,654 \u00a0
A+ \u00a0
-
-
-
-
-
266 \u00a0
266 \u00a0
A
1,132 \u00a0
-
418 \u00a0
-
4
984 \u00a0
2,538 \u00a0
A- \u00a0
3
-
-
-
-
196 \u00a0
199 \u00a0
BBB+ \u00a0
111 \u00a0
-
-
-
-
505 \u00a0
617 \u00a0
BBB \u00a0
377 \u00a0
-
-
-
-
987 \u00a0
1,364 \u00a0
BBB- \u00a0
1,036 \u00a0
-
-
-
-
596 \u00a0
1,632 \u00a0
BB+ \u00a0
-
-
-
-
-
97 \u00a0
97 \u00a0
BB \u00a0
-
-
-
-
-
187 \u00a0
187 \u00a0
BB- \u00a0
-
-
-
-
-
36 \u00a0
36 \u00a0
Sub. \"investment-grade\" or unrated \u00a0
-
-
-
-
-
97 \u00a0
97 \u00a0
Total \u00a0
191,392 \u00a0
12,926 \u00a0
188,321 \u00a0
32,038 \u00a0
29,648 \u00a0
6,659 \u00a0
460,984 \u00a0
31 December 2022* \u00a0
AAA \u00a0
180,479 \u00a0
15,513 \u00a0
172,222 \u00a0
33,048 \u00a0
31,728 \u00a0
1,521 \u00a0
434,510 \u00a0
AA+ \u00a0
9,542 \u00a0
2,207 \u00a0
-
-
64 \u00a0
222 \u00a0
12,035 \u00a0
AA \u00a0
19,234 \u00a0
215 \u00a0
-
10 \u00a0
117 \u00a0
1,292 \u00a0
20,868 \u00a0
AA- \u00a0
6,727 \u00a0
-
-
-
-
27 \u00a0
6,754 \u00a0
A+ \u00a0
1,120 \u00a0
-
-
-
-
267 \u00a0
1,387 \u00a0
A
2,204 \u00a0
-
179 \u00a0
-
98 \u00a0
2,207 \u00a0
4,688 \u00a0
A- \u00a0
-
-
-
-
-
368 \u00a0
368 \u00a0
BBB+ \u00a0
167 \u00a0
-
-
-
-
863 \u00a0
1,030 \u00a0
BBB \u00a0
230 \u00a0
-
5
-
-
2,242 \u00a0
2,477 \u00a0
BBB- \u00a0
1,106 \u00a0
-
-
-
-
336 \u00a0
1,443 \u00a0
BB+ \u00a0
-
-
-
-
-
650 \u00a0
650 \u00a0
BB \u00a0
-
-
-
-
-
247 \u00a0
247 \u00a0
BB- \u00a0
-
-
-
-
-
15 \u00a0
15 \u00a0
Sub. \"investment-grade\" or unrated \u00a0
-
-
-
-
-
161 \u00a0
161 \u00a0
Total \u00a0
220,809 \u00a0
17,935 \u00a0
172,405 \u00a0
33,057 \u00a0
32,007 \u00a0
10,417 \u00a0
486,630 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLoansAndAdvancesToBanksExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4312": {
"value": "Cash in\u00a0hand and\u00a0demand deposits with central banks \u00a0
Includes cash\u00a0in hand of DKK 6,419 million (2022: DKK 6,630 million)\u00a0and demand\u00a0deposits of DKK 252,737\u00a0million (2022:\u00a0DKK 168,422 million) \u00a0
(measured at amortised cost). \u00a0
Due from credit institutions\u00a0and central banks includes amounts due within three months and totalled DKK 106,453 million\u00a0at the end of 2023 (2022: \u00a0
DKK 57,479 million). This amount is\u00a0included under Cash and cash equivalents in the cash flow statement. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndBankBalancesAtCentralBanksExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4313": {
"value": "Cash in\u00a0hand and\u00a0demand deposits with central banks \u00a0
Includes cash\u00a0in hand of DKK 6,419 million (2022: DKK 6,630 million)\u00a0and demand\u00a0deposits of DKK 252,737\u00a0million (2022:\u00a0DKK 168,422 million) \u00a0
(measured at amortised cost). \u00a0
Due from credit institutions\u00a0and central banks includes amounts due within three months and totalled DKK 106,453 million\u00a0at the end of 2023 (2022: \u00a0
DKK 57,479 million). This amount is\u00a0included under Cash and cash equivalents in the cash flow statement. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4314": {
"value": "Due from credit institutions\u00a0and central banks \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Due from credit institutions\u00a0and central banks measured at fair value through profit or loss: \u00a0
Reverse transactions \u00a0
92,389 \u00a0
37,379 \u00a0
Other amounts due \u00a0
595 \u00a0
768 \u00a0
Total at fair value through profit or loss \u00a0
92,984 \u00a0
38,147 \u00a0
Due from credit institutions\u00a0and central banks measured at amortised cost: \u00a0
Reverse transactions \u00a0
3,727 \u00a0
-
Other amounts due \u00a0
18,118 \u00a0
22,686 \u00a0
Allowance account \u00a0
16 \u00a0
47 \u00a0
Total at amortised cost \u00a0
21,829 \u00a0
22,639 \u00a0
Due from credit institutions\u00a0and central banks, total \u00a0
114,813 \u00a0
60,786 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
(a) Loans at amortised cost \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Reverse transactions \u00a0
1,763 \u00a0
1,747 \u00a0
Other loans \u00a0
930,823 \u00a0
1,094,792 \u00a0
Allowance account \u00a0
13,958 \u00a0
13,721 \u00a0
Total at amortised cost \u00a0
918,628 \u00a0
1,082,818 \u00a0
G16. Loans and issued bonds at fair value \u00a0
The Group has two types of portfolios of loans and issued bonds that are measured at fair value through profit or loss. The f irst portfolio consists of loans \u00a0
granted and bonds issued by the subsidiary Realkredit Danmark,\u00a0a Danish mortgage institution\u00a0cover ed\u00a0by Danish mortgage finance law. The other portfolio \u00a0
consists of loans and bonds issued by the Group\u2019s trading units (Markets and Investment Banking\u00a0& Securities in LC&I). \u00a0
Accounting policy \u00a0
Loans granted and bonds issued by Realkredit\u00a0Danmark \u00a0
Loans granted by Realkredit\u00a0Danmark have contractual cash\u00a0flows that are not solely payment of principal and interest on the principal amount \u00a0
outstanding. Therefore,\u00a0the loans are\u00a0mandatorily recognised at\u00a0fair value\u00a0through profit\u00a0or loss. The issued bonds that are\u00a0funding the loans are \u00a0
designated at\u00a0fair value through profit or loss in order not to create an accounting\u00a0mismatch. For\u00a0the issued bonds, changes in fair value attributable\u00a0to \u00a0
the Group\u2019s own credit risk is presented in the income\u00a0statement, as\u00a0an accounting\u00a0mismatch would otherwise be introduced. \u00a0
The fair value of the bonds issued by Realkredit Danmark is normally defined as their quoted market price. A small number of the issued bonds are \u00a0
illiquid, however, and\u00a0the fair value\u00a0of these bonds is calculated\u00a0on the basis of a discounted\u00a0cash flow valuation technique. The fair value of the loans is \u00a0
based on the fair value of the underlying\u00a0bonds which ensures that changes in the fair value of the interest rate risk on the loans are measured based \u00a0
on market implied\u00a0input. This fair value is adjusted for changes in the fair value of cash flows from the loans that differ from the cash flows from the \u00a0
issued bonds. The most important\u00a0component is\u00a0the credit risk on the borrowers (covered by the Group and\u00a0not by\u00a0the bond holders and therefore not \u00a0
priced into the price of the issued bonds). \u00a0
Changes in fair value of credit risk etc on the loans \u00a0
The IFRS 13 estimate\u00a0of the fair value of the credit risk on the loans is based on the expected credit losses estimated in the models developed in \u00a0
connection with the Group\u2019s implementation\u00a0of the expected\u00a0credit loss impairment model in IFRS 9, including\u00a0the allocation o\u00a0f loans\u00a0between stage 1, \u00a0
stage 2 and stage 3. The expected credit losses are calculated for all loans as a function of PD, EAD and LGD and incorporates forward looking \u00a0
information, see\u00a0further in note G15. The latter reflects management\u2019s expectations of\u00a0expected credit\u00a0losses and\u00a0involves multiple scenarios (base \u00a0
case, upside\u00a0and downside),\u00a0including an\u00a0assessment of\u00a0the probability\u00a0for each scenario. \u00a0
On top of the expected\u00a0credit losses, a collective\u00a0assessment determines\u00a0the need for further adjustments\u00a0to reflect other components\u00a0in the fair value \u00a0
measurement, such as an assessment of lifetime\u00a0expected credit\u00a0losses for\u00a0loans in\u00a0stage 1, an investors risk premium, compensation for \u00a0
administrative costs\u00a0related to the loans and the possibility\u00a0to increase the margin on the loans if the credit risk etc increases. It is acknowledged that \u00a0
the possibility to\u00a0increase the margin depends on the economic resources of the customers.\u00a0The possibility\u00a0to increase the margin is therefore only \u00a0
considered in\u00a0the measurement if it is very likely that the margin can be increased without\u00a0the customer defaulting. Further,\u00a0the possibility\u00a0to increase \u00a0
the margin is only relevant if it does not give the customer an incentive to \u201cmove\u201d to another mortgage institution.\u00a0Therefore, the possibility\u00a0to increase \u00a0
the margin is only relevant for the measurement of loans to customers with neither a relatively\u00a0high credit risk nor a relati\u00a0vely low\u00a0credit risk. \u00a0
The discount rate used to discount the cash flows represents the interest rate on the funding bonds. This is considered to be close to a risk-free interes\u00a0t \u00a0
rate. The risk premium is incorporated into the cash\u00a0flows. The risk premium is assumed to be higher for customers with high credit risk than for \u00a0
customers with low credit risk. Further, the adjustments\u00a0for changes in the fair value\u00a0of the credit risk and other components\u00a0cannot increase the value \u00a0
of a loan\u00a0(the adjustment\u00a0cannot be positive). \u00a0
Other loans and\u00a0issued bonds measured at fair value through profit or loss \u00a0
The loans in the Group\u2019s trading units (Markets and Investment Banking & Securities in LC&I) are managed and their performance reported on a fair \u00a0
value basis and the loans are under IFRS 9 mandatorily\u00a0measured at fair value\u00a0through profit or loss. In order not to introduce\u00a0an accounting mismatc\u00a0h \u00a0
by measuring the financial assets in the trading units at\u00a0fair value through profit or loss and the financial liabilities\u00a0at amortised cost, the\u00a0financia l \u00a0
liabilities in\u00a0the trading units are designated at\u00a0fair value through profit or\u00a0loss with fair value changes attributable\u00a0to the Group\u2019s own credit risk \u00a0
presented in\u00a0other comprehensive income. \u00a0
G16. Loans and issued bonds at fair value continued \u00a0
(a) Loans at fair value \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Loans granted by Realkredit Danmark: \u00a0
Nominal value \u00a0
806,157 \u00a0
802,025 \u00a0
Fair value adjustment of underlying bonds \u00a0
-49,874 \u00a0
-74,724 \u00a0
Adjustment for\u00a0credit risk \u00a0
3,006 \u00a0
3,250 \u00a0
Fair value\u00a0of loans granted by Realkredit\u00a0Danmark \u00a0
753,277 \u00a0
724,051 \u00a0
Loans in the Group's trading units: \u00a0
Reverse transactions \u00a0
174,963 \u00a0
208,626 \u00a0
Other loans \u00a0
-
-
Total \u00a0
928,239 \u00a0
932,677 \u00a0
(b) Issued bonds at fair\u00a0value \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Bonds issued by Realkredit Danmark: \u00a0
Nominal value \u00a0
848,774 \u00a0
840,922 \u00a0
Fair value adjustment of funding of current loans \u00a0
-49,874 \u00a0
-74,735 \u00a0
Holding of own mortgage bonds \u00a0
57,837 \u00a0
54,414 \u00a0
Fair value\u00a0of bonds issued by Realkredit\u00a0Danmark \u00a0
741,062 \u00a0
711,773 \u00a0
Bonds issued by the Group's trading units: \u00a0
Commercial papers and certificates of deposit \u00a0
7,718 \u00a0
12,150 \u00a0
Total \u00a0
748,780 \u00a0
723,923 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
(c) Further explanation on loans granted and bonds issued by Realkredit Danmark \u00a0
Each loan granted by Realkredit Danmark\u00a0is funded by issuing listed mortgage bonds with matching characteristics (e.g.\u00a0amount outstanding, reference \u00a0
interest rate, term and currency). The borrower may repay the loan by delivering the underlying bonds to Realkredit Danmark. \u00a0
The loans are held in a business model being similar to other loans in the Group\u2019s banking units, i.e. the business model under IFRS 9 is \u2018held to collect\u2019. The \u00a0
customers\u2019 right to prepay a loan by delivering the underlying\u00a0bonds represents an option to prepay at fair value. Under this prepayment option, the prepayment \u00a0
amount can be both\u00a0above and below the principal amount plus accrued interest.\u00a0Changes in the fair value of the underlying bonds include other elements \u00a0
than the effect of changes in the relevant benchmark interest rate and the prepayment option is therefore not consistent with the SPPI test in IFRS 9 and are \u00a0
mandatorily measured at FVPL. \u00a0
To eliminate the accounting mismatch that would exist if the loans are measured at fair value through profit or loss and the issued bonds at amortised cost, \u00a0
the issued bonds are designated at fair value through profit or loss using the fair value option fo\u00a0r financial liabilities\u00a0in IFRS 9. As the fair value of the loans\u00a0is \u00a0
based on the fair value of the issued bonds, fair value changes of the issued bonds are offset by fair value changes of the loans, including the changes related \u00a0
to the fair value of the own credit risk of the issued bonds. For example, if the credit quality of the bonds worsens the fair value of the liability decreases and \u00a0
the fair value of the loans also decreases. Therefore, fair value changes of own credit risk on the issued bonds are recognised in the income statement, as an \u00a0
accounting mismatch\u00a0would otherwise be created if changes in own credit risk were recognised in other comprehensive income. \u00a0
The value of the loans is affected by changes in the credit risk on the loans. In 2023, the Group recognised DKK -109 million\u00a0regarding changes in the credit \u00a0
risk on loans at fair value\u00a0(2022: DKK\u00a015 million) see note G11. At the end of 2023, the accumulated changes in the credit risk amounted to DKK 3,006 \u00a0
million (2022: DKK 3,250 million). The amounts are determined as the amount of the change in fair value that is not attributable\u00a0to changes\u00a0in market \u00a0
conditions that give rise\u00a0to market risk, with the latter being represented by the fair value of the funding issuedbonds. Th e Group does not use credit derivative s \u00a0
or similar instruments to mitigate the exposure to credit risk. \u00a0
The holding of own mortgage bonds includes pre-issued bonds of DKK 31 billion (2022: DKK\u00a029 billion)\u00a0used for FlexL\u00e5n\u00ae refinancing in January\u00a02024. \u00a0
The nominal\u00a0value of bonds issued by Realkredit Danmark equals the amount to be redeemed on maturity. \u00a0
G16. Loans and issued bonds at fair value continued \u00a0
Fair value adjustment for the credit risk on issued mortgage bonds is calculated on the basis of the option-adjusted spread (OAS). The calculation incorporates \u00a0
maturity, nominal holdings and OAS sensitivity. As a number of estimates are made, the calculation is subject to uncertainty. \u00a0
In 2023, the Danish mortgage bond yield spread increased and the fair value of issued mortgage bonds thus decreased by approx\u00a0imately DKK 6.6\u00a0billion. In \u00a0
2022, the Danish mortgage bond yield spread narrowed, causing an increase in the fair value of issued mortgage bonds. Based o n the outstanding\u00a0portfolio \u00a0
at the end of 2023, Realkredit Danmark estimates that there has been a net narrowing of the spread since the issuance of the bonds, which produces a \u00a0
negative fair value of approximately DKK 0.05 billion (2022: positive fair value of approximately DKK 0.3 billion). Net profit and shareholders\u2019 equity remain \u00a0
unaffected by the\u00a0change in fair value because the spread narrowing increased the value of mortgage loans correspondingly. \u00a0
Fair value adjustment for the credit risk on issued mortgage bonds may also be calculated on the basis of\u00a0changes in similar\u00a0AAA rated mortgage bonds \u00a0
offered by\u00a0other Danish issuers.\u00a0The market for\u00a0such bonds is characterised by an absence of measurable price differences bet\u00a0ween bonds with similar \u00a0
features from different issuers. Using this method, no fair value adjustment for credit risk in 2023 or the period since the issue has been required. \u00a0
(d) Further explanation on loans, deposits and issued bonds by the Group\u2019s trading units \u00a0
The loans in the Group\u2019s trading units (Markets and\u00a0Investment Banking &\u00a0Securities in LC&I) are managed and their performance reported on a fair value \u00a0
basis. The loans are mandatorily recognised at fair value through profit or loss as the business model is neither \u2018held to collect\u2019 nor \u2018held to c ollect and sell\u2019. \u00a0
The loans consist primarily of reverse transactions and short-term loans. In order not to introduce an accounting mismatch, the financial liabilities in the \u00a0
trading units are designated at fair value through profit or loss, using the fair value option in IFRS 9. \u00a0
The financial liabilities consist of issued bonds (certificates of deposits and commercial papers) and deposits (including re po transactions) with a maturity no \u00a0
longer than six months in general. Fair value changes attributable to the Group\u2019s own credit risk are presented in other comprehensive income. During 2023, \u00a0
changes in fair value attributable to the Group\u2019s\u00a0own credit risk recognised in Other Comprehensive\u00a0Income amounted to DKK 0 million (2022: DKK 0 million). \u00a0
In the balance sheet, deposits in the trading units are presented together with other deposits. The amount that the Group would be contractually required to \u00a0
pay at maturity amounts to DKK 8,066 million (2022: DKK 12,636 million) for bonds issued by the Group\u2019s trading units. \u00a0
(a) Due to credit institutions\u00a0and central banks (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Designated at\u00a0fair value: \u00a0
Repo transactions \u00a0
80,108 \u00a0
47,618 \u00a0
Other amounts due \u00a0
5,440 \u00a0
4,634 \u00a0
Total designated at\u00a0fair value \u00a0
85,548 \u00a0
52,252 \u00a0
Amortised cost: \u00a0
Repo transactions \u00a0
3,727 \u00a0
-
Other amounts due \u00a0
65,333 \u00a0
86,525 \u00a0
Total amortised cost \u00a0
69,060 \u00a0
86,525 \u00a0
Total \u00a0
154,608 \u00a0
138,777 \u00a0
(b) Deposits (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Designated at\u00a0fair value: \u00a0
Repo transactions \u00a0
113,306 \u00a0
90,168 \u00a0
Time deposits \u00a0
6,907 \u00a0
7,749 \u00a0
Total designated at\u00a0fair value \u00a0
120,213 \u00a0
97,917 \u00a0
Amortised cost: \u00a0
Repo transactions \u00a0
-
134 \u00a0
Transaction accounts \u00a0
930,083 \u00a0
1,023,795 \u00a0
Time deposits \u00a0
158,222 \u00a0
124,872 \u00a0
Pension savings\u00a0etc. \u00a0
13,685 \u00a0
15,574 \u00a0
Total amortised cost \u00a0
1,101,990 \u00a0
1,164,375 \u00a0
Total \u00a0
1,222,203 \u00a0
1,262,293 \u00a0
Trading portfolio \u00a0
2023 \u00a0
2022 \u00a0
(DKK millions) \u00a0
Bonds \u00a0
Shares \u00a0
Bonds \u00a0
Shares \u00a0
Carrying amount\u00a0of transferred assets \u00a0
Repo transactions \u00a0
164,189 \u00a0
139,807 \u00a0
Securities lending \u00a0
1,047 \u00a0
2,008 \u00a0
Total transferred assets \u00a0
164,189 \u00a0
1,047 \u00a0
139,807 \u00a0
2,008 \u00a0
Repo transactions, own issued bonds \u00a0
33,693 \u00a0
31,064 \u00a0
Carrying amount\u00a0of associated liabilities \u00a0
197,140 \u00a0
1,099 \u00a0
171,384 \u00a0
2,109 \u00a0
Net positions \u00a0
-742 \u00a0
52 \u00a0
513 \u00a0
100 \u00a0
The Group has\u00a0not entered\u00a0into any agreements on the sale of assets that entail the Group\u2019s continuing involvement in\u00a0derecognised financial assets. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRepurchaseAndReverseRepurchaseAgreementsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4317": {
"value": "G15. Loans at amortised cost \u00a0
In general, the loans in the Group\u2019s banking units (Personal Customers, Business Customers, General Banking in LC&I, Northern Ireland and Non-core) \u00a0
are held with the objective\u00a0of collecting the contractual cash\u00a0flows. Therefore, most of the Group\u2019s loans in the banking\u00a0units are classified as \u2018hold to \u00a0
collect\u2019 under IFRS\u00a09. Further, the loans have basic lending features with the contractual cash flows solely representing repayment of principal and \u00a0
interest on\u00a0the principal amount outstanding\u00a0(the SPPI\u00a0test). Therefore, the loans in\u00a0the Group\u2019s banking units are\u00a0recognised at amortised cost. The only \u00a0
exception is loans granted by Realkredit\u00a0Danmark (see\u00a0note G16) that are recognised at fair value, as the contractual cash flows do not represent basic \u00a0
lending features only, i.e.\u00a0they do\u00a0not pass the SPPI test in IFRS 9. \u00a0
Accounting policy \u00a0
At initial recognition, loans are measured at\u00a0fair value plus transaction\u00a0costs less origination\u00a0fees and other charges that are an integral part of the \u00a0
effective interest rate\u00a0on loans. This usually corresponds to the amount disbursed to the customer. Subsequently,\u00a0they are measured at amortise\u00a0d \u00a0
cost, using the effective interest method, less impairment charges for expected credit losses. The difference between the value at initial recognitio\u00a0n \u00a0
and the redemption\u00a0value is\u00a0amortised over the term to maturity\u00a0as part of the effective interest.\u00a0If fixed-rate loans are hedged effectively by derivative\u00a0s , \u00a0
the fair value\u00a0of the hedged interest rate risk is added to the carrying\u00a0amount of the hedged assets. \u00a0
Impairment for expected credit losses \u00a0
The impairment\u00a0charge for expected\u00a0credit losses depends on whether the credit risk has increased significantly\u00a0since initial\u00a0recognition and follows a \u00a0
three stage model: \u00a0
\u2022
Stage 1: If the credit risk has not increased significantly,\u00a0the impairment\u00a0charge equals the expected credit losses resulting\u00a0from default\u00a0events \u00a0
that are possible within the next 12 months. \u00a0
\u2022
Stage 2: If the credit risk has increased significantly,\u00a0the loan is\u00a0transferred to stage 2 and an impairment\u00a0charge equal to the lifetime expected \u00a0
credit losses is recognised. \u00a0
\u2022
Stage 3: If the loan is in default, it is transferred\u00a0to stage 3, for which the impairment charge continues\u00a0to equal the lifetime expected credit losses \u00a0
but with interest income being recognised on\u00a0the net carrying\u00a0amount. \u00a0
The expected credit loss is calculated for all individual facilities\u00a0as a function\u00a0of the probability of default (PD), the exposure at\u00a0default (EAD) and the loss \u00a0
given default (LGD) and incorporates forward looking elements. For facilities in stages 2 and 3, the lifetime expected credit losses cover the expected \u00a0
remaining lifetime of\u00a0a facility. \u00a0
Expected credit\u00a0loss impairment charges are\u00a0booked in an\u00a0allowance account\u00a0and allocated to individual\u00a0exposures. \u00a0
(a) Loans at amortised cost \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Reverse transactions \u00a0
1,763 \u00a0
1,747 \u00a0
Other loans \u00a0
930,823 \u00a0
1,094,792 \u00a0
Allowance account \u00a0
13,958 \u00a0
13,721 \u00a0
Total at amortised cost \u00a0
918,628 \u00a0
1,082,818 \u00a0
Loans included payments due\u00a0under finance leases\u00a0of DKK\u00a035,628 million\u00a0at the\u00a0end of 2023 (2022: DKK 31,789 million). \u00a0
(b) Further explanation \u00a0
Classification and\u00a0measurement \u2013 business model assessment \u00a0
The business model assessment in Danske\u00a0Bank Group is applied separately for each business unit represented by the Group\u2019s reportable segments. \u00a0
The assessment is based on observable\u00a0factors for the different portfolios, such as (1) how the performance of\u00a0the business model and the financia\u00a0l \u00a0
assets held within that business model are evaluated and reported to the Executive\u00a0Board and the Board of Directors,\u00a0(2) the\u00a0risks that affect\u00a0the \u00a0
performance of the business\u00a0model and the way such risks are managed and (3) past and expected frequency, value\u00a0and timing\u00a0of sales for the portfolio. \u00a0
In the Group\u2019s banking units (Personal Customers, Business Customers, General Banking in\u00a0LC&I, Northern Ireland and Non-core), the management and \u00a0
reporting of performance are based on collecting the contractual cash flows, and loans are only very infrequently sold. Therefore, the business model has \u00a0
been assessed as being \u2018hold to collect\u2019. \u00a0
G15. Loans\u00a0at amortised\u00a0cost continued \u00a0
Once a year, the Group assesses if past sales are consistent\u00a0with the\u00a0business model for loans in the Group\u2019s banking unit being\u00a0\u2018hold to collect\u2019. In general, \u00a0
if sales are below 5% of the size of a portfolio\u00a0the sales are considered to be insignificant.\u00a0Larger sales are considered individually\u00a0in relation to \u00a0
consistency with the business model. The following sales are\u00a0consistent with\u00a0the business model being \u2018hold to collect\u2019: \u00a0
\u2022
Loans are sold after having previously\u00a0been transferred to one of the Group\u2019s debt collection\u00a0units \u00a0
\u2022
Loans are sold to manage credit concentration\u00a0risk (specific countries or industries) \u00a0
\u2022
Loans to customers that have refocused their activities out of the Nordic region, i.e.\u00a0the customers are no longer Nordic customers \u00a0
\u2022
The sale of loans that are no longer profitable, e.g. due to changes in the regulatory environment or the like \u00a0
Classification and\u00a0measurement \u2013 The SPPI test (solely payment of principal\u00a0and interest\u00a0on the principal amount outstanding) \u00a0
For each loan in the Group\u2019s banking units, it\u00a0is assessed if the contractual\u00a0cash flows are consistent\u00a0with the SPPI test. The principal amount reflects \u00a0
the fair value at initial recognition less any subsequent changes, e.g. due to repayment. The interest represents consideration for the time value of money, \u00a0
credit risk, other basic lending\u00a0risks and a margin consistent with basic lending\u00a0features only.\u00a0If the cash flows introduce\u00a0more than\u00a0de minimis\u00a0exposure \u00a0
to risk or volatility\u00a0that is\u00a0not consistent\u00a0with basic lending\u00a0features, the loan is mandatorily\u00a0recognised at fair value through profit or loss. Features\u00a0that \u00a0
are not genuine do not affect the classification.\u00a0A feature is not genuine if it affects the contractual\u00a0cash flows\u00a0only on\u00a0the occurrence of an\u00a0event that is \u00a0
extremely rare, highly abnormal and very unlikely\u00a0to occur. \u00a0
In general, the SPPI test of the Group\u2019s portfolios of\u00a0loans covers, for instance,\u00a0the following elements: \u00a0
\u2022
Compensation for\u00a0the time value of money. For some of the Group\u2019s variable-rate loans,\u00a0the market standard for\u00a0these loans is\u00a0that the reset \u00a0
frequency and the tenor of the reference rate do not match. It has been assessed that the mismatch\u00a0does not significantly\u00a0modify the\u00a0compensatio n \u00a0
for the time value\u00a0of money. No loans have interest rates that are leveraged or linked to, for instance, the development\u00a0in share prices etc. \u00a0
\u2022
Prepayment options are\u00a0consistent with the SPPI test, if the prepayment amount represents\u00a0the principal\u00a0amount outstanding\u00a0and accrued interest \u00a0
and may include a reasonable compensation\u00a0for early repayment. This is generally the case with the Group\u2019s loans, except\u00a0loans granted by \u00a0
Realkredit Danmark (see\u00a0further below). \u00a0
\u2022
Extension options are\u00a0consistent with\u00a0the SPPI test if the cash flows during the extension period represent cash flows that are solely payments\u00a0of \u00a0
principal and interest on the principal amount outstanding.\u00a0Only very few loans include a contractual\u00a0right for the customer to extend the loan, and \u00a0
for such loans, the interest rate will be updated to the current market rate for such loans. \u00a0
\u2022
Compensation for\u00a0credit risk and other basic lending risks. The interest rate includes a credit margin to compensate the Group for the credit risk, \u00a0
and it may be fixed initially.\u00a0The Group does not incorporate profit sharing agreements, for\u00a0example by contractual terms that increase the credit \u00a0
margin if the customer\u2019s earnings increase. \u00a0
\u2022
Non-recourse features. In general, the Group does not grant loans that legally are non-recourse. However,\u00a0in some cases a financial asset represents \u00a0
an investment\u00a0in particular\u00a0assets or cash flows in which case the contractual cash flows are not solely payments of principal\u00a0and interest on the \u00a0
principal amount outstanding. This\u00a0could be the case when the Group\u2019s claim is limited\u00a0to specified assets of a debtor or the cash flows from specified \u00a0
assets, e.g. related\u00a0to loans granted to a company/a special purpose entity\u00a0with limited\u00a0assets and with no guarantee from the owner/parent \u00a0
company. The Group only grants such loans if the cash flows from the underlying\u00a0asset(s) are large compared to the contractual cash flows from \u00a0
the loans. Therefore, non-recourse-like\u00a0features are limited\u00a0and excluded from\u00a0the assessment. \u00a0
\u2022
Non-payment is\u00a0not considered\u00a0a breach of contract.\u00a0The Group\u00a0does not grant loans where non-payment would not constitute\u00a0a breach of contract. \u00a0
\u2022
The Group grants loans with sustainability-linked\u00a0features. These are loans granted to support customers in achieving\u00a0sustainability targets.\u00a0The \u00a0
loans include incentives\u00a0in the form of a change to the margin applicable to the loan if certain predetermined\u00a0sustainability targets\u00a0specific to the \u00a0
customer are met. These loans have been assessed and the contractual cash flows are considered to fulfil the SPPI test criter\u00a0ia and\u00a0are consistent \u00a0
with a basic lending\u00a0arrangement. As a\u00a0result, the loans are held at amortised cost. \u00a0
Loans granted under Danish mortgage finance law are funded by issuing listed mortgage bonds with matching\u00a0terms. Such\u00a0loans are granted\u00a0by the \u00a0
Realkredit Danmark subsidiary only. Borrowers may repay\u00a0such loans by\u00a0delivering the underlying bonds. This represents an\u00a0option to\u00a0prepay at fair value \u00a0
that can be both above and below the principal amount plus accrued interest and include other elements than the effect\u00a0of changes in the relevant \u00a0
benchmark interest rate.\u00a0The loans do not\u00a0pass the SPPI\u00a0test and are mandatorily recognised at fair value\u00a0through profit or loss, see further in note G16. \u00a0
Financial instruments\u00a0in scope\u00a0of the expected credit loss impairment\u00a0model in IFRS 9 \u00a0
Impairment charges\u00a0for expected\u00a0credit losses apply to all financial assets recognised at amortised cost or at fair value through other comprehensive \u00a0
income, lease receivables and certain loan commitments and financial guarantee contracts. Therefore, the Group\u2019s expected credit\u00a0loss model also \u00a0
applies to bond portfolios included in the line item Investment\u00a0securities, except\u00a0for the bonds that are recognised at fair value through profit or loss. \u00a0
Further, the adjustment\u00a0for fair\u00a0value of\u00a0credit risk on loans granted by Realkredit\u00a0Danmark is\u00a0based on the expected credit loss impairment model in \u00a0
IFRS 9. Further information\u00a0can be found in note G16 in the box on Accounting\u00a0policy. \u00a0
G15. Loans\u00a0at amortised\u00a0cost continued \u00a0
Significant increase in credit risk (transfer from stage 1 to stage 2) \u00a0
The classification of facilities between stages 1\u00a0and 2 for the purpose of calculating\u00a0expected credit\u00a0losses depends on whether the credit risk has \u00a0
increased significantly since\u00a0initial recognition. The\u00a0assessment of whether credit risk has increased significantly\u00a0since initial\u00a0recognition is performed \u00a0
by considering\u00a0the change in the risk of default occurring over the remaining\u00a0life of the facility and incorporating forward-looking information.\u00a0A facility\u00a0is \u00a0
transferred from stage 1 to stage 2 based on observed\u00a0increases in the probability\u00a0of default: \u00a0
\u2022
For facilities originated below 1% in PD: An increase in the facility\u2019s 12-month PD\u00a0of at least 0.5 percentage\u00a0points and\u00a0a doubling\u00a0of the facility\u2019s \u00a0
lifetime PD\u00a0since origination. \u00a0
\u2022
For facilities originated above 1% in PD: An increase in the facility\u2019s 12 month PD of 2\u00a0percentage points or a\u00a0doubling of\u00a0the facility\u2019s lifetime PD \u00a0
since origination. \u00a0
In addition,\u00a0facilities that\u00a0are more than 30 days past due are moved\u00a0to stage 2. 30 days past due is considered\u00a0a backstop.\u00a0Finally, customers subject to \u00a0
forbearance measures are placed in stage 2, if the Group, in the most likely\u00a0outcome, expects no\u00a0loss, or if the customers are subject to the two-year \u00a0
probation period for performing forborne exposures. \u00a0
Stage 3 (credit-impaired facilities) \u00a0
A facility is transferred\u00a0from stage 2 to stage 3 when it becomes credit-impaired.\u00a0A facility\u00a0becomes credit-impaired when one or\u00a0more events that have \u00a0
a detrimental\u00a0impact on\u00a0the estimated future cash flows have occurred. This includes\u00a0observable data about (a) significant financial difficulty of the issuer \u00a0
or the borrower; (b) a breach of contract,\u00a0such as a default or past due event;\u00a0(c) the borrower, for financial or contractual reasons relating to the \u00a0
borrower\u2019s financial difficulty,\u00a0having been\u00a0granted a concession that would not otherwise have been considered; (d) it is becoming\u00a0probable that the \u00a0
borrower will\u00a0enter into bankruptcy\u00a0or other financial restructuring;\u00a0and (e) the purchase or origination\u00a0of a financial asset at a deep discount that reflects \u00a0
the incurred credit loss. It may not be possible to identify\u00a0a single individual\u00a0event \u2013 instead, the combined effect\u00a0of several events may cause financia\u00a0l \u00a0
asset to become credit-impaired.\u00a0Credit-impaired facilities are\u00a0placed in rating\u00a0category 11. For rating category 11 (default), all facilities are classified as \u00a0
stage 3 exposures. \u00a0
Definition of\u00a0default \u00a0
The definition\u00a0of default is used in the measurement of expected credit losses and the assessment to determine movements\u00a0between stages.\u00a0The \u00a0
definition of default is also used for internal credit risk management and capital adequacy purposes. \u00a0
To support a more harmonised\u00a0approach regarding\u00a0the application of\u00a0the definition\u00a0of default, the European Banking Authority\u00a0(EBA) has\u00a0issued the \u00a0
following products that guides the application\u00a0of the definition\u00a0of default: the\u00a0Guidelines on\u00a0the application of\u00a0the definition\u00a0of default,\u00a0EBA/GL/2016/ 0 7 \u00a0
and the Regulatory Technical Standards (RTS)\u00a0on the materiality\u00a0threshold for\u00a0credit obligations\u00a0past due, EBA/RTS/2016/06. \u00a0
The Group\u2019s definition\u00a0of default for accounting\u00a0aligns with the regulatory purposes\u00a0. All exposures that are considered default are also considered Stage \u00a0
3 exposures.\u00a0This is\u00a0applicable for\u00a0exposures that are\u00a0default due to either\u00a0the 90 days past due default trigger or the unli\u00a0keliness to\u00a0pay default triggers. \u00a0
A small amount of credit exposure in stage 3 can be found outside default. This is due to impairment\u00a0staging being updated mo\u00a0nthly (after each month- \u00a0
end), whereas default is updated daily. \u00a0
Purchased or originated credit-impaired\u00a0facilities (POCI) \u00a0
A facility that is credit-impaired\u00a0at initial\u00a0recognition is\u00a0classified as a POCI financial\u00a0asset. This is the case if the financial asset is purchased or originate\u00a0d \u00a0
at a deep discount that reflects the incurred credit losses. For such assets, life-time expected credit losses are recognised for the remaining lifetime of \u00a0
the asset. In general, the Group does not purchase credit-impaired\u00a0financial assets and the category therefore relates to originated credit-impaire\u00a0d \u00a0
facilities, typically originated in\u00a0relation to forbearance measures. \u00a0
Calculation of\u00a0expected credit losses \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as\u00a0a function of the probability\u00a0of default (PD), the exposure\u00a0at default\u00a0(EAD) and\u00a0the loss \u00a0
given default (LGD). In general, the Group\u2019s IFRS 9 impairment models and parameters draw on the bank\u2019s internal models in order to ensure alignment \u00a0
of models across the Group. New models and calculations\u00a0have been\u00a0developed especially\u00a0for IFRS 9 purposes, including\u00a0models for lifetime PD, \u00a0
prepayment and forward-looking LGD. All expected credit loss impairment charges\u00a0are allocated to individual\u00a0exposures. For significant loans in stage 3, \u00a0
the Group determines the expected credit losses individually. \u00a0
Expected remaining lifetime \u00a0
For most facilities,\u00a0the expected lifetime is limited to the remaining contractual maturity and is adjusted for expected prepayment. For exposures with \u00a0
weak credit quality, the likelihood\u00a0of prepayment\u00a0is not included. For\u00a0exposures that\u00a0include both a\u00a0loan and an undrawn commitment\u00a0and where a \u00a0
contractual ability to\u00a0demand prepayment\u00a0and cancellation\u00a0of the undrawn\u00a0commitment does not limit the Group\u2019s exposure to credit losses to the \u00a0
contractual notice period, the expected lifetime is the period during which the Group expects to be\u00a0exposed to credit losses. This period is\u00a0estimated on \u00a0
the basis of the normal credit risk management actions. Products identified\u00a0as in scope of an expected lifetime\u00a0longer than the remaining contractua\u00a0l \u00a0
maturity include credit\u00a0cards, overdraft balances\u00a0and certain revolving\u00a0credit facilities. \u00a0
G15. Loans\u00a0at amortised\u00a0cost continued \u00a0
Incorporation of\u00a0forward-looking information \u00a0
The forward-looking elements of\u00a0the calculation reflect the current expectations\u00a0of the Group\u2019s senior management.\u00a0The Group\u2019s independent \u00a0
macroeconomic research\u00a0unit in Markets\u00a0creates macroeconomic scenarios (base\u00a0case, upside and downside), including\u00a0an assessment\u00a0of the \u00a0
probability of\u00a0each scenario. The purpose of using multiple\u00a0scenarios is to model the non-linear\u00a0impact of assumptions about macroeconomic\u00a0factors on \u00a0
the expected credit losses Afterwards there is a\u00a0process to ensure a review and sign-off of the scenarios. Management\u2019s approval of\u00a0the scenarios can \u00a0
include adjustments\u00a0to the scenarios or to which scenarios are used, the assigned probability weighting\u00a0and post-model\u00a0adjustments to\u00a0cover the outlook \u00a0
for particular\u00a0high-risk portfolios which are not\u00a0provided by\u00a0the Group\u2019s macroeconomists. The\u00a0approved scenarios are\u00a0used to calculate\u00a0the impairment \u00a0
levels. Technically, the forward-looking information is\u00a0used directly\u00a0in the\u00a0PDs through\u00a0an estimate\u00a0of general changes\u00a0to the PDs and the LGDs in the \u00a0
expected credit loss calculation.\u00a0However, for\u00a0significant exposures in stage 3, an individual\u00a0assessment of the scenarios, changes to expected credit \u00a0
losses and the related probabilities\u00a0are performed by senior credit officers. \u00a0
The forward-looking\u00a0information is based on a three year forecast period converging to steady state in year seven. The base case\u00a0is based on the \u00a0
macroeconomic outlook as disclosed in the Group\u2019s Nordic Outlook\u00a0reports. Further information on the macroeconomic scenarios used can be\u00a0found in \u00a0
note G40. \u00a0
Sustainability risk \u00a0
Credit risk is deemed to be the risk type most materially\u00a0affected by sustainability\u00a0risk in the long term, of which climate\u00a0risk is currently\u00a0the most urgent \u00a0
of all ESG-related drivers capable of\u00a0affecting the Group\u2019s credit risk. \u00a0
The Group takes a risk-based approach in prioritising\u00a0risk management\u00a0efforts for credit portfolios that are likely to be most exposed to transition\u00a0and \u00a0
physical risks. For that purpose, the Group applies a mix of qualitative\u00a0and quantitative\u00a0input to define the credit exposures most exposed to transition \u00a0
and physical risks. \u00a0
High transition risk\u00a0exposures are identified\u00a0using a mix of insights, including financed emissions estimates, findings from conducting clima\u00a0te scenario \u00a0
analysis as\u00a0well as\u00a0qualitative judgment\u00a0to account for e.g., credible transition\u00a0plans, potential future technology an\u00a0d demand risks to a given sector. Most \u00a0
of the emissions\u00a0are attributable\u00a0to only a few sectors, e.g., Shipping,\u00a0Oil and Gas, which the Group actively monitors and m\u00a0anages. From the initia\u00a0l \u00a0
assessment of customers subject to high transition\u00a0risk, the exposure to the lagging transition category remains limited but will be monitored on an \u00a0
ongoing basis. \u00a0
The Group has identified flooding risk (river and coastal flooding) as the key physical\u00a0hazard applicable to the portfolio on the basis of\u00a0the report on high \u00a0
confidence of hazard\u00a0increase in Northern\u00a0Europe issued by the Intergovernmental\u00a0Panel on Climate\u00a0Change. The current analyses on\u00a0flooding risk\u00a0focus \u00a0
on residential and commercial property and the risk is assessed to be limited. \u00a0
Moreover, the\u00a0Group performs\u00a0ad-hoc climate stress tests to assess physical and transition\u00a0risks of climate changes. Stress tests in relation to physical \u00a0
risks cover collateral-related\u00a0exposures and are based on river and coastal flooding.\u00a0Stress tests in relation to transition\u00a0risks consider an introductio\u00a0n \u00a0
of carbon taxes. \u00a0
The Group will continue to refine its assessment methodology as more climate risk data becomes available to support the ident\u00a0ification of\u00a0both transitio\u00a0n \u00a0
and physical\u00a0risks for the purpose of determining\u00a0financial significance, however, conclusions have no\u00a0t led to adjustments\u00a0to staging or modelled\u00a0expected \u00a0
credit losses, as the impacts either manifest over a longer time period than loan maturities,\u00a0or as transition\u00a0risks are conc\u00a0entrated on\u00a0a few sectors with \u00a0
downside risks already recognised in the Group\u2019s modelled expected credit losses. Both transition and physical risks are\u00a0either managed through risk \u00a0
tolerances or\u00a0strategic targets, or\u00a0already have post model adjustments/management\u00a0overlays allocated covering the climate re\u00a0lated risks. \u00a0
Write-off policy \u00a0
Loans considered uncollectible\u00a0are written off. Write-offs are debited\u00a0to the allowance account. Loans are written off once the usual collection procedure \u00a0
has been completed and the loss on the individual\u00a0loan can be calculated.\u00a0If the full loss is not expected to be realised until after a number of years, for \u00a0
example in the event of administration\u00a0of complex estates, a partial write-off is recognised, reflecting the Group\u2019s claim less collateral,\u00a0estimated dividend \u00a0
and other cash flows. \u00a0
Modification \u00a0
When a loan is modified the Group assesses whether the modification\u00a0results in derecognition.\u00a0This depends on\u00a0whether the\u00a0changes to the contractua\u00a0l \u00a0
cash flows or other\u00a0contractual terms are\u00a0significant or not, or\u00a0whether they are\u00a0as a result of the Interest Rate Benchmark Reform. \u00a0
A change in the contractual\u00a0cash flows\u00a0that is\u00a0required by\u00a0the reform is accounted for by updating\u00a0the effective interest rat\u00a0e, without recognising a\u00a0gain \u00a0
or loss. This can only be applied\u00a0if the change is necessary as a direct consequence of the reform, a\u00a0nd the new basis for determining\u00a0the contractual cash \u00a0
flows is economically\u00a0equivalent to the previous basis. \u00a0
Otherwise, if the changes are not related to the reform and are significant, the modification\u00a0is accounted\u00a0for as derecognition\u00a0of the original\u00a0loan and \u00a0
recognition of\u00a0a new loan. If the changes are not significant, the modification\u00a0is accounted for as a\u00a0modification of\u00a0the original loan. The assessment is \u00a0
based on the following\u00a0considerations: \u00a0
\u2022
The Group differentiates between changes in the cash\u00a0flows or other terms within the original contract and modifications\u00a0of the contract, i.e. a new \u00a0
contract. \u00a0
\u2022
In general, a significant modification\u00a0is defined as a full credit process, a pricing decision\u00a0and the signing of a new contract. \u00a0
\u2022
An assessment of whether the modification\u00a0is caused as a forbearance measure or made on commercial terms. \u00a0
If the financial\u00a0asset is not derecognised, the original effective interest rate remains unchanged, and the net present value of the changed contractua\u00a0l \u00a0
cash flows\u00a0represents the gross carrying amount of the financial asset after the modification.\u00a0The difference between the net present value of the original \u00a0
contractual cash flows and the modified contractual cash flows is recognised in the income statement as a modification gain or loss. \u00a0
If the original financial asset is derecognised, a derecognition\u00a0gain or loss is recognised in the income statement.\u00a0The derecognition gain\u00a0or loss \u00a0
represents the difference between the carrying amount of the original financial asset (updated to reflect current expected credit losses) and the initia\u00a0l \u00a0
carrying amount of\u00a0the new financial asset plus/minus\u00a0any cash payments\u00a0between the parties in\u00a0relation to the modification. \u00a0
Modifications in\u00a0the form of forbearance measures include interest reduction schedules, interest only schedules, temporary pa\u00a0yment holidays,\u00a0term \u00a0
extensions, cancellation of\u00a0outstanding fees,\u00a0waiver of covenant enforcement and debt forgiveness. For modific\u00a0ations that are\u00a0not significant, the \u00a0
modification loss is recognised in the Income statement within Loan impairment charges. \u00a0
In terms of stage allocation,\u00a0a modification that leads to derecognition of the initial loan and recognition of a new loan, the lo\u00a0an will (unless the new loan is \u00a0
credit-impaired at\u00a0initial recognition) be recognised in stage\u00a01 at initial recognition, i.e.\u00a0the initial credit risk is reset. If the replacing\u00a0loan is considered\u00a0an \u00a0
amendment to the original loan, the initial\u00a0credit risk is not reset. Loans modified as part of the Group\u2019s forbearance policy, where the modification\u00a0does \u00a0
not result in derecognition,\u00a0the loss allowance on the forborne loans will generally\u00a0only be measured based on 12-months expected credit losses when \u00a0
there is evidence of the borrower\u2019s improved repayment behaviour. When a\u00a0loan in stage 3 is modified,\u00a0and the modification results in derecognition, the \u00a0
Group assesses if the new loan is originated\u00a0credit impaired. The assessment\u00a0includes factors\u00a0such as whether the customer\u2019s repayment behaviou\u00a0r \u00a0
has improved significantly prior to the modification\u00a0or not, and whether the pricing\u00a0on the new loan reflects the actual credit risk etc. New loans that are \u00a0
originated credit\u00a0impaired remains under a lifetime ECL calculation\u00a0for the remaining\u00a0term of the exposure. \u00a0
G15. Loans\u00a0at amortised\u00a0cost continued \u00a0
(c) Reconciliation\u00a0of total\u00a0allowance account\u00a0and gross\u00a0credit exposure \u00a0
Below the allowance account and the gross\u00a0credit exposure is reconciled by measurement category. Loans at amortised cost includes besides the \u00a0
balance sheet line item Loans at\u00a0amortised cost, also exposures under Due from\u00a0credit institutions\u00a0that are carried at amortised cost and demand \u00a0
deposits with central banks, see\u00a0note G14. Loans at fair value consists of loans granted by Realkredit Danmark,\u00a0for which the allowance account \u00a0
represents the fair value\u00a0adjustment of\u00a0the credit risk (for further information\u00a0see note G16). Loan commitments\u00a0and guarantees\u00a0consists of guarantees, \u00a0
loan commitments\u00a0shorter than 1\u00a0year and loan commitments\u00a0longer than 1 year, see note G27.\u00a0The allowance account for\u00a0loans at amortised cost\u00a0and \u00a0
at fair value is credited against the related loans, whereas the allowance\u00a0account related to loan commitments\u00a0and guarantees\u00a0is recognised as a liability \u00a0
and presented under Other liabilities. \u00a0
Reconciliation of\u00a0total allowance\u00a0account \u00a0
Loan commitments\u00a0and \u00a0
Loans at amortised cost \u00a0
Loans at fair value \u00a0
guarantees \u00a0
Total \u00a0
(DKK millions) \u00a0
Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
ECL allowance account as at 1 January \u00a0
2022 \u00a0
1,481 \u00a0
4,629 \u00a0
11,103 \u00a0
642 \u00a0
1,221 \u00a0
1,334 \u00a0
594 \u00a0
957 \u00a0
786 \u00a0
22,746 \u00a0
Transferred to stage 1 \u00a0
773 \u00a0
-734 \u00a0
-39 \u00a0
227 \u00a0
-189 \u00a0
-37 \u00a0
152 \u00a0
-145 \u00a0
-6 \u00a0
-
Transferred to stage 2 \u00a0
-242 \u00a0
547 \u00a0
-306 \u00a0
-112 \u00a0
202 \u00a0
-90 \u00a0
-52 \u00a0
84 \u00a0
-33 \u00a0
-
Transferred to stage 3 \u00a0
-9 \u00a0
-446 \u00a0
454 \u00a0
-16 \u00a0
-136 \u00a0
152 \u00a0
-1 \u00a0
-40 \u00a0
41 \u00a0
-
ECL on new assets \u00a0
404 \u00a0
1,299 \u00a0
600 \u00a0
127 \u00a0
216 \u00a0
27 \u00a0
99 \u00a0
127 \u00a0
217 \u00a0
3,117 \u00a0
ECL on assets derecognised \u00a0
-616 \u00a0
-1,200 \u00a0
-3,632 \u00a0
-148 \u00a0
-258 \u00a0
-88 \u00a0
-114 \u00a0
-52 \u00a0
-342 \u00a0
-6,448 \u00a0
Impact of net remeasurement of ECL (incl. \u00a0
changes in models) \u00a0
177 \u00a0
1,509 \u00a0
910 \u00a0
-93 \u00a0
317 \u00a0
-103 \u00a0
55 \u00a0
273 \u00a0
226 \u00a0
3,271 \u00a0
Write offs debited to the allowance \u00a0
account* \u00a0
-
-1 \u00a0
-2,958 \u00a0
-
-2 \u00a0
-56 \u00a0
-
-
-
-3,016 \u00a0
Foreign exchange adjustments \u00a0
-44 \u00a0
-86 \u00a0
117 \u00a0
-
-
-
-7 \u00a0
-21 \u00a0
-57 \u00a0
-99 \u00a0
Other \u00a0
-3 \u00a0
5
72 \u00a0
-
-
112 \u00a0
-
3
-115 \u00a0
74 \u00a0
As at 31 December\u00a02022 \u00a0
1,922 \u00a0
5,524 \u00a0
6,322 \u00a0
627 \u00a0
1,372 \u00a0
1,251 \u00a0
724 \u00a0
1,186 \u00a0
717 \u00a0
19,645 \u00a0
Transferred to stage 1 \u00a0
1,317 \u00a0
-1,237 \u00a0
-80 \u00a0
749 \u00a0
-722 \u00a0
-28 \u00a0
340 \u00a0
-315 \u00a0
-24 \u00a0
-
Transferred to stage 2 \u00a0
-118 \u00a0
401 \u00a0
-283 \u00a0
-15 \u00a0
37 \u00a0
-22 \u00a0
-78 \u00a0
230 \u00a0
-152 \u00a0
-
Transferred to stage 3 \u00a0
-18 \u00a0
-404 \u00a0
421 \u00a0
-3 \u00a0
-29 \u00a0
32 \u00a0
-2 \u00a0
-72 \u00a0
74 \u00a0
-
ECL on new assets \u00a0
354 \u00a0
1,025 \u00a0
501 \u00a0
141 \u00a0
45 \u00a0
22 \u00a0
106 \u00a0
179 \u00a0
85 \u00a0
2,457 \u00a0
ECL on assets derecognised \u00a0
-306 \u00a0
-846 \u00a0
-802 \u00a0
-146 \u00a0
-149 \u00a0
-50 \u00a0
-61 \u00a0
-147 \u00a0
-88 \u00a0
-2,595 \u00a0
Impact of net remeasurement of ECL (incl. \u00a0
-1,277 \u00a0
1,073 \u00a0
775 \u00a0
-272 \u00a0
107 \u00a0
165 \u00a0
-374 \u00a0
213 \u00a0
604 \u00a0
1,014 \u00a0
changes in models) \u00a0
Write offs debited to the allowance account \u00a0
-5 \u00a0
-
-327 \u00a0
-
-
-37 \u00a0
-
-
-
-370 \u00a0
Foreign exchange adjustments \u00a0
-15 \u00a0
17 \u00a0
-2 \u00a0
-
-
-
-3 \u00a0
6
-24 \u00a0
-22 \u00a0
Other \u00a0
-1 \u00a0
-49 \u00a0
92 \u00a0
-1 \u00a0
49 \u00a0
-119 \u00a0
6
-6 \u00a0
39 \u00a0
10 \u00a0
As at 31 December\u00a02023 \u00a0
1,854 \u00a0
5,503 \u00a0
6,617 \u00a0
1,080 \u00a0
710 \u00a0
1,215 \u00a0
658 \u00a0
1,273 \u00a0
1,230 \u00a0
20,140 \u00a0
* DKK 1.0 billion of Write-offs debited to the allowance account in 2022 relates to the Group\u2019s debt collection customers. \u00a0
The movements on the allowance account are\u00a0determined by\u00a0comparing the\u00a0classification and amount in the balance sheet at the beginning and\u00a0the end \u00a0
of the year. The table above excludes the allowance account of\u00a0DKK 4\u00a0million (2022: DKK 4\u00a0million) relating to bonds at\u00a0amortised cost\u00a0or fair value \u00a0
through other comprehensive income (all in stage\u00a01). It also excludes\u00a0the adjustment for credit risk on Loans held for sale (loan portfolios\u00a0within the non\u00a0- \u00a0
core segment where the Group has entered into sales agreements).\u00a0For further\u00a0information on the decomposition\u00a0of the allowance\u00a0account on\u00a0facilitie s \u00a0
in stages 1-3, see the notes on credit risk. \u00a0
G15. Loans\u00a0at amortised\u00a0cost continued \u00a0
Reconciliation of\u00a0gross credit exposure \u00a0
Loan commitments\u00a0and \u00a0
Loans at amortised cost \u00a0
Loans at fair value \u00a0
guarantees \u00a0
Total \u00a0
(DKK millions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Gross carrying amount at 1 January 2022 \u00a0
1,265,007 76,419 26,036\u00a0761,316 34,492 17,035\u00a0537,512 19,678 \u00a0
3,784 2,741,278 \u00a0
Transferred to stage 1 \u00a0
14,623 -14,178\u00a0-445 7,194\u00a0-5,638 -1,556\u00a02,211 -2,173 \u00a0
-37 \u00a0
-
Transferred to stage 2 \u00a0
-40,100 41,487\u00a0-1,387 -15,439\u00a019,643 -4,204 -11,731\u00a011,866 \u00a0
-135 \u00a0
-
Transferred to stage 3 \u00a0
-1,035 \u00a0
-2,479 \u00a0
3,513 \u00a0
-918 \u00a0
-960 \u00a0
1,879 \u00a0
-54 \u00a0
-192 \u00a0
246 \u00a0
-
New assets \u00a0
493,510 35,194 \u00a0
6,020 132,584 \u00a0
6,083 \u00a0
672 249,258 \u00a0
7,646 \u00a0
896 931,863 \u00a0
Assets derecognised \u00a0
-549,726 -27,689 -12,325\u00a0-122,459 -7,024 -3,063\u00a0-266,791 -6,518 -1,314\u00a0-996,908 \u00a0
Changes due to modifications that did not \u00a0
result in\u00a0derecognition \u00a0
-
-
-13 \u00a0
-3 \u00a0
-
-1 \u00a0
-
-
-
-17 \u00a0
Other changes \u00a0
-18,490 \u00a0
-4,864 -1,409 -87,301 -3,444 -1,586 -22,484 -1,313 \u00a0
-379 -141,270 \u00a0
As at 31 December\u00a02022 \u00a0
1,163,791 103,889\u00a019,991 674,974\u00a043,152 \u00a0
9,175 487,921\u00a028,993 \u00a0
3,060 2,534,946 \u00a0
Transferred to stage 1 \u00a0
24,436 -23,919 \u00a0
-517 \u00a0
19,977 -19,269 \u00a0
-707 \u00a0
4,419 -4,295 \u00a0
-124 \u00a0
-
Transferred to stage 2 \u00a0
-32,018 33,463\u00a0-1,445 \u00a0
-5,314 \u00a0
6,194 \u00a0
-880 \u00a0
-8,569 \u00a0
8,948 \u00a0
-379 \u00a0
-
Transferred to stage 3 \u00a0
-2,006 \u00a0
-2,730 \u00a0
4,736 \u00a0
-887 \u00a0
-909 \u00a0
1,796 \u00a0
-1,339 \u00a0
-805 \u00a0
2,144 \u00a0
-
New assets \u00a0
271,614 19,443 \u00a0
5,491 \u00a0
93,294 \u00a0
2,191 \u00a0
495 193,950 \u00a0
6,879 \u00a0
434 593,790 \u00a0
Assets derecognised \u00a0
-259,668 -31,272\u00a0-6,955 -60,819 -6,542 -1,369\u00a0-201,248 -11,898\u00a0-1,388 -581,160 \u00a0
Changes due to modifications that did not \u00a0
-
-
-303 \u00a0
-4 \u00a0
-
-
-
-
-
-308 \u00a0
result in\u00a0derecognition \u00a0
Other changes \u00a0
38,434 \u00a0
-6,645 \u00a0
-227 \u00a0
2,035 \u00a0
-186 \u00a0
-113 \u00a0
-9,681 \u00a0
-459 \u00a0
-228 \u00a0
22,931 \u00a0
As at 31 December\u00a02023 \u00a0
1,204,582 92,229 20,770\u00a0723,254 24,631 \u00a0
8,397 465,453\u00a027,364 \u00a0
3,519 2,570,200 \u00a0
(d) Significant accounting estimates\u00a0related to expected credit losses \u00a0
For information\u00a0on significant\u00a0accounting estimates related to\u00a0expected credit\u00a0losses, see note G1(b). \u00a0
G16. Loans and issued bonds at fair value \u00a0
The Group has two types of portfolios of loans and issued bonds that are measured at fair value through profit or loss. The f irst portfolio consists of loans \u00a0
granted and bonds issued by the subsidiary Realkredit Danmark,\u00a0a Danish mortgage institution\u00a0cover ed\u00a0by Danish mortgage finance law. The other portfolio \u00a0
consists of loans and bonds issued by the Group\u2019s trading units (Markets and Investment Banking\u00a0& Securities in LC&I). \u00a0
Accounting policy \u00a0
Loans granted and bonds issued by Realkredit\u00a0Danmark \u00a0
Loans granted by Realkredit\u00a0Danmark have contractual cash\u00a0flows that are not solely payment of principal and interest on the principal amount \u00a0
outstanding. Therefore,\u00a0the loans are\u00a0mandatorily recognised at\u00a0fair value\u00a0through profit\u00a0or loss. The issued bonds that are\u00a0funding the loans are \u00a0
designated at\u00a0fair value through profit or loss in order not to create an accounting\u00a0mismatch. For\u00a0the issued bonds, changes in fair value attributable\u00a0to \u00a0
the Group\u2019s own credit risk is presented in the income\u00a0statement, as\u00a0an accounting\u00a0mismatch would otherwise be introduced. \u00a0
The fair value of the bonds issued by Realkredit Danmark is normally defined as their quoted market price. A small number of the issued bonds are \u00a0
illiquid, however, and\u00a0the fair value\u00a0of these bonds is calculated\u00a0on the basis of a discounted\u00a0cash flow valuation technique. The fair value of the loans is \u00a0
based on the fair value of the underlying\u00a0bonds which ensures that changes in the fair value of the interest rate risk on the loans are measured based \u00a0
on market implied\u00a0input. This fair value is adjusted for changes in the fair value of cash flows from the loans that differ from the cash flows from the \u00a0
issued bonds. The most important\u00a0component is\u00a0the credit risk on the borrowers (covered by the Group and\u00a0not by\u00a0the bond holders and therefore not \u00a0
priced into the price of the issued bonds). \u00a0
Changes in fair value of credit risk etc on the loans \u00a0
The IFRS 13 estimate\u00a0of the fair value of the credit risk on the loans is based on the expected credit losses estimated in the models developed in \u00a0
connection with the Group\u2019s implementation\u00a0of the expected\u00a0credit loss impairment model in IFRS 9, including\u00a0the allocation o\u00a0f loans\u00a0between stage 1, \u00a0
stage 2 and stage 3. The expected credit losses are calculated for all loans as a function of PD, EAD and LGD and incorporates forward looking \u00a0
information, see\u00a0further in note G15. The latter reflects management\u2019s expectations of\u00a0expected credit\u00a0losses and\u00a0involves multiple scenarios (base \u00a0
case, upside\u00a0and downside),\u00a0including an\u00a0assessment of\u00a0the probability\u00a0for each scenario. \u00a0
On top of the expected\u00a0credit losses, a collective\u00a0assessment determines\u00a0the need for further adjustments\u00a0to reflect other components\u00a0in the fair value \u00a0
measurement, such as an assessment of lifetime\u00a0expected credit\u00a0losses for\u00a0loans in\u00a0stage 1, an investors risk premium, compensation for \u00a0
administrative costs\u00a0related to the loans and the possibility\u00a0to increase the margin on the loans if the credit risk etc increases. It is acknowledged that \u00a0
the possibility to\u00a0increase the margin depends on the economic resources of the customers.\u00a0The possibility\u00a0to increase the margin is therefore only \u00a0
considered in\u00a0the measurement if it is very likely that the margin can be increased without\u00a0the customer defaulting. Further,\u00a0the possibility\u00a0to increase \u00a0
the margin is only relevant if it does not give the customer an incentive to \u201cmove\u201d to another mortgage institution.\u00a0Therefore, the possibility\u00a0to increase \u00a0
the margin is only relevant for the measurement of loans to customers with neither a relatively\u00a0high credit risk nor a relati\u00a0vely low\u00a0credit risk. \u00a0
The discount rate used to discount the cash flows represents the interest rate on the funding bonds. This is considered to be close to a risk-free interes\u00a0t \u00a0
rate. The risk premium is incorporated into the cash\u00a0flows. The risk premium is assumed to be higher for customers with high credit risk than for \u00a0
customers with low credit risk. Further, the adjustments\u00a0for changes in the fair value\u00a0of the credit risk and other components\u00a0cannot increase the value \u00a0
of a loan\u00a0(the adjustment\u00a0cannot be positive). \u00a0
Other loans and\u00a0issued bonds measured at fair value through profit or loss \u00a0
The loans in the Group\u2019s trading units (Markets and Investment Banking & Securities in LC&I) are managed and their performance reported on a fair \u00a0
value basis and the loans are under IFRS 9 mandatorily\u00a0measured at fair value\u00a0through profit or loss. In order not to introduce\u00a0an accounting mismatc\u00a0h \u00a0
by measuring the financial assets in the trading units at\u00a0fair value through profit or loss and the financial liabilities\u00a0at amortised cost, the\u00a0financia l \u00a0
liabilities in\u00a0the trading units are designated at\u00a0fair value through profit or\u00a0loss with fair value changes attributable\u00a0to the Group\u2019s own credit risk \u00a0
presented in\u00a0other comprehensive income. \u00a0
G16. Loans and issued bonds at fair value continued \u00a0
(a) Loans at fair value \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Loans granted by Realkredit Danmark: \u00a0
Nominal value \u00a0
806,157 \u00a0
802,025 \u00a0
Fair value adjustment of underlying bonds \u00a0
-49,874 \u00a0
-74,724 \u00a0
Adjustment for\u00a0credit risk \u00a0
3,006 \u00a0
3,250 \u00a0
Fair value\u00a0of loans granted by Realkredit\u00a0Danmark \u00a0
753,277 \u00a0
724,051 \u00a0
Loans in the Group's trading units: \u00a0
Reverse transactions \u00a0
174,963 \u00a0
208,626 \u00a0
Other loans \u00a0
-
-
Total \u00a0
928,239 \u00a0
932,677 \u00a0
(b) Issued bonds at fair\u00a0value \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Bonds issued by Realkredit Danmark: \u00a0
Nominal value \u00a0
848,774 \u00a0
840,922 \u00a0
Fair value adjustment of funding of current loans \u00a0
-49,874 \u00a0
-74,735 \u00a0
Holding of own mortgage bonds \u00a0
57,837 \u00a0
54,414 \u00a0
Fair value\u00a0of bonds issued by Realkredit\u00a0Danmark \u00a0
741,062 \u00a0
711,773 \u00a0
Bonds issued by the Group's trading units: \u00a0
Commercial papers and certificates of deposit \u00a0
7,718 \u00a0
12,150 \u00a0
Total \u00a0
748,780 \u00a0
723,923 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
(c) Further explanation on loans granted and bonds issued by Realkredit Danmark \u00a0
Each loan granted by Realkredit Danmark\u00a0is funded by issuing listed mortgage bonds with matching characteristics (e.g.\u00a0amount outstanding, reference \u00a0
interest rate, term and currency). The borrower may repay the loan by delivering the underlying bonds to Realkredit Danmark. \u00a0
The loans are held in a business model being similar to other loans in the Group\u2019s banking units, i.e. the business model under IFRS 9 is \u2018held to collect\u2019. The \u00a0
customers\u2019 right to prepay a loan by delivering the underlying\u00a0bonds represents an option to prepay at fair value. Under this prepayment option, the prepayment \u00a0
amount can be both\u00a0above and below the principal amount plus accrued interest.\u00a0Changes in the fair value of the underlying bonds include other elements \u00a0
than the effect of changes in the relevant benchmark interest rate and the prepayment option is therefore not consistent with the SPPI test in IFRS 9 and are \u00a0
mandatorily measured at FVPL. \u00a0
To eliminate the accounting mismatch that would exist if the loans are measured at fair value through profit or loss and the issued bonds at amortised cost, \u00a0
the issued bonds are designated at fair value through profit or loss using the fair value option fo\u00a0r financial liabilities\u00a0in IFRS 9. As the fair value of the loans\u00a0is \u00a0
based on the fair value of the issued bonds, fair value changes of the issued bonds are offset by fair value changes of the loans, including the changes related \u00a0
to the fair value of the own credit risk of the issued bonds. For example, if the credit quality of the bonds worsens the fair value of the liability decreases and \u00a0
the fair value of the loans also decreases. Therefore, fair value changes of own credit risk on the issued bonds are recognised in the income statement, as an \u00a0
accounting mismatch\u00a0would otherwise be created if changes in own credit risk were recognised in other comprehensive income. \u00a0
The value of the loans is affected by changes in the credit risk on the loans. In 2023, the Group recognised DKK -109 million\u00a0regarding changes in the credit \u00a0
risk on loans at fair value\u00a0(2022: DKK\u00a015 million) see note G11. At the end of 2023, the accumulated changes in the credit risk amounted to DKK 3,006 \u00a0
million (2022: DKK 3,250 million). The amounts are determined as the amount of the change in fair value that is not attributable\u00a0to changes\u00a0in market \u00a0
conditions that give rise\u00a0to market risk, with the latter being represented by the fair value of the funding issuedbonds. Th e Group does not use credit derivative s \u00a0
or similar instruments to mitigate the exposure to credit risk. \u00a0
The holding of own mortgage bonds includes pre-issued bonds of DKK 31 billion (2022: DKK\u00a029 billion)\u00a0used for FlexL\u00e5n\u00ae refinancing in January\u00a02024. \u00a0
The nominal\u00a0value of bonds issued by Realkredit Danmark equals the amount to be redeemed on maturity. \u00a0
G16. Loans and issued bonds at fair value continued \u00a0
Fair value adjustment for the credit risk on issued mortgage bonds is calculated on the basis of the option-adjusted spread (OAS). The calculation incorporates \u00a0
maturity, nominal holdings and OAS sensitivity. As a number of estimates are made, the calculation is subject to uncertainty. \u00a0
In 2023, the Danish mortgage bond yield spread increased and the fair value of issued mortgage bonds thus decreased by approx\u00a0imately DKK 6.6\u00a0billion. In \u00a0
2022, the Danish mortgage bond yield spread narrowed, causing an increase in the fair value of issued mortgage bonds. Based o n the outstanding\u00a0portfolio \u00a0
at the end of 2023, Realkredit Danmark estimates that there has been a net narrowing of the spread since the issuance of the bonds, which produces a \u00a0
negative fair value of approximately DKK 0.05 billion (2022: positive fair value of approximately DKK 0.3 billion). Net profit and shareholders\u2019 equity remain \u00a0
unaffected by the\u00a0change in fair value because the spread narrowing increased the value of mortgage loans correspondingly. \u00a0
Fair value adjustment for the credit risk on issued mortgage bonds may also be calculated on the basis of\u00a0changes in similar\u00a0AAA rated mortgage bonds \u00a0
offered by\u00a0other Danish issuers.\u00a0The market for\u00a0such bonds is characterised by an absence of measurable price differences bet\u00a0ween bonds with similar \u00a0
features from different issuers. Using this method, no fair value adjustment for credit risk in 2023 or the period since the issue has been required. \u00a0
(d) Further explanation on loans, deposits and issued bonds by the Group\u2019s trading units \u00a0
The loans in the Group\u2019s trading units (Markets and\u00a0Investment Banking &\u00a0Securities in LC&I) are managed and their performance reported on a fair value \u00a0
basis. The loans are mandatorily recognised at fair value through profit or loss as the business model is neither \u2018held to collect\u2019 nor \u2018held to c ollect and sell\u2019. \u00a0
The loans consist primarily of reverse transactions and short-term loans. In order not to introduce an accounting mismatch, the financial liabilities in the \u00a0
trading units are designated at fair value through profit or loss, using the fair value option in IFRS 9. \u00a0
The financial liabilities consist of issued bonds (certificates of deposits and commercial papers) and deposits (including re po transactions) with a maturity no \u00a0
longer than six months in general. Fair value changes attributable to the Group\u2019s own credit risk are presented in other comprehensive income. During 2023, \u00a0
changes in fair value attributable to the Group\u2019s\u00a0own credit risk recognised in Other Comprehensive\u00a0Income amounted to DKK 0 million (2022: DKK 0 million). \u00a0
In the balance sheet, deposits in the trading units are presented together with other deposits. The amount that the Group would be contractually required to \u00a0
pay at maturity amounts to DKK 8,066 million (2022: DKK 12,636 million) for bonds issued by the Group\u2019s trading units. \u00a0
Credit risk \u00a0
The Group offers\u00a0loans, credits, guarantees and other products as part of its business\u00a0model and thus takes on credit risk. \u00a0
Credit risk is the risk of losses because debtors\u00a0or counterparties\u00a0fail to\u00a0meet all or part of their payment obligations\u00a0to the Group. \u00a0
In accordance with the Group\u2019s Credit Policy, the Group carefully assesses the financial situation of customers to ensure that loans granted are suited to their \u00a0
needs and financial capacity and that customers understand their financial obligations. \u00a0
In order to mitigate\u00a0credit risk, the Group uses a number of measures, including\u00a0collateral, guarantees and covenants. \u00a0
Further information\u00a0on the\u00a0Group\u2019s risk management\u00a0practices related to\u00a0credit risk can\u00a0be found in the report Risk Management 2023. \u00a0
Sustainabilit y\u00a0risk \u00a0
The Group may be exposed to sustainability\u00a0drivers. Credit risk is deemed to be the risk type most materially\u00a0affected by sustainability\u00a0drivers. \u00a0
Sustainability and\u00a0ESG considerations\u00a0are integrated into the Group\u2019s lending practices. \u00a0
Sustainability and\u00a0credit risk \u00a0
Sustainability risks\u00a0are identified,\u00a0assessed and monitored\u00a0at the portfolio level as part of the annual sector reviews, whic\u00a0h include\u00a0an in-depth \u00a0
assessment of sub-sectors and the largest customers. This enables the Group to map the most material sustaina\u00a0bility risks\u00a0facing the individua\u00a0l \u00a0
portfolios, monitor aggregate risk\u00a0levels on\u00a0an ongoing basis, and identify additional\u00a0Credit Risk Policy requirements. When\u00a0deemed necessary, the \u00a0
sustainability risk\u00a0findings are integrated into the Group\u2019s credit risk tolerance to allow for\u00a0portfolio management. \u00a0
Relationship managers use\u00a0a digital system to identify and assess each customer\u2019s sustainability\u00a0risk level through a set of\u00a0sector-specific environmenta\u00a0l, \u00a0
social and governance\u00a0questions for both new and existing business customers. The customer\u00a0-level sustainability risk\u00a0assessments serve as\u00a0input \u00a0
factors in the overall credit decision process and also enable the Group to monitor\u00a0the overall sustainability\u00a0risk level.\u00a0On the\u00a0back of\u00a0results from the \u00a0
ESG Tracker\u00a0tool, relationship\u00a0managers are required to engage with customers with a significant exposure and a high level of identified risks in order to \u00a0
agree on a future\u00a0action plan to mitigate these risks. \u00a0
The Group implemented\u00a0functional enhancements to facilitate customer engagement in human rights and\u00a0a more in\u00a0-depth analysis of\u00a0drivers of \u00a0
customers\u2019 ESG risk levels.\u00a0These bottom-up customer assessments will increasingly be\u00a0tied to the top-down portfolio\u00a0risk management efforts. This will \u00a0
ensure a consistent feedback loop between strategic and\u00a0customer considerations in\u00a0the Group\u2019s sustainability\u00a0risk management\u00a0. \u00a0
Climate risk\u00a0management \u00a0
Climate risk\u00a0is currently the most urgent of all ESG-related drivers\u00a0capable of\u00a0affecting the Group\u2019s credit risk. From\u00a0a financial significance\u00a0perspective , \u00a0
climate-related risks\u00a0have been\u00a0deemed most relevant for the Group\u2019s lending activities\u00a0and risk\u00a0practices are\u00a0being enhanced\u00a0in accordance with \u00a0
regulatory and industry developments. \u00a0
Climate risk\u00a0pertains to\u00a0transition risks, which are the risks associated with shifting to a low\u00a0-carbon economy, and to physical risks arising from projecte\u00a0d \u00a0
climate changes, including both long-term shifts (chronic changes) and\u00a0event-driven changes\u00a0(acute changes) to weather patterns. Credit risk will be \u00a0
affected by both of these climate-related\u00a0risks in the medium\u00a0and long\u00a0term, and efforts are being made to obtain\u00a0improved climate data to\u00a0refine the long\u00a0- \u00a0
term view of climate\u00a0risk across sectors. \u00a0
The Group has identified flooding risk (river and coastal flooding) as the key physical\u00a0hazard applicable to the portfolio on the basis of\u00a0the report on high \u00a0
confidence of hazard increase in Northern Europe issued by the Intergovernmental\u00a0Panel on Climate\u00a0Change. The current mapping of exposures subject \u00a0
to the risk of flooding focuses on residential and commercial property. \u00a0
The Group has taken into consideration\u00a0the financed emissions of the sector portfolios identified\u00a0as climate\u00a0change contribut\u00a0ors and\u00a0has identified\u00a0that \u00a0
most of the emissions\u00a0are attributable\u00a0to only\u00a0a few sectors, which the Group actively monitors\u00a0and manage.\u00a0For instance, this is evidenc ed by the decline \u00a0
in the oil and gas books in recent years. \u00a0
Moreover, the Group performs ad-hoc climate stress tests to assess physical and transition risks of climate changes. Stress tests in relation to physical ris ks \u00a0
cover collateral-related exposures and are based on river and coastal flooding. Stress tests in\u00a0relation to transition risks consider an introduction of carbon \u00a0
taxes. \u00a0
Customer transition risk\u00a0assessments \u00a0
Managing transition risks\u00a0takes place at both portfolio and customer levels. At the portfolio level, the Group sets long\u00a0-term targets for\u00a0sectors with high \u00a0
financed emissions such as for the segments Shipping, Utilities\u00a0etc. Climate risks are\u00a0also taken in\u00a0to consideration when\u00a0the Group determines its risk \u00a0
tolerance process\u00a0for high-risk\u00a0segments to further manage the portfolios. \u00a0
The Group has also developed a methodology\u00a0to assess transition\u00a0risks at the customer\u00a0level to gain a more granular overview\u00a0of transition\u00a0risks in \u00a0
relevant high-emitting sectors.\u00a0The methodology considers the\u00a0customers\u2019 current performance as well as their short-, medium-, and long-term ambition\u00a0s \u00a0
and plans to meet their decarbonisation\u00a0strategy and targets.\u00a0In addition,\u00a0the assessments include an evaluation\u00a0of the custo mers\u2019 risk\u00a0of not executing \u00a0
on their strategies because\u00a0of external factors that affect their ability\u00a0to transition, i.e.\u00a0technology and\u00a0government support\u00a0factors. \u00a0
On the basis of the alignment assessment, technology and government\u00a0factors, it is possible to break down transition\u00a0risk assessment scores i\u00a0nto four \u00a0
categories. The transition\u00a0risk assessments contribute\u00a0to the overall credit evaluation of customers. \u00a0
The Group has an intensified focus on customers that are considered to be lagging in the transition\u00a0process but have started\u00a0from weak financial positions . \u00a0
For these customers, the Group has identified relevant mitigating actions, including increased recog\u00a0nition of\u00a0the expected credit loss to anticipate\u00a0losses \u00a0
during the transition phase. From\u00a0the initial assessment of\u00a0customers subject to high transition risk, the exposure to the la\u00a0gging transition\u00a0category \u00a0
remains limited but will be\u00a0monitored on an\u00a0ongoing basis. \u00a0
See the Group\u2019s risk management report; Risk Management 2023 for more information\u00a0on Sustainability\u00a0risk and the Group\u2019s additional\u00a0Pillar III \u00a0
Disclosures for\u00a0more information on\u00a0Climate risk. The publications\u00a0are available\u00a0at danskebank.com/investor-relations.\u00a0The publications\u00a0are not covered \u00a0
by the statutory audit. \u00a0
Credit exposure continued \u00a0
Credit exposure \u00a0
Credit exposure consists of\u00a0balance sheet\u00a0items and off-balance-sheet items that carry credit risk. Most of the exposure derives from lending activitie\u00a0s \u00a0
in the form of secured and unsecured loans. The Non-core business unit is not considered part of Danske\u00a0Bank\u2019s core activities\u00a0and is stated separately. \u00a0
Securities positions taken by the\u00a0Group\u2019s trading and investment units also\u00a0entail credit risk and are presented as credit exposure from trading and \u00a0
investment securities as well as derivatives\u00a0and loans at the Group\u2019s trading\u00a0units. \u00a0
The overall management of\u00a0credit risk thus covers credit risk from direct lending\u00a0activities, counterparty\u00a0credit risk on\u00a0derivatives and\u00a0loans at the \u00a0
Group\u2019s trading units and credit risk from securities\u00a0positions. \u00a0
The Group\u2019s exposure to the risk on some balance sheet items is limited.\u00a0This is the case for assets under customer-funded\u00a0investment pools, unit-linke\u00a0d \u00a0
investment contracts\u00a0and insurance\u00a0contracts. The risk on\u00a0assets under pooled schemes and\u00a0unit-linked investment contracts\u00a0is assumed solely by the \u00a0
customers, while the risk on assets under insurance contracts is assumed primarily by the customers. The section on life insurance risk describes the \u00a0
Group\u2019s credit risk on\u00a0insurance contracts. \u00a0
Breakdown of credit exposure \u00a0
Lending activities \u00a0
Trading and \u00a0
Customer- \u00a0
(DKK billions) \u00a0
Counterparty \u00a0
investment \u00a0
funded \u00a0
31 December\u00a02023 \u00a0
Total \u00a0
Core \u00a0
Non-core \u00a0
credit risk \u00a0
securities investments \u00a0
Balance sheet items \u00a0
Demand deposits with central banks \u00a0
252.7 \u00a0
252.7 \u00a0
-
-
-
-
Due from credit institutions\u00a0and central banks \u00a0
114.8 \u00a0
21.8 \u00a0
-
93.0 \u00a0
-
-
Trading portfolio assets \u00a0
548.2 \u00a0
-
-
351.7 \u00a0
196.5 \u00a0
-
Investment securities \u00a0
283.9 \u00a0
-
-
-
283.9 \u00a0
-
Loans at amortised cost \u00a0
918.6 \u00a0
917.1 \u00a0
1.5 \u00a0
-
-
-
Loans at fair value \u00a0
928.2 \u00a0
753.3 \u00a0
-
175.0 \u00a0
-
-
Assets under pooled schemes and unit-linked investment \u00a0
contracts \u00a0
70.9 \u00a0
-
-
-
-
70.9 \u00a0
Assets under insurance contracts \u00a0
496.0 \u00a0
-
-
-
-
496.0 \u00a0
Assets held for sale \u00a0
110.4 \u00a0
110.4 \u00a0
-
-
-
-
Off-balance-sheet items \u00a0
Guarantees \u00a0
75.9 \u00a0
75.9 \u00a0
-
-
-
-
Loan commitments\u00a0shorter than 1 year \u00a0
197.0 \u00a0
196.1 \u00a0
0.9 \u00a0
-
-
-
Loan commitments\u00a0longer than 1 year \u00a0
220.3 \u00a0
220.3 \u00a0
-
-
-
-
Other unutilised commitments \u00a0
16.7 \u00a0
-
-
-
0.1 \u00a0
16.6 \u00a0
Total \u00a0
4,233.8 \u00a0
2,547.6 \u00a0
2.5 \u00a0
619.7 \u00a0
480.5 \u00a0
583.6 \u00a0
31 December 2022* \u00a0
Balance sheet items \u00a0
Demand deposits with central banks \u00a0
168.4 \u00a0
168.4 \u00a0
-
-
-
-
Due from credit institutions\u00a0and central banks \u00a0
60.8 \u00a0
22.7 \u00a0
-
38.1 \u00a0
-
-
Trading portfolio assets \u00a0
638.8 \u00a0
-
-
430.1 \u00a0
208.7 \u00a0
-
Investment securities \u00a0
287.4 \u00a0
-
-
-
287.4 \u00a0
-
Loans at amortised\u00a0cost \u00a0
1,082.8 \u00a0
1,081.7 \u00a0
1.2 \u00a0
-
-
-
Loans at fair value \u00a0
932.7 \u00a0
724.1 \u00a0
-
208.6 \u00a0
-
-
Assets under pooled schemes and unit-linked investment \u00a0
contracts \u00a0
66.7 \u00a0
-
-
-
-
66.7 \u00a0
Assets under insurance contracts \u00a0
503.0 \u00a0
-
-
-
-
503.0 \u00a0
Assets held for sale \u00a0
-
-
-
-
-
-
Off-balance-sheet items \u00a0
Guarantees \u00a0
81.4 \u00a0
81.4 \u00a0
-
-
-
-
Loan commitments\u00a0shorter than 1 year \u00a0
236.1 \u00a0
234.8 \u00a0
1.3 \u00a0
-
-
-
Loan commitments\u00a0longer than 1 year \u00a0
199.9 \u00a0
199.9 \u00a0
-
-
-
-
Other unutilised commitments \u00a0
15.2 \u00a0
-
-
-
0.1 \u00a0
15.1 \u00a0
Total \u00a0
4,273.2 \u00a0
2,512.8 \u00a0
2.5 \u00a0
676.9 \u00a0
496.2 \u00a0
584.8 \u00a0
* Comparative information has been restated as described in note G2(a). \u00a0
In addition to credit exposure from\u00a0lending activities, the Group had made uncommitted loan offers\u00a0and granted uncommitted\u00a0li nes\u00a0of credit of DKK 232 \u00a0
billion at\u00a031 December 2023 (2022: DKK 216 billion). These items are included in the calculation of the total risk exposure amount in accordance with \u00a0
the Capital Requirements Directive. \u00a0
Credit exposure continued \u00a0
Credit exposure from core\u00a0lending activities \u00a0
Credit exposure\u00a0from lending activities\u00a0in the Group\u2019s\u00a0core banking\u00a0business includes loans, amounts due\u00a0from credit institut\u00a0ions and\u00a0central banks, \u00a0
guarantees and\u00a0irrevocable loan\u00a0commitments. The\u00a0exposure is measured net of expected credit losses and inc\u00a0ludes repo loans at amortised cost. For \u00a0
reporting purposes,\u00a0all collateral values are net of haircuts and capped at the exposure amount. The credit exposure from Non\u00a0-core lending activities\u00a0is \u00a0
disclosed further on\u00a0in these notes. \u00a0
For details\u00a0about the Group\u2019s credit risk management and the use of information on expected credit losses for risk management\u00a0purposes, see Risk \u00a0
Management 2023. \u00a0
Classification of\u00a0customers \u00a0
The main objectives of risk classification are to rank the Group\u2019s customers according to risk and to estimate each customer\u2019 s probability of default (PD). As \u00a0
part of the credit process, the Group classifies customers according to risk and updates their classifications upon receipt of new information. Risk \u00a0
classification comprises rating and credit scoring of customers. While all large customers are rated, the Group uses fully automated and statistically-based \u00a0
scoring models for small customers such as personal customers and small businesses. Credit scores are updated monthly in a process subject to automated \u00a0
controls. \u00a0
The Group has\u00a0developed a number of classification models to\u00a0assess customer PD and to classify customers in various\u00a0segments . \u00a0
In its credit risk management, the Group uses point in time (PIT) PD estimates\u00a0for risk classification.\u00a0These PIT PD estimate\u00a0s express a\u00a0customer\u2019s \u00a0
probability of\u00a0default within\u00a0the next 12 months in the current economic situation.\u00a0The Group\u2019s classification scale consists of 11 main rating categories \u00a0
with fixed PD bands. During a\u00a0downturn, a\u00a0customer\u2019s PIT\u00a0PD may increase,\u00a0and the customer may migrate to a lower rating cate\u00a0gory. The effect\u00a0from a \u00a0
downturn is thus larger when PIT PD is used than if the classification were based on through-the-cycle\u00a0(TTC) PD, which the Group uses to calculate the \u00a0
risk exposure amount for credit risk. \u00a0
The classification\u00a0of facilities\u00a0between stage 1 and 2 for the\u00a0purpose of calculating\u00a0expected credit\u00a0losses under IFRS 9 dep\u00a0ends on whether the credit \u00a0
risk has increased significantly\u00a0since initial recognition.\u00a0The assessment of whether\u00a0the credit risk ha\u00a0s increased significantly\u00a0since initial recognition\u00a0is \u00a0
performed by\u00a0considering the\u00a0change in\u00a0the risk of default occurring over the remaining life of\u00a0the individual\u00a0facility and\u00a0i ncorporating\u00a0forward-looking \u00a0
information. A\u00a0facility is transferred from stage 1 to stage 2 on the basis of observed increases in the probability of default: \u00a0
\u2022
For facilities\u00a0originated below 1% in PD: an increase in the facility\u2019s 12-month PD\u00a0of at least 0.5 of a percentage point since initial\u00a0recognition and\u00a0a \u00a0
doubling in\u00a0the facility\u2019s lifetime PD since origination. \u00a0
\u2022
For facilities\u00a0originated above 1% in PD: an\u00a0increase in the facility\u2019s 12-month PD\u00a0of 2 percentage points\u00a0since origination or a\u00a0doubling of\u00a0the \u00a0
facility\u2019s lifetime PD\u00a0since origination. \u00a0
In addition,\u00a0facilities that\u00a0are more than 30 days past due are moved\u00a0to stage 2. 30 days past due is considered\u00a0a backstop.\u00a0Finally, customers subject to \u00a0
forbearance measures are placed in stage 2 if the Group, in the most likely outcome, expects no loss or the customers are in the two-year probation \u00a0
period for performing\u00a0forborne exposures. \u00a0
A facility is transferred from stage 2 to stage 3 when it becomes credit-impaired.\u00a0A facility becomes credit-impaired when one or more events that have \u00a0
a detrimental\u00a0impact on\u00a0the estimated future cash flows have occurred. This includes\u00a0observable data abo\u00a0ut (a) significant financial difficulty of the issuer \u00a0
or the borrower; (b) a breach of contract,\u00a0such as a default or past due event;\u00a0(c) the borrower, for financial or contractua\u00a0l reasons relating to the \u00a0
borrower\u2019s financial difficulty,\u00a0having been\u00a0granted a concession that would not otherwise have been considered; (d) it is becoming\u00a0probable that the \u00a0
borrower will\u00a0enter into bankruptcy\u00a0or other financial restructuring;\u00a0and (e) the purchase or origination\u00a0of a financial asse t at a deep discount that reflects \u00a0
the incurred credit loss. It may not be possible to identify\u00a0a single\u00a0discrete event \u2013 instead, the combined effect\u00a0of several events may cause a\u00a0financial \u00a0
asset to become credit-impaired.\u00a0Credit-impaired facilities are\u00a0placed in rating category 10\u00a0or 11. For customers\u00a0in rating\u00a0category 10, the stage 3 \u00a0
classification applies\u00a0only to customers where a loss is expected in the most likely\u00a0scenario. For rating category 11 (defaul\u00a0t), all\u00a0facilities are classified \u00a0
as stage 3 exposures. \u00a0
Exposures which\u00a0are considered to be in default for regulatory\u00a0purposes will always be categorised as\u00a0stage 3 exposures under IFRS 9. This applies to \u00a0
90-days-past-due considerations and\u00a0unlikely-to-pay factors\u00a0leading to regulatory default. \u00a0
Management applies judgement and recognises post-model adjustments\u00a0to cover risks that are not reflected sufficiently\u00a0in the Group\u2019s expected credit \u00a0
loss model. Besides\u00a0increasing the expected credit losses, the post-model adjustments\u00a0may lead to the transfer of part of the gross exposure covered by \u00a0
the post-model adjustments\u00a0from stage 1 to stage 2 through targeted PD pushes to the current point in time estimates\u00a0of PD (i.e. incre ases in the PD for \u00a0
the underlying\u00a0customers in\u00a0the selected portfolios covered by the post-model adjustments)\u00a0to ensure consistency between the methods used for \u00a0
disclosing information about\u00a0expected credit\u00a0losses and exposures subject to significant increase in credit risk. While the d\u00a0istribution of\u00a0customers \u00a0
between the Group\u2019s 11 rating categories is unchanged and reflects the current point-in-time estimate of\u00a0the underlying customers\u2019 PDs, the PD pushes \u00a0
may lead to the transfer of gross exposures to stage 2 as the assessment of the increase in credit risk is performed by compa\u00a0ring the initial PD with the \u00a0
current PD (after the adjustment\u00a0for the targeted PD pushes). \u00a0
Credit exposure continued \u00a0
Expected credit\u00a0losses \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as a\u00a0function of\u00a0the probability\u00a0of default\u00a0(PD), the exposure at default (EAD) and the loss \u00a0
given default (LGD). For\u00a0exposures in\u00a0stage 1,\u00a012- month\u00a0expected credit losses are recognised, while lifetime expected credit losses are recognised for \u00a0
exposures in stage 2-3. For further information see note G15. \u00a0
Credit portfolio\u00a0in core activities\u00a0broken down by rating\u00a0category \u00a0
The Group\u2019s definition of\u00a0default for accounting\u00a0aligns with\u00a0the regulatory purposes. All exposures in\u00a0stage 3 are considered\u00a0default. As a\u00a0result, all non- \u00a0
performing loans are considered default, and hence equal to the total of stage 3 exposures. \u00a0
Although Stage\u00a03 and\u00a0default (rating\u00a011) are generally aligned, a\u00a0small amount of\u00a0credit exposure in stage 3 can be found out\u00a0side default. This is\u00a0due to \u00a0
impairment staging being\u00a0updated monthly (after\u00a0each month-end),\u00a0whereas default is updated daily. For the same reason, some credit exposure in default \u00a0
is outside stage 3. \u00a0
For further details about the Group\u2019s credit risk management and the use of information\u00a0on expected credit losses for risk ma\u00a0nagement purposes, see \u00a0
Risk Management\u00a02023. \u00a0
The table below breaks down\u00a0the credit exposure by rating categories and stages. \u00a0
31 December 2023 \u00a0
PD level \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK billions) \u00a0
Upper Lower\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
1
-
0.01 \u00a0
127.3 \u00a0
0.1 \u00a0
-
-
-
-
127.3 \u00a0
0.1 \u00a0
-
108.9 \u00a0
-
-
2
0.01 \u00a0
0.03 \u00a0
287.2 \u00a0
0.3 \u00a0
-
-
-
-
287.2 \u00a0
0.3 \u00a0
-
178.3 \u00a0
-
-
3
0.03 \u00a0
0.06 \u00a0
536.9 \u00a0
0.7 \u00a0
-
0.1 \u00a0
-
-
536.8 \u00a0
0.6 \u00a0
-
263.2 \u00a0
0.4 \u00a0
-
4
0.06 \u00a0
0.14 \u00a0
607.8 \u00a0
1.9 \u00a0
-
0.2 \u00a0
-
-
607.6 \u00a0
1.9 \u00a0
-
274.9 \u00a0
0.5 \u00a0
-
5
0.14 \u00a0
0.31 \u00a0
434.8 \u00a0
8.1 \u00a0
0.1 \u00a0
0.4 \u00a0
-
-
434.5 \u00a0
8.0 \u00a0
0.1 \u00a0
136.5 \u00a0
5.5 \u00a0
-
6
0.31 \u00a0
0.63 \u00a0
290.0 \u00a0
36.9 \u00a0
0.1 \u00a0
0.7 \u00a0
0.6 \u00a0
-
289.3 \u00a0
36.3 \u00a0
0.1 \u00a0
87.2 \u00a0
18.7 \u00a0
-
7
0.63 \u00a0
1.90 \u00a0
92.3 \u00a0
47.3 \u00a0
0.1 \u00a0
1.2 \u00a0
1.9 \u00a0
-
91.1 \u00a0
45.3 \u00a0
0.1 \u00a0
27.9 \u00a0
17.7 \u00a0
-
8
1.90 \u00a0
7.98 \u00a0
12.2 \u00a0
28.1 \u00a0
0.4 \u00a0
0.9 \u00a0
2.8 \u00a0
-
11.3 \u00a0
25.2 \u00a0
0.4 \u00a0
1.7 \u00a0
6.3 \u00a0
0.2 \u00a0
9
7.98 25.70 \u00a0
1.0 \u00a0
4.8 \u00a0
-
-
1.0 \u00a0
-
1.0 \u00a0
3.8 \u00a0
-
0.2 \u00a0
1.0 \u00a0
-
10 \u00a0
25.70 99.99 \u00a0
0.6 \u00a0
14.8 \u00a0
1.3 \u00a0
-
1.0 \u00a0
0.5 \u00a0
0.6 \u00a0
13.8 \u00a0
0.8 \u00a0
0.2 \u00a0
3.7 \u00a0
0.5 \u00a0
11 (default) \u00a0
100.00 100.00 \u00a0
0.6 \u00a0
1.5 \u00a0
30.7 \u00a0
-
-
8.6 \u00a0
0.6 \u00a0
1.5 \u00a0
22.1 \u00a0
0.4 \u00a0
0.2 \u00a0
2.2 \u00a0
Total \u00a0
2,390.8 \u00a0
144.2 \u00a0
32.7 \u00a0
3.6 \u00a0
7.5 \u00a0
9.1 2,387.2 \u00a0
136.7 \u00a0
23.6 1,079.4 \u00a0
54.1 \u00a0
3.0 \u00a0
31 December 2022 \u00a0
PD level \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral* \u00a0
(DKK billions) \u00a0
Upper Lower\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
1
-
0.01 \u00a0
135.9 \u00a0
0.1 \u00a0
-
-
-
-
135.9 \u00a0
0.1 \u00a0
-
115.2 \u00a0
-
-
2
0.01 \u00a0
0.03 \u00a0
233.5 \u00a0
0.2 \u00a0
-
-
-
-
233.5 \u00a0
0.2 \u00a0
-
116.8 \u00a0
0.1 \u00a0
-
3
0.03 \u00a0
0.06 \u00a0
540.9 \u00a0
0.8 \u00a0
-
0.1 \u00a0
-
-
540.8 \u00a0
0.8 \u00a0
-
262.9 \u00a0
0.3 \u00a0
-
4
0.06 \u00a0
0.14 \u00a0
630.6 \u00a0
1.9 \u00a0
-
0.6 \u00a0
-
-
630.0 \u00a0
1.9 \u00a0
-
298.0 \u00a0
0.9 \u00a0
-
5
0.14 \u00a0
0.31 \u00a0
463.1 \u00a0
14.0 \u00a0
-
0.4 \u00a0
0.1 \u00a0
-
462.7 \u00a0
13.9 \u00a0
-
148.1 \u00a0
7.7 \u00a0
-
6
0.31 \u00a0
0.63 \u00a0
235.8 \u00a0
54.3 \u00a0
-
0.5 \u00a0
0.9 \u00a0
0.1 \u00a0
235.3 \u00a0
53.3 \u00a0
-
76.1 \u00a0
21.4 \u00a0
-
7
0.63 \u00a0
1.90 \u00a0
75.5 \u00a0
59.5 \u00a0
-
0.9 \u00a0
2.6 \u00a0
-
74.6 \u00a0
56.9 \u00a0
-
24.2 \u00a0
20.7 \u00a0
-
8
1.90 \u00a0
7.98 \u00a0
7.3 \u00a0
29.9 \u00a0
-
0.4 \u00a0
2.8 \u00a0
-
6.8 \u00a0
27.0 \u00a0
-
1.7 \u00a0
4.3 \u00a0
-
9
7.98 25.70 \u00a0
0.9 \u00a0
3.1 \u00a0
0.1 \u00a0
-
0.7 \u00a0
-
0.9 \u00a0
2.4 \u00a0
0.1 \u00a0
0.2 \u00a0
0.2 \u00a0
0.1 \u00a0
10 \u00a0
25.70 99.99 \u00a0
0.6 \u00a0
12.0 \u00a0
0.2 \u00a0
-
0.9 \u00a0
0.1 \u00a0
0.6 \u00a0
11.1 \u00a0
0.1 \u00a0
0.3 \u00a0
2.1 \u00a0
-
11 (default) \u00a0
100.00 100.00 \u00a0
0.2 \u00a0
0.4 \u00a0
31.6 \u00a0
0.3 \u00a0
-
8.1 \u00a0
-
0.4 \u00a0
23.5 \u00a0
-
0.1 \u00a0
1.3 \u00a0
Total \u00a0
2,324.2 \u00a0
176.0 \u00a0
32.1 \u00a0
3.3 \u00a0
8.1 \u00a0
8.3 2,321.0 \u00a0
168.0 \u00a0
23.9 1,043.5 \u00a0
58.0 \u00a0
1.4 \u00a0
* Net exposure, ex collateral as at 31 December 2022 has been restated. \u00a0
The stage 3 coverage ratio\u00a0is 75% (31 December 2022: 85%). \u00a0
Credit exposure continued \u00a0
Credit portfolio\u00a0in core activities\u00a0broken down by industry\u00a0(NACE) \u00a0
The table below breaks down credit exposure by industry. The industry\u00a0segmentation is based on\u00a0the classification principles of\u00a0the Sta\u00a0tistica l \u00a0
Classification of\u00a0Economic Activities\u00a0in the European\u00a0Community (NACE) standard adapted to\u00a0the Group\u2019s business risk appro\u00a0ach used for the active \u00a0
management of\u00a0the credit portfolio. \u00a0
31 December\u00a02023 \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK billions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Public institutions \u00a0
298.6 \u00a0
1.0 \u00a0
0.3 \u00a0
-
-
-
298.6 \u00a0
1.0 \u00a0
0.3 295.9 \u00a0
-
-
Financials \u00a0
147.5 \u00a0
3.4 \u00a0
0.4 \u00a0
0.1 \u00a0
0.1 \u00a0
0.1 147.5 \u00a0
3.3 \u00a0
0.2 131.7 \u00a0
2.7 \u00a0
0.2 \u00a0
Agriculture \u00a0
54.8 \u00a0
4.6 \u00a0
2.2 \u00a0
0.3 \u00a0
0.7 \u00a0
0.6 \u00a0
54.5 \u00a0
3.9 \u00a0
1.7 \u00a0
13.1 \u00a0
0.9 \u00a0
-
Automotive \u00a0
24.9 \u00a0
2.5 \u00a0
0.3 \u00a0
-
0.1 \u00a0
0.1 \u00a0
24.9 \u00a0
2.4 \u00a0
0.1 \u00a0
19.9 \u00a0
1.1 \u00a0
-
Capital goods \u00a0
82.7 \u00a0
13.3 \u00a0
1.2 \u00a0
0.1 \u00a0
0.3 \u00a0
0.5 \u00a0
82.6 \u00a0
13.0 \u00a0
0.7 \u00a0
74.3 \u00a0
10.9 \u00a0
0.3 \u00a0
Commercial property* \u00a0
258.0 \u00a0
32.4 \u00a0
4.7 \u00a0
0.8 \u00a0
1.8 \u00a0
0.9 257.3 \u00a0
30.6 \u00a0
3.8 \u00a0
28.8 \u00a0
4.7 \u00a0
0.4 \u00a0
Construction and building materials \u00a0
42.8 \u00a0
6.5 \u00a0
2.1 \u00a0
0.3 \u00a0
1.0 \u00a0
0.9 \u00a0
42.5 \u00a0
5.6 \u00a0
1.2 \u00a0
30.3 \u00a0
2.8 \u00a0
0.5 \u00a0
Consumer goods \u00a0
67.5 \u00a0
8.3 \u00a0
1.3 \u00a0
0.1 \u00a0
0.4 \u00a0
0.5 \u00a0
67.4 \u00a0
7.8 \u00a0
0.9 \u00a0
53.5 \u00a0
5.6 \u00a0
0.2 \u00a0
Hotels, restaurants and leisure \u00a0
12.7 \u00a0
1.8 \u00a0
0.7 \u00a0
-
0.1 \u00a0
0.2 \u00a0
12.7 \u00a0
1.8 \u00a0
0.5 \u00a0
3.0 \u00a0
0.5 \u00a0
0.1 \u00a0
Metals and mining \u00a0
14.6 \u00a0
1.2 \u00a0
-
-
-
-
14.6 \u00a0
1.2 \u00a0
-
12.6 \u00a0
0.9 \u00a0
-
Other commercials \u00a0
11.6 \u00a0
0.3 \u00a0
0.3 \u00a0
0.1 \u00a0
-
0.1 \u00a0
11.5 \u00a0
0.3 \u00a0
0.2 \u00a0
7.9 \u00a0
0.1 \u00a0
-
Pharma and medical devices \u00a0
44.1 \u00a0
2.9 \u00a0
-
-
-
-
44.0 \u00a0
2.9 \u00a0
-
40.6 \u00a0
2.5 \u00a0
-
Private housing co-ops and non-profit \u00a0
associations \u00a0
191.1 \u00a0
4.5 \u00a0
0.6 \u00a0
0.1 \u00a0
0.3 \u00a0
0.2 191.1 \u00a0
4.2 \u00a0
0.5 \u00a0
22.6 \u00a0
1.0 \u00a0
0.1 \u00a0
Pulp, paper and chemicals \u00a0
40.7 \u00a0
3.7 \u00a0
0.9 \u00a0
-
0.1 \u00a0
0.2 \u00a0
40.7 \u00a0
3.6 \u00a0
0.7 \u00a0
29.4 \u00a0
2.6 \u00a0
0.3 \u00a0
Retailing \u00a0
27.7 \u00a0
5.2 \u00a0
1.9 \u00a0
0.1 \u00a0
0.3 \u00a0
0.7 \u00a0
27.6 \u00a0
4.9 \u00a0
1.2 \u00a0
17.6 \u00a0
3.8 \u00a0
0.5 \u00a0
Services \u00a0
63.4 \u00a0
7.6 \u00a0
1.0 \u00a0
0.2 \u00a0
0.3 \u00a0
0.4 \u00a0
63.2 \u00a0
7.3 \u00a0
0.6 \u00a0
51.3 \u00a0
5.9 \u00a0
0.3 \u00a0
Shipping, oil and gas \u00a0
36.3 \u00a0
1.9 \u00a0
2.4 \u00a0
-
0.1 \u00a0
0.4 \u00a0
36.3 \u00a0
1.9 \u00a0
2.0 \u00a0
20.4 \u00a0
0.6 \u00a0
-
Social services \u00a0
29.5 \u00a0
1.3 \u00a0
0.3 \u00a0
-
0.1 \u00a0
0.1 \u00a0
29.4 \u00a0
1.2 \u00a0
0.2 \u00a0
13.0 \u00a0
0.7 \u00a0
-
Telecom and media \u00a0
23.7 \u00a0
0.8 \u00a0
1.7 \u00a0
-
0.1 \u00a0
0.7 \u00a0
23.7 \u00a0
0.7 \u00a0
0.9 \u00a0
18.4 \u00a0
0.6 \u00a0
-
Transportation \u00a0
15.6 \u00a0
2.1 \u00a0
0.4 \u00a0
-
0.1 \u00a0
0.1 \u00a0
15.6 \u00a0
2.0 \u00a0
0.3 \u00a0
7.2 \u00a0
0.7 \u00a0
-
Utilities and\u00a0infrastructure \u00a0
84.0 \u00a0
1.3 \u00a0
-
-
-
-
84.0 \u00a0
1.3 \u00a0
-
62.2 \u00a0
1.2 \u00a0
-
Personal customers \u00a0
819.0 \u00a0
37.7 \u00a0
10.2 \u00a0
1.4 \u00a0
1.6 \u00a0
2.5 817.5 \u00a0
36.1 \u00a0
7.7 125.5 \u00a0
4.2 \u00a0
-
Total \u00a0
2,390.8 144.2 \u00a0
32.7 \u00a0
3.6 \u00a0
7.5 \u00a0
9.1 2,387.2\u00a0136.7 \u00a0
23.6 1,079.4 \u00a0
54.1 \u00a0
3.0 \u00a0
* As at 31 December 2023, DKK 139\u00a0billion of the net exposure in Commercial property is towards residential assets. \u00a0
As at\u00a031 December 2023, oil and gas exposures (within the Shipping,\u00a0oil and gas industry)\u00a0represent a gross exposure\u00a0of DKK\u00a018.1 billion\u00a0(31 December \u00a0
2022: DKK 19.3\u00a0billion) and\u00a0expected credit\u00a0losses of DKK 0.3 billion (31 December 2022: DKK 0.7 billion). Those exposures represent the majority of \u00a0
the exposures in stage 3 within the Shipping, oil and gas industry at the end of 2023. \u00a0
Credit exposure continued \u00a0
Net exposure, ex \u00a0
31 December 2022 \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
collateral* \u00a0
(DKK billions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Public institutions \u00a0
225.8 \u00a0
1.3 \u00a0
-
-
-
-
225.8 \u00a0
1.3 \u00a0
-
223.1 \u00a0
-
-
Financials \u00a0
116.6 \u00a0
3.9 \u00a0
0.3 \u00a0
0.1 \u00a0
0.2 \u00a0
0.1 116.5 \u00a0
3.7 \u00a0
0.2 104.0 \u00a0
2.7 \u00a0
0.1 \u00a0
Agriculture \u00a0
54.9 \u00a0
5.9 \u00a0
2.9 \u00a0
0.2 \u00a0
0.9 \u00a0
0.8 \u00a0
54.6 \u00a0
5.1 \u00a0
2.1 \u00a0
14.1 \u00a0
0.8 \u00a0
-
Automotive \u00a0
25.4 \u00a0
2.3 \u00a0
0.2 \u00a0
-
0.1 \u00a0
0.1 \u00a0
25.4 \u00a0
2.2 \u00a0
0.1 \u00a0
20.7 \u00a0
0.9 \u00a0
-
Capital goods \u00a0
87.3 \u00a0
9.2 \u00a0
1.3 \u00a0
0.1 \u00a0
0.3 \u00a0
0.7 \u00a0
87.2 \u00a0
8.9 \u00a0
0.7 \u00a0
79.0 \u00a0
7.2 \u00a0
-
Commercial property \u00a0
250.6 \u00a0
46.9 \u00a0
3.6 \u00a0
0.4 \u00a0
2.2 \u00a0
0.7 250.3 \u00a0
44.7 \u00a0
2.9 \u00a0
44.9 \u00a0
7.9 \u00a0
-
Construction and building materials \u00a0
43.6 \u00a0
8.6 \u00a0
1.2 \u00a0
0.1 \u00a0
0.5 \u00a0
0.5 \u00a0
43.5 \u00a0
8.1 \u00a0
0.7 \u00a0
32.4 \u00a0
4.6 \u00a0
0.1 \u00a0
Consumer goods \u00a0
72.4 \u00a0
7.6 \u00a0
0.9 \u00a0
0.1 \u00a0
0.4 \u00a0
0.2 \u00a0
72.3 \u00a0
7.2 \u00a0
0.6 \u00a0
57.1 \u00a0
5.2 \u00a0
0.3 \u00a0
Hotels, restaurants and leisure \u00a0
10.3 \u00a0
4.2 \u00a0
1.0 \u00a0
-
0.1 \u00a0
0.3 \u00a0
10.3 \u00a0
4.0 \u00a0
0.8 \u00a0
5.1 \u00a0
0.8 \u00a0
0.1 \u00a0
Metals and mining \u00a0
13.9 \u00a0
1.1 \u00a0
-
-
-
-
13.9 \u00a0
1.1 \u00a0
-
11.8 \u00a0
0.8 \u00a0
-
Other commercials \u00a0
15.4 \u00a0
0.8 \u00a0
0.2 \u00a0
0.3 \u00a0
-
0.1 \u00a0
15.1 \u00a0
0.8 \u00a0
0.2 \u00a0
11.9 \u00a0
0.3 \u00a0
-
Pharma and medical devices \u00a0
42.3 \u00a0
3.7 \u00a0
-
-
0.1 \u00a0
-
42.2 \u00a0
3.6 \u00a0
-
39.6 \u00a0
3.2 \u00a0
-
Private housing co-ops and non-profit \u00a0
associations \u00a0
187.4 \u00a0
3.8 \u00a0
0.6 \u00a0
0.1 \u00a0
0.1 \u00a0
0.1 187.3 \u00a0
3.7 \u00a0
0.5 \u00a0
26.9 \u00a0
0.8 \u00a0
-
Pulp, paper and chemicals \u00a0
47.5 \u00a0
3.9 \u00a0
0.3 \u00a0
-
0.1 \u00a0
0.1 \u00a0
47.5 \u00a0
3.8 \u00a0
0.1 \u00a0
35.8 \u00a0
2.7 \u00a0
-
Retailing \u00a0
30.3 \u00a0
3.1 \u00a0
1.7 \u00a0
0.1 \u00a0
0.1 \u00a0
0.6 \u00a0
30.2 \u00a0
3.0 \u00a0
1.1 \u00a0
19.0 \u00a0
2.2 \u00a0
0.2 \u00a0
Services \u00a0
59.7 \u00a0
6.8 \u00a0
0.8 \u00a0
0.3 \u00a0
0.2 \u00a0
0.3 \u00a0
59.4 \u00a0
6.6 \u00a0
0.4 \u00a0
49.1 \u00a0
4.8 \u00a0
0.1 \u00a0
Shipping, oil and gas \u00a0
34.6 \u00a0
1.2 \u00a0
5.4 \u00a0
-
-
1.0 \u00a0
34.6 \u00a0
1.2 \u00a0
4.4 \u00a0
22.5 \u00a0
0.9 \u00a0
-
Social services \u00a0
26.9 \u00a0
0.8 \u00a0
0.7 \u00a0
-
0.1 \u00a0
0.1 \u00a0
26.8 \u00a0
0.7 \u00a0
0.6 \u00a0
12.9 \u00a0
0.3 \u00a0
-
Telecom and media \u00a0
23.1 \u00a0
1.0 \u00a0
0.2 \u00a0
-
-
0.1 \u00a0
23.1 \u00a0
0.9 \u00a0
0.1 \u00a0
17.8 \u00a0
0.6 \u00a0
-
Transportation \u00a0
13.7 \u00a0
2.6 \u00a0
0.5 \u00a0
-
0.1 \u00a0
0.1 \u00a0
13.6 \u00a0
2.4 \u00a0
0.3 \u00a0
6.3 \u00a0
0.9 \u00a0
0.1 \u00a0
Utilities and\u00a0infrastructure \u00a0
103.4 \u00a0
4.3 \u00a0
-
0.1 \u00a0
0.2 \u00a0
-
103.2 \u00a0
4.1 \u00a0
-
80.4 \u00a0
3.6 \u00a0
-
Personal customers \u00a0
839.3 \u00a0
52.8 \u00a0
10.3 \u00a0
1.2 \u00a0
2.0 \u00a0
2.3 838.1 \u00a0
50.8 \u00a0
8.0 129.2 \u00a0
7.0 \u00a0
-
Total \u00a0
2,324.2 176.0 \u00a0
32.1 \u00a0
3.3 \u00a0
8.1 \u00a0
8.3 2,321.0\u00a0168.0 \u00a0
23.9 1,043.5 \u00a0
58.0 \u00a0
1.4 \u00a0
* Net exposure, ex collateral as at 31 December 2022 has been restated \u00a0
Credit exposure continued \u00a0
The table below breaks down\u00a0credit exposure by core business\u00a0unit and underlying\u00a0segment. \u00a0
Credit portfolio\u00a0in core activities\u00a0broken down by business\u00a0unit \u00a0
31 December 2023 \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK billions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Stage 1\u00a0Stage 2 \u00a0
Stage 3 \u00a0
Personal Customers \u00a0
Personal Customers\u00a0DK \u00a0
424.0 \u00a0
18.6 \u00a0
6.2 \u00a0
1.0 \u00a0
0.9 \u00a0
1.3 \u00a0
423.0 \u00a0
17.7 \u00a0
4.9 \u00a0
49.4 \u00a0
1.8 \u00a0
-
Personal Customers \u00a0
Nordic \u00a0
304.6 \u00a0
12.9 \u00a0
2.8 \u00a0
0.3 \u00a0
0.5 \u00a0
0.8 \u00a0
304.2 \u00a0
12.3 \u00a0
1.9 \u00a0
66.4 \u00a0
1.3 \u00a0
-
Global Private Banking \u00a0
76.5 \u00a0
3.1 \u00a0
0.7 \u00a0
-
0.1 \u00a0
0.2 \u00a0
76.4 \u00a0
3.0 \u00a0
0.5 \u00a0
16.2 \u00a0
1.0 \u00a0
-
Total Personal \u00a0
Customers \u00a0
805.0 \u00a0
34.6 \u00a0
9.6 \u00a0
1.3 \u00a0
1.6 \u00a0
2.4 \u00a0
803.7 \u00a0
33.0 \u00a0
7.3 \u00a0
132.1 \u00a0
4.1 \u00a0
-
Business Customers \u00a0
Asset Finance \u00a0
52.7 \u00a0
9.4 \u00a0
1.4 \u00a0
0.1 \u00a0
0.5 \u00a0
0.5 \u00a0
52.6 \u00a0
8.8 \u00a0
0.9 \u00a0
19.5 \u00a0
1.6 \u00a0
-
Business Customers \u00a0
309.6 \u00a0
36.8 \u00a0
10.4 \u00a0
1.1 \u00a0
3.0 \u00a0
3.7 \u00a0
308.5 \u00a0
33.8 \u00a0
6.7 \u00a0
93.3 \u00a0
13.8 \u00a0
0.6 \u00a0
Commercial Real Estate \u00a0
308.0 \u00a0
24.9 \u00a0
2.3 \u00a0
0.4 \u00a0
1.1 \u00a0
0.3 \u00a0
307.6 \u00a0
23.8 \u00a0
2.0 \u00a0
44.8 \u00a0
3.9 \u00a0
0.1 \u00a0
Business Customers \u00a0
Other \u00a0
0.4 \u00a0
-
0.1 \u00a0
-
-
-
0.4 \u00a0
-
0.1 \u00a0
0.4 \u00a0
-
-
Total Business \u00a0
Customers \u00a0
670.6 \u00a0
71.1 \u00a0
14.2 \u00a0
1.6 \u00a0
4.7 \u00a0
4.5 \u00a0
669.0 \u00a0
66.4 \u00a0
9.7 \u00a0
158.0 \u00a0
19.3 \u00a0
0.6 \u00a0
Large Corporates\u00a0& \u00a0
Institutions \u00a0
595.9 \u00a0
33.8 \u00a0
6.9 \u00a0
0.4 \u00a0
1.1 \u00a0
1.8 \u00a0
595.5 \u00a0
32.7 \u00a0
5.1 \u00a0
511.5 \u00a0
29.8 \u00a0
2.1 \u00a0
Northern Ireland \u00a0
89.4 \u00a0
4.7 \u00a0
1.9 \u00a0
0.3 \u00a0
0.1 \u00a0
0.4 \u00a0
89.1 \u00a0
4.6 \u00a0
1.5 \u00a0
48.1 \u00a0
0.8 \u00a0
0.2 \u00a0
Group Functions \u00a0
229.8 \u00a0
0.1 \u00a0
-
-
-
-
229.8 \u00a0
0.1 \u00a0
-
229.7 \u00a0
-
-
Total \u00a0
2,390.8 \u00a0
144.2 \u00a0
32.7 \u00a0
3.6 \u00a0
7.5 \u00a0
9.1 2,387.2 \u00a0
136.7 \u00a0
23.6 1,079.4 \u00a0
54.1 \u00a0
3.0 \u00a0
31 December 2022 \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral* \u00a0
(DKK billions) \u00a0
Stage 1\u00a0Stage 2 \u00a0
Stage 3\u00a0Stage 1\u00a0Stage 2 \u00a0
Stage 3\u00a0Stage 1\u00a0Stage 2 \u00a0
Stage 3\u00a0Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Personal Customers** \u00a0
Personal Customers\u00a0DK \u00a0
404.3 \u00a0
25.5 \u00a0
6.1 \u00a0
0.9 \u00a0
1.4 \u00a0
1.2 \u00a0
403.3 \u00a0
24.0 \u00a0
4.9 \u00a0
45.8 \u00a0
2.2 \u00a0
-
Personal Customers \u00a0
Nordic \u00a0
349.4 \u00a0
15.9 \u00a0
3.2 \u00a0
0.2 \u00a0
0.3 \u00a0
0.8 \u00a0
349.2 \u00a0
15.6 \u00a0
2.4 \u00a0
72.2 \u00a0
2.0 \u00a0
-
Global Private Banking \u00a0
76.1 \u00a0
7.1 \u00a0
0.6 \u00a0
0.1 \u00a0
0.2 \u00a0
0.2 \u00a0
76.0 \u00a0
6.9 \u00a0
0.4 \u00a0
16.0 \u00a0
2.9 \u00a0
-
Total Personal \u00a0
Customers \u00a0
829.8 \u00a0
48.5 \u00a0
9.9 \u00a0
1.3 \u00a0
2.0 \u00a0
2.2 \u00a0
828.5 \u00a0
46.5 \u00a0
7.7 \u00a0
134.1 \u00a0
7.1 \u00a0
-
Business Customers \u00a0
Asset Finance \u00a0
47.6 \u00a0
12.9 \u00a0
1.2 \u00a0
0.1 \u00a0
0.5 \u00a0
0.3 \u00a0
47.4 \u00a0
12.4 \u00a0
0.8 \u00a0
18.6 \u00a0
2.4 \u00a0
-
Business Customers \u00a0
324.0 \u00a0
56.4 \u00a0
11.1 \u00a0
0.9 \u00a0
3.9 \u00a0
3.5 \u00a0
323.1 \u00a0
52.5 \u00a0
7.5 \u00a0
119.7 \u00a0
17.8 \u00a0
1.0 \u00a0
Commercial Real Esate \u00a0
279.1 \u00a0
22.1 \u00a0
1.3 \u00a0
0.2 \u00a0
0.6 \u00a0
0.3 \u00a0
278.9 \u00a0
21.5 \u00a0
1.0 \u00a0
43.4 \u00a0
3.9 \u00a0
0.2 \u00a0
Business Customers \u00a0
Other \u00a0
0.1 \u00a0
-
-
-
-
-
0.1 \u00a0
-
-
0.1 \u00a0
-
-
Total Business \u00a0
Customers \u00a0
650.7 \u00a0
91.4 \u00a0
13.6 \u00a0
1.2 \u00a0
4.9 \u00a0
4.2 \u00a0
649.5 \u00a0
86.4 \u00a0
9.4 \u00a0
181.7 \u00a0
24.1 \u00a0
1.2 \u00a0
Large Corporates\u00a0& \u00a0
Institutions \u00a0
615.2 \u00a0
29.1 \u00a0
7.0 \u00a0
0.5 \u00a0
1.0 \u00a0
1.5 \u00a0
614.7 \u00a0
28.1 \u00a0
5.5 \u00a0
535.3 \u00a0
25.5 \u00a0
-
Northern Ireland \u00a0
81.4 \u00a0
6.9 \u00a0
1.7 \u00a0
0.3 \u00a0
0.2 \u00a0
0.4 \u00a0
81.1 \u00a0
6.7 \u00a0
1.2 \u00a0
45.4 \u00a0
1.1 \u00a0
0.1 \u00a0
Group Functions \u00a0
147.1 \u00a0
0.2 \u00a0
-
-
-
-
147.1 \u00a0
0.2 \u00a0
-
146.9 \u00a0
0.2 \u00a0
-
Total \u00a0
2,324.2 \u00a0
176.0 \u00a0
32.1 \u00a0
3.3 \u00a0
8.1 \u00a0
8.3 2,321.0 \u00a0
168.0 \u00a0
23.9 1,043.5 \u00a0
58.0 \u00a0
1.4 \u00a0
* Net exposure, ex collateral as at 31 December 2022 has been restated. \u00a0
** Global Private Banking is a new sub-segment in Personal Customers in 2023. Comparatives have been reclassified from other sub-segments of Personal Customers. \u00a0
Concentration risk \u00a0
The Group has implemented a set of frameworks to manage the concentration risk to which the Group is exposed. These frameworks cover single-name \u00a0
concentrations, industry concentrations and geographical concentrations. \u00a0
Industry concentrations \u00a0
The Group manages industry concentrations\u00a0as part of its credit risk tolerance framework by setting exposure limits\u00a0on select\u00a0ed industries.\u00a0For \u00a0
commercial property, this also includes reducing the number of low\u00a0-quality customers\u00a0to ensure creditworthiness\u00a0within the concentration limits. The \u00a0
industry concentrations are updated on\u00a0an ongoing basis and at least once a year. The Group\u00a0accepts the risks on material con\u00a0centrations in\u00a0accordance \u00a0
with the industry-specific\u00a0guidelines that outline the use\u00a0of credit\u00a0policies within the industry. For personal customers, the Group also manages key \u00a0
concentrations in\u00a0relation to high loan-to-value\u00a0(LTV) ratios\u00a0and short-term interest loans, for example. \u00a0
Geographical concentrations \u00a0
Credit reporting includes a breakdown by\u00a0country. For\u00a0selected countries,\u00a0exposures to sovereigns, financial institutions\u00a0and counterparties\u00a0in derivativ e s \u00a0
trading are\u00a0managed within country limits. \u00a0
Single-name concentrations and\u00a0large exposures \u00a0
Limits are set on credit risk exposures to single names, thus protecting the Group from excessive losses resulting from the d efault of a single customer group. \u00a0
The limits on\u00a0large exposures are defined within the large exposure restrictions of article 391 of the Capital Requirements Regulation (EU) No 575/2013 \u00a0
(CRR): \u00a0
\u2022
an absolute limit on the largest single aggregate exposure \u00a0
\u2022
the sum of the 20 largest exposures \u00a0
Collateral \u00a0
The Group uses\u00a0a number\u00a0of measures to mitigate\u00a0credit risk, including\u00a0collateral, guarantees and\u00a0covenants. The main\u00a0method is\u00a0obtaining collateral. \u00a0
The value of collateral is monitored and reassessed by advisers, internal or external assessors, and automatic valuation mode ls to ensure it reflects current \u00a0
market prices. The Groups Collateral System supports this process by only accepting up-to-date values, thus ensuring that the Group complies with regulatory \u00a0
requirements. \u00a0
The validity of the internal and external inputs on which the valuation\u00a0models depend is assessed regularly and the performan ce of the models themselves is \u00a0
validated annually by\u00a0an independent unit, to assess their performance and highlight any deficiencies that need to be addressed. \u00a0
The market value of collateral is subject to a haircut to reflect the fact that the Group may not be able to obtain the estim ated market value upon the sale of \u00a0
the individual\u00a0asset in a distressed situation. Hence, the haircut includes a forced sale reduction, price volatility\u00a0during the sales period, realisation costs and \u00a0
maintenance costs. The haircut applied depends on the type of collateral. For regulatory purposes, the Group also applies mor e conservative haircuts in order \u00a0
to capture the risk of an economic downturn. \u00a0
Type of collateral\u00a0in core activities\u00a0(after haircuts) \u00a0
Personal \u00a0
Business \u00a0
Large Corporates & \u00a0
Other areas (ex - \u00a0
Customers \u00a0
Customers \u00a0
Institutions \u00a0
Northern Ireland\u00a0Group Functions) \u00a0
Total \u00a0
(DKK billions) \u00a0
2023 \u00a0
2022 2023 2022 \u00a0
2023 \u00a0
2022 2023 \u00a0
2022 2023 \u00a0
2022 \u00a0
2023 \u00a0
2022 \u00a0
Real property \u00a0
696.2 \u00a0
730.4 489.9 458.1 \u00a0
42.6 \u00a0
38.0 \u00a0
40.3 \u00a0
36.5 \u00a0
0.1 \u00a0
0.2 1,269.1 1,263.2 \u00a0
- Personal \u00a0
687.3 \u00a0
717.4 \u00a0
1.5 \u00a0
1.8 \u00a0
-
-
26.6 \u00a0
24.7 \u00a0
0.1 \u00a0
0.1 \u00a0
715.6 \u00a0
744.0 \u00a0
- Commercial \u00a0
6.8 \u00a0
10.8 452.4 419.3 \u00a0
40.7 \u00a0
36.4 \u00a0
11.4 \u00a0
9.8 \u00a0
-
0.1 \u00a0
511.4 \u00a0
476.3 \u00a0
- Agricultural \u00a0
2.0 \u00a0
2.2 \u00a0
36.0 \u00a0
37.0 \u00a0
1.9 \u00a0
1.6 \u00a0
2.2 \u00a0
2.1 \u00a0
-
-
42.1 \u00a0
42.9 \u00a0
Bank accounts \u00a0
0.2 \u00a0
0.2 \u00a0
0.4 \u00a0
0.4 \u00a0
-
0.1 \u00a0
-
-
-
-
0.6 \u00a0
0.7 \u00a0
Custody account and securities \u00a0
3.6 \u00a0
3.0 \u00a0
4.1 \u00a0
4.4 \u00a0
10.2 \u00a0
6.6 \u00a0
-
-
-
-
17.9 \u00a0
14.0 \u00a0
Vehicles \u00a0
2.0 \u00a0
1.8 \u00a0
19.7 \u00a0
19.0 \u00a0
3.2 \u00a0
2.8 \u00a0
-
-
-
-
24.9 \u00a0
23.6 \u00a0
Equipment \u00a0
-
-
12.2 \u00a0
11.7 \u00a0
3.4 \u00a0
3.3 \u00a0
2.5 \u00a0
2.5 \u00a0
-
-
18.1 \u00a0
17.5 \u00a0
Vessels \u00a0
-
-
1.1 \u00a0
1.0 \u00a0
18.1 \u00a0
13.3 \u00a0
-
-
-
-
19.2 \u00a0
14.3 \u00a0
Guarantees \u00a0
6.2 \u00a0
6.2 \u00a0
3.6 \u00a0
3.6 \u00a0
12.1 \u00a0
11.6 \u00a0
1.9 \u00a0
2.5 \u00a0
-
-
23.8 \u00a0
23.8 \u00a0
Amounts due \u00a0
0.1 \u00a0
0.2 \u00a0
2.3 \u00a0
2.5 \u00a0
0.8 \u00a0
0.6 \u00a0
0.2 \u00a0
0.2 \u00a0
-
-
3.3 \u00a0
3.5 \u00a0
Other assets \u00a0
0.1 \u00a0
-
29.2 \u00a0
29.8 \u00a0
3.5 \u00a0
3.4 \u00a0
1.4 \u00a0
1.3 \u00a0
-
-
34.3 \u00a0
34.4 \u00a0
Total collateral \u00a0
708.3 \u00a0
741.8 562.5\u00a0530.5 \u00a0
94.0 \u00a0
79.6 \u00a0
46.2 \u00a0
42.9 \u00a0
0.1 \u00a0
0.2 1,411.2 1,395.1 \u00a0
Total unsecured credit exposure \u00a0
135.7 \u00a0
140.8 182.7\u00a0214.8 \u00a0
539.3 \u00a0
568.7 \u00a0
49.0 \u00a0
46.2 \u00a0
-
-
906.7 \u00a0
970.6 \u00a0
Unsecured portion\u00a0of credit \u00a0
exposure (%) \u00a0
16.1 \u00a0
16.0 \u00a0
24.5 \u00a0
28.8 \u00a0
85.2 \u00a0
87.7 \u00a0
51.4 \u00a0
51.8 \u00a0
-
-
39.1 \u00a0
41.0 \u00a0
Past due amounts in core activities (excluding loans in rating category 10 and 11) \u00a0
Past due amounts \u00a0
Personal \u00a0
Business \u00a0
Large Corporates & \u00a0
Other areas (ex \u00a0
Total past due\u00a0Total due under \u00a0
Customers \u00a0
Customers \u00a0
Institutions \u00a0
Northern Ireland\u00a0Group Functions) \u00a0
amount loans \u00a0
(DKK millions) \u00a0
2023 2022 \u00a0
2023 2022 \u00a0
2023 2022 \u00a0
2023 2022 \u00a0
2023 2022\u00a02023 2022 2023 2022 \u00a0
6-30 days \u00a0
43 \u00a0
23 \u00a0
39 \u00a0
24 \u00a0
14 \u00a0
1
2
2
-
-
98 \u00a0
49 1,592 1,547 \u00a0
31-60 days \u00a0
23 \u00a0
20 \u00a0
17 \u00a0
3
3
-
2
-
-
-
44 \u00a0
24 \u00a0
588 \u00a0
467 \u00a0
> 60 days \u00a0
34 \u00a0
58 \u00a0
12 \u00a0
4
-
1
5
-
-
-
52 \u00a0
64 \u00a0
454 \u00a0
487 \u00a0
Total past due \u00a0
amounts \u00a0
100 \u00a0
101 \u00a0
68 \u00a0
31 \u00a0
17 \u00a0
2
8
2
-
-
194 \u00a0
136 \u00a0
-
Total due under \u00a0
loans \u00a0
1,640 1,627 \u00a0
887 \u00a0
788 \u00a0
17 \u00a0
2
89 \u00a0
83 \u00a0
1
2
2,634 2,501 \u00a0
For the past due amounts, the average unsecured portion of the claims recorded was 23.6% at the end of 2023 (2022: 22.0%). Real property accounted for \u00a0
59.7% of collateral provided (2022: 67.2%). \u00a0
Forbearance practices and repossessed assets \u00a0
The Group adopts forbearance plans to assist customers in financial difficulty. Concessions granted to customers include inte\u00a0rest-reduction schedules, \u00a0
interest-only schedules, temporary payment holidays, term extensions, cancellation of outstanding fees,\u00a0w aiver\u00a0of covenant enforcement\u00a0and debt \u00a0
forgiveness. Forbearance plans must comply with the Group\u2019s Credit Policy. They are used as an instrument to retain long\u00a0-term business relationships \u00a0
during economic downturns if\u00a0there is a realistic\u00a0possibility that\u00a0the customer will be able to meet its obligations\u00a0again, or are used for minimising\u00a0losses \u00a0
in the event of default. \u00a0
If it proves impossible\u00a0to improve\u00a0the customer\u2019s financial situation\u00a0by forbearance\u00a0measures, the Group will consider whethe\u00a0r to subject the customer\u2019s \u00a0
assets to a forced sale or whether the assets could be realised later at higher net proceeds.\u00a0At the\u00a0end of 2023,\u00a0the Group had recognised propertie\u00a0s \u00a0
taken over in\u00a0Denmark at\u00a0a carrying amount of DKK 17 million (2022: DKK 4 million), and\u00a0there were no properties\u00a0taken over in other countries (2022: \u00a0
DKK 0\u00a0million). The properties are\u00a0held for sale and included under Assets held for sale in the balance sheet. \u00a0
The Group applies the European Banking Authority\u2019s\u00a0(the EBA\u2019s) definition\u00a0of loans subject to forbearance measures. The EBA d\u00a0efinition states that a \u00a0
probation period of a minimum\u00a0of two years must pass from the date when forborne exposures are considered t\u00a0o be performing again. Forbearance \u00a0
measures lead to changes in staging for impairment\u00a0purposes, and impairments\u00a0relating to forborne exposures are handled accor\u00a0ding to the principle\u00a0s \u00a0
described in note G15. \u00a0
Exposures subject\u00a0to forbearance\u00a0measures \u00a0
31 December \u00a0
31 December \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Stage 1 \u00a0
297 \u00a0
367 \u00a0
Stage 2 \u00a0
5,279 \u00a0
3,029 \u00a0
Stage 3 \u00a0
7,023 \u00a0
6,165 \u00a0
Total \u00a0
12,598 \u00a0
9,561 \u00a0
Expected credit losses (allowance account) in core\u00a0activities \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as\u00a0a function of the probability\u00a0of default (PD), the exposure\u00a0at default\u00a0(EAD) and\u00a0the loss \u00a0
given default (LGD). In general, the Group\u2019s IFRS 9 impairment models and parameters draw on the bank\u2019s internal models in order to ensure alignment \u00a0
of models across the Group. New models and calculations\u00a0have been\u00a0developed especially\u00a0for IFRS 9 purposes, including\u00a0models for lifetime PD, \u00a0
prepayment and forward-looking\u00a0LGD. All expected credit loss impairments\u00a0are allocated to individual\u00a0exposures. For significant stage 3 exposures, the \u00a0
Group determines\u00a0the expected credit losses individually. \u00a0
(DKK millions) \u00a0
Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Total \u00a0
ECL allowance account as at 1 January 2022 \u00a0
2,733 \u00a0
6,804 \u00a0
12,397 \u00a0
21,935 \u00a0
Transferred to stage 1 during the period \u00a0
1,144 \u00a0
-1,062 \u00a0
-83 \u00a0
-
Transferred to stage 2 during the period \u00a0
-405 \u00a0
834 \u00a0
-428 \u00a0
-
Transferred to stage 3 during the period \u00a0
-26 \u00a0
-617 \u00a0
642 \u00a0
-
ECL on new assets \u00a0
630 \u00a0
1,643 \u00a0
844 \u00a0
3,116 \u00a0
ECL on assets derecognised \u00a0
-870 \u00a0
-1,487 \u00a0
-3,971 \u00a0
-6,329 \u00a0
Impact of net remeasurement of ECL (incl. changes in\u00a0models) \u00a0
120 \u00a0
2,101 \u00a0
1,032 \u00a0
3,253 \u00a0
Write-offs debited to the allowance account \u00a0
-
-2 \u00a0
-2,195 \u00a0
-2,198 \u00a0
Foreign exchange adjustments \u00a0
-51 \u00a0
-107 \u00a0
-15 \u00a0
-173 \u00a0
Other changes \u00a0
-1 \u00a0
-26 \u00a0
27 \u00a0
1
ECL allowance account as at\u00a031 December\u00a02022 \u00a0
3,273 \u00a0
8,082 \u00a0
8,251 \u00a0
19,605 \u00a0
ECL allowance account as at 1 January 2023 \u00a0
3,273 \u00a0
8,082 \u00a0
8,251 \u00a0
19,605 \u00a0
Transferred to stage 1 during the period \u00a0
2,406 \u00a0
-2,274 \u00a0
-132 \u00a0
-
Transferred to stage 2 during the period \u00a0
-211 \u00a0
668 \u00a0
-457 \u00a0
-
Transferred to stage 3 during\u00a0the period \u00a0
-22 \u00a0
-505 \u00a0
527 \u00a0
-
ECL on new assets \u00a0
601 \u00a0
1,249 \u00a0
607 \u00a0
2,457 \u00a0
ECL on assets derecognised \u00a0
-513 \u00a0
-1,142 \u00a0
-936 \u00a0
-2,591 \u00a0
Impact of net remeasurement of ECL (incl. changes in models) \u00a0
-1,923 \u00a0
1,393 \u00a0
1,579 \u00a0
1,048 \u00a0
Write-offs debited to the allowance account \u00a0
-5 \u00a0
-
-364 \u00a0
-370 \u00a0
Foreign exchange adjustments \u00a0
-18 \u00a0
23 \u00a0
-26 \u00a0
-22 \u00a0
Other changes \u00a0
5
-7 \u00a0
12 \u00a0
10 \u00a0
ECL allowance account as at\u00a031 December\u00a02023 \u00a0
3,592 \u00a0
7,486 \u00a0
9,062 \u00a0
20,140 \u00a0
The stage 3 allowance account includes DKK 1.9 billion (2022: DKK 2.5 billion) relating to originated credit impaired financial assets. Originated\u00a0credit \u00a0
impaired financial assets are granted as\u00a0part of\u00a0restructuring non-performing loan\u00a0exposures, and are otherwise outside the Group\u2019s credit\u00a0policy. The \u00a0
Group has not acquired any credit impaired financial assets. \u00a0
Expected credit\u00a0losses (allowance account) in\u00a0core activities\u00a0broken down by segment \u00a0
Large \u00a0
Personal \u00a0
Business \u00a0
Corporates & \u00a0
Northern \u00a0
Group \u00a0
Allowance \u00a0
(DKK millions) \u00a0
Customers \u00a0
Customers \u00a0
Institutions \u00a0
Ireland \u00a0
Functions \u00a0
account Total \u00a0
ECL allowance account as at 1 January 2022 \u00a0
5,654 \u00a0
10,186 \u00a0
5,227 \u00a0
850 \u00a0
17 \u00a0
21,935 \u00a0
ECL on new assets \u00a0
606 \u00a0
2,107 \u00a0
330 \u00a0
67 \u00a0
6
3,116 \u00a0
ECL on assets derecognised \u00a0
-713 \u00a0
-2,100 \u00a0
-3,383 \u00a0
-128 \u00a0
-4 \u00a0
-6,329 \u00a0
Impact on remeasurement of ECL (incl. change in models) \u00a0
837 \u00a0
663 \u00a0
1,494 \u00a0
244 \u00a0
15 \u00a0
3,253 \u00a0
Write-offs debited to allowance account \u00a0
-946 \u00a0
-438 \u00a0
-684 \u00a0
-129 \u00a0
-
-2,198 \u00a0
Foreign currency translation \u00a0
-32 \u00a0
-166 \u00a0
67 \u00a0
-41 \u00a0
-1 \u00a0
-173 \u00a0
Other changes \u00a0
22 \u00a0
-16 \u00a0
-2 \u00a0
-
-3 \u00a0
1
ECL allowance account as at\u00a031 December\u00a02022 \u00a0
5,427 \u00a0
10,235 \u00a0
3,050 \u00a0
863 \u00a0
31 \u00a0
19,605 \u00a0
ECL on new assets \u00a0
483 \u00a0
1,544 \u00a0
351 \u00a0
84 \u00a0
-4 \u00a0
2,457 \u00a0
ECL on assets derecognised \u00a0
-673 \u00a0
-1,825 \u00a0
-43 \u00a0
-44 \u00a0
-5 \u00a0
-2,591 \u00a0
Impact on remeasurement of ECL (incl. change in models) \u00a0
265 \u00a0
874 \u00a0
16 \u00a0
-115 \u00a0
9
1,048 \u00a0
Write-offs debited to allowance account \u00a0
-172 \u00a0
-150 \u00a0
-32 \u00a0
-15 \u00a0
-
-370 \u00a0
Foreign currency translation \u00a0
-8 \u00a0
5
-39 \u00a0
21 \u00a0
-1 \u00a0
-22 \u00a0
Other changes \u00a0
-16 \u00a0
22 \u00a0
7
-
-3 \u00a0
10 \u00a0
ECL allowance account as at\u00a031 December\u00a02023 \u00a0
5,306 \u00a0
10,705 \u00a0
3,308 \u00a0
794 \u00a0
26 \u00a0
20,140 \u00a0
The method used\u00a0for calculating expected credit losses\u00a0is described in detail in note G15. \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
Gross credit exposure in core\u00a0activities \u00a0
(DKK millions) \u00a0
Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Total \u00a0
Gross carrying amount at 1 January 2022 \u00a0
2,560,945 \u00a0
130,588 \u00a0
46,012 2,737,545 \u00a0
Transferred to stage 1 \u00a0
24,028 \u00a0
-21,990 \u00a0
-2,038 \u00a0
-
Transferred to stage 2 \u00a0
-67,270 \u00a0
72,996 \u00a0
-5,726 \u00a0
-
Transferred to stage 3 \u00a0
-1,991 \u00a0
-3,614 \u00a0
5,605 \u00a0
-
New assets \u00a0
874,798 \u00a0
48,923 \u00a0
7,588 \u00a0
931,309 \u00a0
Assets derecognised \u00a0
-938,904 \u00a0
-41,249 \u00a0
-15,928 -996,081 \u00a0
Changes due to modifications that did not result in derecognition \u00a0
-3 \u00a0
-
-14 -17 \u00a0
Other changes \u00a0
-127,364 \u00a0
-9,620 \u00a0
-3,366 -140,350 \u00a0
As at 31 December\u00a02022 \u00a0
2,324,240 \u00a0
176,034 \u00a0
32,132 2,532,406 \u00a0
Transferred to stage 1 \u00a0
48,832 \u00a0
-47,483 \u00a0
-1,348 \u00a0
-
Transferred to stage 2 \u00a0
-45,901 \u00a0
48,605 \u00a0
-2,704 \u00a0
-
Transferred to stage 3 \u00a0
-4,232 \u00a0
-4,443 \u00a0
8,676 \u00a0
-
New assets \u00a0
558,458 \u00a0
28,512 \u00a0
6,420 \u00a0
593,390 \u00a0
Assets derecognised \u00a0
-520,788 \u00a0
-49,712 \u00a0
-9,618 -580,117 \u00a0
Changes due to modifications that did not result in derecognition \u00a0
-4 \u00a0
-
-303 \u00a0
-308 \u00a0
Other changes \u00a0
30,219 \u00a0
-7,289 \u00a0
-568 \u00a0
22,361 \u00a0
As at 31 December\u00a02023 \u00a0
2,390,822 \u00a0
144,224 \u00a0
32,686 2,567,733 \u00a0
In the\u00a0table above, \u2018Changes due to modifications\u00a0that did not result in derecognition\u2019 includes partial forgiveness of\u00a0debt assessed to be uncollectible\u00a0. \u00a0
The modification loss\u00a0is recognised within the income statement as part of Loan impairment charges. The contractual amount of loans written off in 2023 \u00a0
and for which the Group retains the right to enforce its claims amounted to DKK\u00a01,873 million (2022: DKK 3,300\u00a0million). \u00a0
Allowance account\u00a0in core activities\u00a0broken down by balance\u00a0sheet item \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Due from credit institutions\u00a0and central banks \u00a0
15 \u00a0
47 \u00a0
Loans at amortised cost \u00a0
13,959 \u00a0
13,682 \u00a0
Loan commitments\u00a0and guarantees \u00a0
3,161 \u00a0
2,627 \u00a0
ECL Impairment,\u00a0Total \u00a0
17,134 \u00a0
16,356 \u00a0
Fair value credit risk adjustment on loans at fair value \u00a0
3,005 \u00a0
3,250 \u00a0
Total \u00a0
20,140 \u00a0
19,605 \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
Forward-looking information \u00a0
The incorporation\u00a0of forward-looking\u00a0information reflects the expectations\u00a0of the Group\u2019s\u00a0senior management and involves\u00a0both macroeconomic \u00a0
scenarios (base\u00a0case, upside and downside scenarios), including\u00a0an assessment of the probability\u00a0for each scenario ,\u00a0and post-model adjustments.\u00a0The \u00a0
purpose of using multiple\u00a0scenarios is\u00a0to model the non-linear impact of assumptions about macroeconomic factors on\u00a0the expected credit losses. Post- \u00a0
model adjustments\u00a0are used to capture specific risks which are not fully covered by the macroeconomic scenarios, as well as the process related risk, \u00a0
which could lead to an underestimation\u00a0of the expected\u00a0credit losses. \u00a0
Given the long-term nature of\u00a0climate scenario analysis, it is not included in the three\u00a0-year macroeconomic scenarios used to calculate expected credit \u00a0
loss. See Sustainability\u00a0risk section of this note for further information. \u00a0
Macroeconomic scenarios \u00a0
The forward-looking information\u00a0is based on a three-year forecast period converging\u00a0to steady state\u00a0in year seven. That is, after the forecast period, the \u00a0
macroeconomic scenarios revert slowly towards a\u00a0steady state. \u00a0
The applied scenarios that drive the expected credit loss calculation\u00a0in 2023 have been updated with the latest macroeconomic\u00a0data. Compared to the \u00a0
end of 2022, the base case and upside scenarios have been revised to reflect expectations\u00a0of higher GDP and\u00a0lower unemployment, but also higher \u00a0
interest rates\u00a0and lower house prices outside Denmark.\u00a0The scenario weighting have been updated to increase the weight on the\u00a0upside scenario to 20% \u00a0
(10% in 2022), by decreasing the weight on the base case scenario to 60% (70% in 2022). The weight on the downside scenario\u00a0remains at\u00a020% (20% \u00a0
in 2022) despite the use of a severe stagflation scenario. \u00a0
The base case is an extension\u00a0of the\u00a0Group\u2019s official\u00a0view of the Nordic economies (the Nordic Outlook report). At 31 Decembe\u00a0r 2023,\u00a0the base case \u00a0
scenario reflects a slowdown in the Nordic economies however, with a soft landing. Inflation is expected to c\u00a0ome down and interest rates will slowly begin \u00a0
to decrease. GDP growth will remain weak across the Nordic economies and labour markets remain tight with only modest increas\u00a0es in unemployment. \u00a0
Interest rates is\u00a0expected to continue to\u00a0weigh on house prices, however,\u00a0the worst\u00a0part is expected to\u00a0be behind us. \u00a0
The upside scenario represents a slightly better outlook than the base case scenario across the macroeconomic parameters. In this\u00a0scenario, sentiment \u00a0
improves, and consumers follow the US in running down a significant proportion of the savings\u00a0accumulated during the\u00a0pandemic .\u00a0The consumer-led \u00a0
recovery causes inflation\u00a0to take longer to return to target, prompting further policy rate hikes and high rates for longer. Higher demand sup\u00a0ports the \u00a0
housing markets, but higher interest rates become an\u00a0increasing headwind. The housing market fares\u00a0somewhat better\u00a0than in the base case. \u00a0
The Group\u2019s downside scenario is the severe recession with high interest rates scenario (reflecting a stagflation scenario) applied in\u00a0the Group\u2019s ICAAP \u00a0
processes, and it is similar\u00a0in nature\u00a0to regulatory\u00a0stress tests.\u00a0The severe recession scenario reflected negative growth, i\u00a0ncreasing interest\u00a0rates, and \u00a0
falling property prices for\u00a0a longer period. A trigger of the economic setback could be continued macroeconomic\u00a0worsening and challenges linked to high \u00a0
business costs while inflation remain elevated. This adversely impacts the labour market, results in higher and more\u00a0persistent unemployment.\u00a0This \u00a0
would lead to a severe slowdown in the economies\u00a0in which the Group is represented. \u00a0
The main macroeconomic parameters in the base case, upside and downside scenarios entering into the ECL calculation for the forecast horizon across \u00a0
the Group\u2019s Nordic markets are included below. \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
Denmark \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
1.0 \u00a0
1.6 \u00a0
1.6 \u00a0
-3.4 \u00a0
-2.0 \u00a0
-
2.5 \u00a0
1.8 \u00a0
0.4 \u00a0
Unemployment \u00a0
3.1 \u00a0
3.3 \u00a0
3.4 \u00a0
6.3 \u00a0
7.5 \u00a0
7.9 \u00a0
2.7 \u00a0
2.6 \u00a0
3.2 \u00a0
Inflation \u00a0
2.0 \u00a0
1.9 \u00a0
1.8 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
2.4 \u00a0
2.5 \u00a0
1.4 \u00a0
Property prices - Residential \u00a0
1.5 \u00a0
2.0 \u00a0
2.1 \u00a0
-19.7 \u00a0
-11.0 \u00a0
-6.0 \u00a0
3.5 \u00a0
3.0 \u00a0
2.1 \u00a0
Interest rate - 3 month \u00a0
3.1 \u00a0
2.3 \u00a0
2.0 \u00a0
5.4 \u00a0
6.4 \u00a0
3.9 \u00a0
4.3 \u00a0
3.5 \u00a0
2.5 \u00a0
Sweden \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
1.2 \u00a0
1.8 \u00a0
2.4 \u00a0
-3.5 \u00a0
-3.4 \u00a0
-1.0 \u00a0
2.6 \u00a0
2.1 \u00a0
1.3 \u00a0
Unemployment \u00a0
8.2 \u00a0
8.0 \u00a0
7.9 \u00a0
9.4 \u00a0
10.3 \u00a0
10.7 \u00a0
7.9 \u00a0
7.5 \u00a0
7.7 \u00a0
Inflation \u00a0
1.9 \u00a0
1.3 \u00a0
1.6 \u00a0
4.9 \u00a0
3.9 \u00a0
2.9 \u00a0
2.0 \u00a0
1.6 \u00a0
1.5 \u00a0
Property prices - Residential \u00a0
-1.0 \u00a0
4.0 \u00a0
5.0 \u00a0
-22.0 \u00a0
-13.0 \u00a0
-7.0 \u00a0
1.0 \u00a0
5.0 \u00a0
5.0 \u00a0
Interest rate - 3 month \u00a0
3.4 \u00a0
2.3 \u00a0
2.0 \u00a0
5.7 \u00a0
5.7 \u00a0
3.7 \u00a0
4.6 \u00a0
3.6 \u00a0
2.6 \u00a0
Norway \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
1.1 \u00a0
2.1 \u00a0
1.5 \u00a0
-2.7 \u00a0
-1.1 \u00a0
0.6 \u00a0
2.5 \u00a0
2.4 \u00a0
0.4 \u00a0
Unemployment \u00a0
2.3 \u00a0
2.5 \u00a0
2.5 \u00a0
5.5 \u00a0
6.4 \u00a0
6.5 \u00a0
2.0 \u00a0
2.0 \u00a0
2.3 \u00a0
Inflation \u00a0
3.0 \u00a0
2.0 \u00a0
2.0 \u00a0
4.5 \u00a0
3.0 \u00a0
2.0 \u00a0
3.2 \u00a0
2.3 \u00a0
1.8 \u00a0
Property prices - Residential \u00a0
-1.0 \u00a0
5.0 \u00a0
4.0 \u00a0
-19.0 \u00a0
-13.0 \u00a0
-7.0 \u00a0
-
6.0 \u00a0
4.0 \u00a0
Interest rate - 3 month \u00a0
3.7 \u00a0
2.9 \u00a0
2.5 \u00a0
6.3 \u00a0
6.3 \u00a0
4.3 \u00a0
5.0 \u00a0
4.0 \u00a0
3.0 \u00a0
Finland \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
0.3 \u00a0
1.9 \u00a0
1.3 \u00a0
-2.4 \u00a0
-2.0 \u00a0
-0.3 \u00a0
1.3 \u00a0
2.2 \u00a0
0.4 \u00a0
Unemployment \u00a0
-0.1 \u00a0
2.0 \u00a0
1.5 \u00a0
9.9 \u00a0
10.9 \u00a0
10.9 \u00a0
7.6 \u00a0
6.9 \u00a0
6.4 \u00a0
Inflation \u00a0
7.8 \u00a0
7.2 \u00a0
6.5 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
2.2 \u00a0
1.8 \u00a0
1.7 \u00a0
Property prices - Residential \u00a0
1.9 \u00a0
1.5 \u00a0
2.0 \u00a0
-14.2 \u00a0
-7.0 \u00a0
-5.0 \u00a0
3.0 \u00a0
4.0 \u00a0
2.0 \u00a0
Interest rate - 3 month \u00a0
0.5 \u00a0
1.2 \u00a0
1.3 \u00a0
5.1 \u00a0
5.1 \u00a0
3.1 \u00a0
4.3 \u00a0
3.5 \u00a0
2.5 \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
At 31 December\u00a02022, the following base case and downside scenarios were used: \u00a0
Denmark \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
-0.6 \u00a0
0.5 \u00a0
1.5 \u00a0
-3.7 \u00a0
-2.1 \u00a0
-
0.4 \u00a0
1.6 \u00a0
1.1 \u00a0
Unemployment \u00a0
3.2 \u00a0
3.8 \u00a0
3.8 \u00a0
6.0 \u00a0
7.0 \u00a0
7.4 \u00a0
3.0 \u00a0
3.3 \u00a0
3.3 \u00a0
Inflation \u00a0
4.9 \u00a0
2.5 \u00a0
1.8 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
4.0 \u00a0
1.9 \u00a0
1.9 \u00a0
Property prices - Residential \u00a0
-5.9 \u00a0
-4.0 \u00a0
1.5 \u00a0
-19.7 \u00a0
-12.7 \u00a0
-8.0 \u00a0
-2.9 \u00a0
-2.0 \u00a0
2.5 \u00a0
Interest rate - 3 month \u00a0
2.8 \u00a0
2.5 \u00a0
2.0 \u00a0
3.3 \u00a0
4.3 \u00a0
3.8 \u00a0
2.3 \u00a0
1.8 \u00a0
1.8 \u00a0
Sweden \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
-1.2 \u00a0
1.1 \u00a0
1.8 \u00a0
-3.8 \u00a0
-3.6 \u00a0
-1.0 \u00a0
-0.6 \u00a0
2.1 \u00a0
1.7 \u00a0
Unemployment \u00a0
8.2 \u00a0
8.0 \u00a0
7.5 \u00a0
8.9 \u00a0
9.9 \u00a0
10.3 \u00a0
8.2 \u00a0
7.8 \u00a0
7.3 \u00a0
Inflation \u00a0
6.2 \u00a0
1.5 \u00a0
1.7 \u00a0
4.9 \u00a0
3.9 \u00a0
2.9 \u00a0
5.4 \u00a0
0.9 \u00a0
1.3 \u00a0
Property prices - Residential \u00a0
-8.0 \u00a0
-
2.0 \u00a0
-23.6 \u00a0
-14.6 \u00a0
-10.0 \u00a0
-5.0 \u00a0
2.0 \u00a0
3.0 \u00a0
Interest rate - 3 month \u00a0
2.8 \u00a0
2.5 \u00a0
2.0 \u00a0
3.8 \u00a0
4.8 \u00a0
4.3 \u00a0
2.3 \u00a0
1.8 \u00a0
1.8 \u00a0
Norway \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
0.9 \u00a0
1.7 \u00a0
1.5 \u00a0
-2.9 \u00a0
-1.2 \u00a0
0.6 \u00a0
1.5 \u00a0
2.5 \u00a0
1.7 \u00a0
Unemployment \u00a0
2.4 \u00a0
2.5 \u00a0
2.2 \u00a0
5.2 \u00a0
6.1 \u00a0
6.2 \u00a0
2.3 \u00a0
2.2 \u00a0
1.9 \u00a0
Inflation \u00a0
3.4 \u00a0
1.8 \u00a0
2.0 \u00a0
4.5 \u00a0
3.0 \u00a0
2.0 \u00a0
2.4 \u00a0
1.3 \u00a0
1.9 \u00a0
Property prices - Residential \u00a0
-2.1 \u00a0
2.0 \u00a0
2.5 \u00a0
-20.5 \u00a0
-14.5 \u00a0
-8.0 \u00a0
0.9 \u00a0
3.0 \u00a0
3.5 \u00a0
Interest rate - 3 month \u00a0
3.1 \u00a0
2.9 \u00a0
2.4 \u00a0
4.4 \u00a0
5.4 \u00a0
4.9 \u00a0
2.6 \u00a0
2.1 \u00a0
2.1 \u00a0
Finland \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
-0.2 \u00a0
1.0 \u00a0
1.3 \u00a0
-2.7 \u00a0
-2.2 \u00a0
-0.3 \u00a0
0.5 \u00a0
2.0 \u00a0
1.3 \u00a0
Unemployment \u00a0
7.3 \u00a0
7.4 \u00a0
7.0 \u00a0
9.4 \u00a0
10.4 \u00a0
10.4 \u00a0
7.3 \u00a0
7.3 \u00a0
6.9 \u00a0
Inflation \u00a0
3.7 \u00a0
2.1 \u00a0
1.8 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
2.9 \u00a0
1.4 \u00a0
1.6 \u00a0
Property prices - Residential \u00a0
-1.0 \u00a0
1.0 \u00a0
2.0 \u00a0
-14.2 \u00a0
-9.2 \u00a0
-5.0 \u00a0
1.0 \u00a0
2.0 \u00a0
3.0 \u00a0
Interest rate - 3 month \u00a0
2.6 \u00a0
2.3 \u00a0
1.8 \u00a0
3.2 \u00a0
4.2 \u00a0
3.7 \u00a0
2.1 \u00a0
1.6 \u00a0
1.6 \u00a0
At 31 December\u00a02023, the upside scenario represented a slightly better outlook than the base case scenario across the macroecono\u00a0mic parameters. \u00a0
The base case scenario enters with a probability\u00a0of 60% (2022: 70%), the upside scenario with a probability of 20% (2022: 10%\u00a0) and\u00a0the downside \u00a0
scenario with a probability\u00a0of 20% (2022: 20%). On the basis of these assessments,\u00a0the allowance\u00a0account as at 3 1 December 2023 amounted\u00a0to DKK \u00a0
20.1 billion (2022: DKK 19.6 billion).\u00a0If the base case scenario was assigned a probability\u00a0of 100%, the allowance\u00a0account would d\u00a0ecrease DKK\u00a02.0 \u00a0
billion (2022: DKK 2.1 billion). Compared to\u00a0the base\u00a0case scenario, the allow\u00a0ance account\u00a0would increase DKK 10.2 billion (2022: DKK 10.9 billion), if \u00a0
the downside scenario was assigned a probability\u00a0of 100%.\u00a0The increase reflects primarily the transfer of\u00a0exposures from stag\u00a0e 1 to stage 2 and \u00a0
increased expected credit losses within stage 2. If instead the upside scenario was assigned a probability of 100%, the allowance account would decrease \u00a0
by DKK\u00a00.2 billion (2022: DKK 0.4\u00a0billion) compared to the base case\u00a0scenario. It should be noted that the expected credit losses in the\u00a0individu a l \u00a0
scenarios (i.e. without the weighting)\u00a0do not represent forecasts of expected credit losses (ECL). \u00a0
Expected credit losses (allowance account) in core activities continued \u00a0
Post-model adjustments \u00a0
Management applies judgement when determining the need for\u00a0post-model adjustments.\u00a0At 31 December\u00a02023, the post-model adjustments amounte\u00a0d \u00a0
to DKK 6.7 billion (2022: DKK 6.6\u00a0billion). The post-model adjustments\u00a0primarily relate to the following types of risks: \u00a0
\u2022
specific macroeconomic risks on\u00a0certain industries not fully captured by the expected credit loss model, for\u00a0instance the Agr\u00a0iculture industry. For \u00a0
such industries,\u00a0supplementary calculations are\u00a0made to ensure sufficient impairment coverage. This also inc ludes\u00a0post-model adjustments\u00a0relating \u00a0
to secondary effects from the high macroeconomic\u00a0uncertainty. \u00a0
\u2022
non-linear downside risk, for\u00a0instance on\u00a0the property market in Copenhagen and other high growth areas for which the macroeconom\u00a0ic forecasts \u00a0
used in the models are based on the property market as a whole. \u00a0
\u2022
portfolios where\u00a0the credit risk assessment process has identified\u00a0an underestimation\u00a0of the expected credit losses\u00a0. \u00a0
Following the significant impact on the expected credit losses from post-model adjustments,\u00a0the table below provides\u00a0more information about the \u00a0
adjustments. \u00a0
Post-model adjustments\u00a0by type\u00a0and mostly\u00a0impacted industries \u00a0
31 December \u00a0
31 December \u00a0
(DKK billions) \u00a0
2023 \u00a0
2022 \u00a0
Coverage of individual\u00a0industries and types \u00a0
Agriculture \u00a0
0.8 \u00a0
0.8 \u00a0
Commercial Property \u00a0
1.9 \u00a0
1.8 \u00a0
Construction and building materials \u00a0
1.0 \u00a0
0.5 \u00a0
Personal customers (including\u00a0other retail exposures) \u00a0
1.6 \u00a0
1.4 \u00a0
Others* \u00a0
1.4 \u00a0
2.1 \u00a0
Total \u00a0
6.7 \u00a0
6.6 \u00a0
* No individual industry included in Others exceeds DKK 0.2 billion at 31 December 2023 (2022: DKK 0.3 billion). \u00a0
The total balance of post-model adjustments\u00a0displayed a\u00a0very modest increase in\u00a02023 compared to the end\u00a0of 2022. \u00a0
The Group continues to have significant post-model adjustments related to the current macroeconomic uncertainties\u00a0characterised by\u00a0the slowing \u00a0
growth environment,\u00a0labour shortages, interest rate hikes and inflation\u00a0giving rise\u00a0to a new set of challenges that affect ec\u00a0onomic and business activity. \u00a0
The post-model adjustments\u00a0cut across industries\u00a0that are sensitive to price rises on energy, e.g.\u00a0agriculture and\u00a0metals, and industr\u00a0ies vulnerable to \u00a0
business cycles and increasing interest rates including refinancing risks, which have been assessed\u00a0for idiosyncratic\u00a0risks to ensure a prudent coverage \u00a0
of expected\u00a0credit loss in the Group\u2019s\u00a0portfolios. \u00a0
Credit exposure from Non-core lending activities \u00a0
The Non-core business unit includes certain customer segments that are no longer considered part of the core business. The Non\u00a0-core unit is responsible \u00a0
for the controlled winding-up of this part of the loan portfolio. The portfolio consists primarily liquidity facilities for Special Purpose Vehicles (SPVs) and conduit \u00a0
structures. \u00a0
Credit portfolio\u00a0in Non-core activities\u00a0broken down\u00a0by industry\u00a0(NACE) and stages \u00a0
31 December 2023 \u00a0
Gross exposure \u00a0
Expected credit loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK millions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Non-core banking \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
Non-core conduits etc. \u00a0
2,468 \u00a0
-
-
-
-
-
2,468 \u00a0
-
-
-
-
-
Total \u00a0
2,468 \u00a0
-
-
-
-
-
2,468 \u00a0
-
-
-
-
-
31 December 2022 \u00a0
Gross exposure \u00a0
Expected credit loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK millions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Non-core banking \u00a0
1
-
-
-
-
-
1
-
-
-
-
-
Non-core conduits etc. \u00a0
2,444 \u00a0
-
94 \u00a0
-
-
39 \u00a0
2,444 \u00a0
-
55 \u00a0
24 \u00a0
-
15 \u00a0
Total \u00a0
2,445 \u00a0
-
94 \u00a0
-
-
39 \u00a0
2,445 \u00a0
-
55 \u00a0
24 \u00a0
-
15 \u00a0
Credit exposure from Non-core lending activities continued \u00a0
Credit portfolio\u00a0in Non-core activities\u00a0broken down\u00a0by rating\u00a0category and stages \u00a0
31 December 2023 \u00a0
PD level \u00a0
Gross exposure \u00a0
Expected credit loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK millions) \u00a0
Upper Lower\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
1
-
0.01 \u00a0
568 \u00a0
-
-
-
-
-
568 \u00a0
-
-
-
-
-
2
0.01 \u00a0
0.03 \u00a0
908 \u00a0
-
-
-
-
-
908 \u00a0
-
-
-
-
-
3
0.03 \u00a0
0.06 \u00a0
992 \u00a0
-
-
-
-
-
992 \u00a0
-
-
-
-
-
4
0.06 \u00a0
0.14 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
5
0.14 \u00a0
0.31 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
6
0.31 \u00a0
0.63 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
7
0.63 \u00a0
1.90 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
8
1.90 \u00a0
7.98 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
9
7.98 25.70 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
10 \u00a0
25.70 99.99 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
11 (default) \u00a0
100.00 100.00 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
Total \u00a0
2,468 \u00a0
-
-
-
-
-
2,468 \u00a0
-
-
-
-
-
31 December 2022 \u00a0
PD level \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK millions) \u00a0
Upper Lower\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
1
-
0.01 \u00a0
817 \u00a0
-
-
-
-
-
817 \u00a0
-
-
-
-
-
2
0.01 \u00a0
0.03 1,163 \u00a0
-
-
-
-
-
1,163 \u00a0
-
-
24 \u00a0
-
-
3
0.03 \u00a0
0.06 \u00a0
453 \u00a0
-
-
-
-
-
453 \u00a0
-
-
-
-
-
4
0.06 \u00a0
0.14 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
5
0.14 \u00a0
0.31 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
6
0.31 \u00a0
0.63 \u00a0
12 \u00a0
-
-
-
-
-
12 \u00a0
-
-
-
-
-
7
0.63 \u00a0
1.90 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
8
1.90 \u00a0
7.98 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
9
7.98 25.70 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
10 \u00a0
25.70 99.99 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
11 (default) \u00a0
100.00 100.00 \u00a0
-
-
94 \u00a0
-
-
39 \u00a0
-
-
55 \u00a0
-
-
15 \u00a0
Total \u00a0
2,445 \u00a0
-
94 \u00a0
-
-
39 2,445 \u00a0
-
55 \u00a0
24 \u00a0
-
15 \u00a0
Counterparty credit risk \u00a0
Exposure to counterparty credit risk and\u00a0credit exposure from trading and investment\u00a0securities \u00a0
(DKK billions) \u00a0
2023 \u00a0
2022* \u00a0
Counterparty credit risk \u00a0
Derivatives with\u00a0positive fair value \u00a0
351.7 \u00a0
430.1 \u00a0
Reverse transactions and other loans at fair value1 \u00a0
267.9 \u00a0
246.8 \u00a0
Credit exposure from other trading and investment securities \u00a0
Bonds \u00a0
461.0 \u00a0
486.7 \u00a0
Shares \u00a0
19.4 \u00a0
10.2 \u00a0
Other unutilised commitments2 \u00a0
0.1 \u00a0
0.1 \u00a0
Total \u00a0
1,100.1 \u00a0
1,173.8 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
1 Reverse transactions andother loans at fair value included as counterparty credit risk are loans at the trading units of LargeCorporates& Institutions. Theseloans consist of reverse transactions \u00a0
of DKK 267.4 billion (2022: DKK 246.0billion), of which DKK 92.4 billion relates tocredit institutions and central banks(2022: DKK 37.4 billion), and other primarily short-term loans of DKK 0.6 \u00a0
billion (2022: DKK 0.8 billion), of which DKK 0.6 billion (2022: DKK 0.8 billion) relates to credit institutions and central banks. \u00a0
2 Other unutilised commitments comprise private equity investment commitments and other obligations. \u00a0
Counterparty credit\u00a0risk (derivatives) \u00a0
Counterparty credit\u00a0risk is the risk that the counterparty\u00a0to a transaction\u00a0defaults before the final settlement of the trans\u00a0action\u2019s cash\u00a0flows. It is a \u00a0
combination of\u00a0credit risk (a deterioration\u00a0in the creditworthiness\u00a0of a counterparty)\u00a0and market risk (the potential\u00a0value of derivatives\u00a0contracts). \u00a0
Derivatives are\u00a0subject to credit risk. Positive\u00a0and negative\u00a0fair values of derivatives\u00a0with the same counterparty are offset\u00a0in the balance\u00a0sheet if certain \u00a0
conditions are fulfilled. \u00a0
Danske Bank\u00a0Group takes on counterparty credit risk when it enters into\u00a0over-the-counter (OTC)\u00a0derivatives, securities\u00a0financing transactions (SFTs), \u00a0
and/or exchange-traded derivatives\u00a0(ETDs). \u00a0
The Group mitigates\u00a0counterparty credit\u00a0risk through pre-deal controls, post-deal monitoring,\u00a0clearing, close-out netting agreements and collatera\u00a0l \u00a0
agreements. Those agreements include rights to additional set-off in\u00a0the event of default by a counterparty,\u00a0they reduce\u00a0the exposure further, but they do \u00a0
not qualify for offsetting under IFRSs. The net current exposure to derivatives\u00a0with positive\u00a0market value after\u00a0offsetting under master netting\u00a0agreements \u00a0
amounted to DKK 89.5 billion (2022: DKK 89.1 billion) (see\u00a0note G32). The exposure is broken down by rating category in the table below. \u00a0
NET current exposure broken down by\u00a0category (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
1
14,293 \u00a0
15,039 \u00a0
2
16,110 \u00a0
14,741 \u00a0
3
43,279 \u00a0
47,198 \u00a0
4
11,946 \u00a0
9,195 \u00a0
5
2,309 \u00a0
2,153 \u00a0
6
921 \u00a0
627 \u00a0
7
463 \u00a0
98 \u00a0
8
86 \u00a0
74 \u00a0
9
1
-
10 \u00a0
24 \u00a0
5
11 \u00a0
18 \u00a0
8
Total \u00a0
89,450 \u00a0
89,139 \u00a0
The Group uses a range of measures to capture counterparty credit risk, including current exposure, potential\u00a0future exposure (PFE) and exposure at default \u00a0
(EAD). Current\u00a0exposure is a simple measure of counterparty credit risk exposure that takes into account only current mark-to-market values and collateral. \u00a0
Customer-level counterparty risk is managed by means of PFE lines on a set of maturity buckets. It is measured at the 97.5% percentile for a set of future \u00a0
time horizons. PFE lines are approved by the relevant credit unit and all transactions are assumed to be held to contractual maturity. The Group carries o\u00a0ut \u00a0
daily counterparty credit risk measurement and monitoring as well as intraday line utilisation\u00a0monitoring. \u00a0
The Danish FSA approved the Group\u2019s simulation model for calculating\u00a0the regulatory capital requirement for counterparty cred it risk in 2015. More advanced \u00a0
measures such as EAD, which is a regulatory measure, express potential future losses and are based o n internal models for future scenarios of market data. \u00a0
EAD figures\u00a0are provided in the Additional\u00a0Pillar III Disclosures\u00a0(accessible at danskebank.com/investor-relations). \u00a0
An overview of counterparty credit risk exposures (at counterparty and portfolio levels) is reported to the Executive\u00a0Leadership Team and other senior \u00a0
management on a monthly basis. The Group uses a simulation-based model to calculate counterparty credit risk exposure for the majority of its portfolio. \u00a0
The Group makes fair value adjustments to cover the counterparty credit risk on derivatives\u00a0with positive\u00a0fair value (CVA) that are recognised in the financial \u00a0
statements. For more information, see note G33. \u00a0
Bond portfolio \u00a0
Central and \u00a0
Quasi- \u00a0
Danish \u00a0
Swedish \u00a0
Other \u00a0
local govern- \u00a0
government \u00a0
mortgage \u00a0
covered \u00a0
covered \u00a0
Corporate \u00a0
(DKK millions) \u00a0
ment bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
Total \u00a0
31 December 2023 \u00a0
Held-for-trading (FVPL) \u00a0
117,986 \u00a0
1,179 \u00a0
29,084 \u00a0
20,862 \u00a0
3,272 \u00a0
5,179 \u00a0
177,563 \u00a0
Managed at\u00a0fair value (FVPL) \u00a0
1,845 \u00a0
291 \u00a0
17,069 \u00a0
1,307 \u00a0
286 \u00a0
-
20,798 \u00a0
Held to collect and sell (FVOCI) \u00a0
23,669 \u00a0
2,905 \u00a0
49,470 \u00a0
4,776 \u00a0
25,077 \u00a0
1,330 \u00a0
107,226 \u00a0
Held to collect (AMC) \u00a0
47,892 \u00a0
8,551 \u00a0
92,699 \u00a0
5,093 \u00a0
1,013 \u00a0
150 \u00a0
155,398 \u00a0
Total \u00a0
191,392 \u00a0
12,926 \u00a0
188,321 \u00a0
32,038 \u00a0
29,648 \u00a0
6,659 \u00a0
460,984 \u00a0
31 December 2022* \u00a0
Held-for-trading (FVPL) \u00a0
149,059 \u00a0
3,452 \u00a0
13,729 \u00a0
19,753 \u00a0
5,543 \u00a0
8,859 \u00a0
200,395 \u00a0
Managed at\u00a0fair value (FVPL) \u00a0
2,339 \u00a0
594 \u00a0
13,577 \u00a0
1,011 \u00a0
409 \u00a0
304 \u00a0
18,233 \u00a0
Held to collect and sell (FVOCI) \u00a0
15,730 \u00a0
4,597 \u00a0
63,108 \u00a0
6,695 \u00a0
25,045 \u00a0
1,253 \u00a0
116,429 \u00a0
Held to collect (AMC) \u00a0
53,681 \u00a0
9,292 \u00a0
81,991 \u00a0
5,599 \u00a0
1,011 \u00a0
-
151,573 \u00a0
Total \u00a0
220,809 \u00a0
17,935 \u00a0
172,405 \u00a0
33,057 \u00a0
32,007 \u00a0
10,417 \u00a0
486,630 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
At 31 December 2023, the Group had an additional bond portfolio, including bond-based unit trust certificates, worth DKK 214,073 million (2022: DKK \u00a0
215,463 million) recognised as assets under insurance contracts and thus not included\u00a0in the table above. The section on life insuran\u00a0ce risk\u00a0provide s \u00a0
more information. \u00a0
Bond portfolio continued \u00a0
Bond portfolio\u00a0broken down by geographical\u00a0area \u00a0
Central and \u00a0
Quasi- \u00a0
Danish \u00a0
Swedish \u00a0
Other \u00a0
local govern- \u00a0
government \u00a0
mortgage \u00a0
covered \u00a0
covered \u00a0
Corporate \u00a0
(DKK millions) \u00a0
ment bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
Total \u00a0
31 December 2023 \u00a0
Denmark \u00a0
28,754 \u00a0
-
188,321 \u00a0
-
-
870 \u00a0
217,945 \u00a0
Sweden \u00a0
61,267 \u00a0
-
-
32,038 \u00a0
-
1,362 \u00a0
94,667 \u00a0
UK \u00a0
11,141 \u00a0
291 \u00a0
-
-
3,518 \u00a0
1,009 \u00a0
15,959 \u00a0
Norway \u00a0
6,049 \u00a0
-
-
-
23,902 \u00a0
1,358 \u00a0
31,309 \u00a0
USA \u00a0
15,529 \u00a0
3,274 \u00a0
-
-
-
7
18,810 \u00a0
Spain \u00a0
1,243 \u00a0
-
-
-
1
-
1,244 \u00a0
France \u00a0
4,703 \u00a0
19 \u00a0
-
-
237 \u00a0
116 \u00a0
5,075 \u00a0
Luxembourg \u00a0
5,205 \u00a0
-
-
-
123 \u00a0
5,328 \u00a0
Finland \u00a0
10,224 \u00a0
2,954 \u00a0
-
-
1,089 \u00a0
909 \u00a0
15,176 \u00a0
Ireland \u00a0
550 \u00a0
-
-
-
-- \u00a0
94 \u00a0
643 \u00a0
Italy \u00a0
1,413 \u00a0
-
-
-
-
5
1,418 \u00a0
Portugal \u00a0
3
-
-
-
-
-
3
Austria \u00a0
4,513 \u00a0
-
-
-
66 \u00a0
113 \u00a0
4,691 \u00a0
Netherlands \u00a0
3,349 \u00a0
1
-
-
17 \u00a0
510 \u00a0
3,877 \u00a0
Germany \u00a0
42,152 \u00a0
-
-
-
216 \u00a0
96 \u00a0
42,465 \u00a0
Belgium \u00a0
503 \u00a0
442 \u00a0
-
-
1
-
946 \u00a0
Other \u00a0
-
740 \u00a0
-
-
602 \u00a0
87 \u00a0
1,429 \u00a0
Total \u00a0
191,392 \u00a0
12,926 \u00a0
188,321 \u00a0
32,038 \u00a0
29,648 \u00a0
6,659 \u00a0
460,984 \u00a0
31 December 2022* \u00a0
Denmark \u00a0
46,390 \u00a0
-
172,405 \u00a0
-
-
4,573 \u00a0
223,369 \u00a0
Sweden \u00a0
77,432 \u00a0
-
-
33,057 \u00a0
-
2,628 \u00a0
113,117 \u00a0
UK \u00a0
6,795 \u00a0
-
-
-
2,680 \u00a0
897 \u00a0
10,371 \u00a0
Norway \u00a0
3,902 \u00a0
-
-
-
28,163 \u00a0
-
32,065 \u00a0
USA \u00a0
16,534 \u00a0
4,361 \u00a0
-
-
-
-
20,895 \u00a0
Spain \u00a0
2,372 \u00a0
-
-
-
1
-
2,372 \u00a0
France \u00a0
11,163 \u00a0
17 \u00a0
-
-
229 \u00a0
96 \u00a0
11,505 \u00a0
Luxembourg \u00a0
-
6,123 \u00a0
-
-
-
82 \u00a0
6,205 \u00a0
Finland \u00a0
8,293 \u00a0
4,637 \u00a0
-
-
362 \u00a0
1,253 \u00a0
14,544 \u00a0
Ireland \u00a0
1,120 \u00a0
-
-
-
-
26 \u00a0
1,145 \u00a0
Italy \u00a0
1,322 \u00a0
-
-
-
-
2
1,324 \u00a0
Portugal \u00a0
14 \u00a0
-
-
-
-
-
14 \u00a0
Austria \u00a0
4,393 \u00a0
-
-
-
13 \u00a0
61 \u00a0
4,467 \u00a0
Netherlands \u00a0
3,261 \u00a0
2
-
-
16 \u00a0
512 \u00a0
3,791 \u00a0
Germany \u00a0
37,142 \u00a0
-
-
-
290 \u00a0
288 \u00a0
37,719 \u00a0
Belgium \u00a0
676 \u00a0
2,195 \u00a0
-
-
1
-
2,872 \u00a0
Other \u00a0
-
600 \u00a0
-
-
253 \u00a0
-
853 \u00a0
Total \u00a0
220,809 \u00a0
17,935 \u00a0
172,405 \u00a0
33,057 \u00a0
32,007 \u00a0
10,417 \u00a0
486,630 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
Risk Management\u00a02023 provides\u00a0additional details about\u00a0the risk on the Group\u2019s bond portfolio. The publication\u00a0is not covered by the statutory audit. \u00a0
Bond portfolio continued \u00a0
Bond portfolio broken\u00a0down by\u00a0external ratings \u00a0
Central and \u00a0
Quasi- \u00a0
Danish \u00a0
Swedish \u00a0
Other \u00a0
local govern- \u00a0
government \u00a0
mortgage \u00a0
covered \u00a0
covered \u00a0
Corporate \u00a0
(DKK millions) \u00a0
ment bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
Total \u00a0
31 December 2023 \u00a0
AAA \u00a0
137,601 \u00a0
12,461 \u00a0
187,903 \u00a0
32,017 \u00a0
28,925 \u00a0
1,623 \u00a0
400,530 \u00a0
AA+ \u00a0
27,061 \u00a0
442 \u00a0
-
-
28 \u00a0
2
27,533 \u00a0
AA \u00a0
8,556 \u00a0
-
-
21 \u00a0
692 \u00a0
965 \u00a0
10,234 \u00a0
AA- \u00a0
15,515 \u00a0
23 \u00a0
-
-
-
117 \u00a0
15,654 \u00a0
A+ \u00a0
-
-
-
-
-
266 \u00a0
266 \u00a0
A
1,132 \u00a0
-
418 \u00a0
-
4
984 \u00a0
2,538 \u00a0
A- \u00a0
3
-
-
-
-
196 \u00a0
199 \u00a0
BBB+ \u00a0
111 \u00a0
-
-
-
-
505 \u00a0
617 \u00a0
BBB \u00a0
377 \u00a0
-
-
-
-
987 \u00a0
1,364 \u00a0
BBB- \u00a0
1,036 \u00a0
-
-
-
-
596 \u00a0
1,632 \u00a0
BB+ \u00a0
-
-
-
-
-
97 \u00a0
97 \u00a0
BB \u00a0
-
-
-
-
-
187 \u00a0
187 \u00a0
BB- \u00a0
-
-
-
-
-
36 \u00a0
36 \u00a0
Sub. \"investment-grade\" or unrated \u00a0
-
-
-
-
-
97 \u00a0
97 \u00a0
Total \u00a0
191,392 \u00a0
12,926 \u00a0
188,321 \u00a0
32,038 \u00a0
29,648 \u00a0
6,659 \u00a0
460,984 \u00a0
31 December 2022* \u00a0
AAA \u00a0
180,479 \u00a0
15,513 \u00a0
172,222 \u00a0
33,048 \u00a0
31,728 \u00a0
1,521 \u00a0
434,510 \u00a0
AA+ \u00a0
9,542 \u00a0
2,207 \u00a0
-
-
64 \u00a0
222 \u00a0
12,035 \u00a0
AA \u00a0
19,234 \u00a0
215 \u00a0
-
10 \u00a0
117 \u00a0
1,292 \u00a0
20,868 \u00a0
AA- \u00a0
6,727 \u00a0
-
-
-
-
27 \u00a0
6,754 \u00a0
A+ \u00a0
1,120 \u00a0
-
-
-
-
267 \u00a0
1,387 \u00a0
A
2,204 \u00a0
-
179 \u00a0
-
98 \u00a0
2,207 \u00a0
4,688 \u00a0
A- \u00a0
-
-
-
-
-
368 \u00a0
368 \u00a0
BBB+ \u00a0
167 \u00a0
-
-
-
-
863 \u00a0
1,030 \u00a0
BBB \u00a0
230 \u00a0
-
5
-
-
2,242 \u00a0
2,477 \u00a0
BBB- \u00a0
1,106 \u00a0
-
-
-
-
336 \u00a0
1,443 \u00a0
BB+ \u00a0
-
-
-
-
-
650 \u00a0
650 \u00a0
BB \u00a0
-
-
-
-
-
247 \u00a0
247 \u00a0
BB- \u00a0
-
-
-
-
-
15 \u00a0
15 \u00a0
Sub. \"investment-grade\" or unrated \u00a0
-
-
-
-
-
161 \u00a0
161 \u00a0
Total \u00a0
220,809 \u00a0
17,935 \u00a0
172,405 \u00a0
33,057 \u00a0
32,007 \u00a0
10,417 \u00a0
486,630 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLoansAndAdvancesToCustomersExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4319": {
"value": "Accounting policy \u00a0
At initial recognition, loans are measured at\u00a0fair value plus transaction\u00a0costs less origination\u00a0fees and other charges that are an integral part of the \u00a0
effective interest rate\u00a0on loans. This usually corresponds to the amount disbursed to the customer. Subsequently,\u00a0they are measured at amortise\u00a0d \u00a0
cost, using the effective interest method, less impairment charges for expected credit losses. The difference between the value at initial recognitio\u00a0n \u00a0
and the redemption\u00a0value is\u00a0amortised over the term to maturity\u00a0as part of the effective interest.\u00a0If fixed-rate loans are hedged effectively by derivative\u00a0s , \u00a0
the fair value\u00a0of the hedged interest rate risk is added to the carrying\u00a0amount of the hedged assets. \u00a0
Accounting policy \u00a0
Loans granted and bonds issued by Realkredit\u00a0Danmark \u00a0
Loans granted by Realkredit\u00a0Danmark have contractual cash\u00a0flows that are not solely payment of principal and interest on the principal amount \u00a0
outstanding. Therefore,\u00a0the loans are\u00a0mandatorily recognised at\u00a0fair value\u00a0through profit\u00a0or loss. The issued bonds that are\u00a0funding the loans are \u00a0
designated at\u00a0fair value through profit or loss in order not to create an accounting\u00a0mismatch. For\u00a0the issued bonds, changes in fair value attributable\u00a0to \u00a0
the Group\u2019s own credit risk is presented in the income\u00a0statement, as\u00a0an accounting\u00a0mismatch would otherwise be introduced. \u00a0
The fair value of the bonds issued by Realkredit Danmark is normally defined as their quoted market price. A small number of the issued bonds are \u00a0
illiquid, however, and\u00a0the fair value\u00a0of these bonds is calculated\u00a0on the basis of a discounted\u00a0cash flow valuation technique. The fair value of the loans is \u00a0
based on the fair value of the underlying\u00a0bonds which ensures that changes in the fair value of the interest rate risk on the loans are measured based \u00a0
on market implied\u00a0input. This fair value is adjusted for changes in the fair value of cash flows from the loans that differ from the cash flows from the \u00a0
issued bonds. The most important\u00a0component is\u00a0the credit risk on the borrowers (covered by the Group and\u00a0not by\u00a0the bond holders and therefore not \u00a0
priced into the price of the issued bonds). \u00a0
Changes in fair value of credit risk etc on the loans \u00a0
The IFRS 13 estimate\u00a0of the fair value of the credit risk on the loans is based on the expected credit losses estimated in the models developed in \u00a0
connection with the Group\u2019s implementation\u00a0of the expected\u00a0credit loss impairment model in IFRS 9, including\u00a0the allocation o\u00a0f loans\u00a0between stage 1, \u00a0
stage 2 and stage 3. The expected credit losses are calculated for all loans as a function of PD, EAD and LGD and incorporates forward looking \u00a0
information, see\u00a0further in note G15. The latter reflects management\u2019s expectations of\u00a0expected credit\u00a0losses and\u00a0involves multiple scenarios (base \u00a0
case, upside\u00a0and downside),\u00a0including an\u00a0assessment of\u00a0the probability\u00a0for each scenario. \u00a0
On top of the expected\u00a0credit losses, a collective\u00a0assessment determines\u00a0the need for further adjustments\u00a0to reflect other components\u00a0in the fair value \u00a0
measurement, such as an assessment of lifetime\u00a0expected credit\u00a0losses for\u00a0loans in\u00a0stage 1, an investors risk premium, compensation for \u00a0
administrative costs\u00a0related to the loans and the possibility\u00a0to increase the margin on the loans if the credit risk etc increases. It is acknowledged that \u00a0
the possibility to\u00a0increase the margin depends on the economic resources of the customers.\u00a0The possibility\u00a0to increase the margin is therefore only \u00a0
considered in\u00a0the measurement if it is very likely that the margin can be increased without\u00a0the customer defaulting. Further,\u00a0the possibility\u00a0to increase \u00a0
the margin is only relevant if it does not give the customer an incentive to \u201cmove\u201d to another mortgage institution.\u00a0Therefore, the possibility\u00a0to increase \u00a0
the margin is only relevant for the measurement of loans to customers with neither a relatively\u00a0high credit risk nor a relati\u00a0vely low\u00a0credit risk. \u00a0
The discount rate used to discount the cash flows represents the interest rate on the funding bonds. This is considered to be close to a risk-free interes\u00a0t \u00a0
rate. The risk premium is incorporated into the cash\u00a0flows. The risk premium is assumed to be higher for customers with high credit risk than for \u00a0
customers with low credit risk. Further, the adjustments\u00a0for changes in the fair value\u00a0of the credit risk and other components\u00a0cannot increase the value \u00a0
of a loan\u00a0(the adjustment\u00a0cannot be positive). \u00a0
Other loans and\u00a0issued bonds measured at fair value through profit or loss \u00a0
The loans in the Group\u2019s trading units (Markets and Investment Banking & Securities in LC&I) are managed and their performance reported on a fair \u00a0
value basis and the loans are under IFRS 9 mandatorily\u00a0measured at fair value\u00a0through profit or loss. In order not to introduce\u00a0an accounting mismatc\u00a0h \u00a0
by measuring the financial assets in the trading units at\u00a0fair value through profit or loss and the financial liabilities\u00a0at amortised cost, the\u00a0financia l \u00a0
liabilities in\u00a0the trading units are designated at\u00a0fair value through profit or\u00a0loss with fair value changes attributable\u00a0to the Group\u2019s own credit risk \u00a0
presented in\u00a0other comprehensive income. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLoansAndReceivablesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4357": {
"value": "G17. Assets and deposits under pooled schemes and unit-linked investment contracts \u00a0
Assets and\u00a0deposits under pooled schemes and unit-linked investment contracts comprises contributions to pooled schemes and unit-linked contracts \u00a0
defined as investment contracts. Assets include intra-group balances, which are eliminated.\u00a0Consequently, the\u00a0value of the line item Deposits under pooled \u00a0
schemes and unit-linked\u00a0investment contracts exceeds that of Assets under pooled schemes and unit-linked\u00a0investment contracts. \u00a0
Accounting policy \u00a0
Assets earmarked for customer savings are measured at fair value and recognised under Assets under pooled schemes and unit-linked\u00a0investment \u00a0
contracts. Deposits made by customers are recognised under Deposits under pooled schemes and unit-linked investment contracts. These deposits are \u00a0
measured at the\u00a0value of savings, corresponding to the fair value of the assets. \u00a0
The Group has elected not to deduct own shares from equity that are held on behalf of customers. Therefore total assets under pooled schemes and unit- \u00a0
linked contracts includes these own shares that meet this criterion. \u00a0
Pooled schemes \u00a0
Unit-linked contracts \u00a0
Total \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
2023 \u00a0
2022* \u00a0
2023 \u00a0
2022* \u00a0
(a) Assets \u00a0
Bonds \u00a0
16,992 \u00a0
18,493 \u00a0
6,024 \u00a0
4,891 \u00a0
23,016 \u00a0
23,384 \u00a0
Shares \u00a0
14,676 \u00a0
13,421 \u00a0
11,146 \u00a0
7,579 \u00a0
25,822 \u00a0
21,000 \u00a0
Unit trust certificates \u00a0
16,434 \u00a0
14,228 \u00a0
2,564 \u00a0
7,124 \u00a0
18,998 \u00a0
21,352 \u00a0
Other \u00a0
38 \u00a0
115 \u00a0
3,379 \u00a0
875 \u00a0
3,417 \u00a0
990 \u00a0
Total \u00a0
48,140 \u00a0
46,256 \u00a0
23,113 \u00a0
20,469 \u00a0
71,253 \u00a0
66,725 \u00a0
including \u00a0
other intra-group balances \u00a0
263 \u00a0
-104 \u00a0
90 \u00a0
91 \u00a0
353 \u00a0
-13 \u00a0
Total assets recognised in balance \u00a0
sheet \u00a0
47,877 \u00a0
46,360 \u00a0
23,023 \u00a0
20,378 \u00a0
70,900 \u00a0
66,739 \u00a0
(b) Deposits \u00a0
48,140 \u00a0
46,256 \u00a0
23,113 \u00a0
20,469 \u00a0
71,253 \u00a0
66,725 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Assets under pooled schemes include DKK 198 million of own shares that are not eliminated\u00a0(2022: DKK 207 million). Assets under unit-linked \u00a0
contracts include DKK 60 million of\u00a0own shares\u00a0that are\u00a0not eliminated\u00a0(2022: DKK 33 million). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentContractsLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4367": {
"value": "G18. Assets and liabilities under insurance contracts continued \u00a0
(a) Assets under insurance contracts\u00a0(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Due from credit institutions \u00a0
6,922 \u00a0
2,094 \u00a0
Investment securities \u00a0
468,312 \u00a0
472,975 \u00a0
Holdings in associates \u00a0
11,612 \u00a0
11,162 \u00a0
Investment property \u00a0
21,716 \u00a0
27,373 \u00a0
Tangible assets \u00a0
-
45 \u00a0
Reinsurance contract assets \u00a0
213 \u00a0
23 \u00a0
Other assets \u00a0
9,780 \u00a0
16,200 \u00a0
Total \u00a0
518,555 \u00a0
529,872 \u00a0
including \u00a0
own bonds \u00a0
5,984 \u00a0
7,302 \u00a0
other intra-group balances \u00a0
16,540 \u00a0
19,575 \u00a0
Total assets under insurance contracts \u00a0
496,031 \u00a0
502,995 \u00a0
* Comparative information has been restated, as described in note G2(a) and G2(b). \u00a0
Assets under insurance contracts include DKK 27,794 million of own\u00a0bonds that are\u00a0not eliminated\u00a0(2022: DKK 26,535 million)\u00a0a nd\u00a0DKK 1,040 \u00a0
million of\u00a0own shares that are not eliminated (2022: DKK 782 million). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReinsuranceExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4382": {
"value": "G19. Intangible assets \u00a0
Intangible assets consist of\u00a0goodwill and\u00a0customer relations\u00a0taken over on the acquisition\u00a0of undertakings.\u00a0Further, acquired and internally develope\u00a0d \u00a0
software is recognised\u00a0as an asset if certain criteria\u00a0are fulfilled. \u00a0
The Group did not make any acquisitions\u00a0of undertakings\u00a0in 2023 and in 2022. No impairment charge was recognised in 2023 (2022: DKK 1.6 billion)\u00a0; \u00a0
see further\u00a0below. \u00a0
Accounting policy \u00a0
Goodwill \u00a0
Goodwill arises\u00a0on the acquisition\u00a0of an undertaking\u00a0and is calculated\u00a0as the\u00a0difference between the cost (until 1 January\u00a02010 including\u00a0direct \u00a0
transaction costs) of\u00a0the undertaking and\u00a0the fair value of\u00a0its net assets, including\u00a0contingent liabilities, at\u00a0the time of acquisition. Goodwill\u00a0is allocate d \u00a0
to cash-generating\u00a0units at the level at which management monitors\u00a0the investment. \u00a0
Goodwill is\u00a0not amortised;\u00a0instead, each cash-generating unit is tested for impairment once a year, or more frequently if indications\u00a0of impairment\u00a0exist. \u00a0
Goodwill is written down\u00a0to its recoverable amount through profit and loss if the carrying amount of the net assets of the cash-generating\u00a0unit exceeds \u00a0
the higher of\u00a0the assets\u2019 fair value less costs to sell and their value in use, which equals the present value of the future cash flows expected from the \u00a0
unit. \u00a0
Goodwill on associates is recognised under Holdings in associates. \u00a0
Other intangible\u00a0assets \u00a0
Software acquired is measured\u00a0at cost,\u00a0including expenses incurred to make a\u00a0software application\u00a0ready for use. Software acquired is amortised\u00a0over \u00a0
its expected useful life, usually three years, according to the straight-line method. \u00a0
Software developed\u00a0by the Group is recognised as\u00a0an asset if the cost of development\u00a0is reliably\u00a0measurable and\u00a0analyses show that future earnings \u00a0
from using the individual\u00a0software applications\u00a0exceed the cost. Cost includes expenses incurred to make a\u00a0software application\u00a0ready for use. Once a \u00a0
software application\u00a0has been developed,\u00a0the cost\u00a0is amortised over its expected useful life, usually three years, according to the straight-line\u00a0method. \u00a0
The cost\u00a0of development\u00a0consists primarily of\u00a0direct remuneration\u00a0and other directly attributable\u00a0development costs.\u00a0Costs incurred in the planning \u00a0
phase are not included\u00a0but are expensed when incurred. \u00a0
Software is tested\u00a0for impairment\u00a0if indications of\u00a0impairment exist\u00a0and is written down to its value in use. \u00a0
(a) Intangible assets \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Goodwill \u00a0
4,437 \u00a0
4,427 \u00a0
Software, acquired or internally developed \u00a0
1,627 \u00a0
1,618 \u00a0
Total \u00a0
6,064 \u00a0
6,045 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
In 2023, the Group\u00a0recognised software development costs of DKK 1,546 million as an\u00a0asset (2022: DKK\u00a01,529 million)\u00a0and expensed\u00a0DKK 2,531 \u00a0
million (2022:\u00a0DKK 2,563 million). An impairment loss of DKK 26 million was recognised in 2023 on software development costs (2022: DKK 41 million)\u00a0. \u00a0
(b) Further explanation of impairment testing of goodwill \u00a0
The Group\u2019s goodwill is tested for\u00a0impairment at least once\u00a0a year by testing\u00a0at the\u00a0level of\u00a0identifiable cash-generating units to\u00a0which goodwill has been \u00a0
allocated. Further, if goodwill in a cash-generating unit is fully impaired,\u00a0a further\u00a0impairment loss\u00a0is recognised as an impairment\u00a0loss on intangible\u00a0or \u00a0
tangible assets, if\u00a0any. \u00a0
The impairment tests\u00a0conducted in\u00a02023 resulted in no impairment charges on goodwill. In 2022, impairment charges of DKK 1.6 billion was, due to \u00a0
increasing discount\u00a0rates and lower financial outlook, recognised to the goodwill in Danica Pension amounting\u00a0to DKK\u00a01.6 billion. \u00a0
G19. Intangible assets continued \u00a0
1 January \u00a0
Foreign 31\u00a0December \u00a0
Foreign 31\u00a0December \u00a0
2022 \u00a0
Impairment \u00a0
currency \u00a0
2022 \u00a0
currency \u00a0
2023 \u00a0
(DKK millions) \u00a0
Goodwill \u00a0
Sale \u00a0
charges \u00a0
translation \u00a0
Goodwill \u00a0
translation \u00a0
Goodwill \u00a0
LC&I, General Banking \u00a0
507 \u00a0
-
-
-
507 \u00a0
1
508 \u00a0
LC&I, Markets and Investment Banking \u00a0
& Securities \u00a0
2,094 \u00a0
-
-
-
2,094 \u00a0
5
2,099 \u00a0
LC&I, Asset Management \u00a0
1,807 \u00a0
-
-
-
1,807 \u00a0
4
1,811 \u00a0
Danica Pension \u00a0
1,627 \u00a0
-
1,627 \u00a0
-
-
-
-
Others \u00a0
96 \u00a0
-73 \u00a0
-
-4 \u00a0
19 \u00a0
-
19 \u00a0
Total \u00a0
6,131 \u00a0
-73 \u00a0
1,627 \u00a0
-4 \u00a0
4,427 \u00a0
10 \u00a0
4,437 \u00a0
Model applied\u00a0in the\u00a0goodwill impairment\u00a0tests for 2023 and 2022 \u00a0
The impairment\u00a0test compares the recoverable amount and\u00a0the carrying amount for\u00a0each cash-generating\u00a0unit. The recoverable amount is represented \u00a0
by the present value\u00a0of expected future cash flows (value\u00a0in use). The special debt structure of financial inst\u00a0itutions requires\u00a0the use of a discounte\u00a0d \u00a0
dividend (equity)\u00a0model to calculate the present value of expected future cash flows, as the interest on lending and borrowin\u00a0gs is included as part of the \u00a0
cash flows. \u00a0
The carrying amount for\u00a0each cash-generating\u00a0unit is the aggregate of the cash-generating unit\u2019s goodwill and\u00a0allocated capital. The cash-generating \u00a0
unit\u2019s allocated capital is\u00a0derived using the Group\u2019s capital allocation framework. The capital framework is based on a regulatory approach to identify the \u00a0
individual business\u00a0unit\u2019s capital consumption and\u00a0is in accordance with the Group\u2019s capital targets.\u00a0In the\u00a02023 test, allocated capital is allocated\u00a0as \u00a0
14.0% of the cash-generating\u00a0unit`s risk\u00a0exposure amount\u00a0(2022: 14.0%). \u00a0
For each cash generating\u00a0unit, the expected future cash\u00a0flow is based on approved strategies\u00a0and earnings estimates for\u00a0the budget period r\u00a0epresenting \u00a0
the first five years. For the terminal period, the steady state normalised level of earnings (expected dividend)\u00a0is expected to grow at a constant\u00a0growth \u00a0
rate equal to expected real GDP growth. Cash flow estimates are post-tax, and\u00a0the risks of\u00a0the individual\u00a0cash-generating units are reflected in the \u00a0
estimated earnings. Accordingly, the\u00a0risk-adjusted cash\u00a0flows carry\u00a0a similar risk profile. The estimated cash flows\u00a0are discounted\u00a0at the Group\u2019s\u00a0risk- \u00a0
adjusted required rates of return post-tax. \u00a0
Cash generating\u00a0units with\u00a0goodwill \u00a0
Large Corporates & Institutions,\u00a0General Banking \u00a0
In 2007, Danske\u00a0Bank acquired\u00a0the shares of the Sampo Bank group and incorporated\u00a0its banking\u00a0activities into\u00a0the business\u00a0structure of Danske\u00a0Bank\u2019s \u00a0
banking activities. In\u00a0the beginning of\u00a02011, General Banking was\u00a0separated from banking activities\u00a0into an independent\u00a0unit, resulting in reallocation\u00a0of \u00a0
goodwill to the unit. As a result of organisational\u00a0changes in 2012, General Banking\u00a0became part of Corporates & Institutions\u00a0as a separate\u00a0cash \u00a0
generating unit. At the organisational\u00a0changes in 2021, Corporates & Institutions\u00a0was renamed to Large Cor\u00a0porates &\u00a0Institutions. \u00a0
Large Corporates & Institutions,\u00a0Markets and\u00a0Investment Banking & Securities \u00a0
The trading activities\u00a0of Sampo Bank were incorporated\u00a0into the business structure of Danske Markets\u00a0in 2007. As a result of organisational\u00a0changes in \u00a0
2012, Danske Markets became part of Corporates & Institutions\u00a0as a separate cash generating unit.\u00a0In 2015,\u00a0the unit was\u00a0renamed to FI&C and Capital \u00a0
Markets. At\u00a0the organisation changes\u00a0in 2021, Corporates & Institutions\u00a0was renamed to Large Corporates & Institutions\u00a0and FI&C and Ca pital\u00a0Markets \u00a0
to Markets and Investment\u00a0Banking &\u00a0Securities. \u00a0
Large Corporates & Institutions,\u00a0Asset Management \u00a0
The asset management activities of Sampo\u00a0Bank were\u00a0incorporated into\u00a0the business structure of Danske Capital in 2007. In addition to t\u00a0he acquisitio\u00a0n \u00a0
of Sampo Bank, goodwill recognised by Danske Capital is attributable\u00a0to a number of smaller acquisitions.\u00a0As a result of organisational\u00a0changes in 2016, \u00a0
Danske Capital\u00a0became part\u00a0of Wealth Management\u00a0as a separate cash generating\u00a0unit. At the organisational\u00a0changes in 2021, the Wealth Management \u00a0
segment was dissolved\u00a0and the asset management activities\u00a0were transferred\u00a0to Large Corporates & Institutions\u00a0as a separate subsegment. \u00a0
Danica Pension \u00a0
This includes the acquisition\u00a0of Danica\u00a0Pensionsforsikring (formerly\u00a0SEB Pension Danmark) in 2018 by the subsidiary Danica Pension. In 2019, Danic\u00a0a \u00a0
Pensionsforsikring was\u00a0merged with Danica Pension. After the merger and\u00a0integration of\u00a0Danica Pensionsforsikring\u00a0into Danica Pension, this goodwill is \u00a0
tested on the cash generating unit consisting of Danica Pension\u2019s Danish activities.\u00a0Danica Pension used to be part of the Wealth Management segment. \u00a0
At the organisational\u00a0changes in 2021, the Wealth Management\u00a0segment was dissolved\u00a0and Danica Pension became a separate segment. \u00a0
Key assumptions\u00a0for goodwill\u00a0impairment tests \u00a0
Discount rate \u00a0
The discount rate used to calculate the present value of expected future cash flows was\u00a0changed from\u00a08% after\u00a0tax in the 2022 test to 9% after tax in \u00a0
the 2023 test due to an increase in the risk-free rate and market risk premium\u00a0compared to the test in year 2022. The discount rate has been determine\u00a0d \u00a0
on the basis of the Capital Asset Pricing Model and comprises a\u00a0risk-free interest rate, the market risk premium and a factor covering the systematic \u00a0
market risk (beta factor). The values for the risk-free interest rate, the market risk premium and the beta factor are determined\u00a0and updated yearly using \u00a0
external sources of information.\u00a0The Group applies\u00a0the same discount rate to all cash-generating units, as the risks of the individual\u00a0cash-generating units \u00a0
are reflected\u00a0in their\u00a0estimated cash\u00a0flows. \u00a0
G19. Intangible assets continued \u00a0
Cash flows in the terminal period \u00a0
Cash flows in the terminal period reflect net earnings (dividend) in the preceding year growing at a constant rate. The growt\u00a0h estimates are\u00a0determine d \u00a0
on the basis of Danske Research\u2019s forecasts of real GDP growth for the relevant\u00a0markets For Asset Management,\u00a0(2022: 1.3%), General Banking \u00a0
(2022:1.5%) as\u00a0well as for Markets\u00a0and Investment\u00a0Banking &\u00a0Securities (2022: 1.5%), the\u00a0assumed growth rate in the terminal period is 1.3%. Around \u00a0
77% of the net present value\u00a0of future cash flows is expected to be generated in the terminal period (2022: 74%). \u00a0
Large Corporates & Institutions,\u00a0General Banking \u00a0
Earnings are primarily affected by expectations\u00a0for the interest\u00a0level and\u00a0its resulting\u00a0effect on net interest income,\u00a0as well as expectations\u00a0for net fee \u00a0
income, on operating expenses\u00a0and on credit losses. \u00a0
The interest rate levels used in the impairment\u00a0test are based on Danske\u00a0Research\u2019s expectations\u00a0for developments\u00a0in overnight\u00a0money market interes\u00a0t \u00a0
rates. When interest rate levels\u00a0increase, the return on allocated capital will increase. Earnings on lending and\u00a0deposits depend\u00a0on the growth in lending \u00a0
and deposits volumes and on changes in lending\u00a0and deposit margins. Expectations\u00a0for growth in lending is due to the Forward\u00a0\u201928 Strategy above Danske \u00a0
Research\u2019s forecasts for real GDP growth. The growth in lending\u00a0is 6% in 2024 and from 2025 to 2028 between 5% and 6%. Deposits\u00a0are expected to \u00a0
decline from\u00a0the high level during Covid-19 towards end 2024 and from 2025 to 2028 to reflect Danske Research\u2019s forecasts for real GDP growth. As \u00a0
lending and deposit margins are assumed to be constant regardless of the interest rate level, earnings from lending and depos\u00a0its are not particular\u00a0ly \u00a0
sensitive to changes in the interest rate level. \u00a0
Fee income\u00a0is in especially 2024 to 2026 expected to increase driven by growth in corporate daily banking above GDP due to th\u00a0e Forward \u201828 strategy. \u00a0
Increase in fee income is also expected, but at a lower level,\u00a0in the years 2027 and 2028. \u00a0
For 2024-2028 operating expenses is due to Forward \u201928\u00a0strategy, higher level for\u00a0wages and general inflation\u00a0compared to last year, expected to \u00a0
increase. \u00a0
The expectations for\u00a0credit losses are for the budget period based on Danske Bank\u2019s estimates\u00a0for the through-the-cycle level\u00a0throughout the budget \u00a0
period, reflecting historical data adjusted to reflect the current situation, including the increasing macroeconomic risk due to the uncertainty related to \u00a0
the elevated inflation and severity of\u00a0the economic downturn as well\u00a0as the global tension uncertainty. Level for\u00a0credit loss es is expected\u00a0to increase and \u00a0
stabilise at\u00a0a higher level compared to the test in 2022. \u00a0
Large Corporates & Institutions,\u00a0Markets and\u00a0Investment Banking & Securities \u00a0
Earnings are\u00a0primarily affected by expectations for net fee income, net trading income and costs. \u00a0
Fee and trading\u00a0income have been forecasted initially with the growth in GDP and reduced due to uncertainty in the financial markets. Projections\u00a0ar e \u00a0
based on expected fee and trading\u00a0income for 2024. Income is impacted by interest\u00a0on calculated\u00a0equity and Capital cost. Inte\u00a0rest on calculated equity \u00a0
is calculated based\u00a0on the overnight money market interest rate and the allocated capital. \u00a0
For 2024 operating expenses is expected to increase based on the investment\u00a0in the\u00a0Forward \u201928 strategy\u00a0together with general assumptions for \u00a0
expected wage\u00a0inflation and other costs with general inflation. 2025 to 2028 is based on\u00a0expected wage\u00a0inflation and other co\u00a0sts with general inflation. \u00a0
Large Corporates & Institutions,\u00a0Asset Management \u00a0
Earnings at\u00a0Asset Management depend primarily on the management fee\u00a0on assets under management. Expected cash flows therefore depend on \u00a0
expectations for\u00a0changes in assets under management and the average margin on those assets. For the period until the terminal\u00a0period, changes in \u00a0
assets under management depend on net sales and on the accumulation\u00a0of market\u00a0returns on\u00a0the assets. Assets under management decr\u00a0eased in 2023 \u00a0
compared to 2022. Asset under management is expected to grow using R\u00e5det for Afkastforve\u00a0ntningers\u2019 assumptions. The\u00a0average margin on assets \u00a0
under management is\u00a0expected to\u00a0be 0.37% (2022: 0.36%). The budgeted average margin on assets under management is in line wit\u00a0h the realised \u00a0
margin for 2023.\u00a0Staff related\u00a0costs are forecasted based on expectations\u00a0about inflation for\u00a0wages and other costs based on general inflation.\u00a0All \u00a0
assumptions reflect\u00a0management\u2019s expectations. \u00a0
Sensitivity analysis \u00a0
For General Banking, the\u00a0excess value (the amount by which the recoverable amount exceeds the carrying amount of\u00a0goodwill) amounts to DKK 9,683 \u00a0
million (2022:\u00a0DKK 26,471 million). The decrease in excess value is\u00a0, despite a higher level of\u00a0profit after tax, mainly driven by an increase in allocate\u00a0d \u00a0
capital caused\u00a0by increased regulatory requirements\u00a0together with the increase in the discount rate. If the growth in the ter\u00a0minal period is reduced from \u00a0
1.3% to \u20132.7% (2022: from\u00a01.5% to -12.6%) or\u00a0the discount rate is increased from\u00a09.0% to 11.7% (2022: increased from 8.0% to 15.5%) the excess \u00a0
value would be\u00a0zero. \u00a0
For Markets and\u00a0Investment Banking &\u00a0Securities, the excess value amounts to DKK 6,055 million (2022: DKK 10,540 million).\u00a0The decrease in the \u00a0
excess value is mainly due to the increase in the discount rate from 8.0% in the 2022 test to 9.0% in the 2023 test but also affected by slightly lower \u00a0
earnings. If the growth in the terminal period is reduced from 1.3% to \u20133.2% (2022:\u00a0from 1.5% to -5.1%) or the discount rate is increased from 9.0% to \u00a0
12.0% (2022: increase from 8.0% to 12.2%), the excess value would\u00a0be zero. \u00a0
G19. Intangible assets continued \u00a0
For Asset Management, the excess value amounts to DKK 1,160 million (2022: DKK 913 million). The increase in excess value is mainly driven by \u00a0
increase in income due to growth in asset under management,\u00a0and a\u00a0higher average margin. If the growth in\u00a0the terminal period is\u00a0reduced from 1.3% to \u00a0
-6.2% (2022: from 1.3% to -6.5%) or the discount rate is increased from 9.0% to 13.5% (2022: from 8.0% to 11.2%), the excess value\u00a0would be zero. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4383": {
"value": "Accounting policy \u00a0
Goodwill \u00a0
Goodwill arises\u00a0on the acquisition\u00a0of an undertaking\u00a0and is calculated\u00a0as the\u00a0difference between the cost (until 1 January\u00a02010 including\u00a0direct \u00a0
transaction costs) of\u00a0the undertaking and\u00a0the fair value of\u00a0its net assets, including\u00a0contingent liabilities, at\u00a0the time of acquisition. Goodwill\u00a0is allocate d \u00a0
to cash-generating\u00a0units at the level at which management monitors\u00a0the investment. \u00a0
Goodwill is\u00a0not amortised;\u00a0instead, each cash-generating unit is tested for impairment once a year, or more frequently if indications\u00a0of impairment\u00a0exist. \u00a0
Goodwill is written down\u00a0to its recoverable amount through profit and loss if the carrying amount of the net assets of the cash-generating\u00a0unit exceeds \u00a0
the higher of\u00a0the assets\u2019 fair value less costs to sell and their value in use, which equals the present value of the future cash flows expected from the \u00a0
unit. \u00a0
Goodwill on associates is recognised under Holdings in associates. \u00a0
Other intangible\u00a0assets \u00a0
Software acquired is measured\u00a0at cost,\u00a0including expenses incurred to make a\u00a0software application\u00a0ready for use. Software acquired is amortised\u00a0over \u00a0
its expected useful life, usually three years, according to the straight-line method. \u00a0
Software developed\u00a0by the Group is recognised as\u00a0an asset if the cost of development\u00a0is reliably\u00a0measurable and\u00a0analyses show that future earnings \u00a0
from using the individual\u00a0software applications\u00a0exceed the cost. Cost includes expenses incurred to make a\u00a0software application\u00a0ready for use. Once a \u00a0
software application\u00a0has been developed,\u00a0the cost\u00a0is amortised over its expected useful life, usually three years, according to the straight-line\u00a0method. \u00a0
The cost\u00a0of development\u00a0consists primarily of\u00a0direct remuneration\u00a0and other directly attributable\u00a0development costs.\u00a0Costs incurred in the planning \u00a0
phase are not included\u00a0but are expensed when incurred. \u00a0
Software is tested\u00a0for impairment\u00a0if indications of\u00a0impairment exist\u00a0and is written down to its value in use. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4386": {
"value": "Goodwill \u00a0
Goodwill arises\u00a0on the acquisition\u00a0of an undertaking\u00a0and is calculated\u00a0as the\u00a0difference between the cost (until 1 January\u00a02010 including\u00a0direct \u00a0
transaction costs) of\u00a0the undertaking and\u00a0the fair value of\u00a0its net assets, including\u00a0contingent liabilities, at\u00a0the time of acquisition. Goodwill\u00a0is allocate d \u00a0
to cash-generating\u00a0units at the level at which management monitors\u00a0the investment. \u00a0
Goodwill is\u00a0not amortised;\u00a0instead, each cash-generating unit is tested for impairment once a year, or more frequently if indications\u00a0of impairment\u00a0exist. \u00a0
Goodwill is written down\u00a0to its recoverable amount through profit and loss if the carrying amount of the net assets of the cash-generating\u00a0unit exceeds \u00a0
the higher of\u00a0the assets\u2019 fair value less costs to sell and their value in use, which equals the present value of the future cash flows expected from the \u00a0
unit. \u00a0
Goodwill on associates is recognised under Holdings in associates. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4387": {
"value": "Goodwill \u00a0
Goodwill arises\u00a0on the acquisition\u00a0of an undertaking\u00a0and is calculated\u00a0as the\u00a0difference between the cost (until 1 January\u00a02010 including\u00a0direct \u00a0
transaction costs) of\u00a0the undertaking and\u00a0the fair value of\u00a0its net assets, including\u00a0contingent liabilities, at\u00a0the time of acquisition. Goodwill\u00a0is allocate d \u00a0
to cash-generating\u00a0units at the level at which management monitors\u00a0the investment. \u00a0
Goodwill is\u00a0not amortised;\u00a0instead, each cash-generating unit is tested for impairment once a year, or more frequently if indications\u00a0of impairment\u00a0exist. \u00a0
Goodwill is written down\u00a0to its recoverable amount through profit and loss if the carrying amount of the net assets of the cash-generating\u00a0unit exceeds \u00a0
the higher of\u00a0the assets\u2019 fair value less costs to sell and their value in use, which equals the present value of the future cash flows expected from the \u00a0
unit. \u00a0
Goodwill on associates is recognised under Holdings in associates. \u00a0
Accounting policy \u00a0
The financial\u00a0statements consolidate Danske Bank A/S and group undertakings\u00a0in which the Group has control over financial and operating\u00a0policy \u00a0
decisions. Control is said to exist if Danske\u00a0Bank A/S, directly or indirectly,\u00a0is exposed, or\u00a0has rights, to variable\u00a0returns from the involvement\u00a0with the \u00a0
entity and\u00a0has the ability to affect these returns through the power over the entity.\u00a0Power exists if\u00a0Danske Bank\u00a0A/S, directly\u00a0or indirectly,\u00a0holds more \u00a0
than half of\u00a0the voting rights in\u00a0an undertaking\u00a0or otherwise has power to control management and operating policy decisions. Operating\u00a0policy control \u00a0
may be exercised through agreements about the undertaking\u2019s activities. In\u00a0the rare situations\u00a0where potential\u00a0voting rights exist, these are taken into \u00a0
account if Danske Bank has the practical ability to exercise these rights. \u00a0
When assessing whether to consolidate investment\u00a0funds, the Group reviews all\u00a0facts and circumstances\u00a0to determine\u00a0whether the Group, as\u00a0fund \u00a0
manager, is acting as agent or principal. The Group is deemed to be a principal,\u00a0and the Group controls\u00a0and consolidates\u00a0a fund when it acts as fund \u00a0
manager and cannot be removed without\u00a0cause (i.e. when kick-out rights are weak), has variable returns through significant holdings, and is able to \u00a0
influence the returns of\u00a0the funds by exercising its power. Holdings\u00a0where all returns\u00a0belong to customers (pooled schemes and unit-linked\u00a0investme n t \u00a0
contracts) are\u00a0not considered\u00a0as exposure to variable\u00a0returns, whereas holdings where the majority of the returns belong to customers (holdings related \u00a0
to insurance contracts)\u00a0are considered\u00a0only limited\u00a0exposure to variable returns. \u00a0
The consolidated financial statements are\u00a0prepared by consolidating\u00a0items of\u00a0the same nature and eliminating\u00a0intra-group transactions, balances\u00a0and \u00a0
trading profits and losses. \u00a0
Undertakings acquired\u00a0are included\u00a0in the financial\u00a0statements at\u00a0the time of acquisition.\u00a0The net\u00a0assets of such undertakings\u00a0(assets, including \u00a0
identifiable intangible assets,\u00a0less liabilities\u00a0and contingent\u00a0liabilities) are\u00a0measured at\u00a0fair value at the date of acquisition\u00a0according to\u00a0the acquisitio\u00a0n \u00a0
method. \u00a0
If the cost of acquisition\u00a0(until 1 January 2010 including direct transaction costs) exceeds the fair value of\u00a0the net\u00a0assets acquired, the excess amount \u00a0
is recognised\u00a0as goodwill. Goodwill\u00a0is recognised in the functional currency of the undertaking\u00a0acquired. The portion of the acquisition that is attributab\u00a0le \u00a0
to non-controlling\u00a0interests does not include goodwill. \u00a0
Divested undertakings are\u00a0included in the financial statements until the transfer date. Changes in\u00a0the ownership share in a\u00a0subsidiary that\u00a0do not result \u00a0
in loss\u00a0of control are accounted for as equity\u00a0transactions. This\u00a0implies that\u00a0the carrying amounts of the controlling\u00a0and non-controlling\u00a0interests are \u00a0
adjusted to reflect the changes in the relative interest in the subsidiary, and\u00a0any difference between the fair value of the consideration paid/received and \u00a0
the adjustment made to non-controlling interests is\u00a0attributed to\u00a0the shareholders\u00a0of Danske\u00a0Bank A/S. If changes in the ownership\u00a0share in a subsidiar\u00a0y \u00a0
result in the loss of control, any investment\u00a0retained in the former subsidiary is recognised at fair value,\u00a0and amounts recognised under Other \u00a0
comprehensive income are reclassified to\u00a0the income statement or\u00a0transferred directly\u00a0to retained earnings if so required by other IFRSs. The difference \u00a0
between the fair\u00a0value of the consideration received plus any investment retained in the former subsidiary and the carrying amount of\u00a0the net assets in \u00a0
the subsidiary less the carrying amounts of any non-controlling\u00a0interests is\u00a0recognised in the income statement. \u00a0
Held-for-sale group undertakings \u00a0
Companies taken over by the Group under non-performing loan agreements and actively marketed for sale\u00a0and expected to be sold within 12\u00a0months of \u00a0
classification are\u00a0recognised as held-for-sale. Assets and liabilities\u00a0in such companies\u00a0are presented under Assets held for sale and Liabilities\u00a0in disposal \u00a0
groups held for sale. The assets are recognised at the lower of cost and fair value\u00a0less expected\u00a0costs to sell. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4388": {
"value": "Goodwill \u00a0
Goodwill arises\u00a0on the acquisition\u00a0of an undertaking\u00a0and is calculated\u00a0as the\u00a0difference between the cost (until 1 January\u00a02010 including\u00a0direct \u00a0
transaction costs) of\u00a0the undertaking and\u00a0the fair value of\u00a0its net assets, including\u00a0contingent liabilities, at\u00a0the time of acquisition. Goodwill\u00a0is allocate d \u00a0
to cash-generating\u00a0units at the level at which management monitors\u00a0the investment. \u00a0
Goodwill is\u00a0not amortised;\u00a0instead, each cash-generating unit is tested for impairment once a year, or more frequently if indications\u00a0of impairment\u00a0exist. \u00a0
Goodwill is written down\u00a0to its recoverable amount through profit and loss if the carrying amount of the net assets of the cash-generating\u00a0unit exceeds \u00a0
the higher of\u00a0the assets\u2019 fair value less costs to sell and their value in use, which equals the present value of the future cash flows expected from the \u00a0
unit. \u00a0
Goodwill on associates is recognised under Holdings in associates. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForCustomerAcquisitionCostsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4389": {
"value": "Other intangible\u00a0assets \u00a0
Software acquired is measured\u00a0at cost,\u00a0including expenses incurred to make a\u00a0software application\u00a0ready for use. Software acquired is amortised\u00a0over \u00a0
its expected useful life, usually three years, according to the straight-line method. \u00a0
Software developed\u00a0by the Group is recognised as\u00a0an asset if the cost of development\u00a0is reliably\u00a0measurable and\u00a0analyses show that future earnings \u00a0
from using the individual\u00a0software applications\u00a0exceed the cost. Cost includes expenses incurred to make a\u00a0software application\u00a0ready for use. Once a \u00a0
software application\u00a0has been developed,\u00a0the cost\u00a0is amortised over its expected useful life, usually three years, according to the straight-line\u00a0method. \u00a0
The cost\u00a0of development\u00a0consists primarily of\u00a0direct remuneration\u00a0and other directly attributable\u00a0development costs.\u00a0Costs incurred in the planning \u00a0
phase are not included\u00a0but are expensed when incurred. \u00a0
Software is tested\u00a0for impairment\u00a0if indications of\u00a0impairment exist\u00a0and is written down to its value in use. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4390": {
"value": "Other intangible\u00a0assets \u00a0
Software acquired is measured\u00a0at cost,\u00a0including expenses incurred to make a\u00a0software application\u00a0ready for use. Software acquired is amortised\u00a0over \u00a0
its expected useful life, usually three years, according to the straight-line method. \u00a0
Software developed\u00a0by the Group is recognised as\u00a0an asset if the cost of development\u00a0is reliably\u00a0measurable and\u00a0analyses show that future earnings \u00a0
from using the individual\u00a0software applications\u00a0exceed the cost. Cost includes expenses incurred to make a\u00a0software application\u00a0ready for use. Once a \u00a0
software application\u00a0has been developed,\u00a0the cost\u00a0is amortised over its expected useful life, usually three years, according to the straight-line\u00a0method. \u00a0
The cost\u00a0of development\u00a0consists primarily of\u00a0direct remuneration\u00a0and other directly attributable\u00a0development costs.\u00a0Costs incurred in the planning \u00a0
phase are not included\u00a0but are expensed when incurred. \u00a0
Software is tested\u00a0for impairment\u00a0if indications of\u00a0impairment exist\u00a0and is written down to its value in use. \u00a0
Tangible assets \u00a0
Tangible assets include domicile property and plant and equipment.\u00a0Plant and equipment\u00a0cover equipment,\u00a0vehicles, furniture, fixtures and\u00a0leasehold \u00a0
improvements. Tangible assets\u00a0also include lease assets, i.e. assets let under operating leases, except real property. Lease assets includes cars, lorries \u00a0
and equipement.\u00a0Tangible assets\u00a0are measured\u00a0at cost and depreciated\u00a0over the estimated useful\u00a0life. The estimated useful life is 20-50 years for \u00a0
domicile property, 3-10 years for plant and equipment and three years for\u00a0lease assets. Depreciation\u00a0charges are recognised under Operating expenses. \u00a0
Tangible assets are\u00a0tested for\u00a0impairment if indications of impairment exist. An impaired asset is written down to its recoverable amount, which is\u00a0the \u00a0
higher of its fair value less costs to sell and its value in use. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4391": {
"value": "Other intangible\u00a0assets \u00a0
Software acquired is measured\u00a0at cost,\u00a0including expenses incurred to make a\u00a0software application\u00a0ready for use. Software acquired is amortised\u00a0over \u00a0
its expected useful life, usually three years, according to the straight-line method. \u00a0
Software developed\u00a0by the Group is recognised as\u00a0an asset if the cost of development\u00a0is reliably\u00a0measurable and\u00a0analyses show that future earnings \u00a0
from using the individual\u00a0software applications\u00a0exceed the cost. Cost includes expenses incurred to make a\u00a0software application\u00a0ready for use. Once a \u00a0
software application\u00a0has been developed,\u00a0the cost\u00a0is amortised over its expected useful life, usually three years, according to the straight-line\u00a0method. \u00a0
The cost\u00a0of development\u00a0consists primarily of\u00a0direct remuneration\u00a0and other directly attributable\u00a0development costs.\u00a0Costs incurred in the planning \u00a0
phase are not included\u00a0but are expensed when incurred. \u00a0
Software is tested\u00a0for impairment\u00a0if indications of\u00a0impairment exist\u00a0and is written down to its value in use. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4392": {
"value": "(a) Intangible assets \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Goodwill \u00a0
4,437 \u00a0
4,427 \u00a0
Software, acquired or internally developed \u00a0
1,627 \u00a0
1,618 \u00a0
Total \u00a0
6,064 \u00a0
6,045 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
In 2023, the Group\u00a0recognised software development costs of DKK 1,546 million as an\u00a0asset (2022: DKK\u00a01,529 million)\u00a0and expensed\u00a0DKK 2,531 \u00a0
million (2022:\u00a0DKK 2,563 million). An impairment loss of DKK 26 million was recognised in 2023 on software development costs (2022: DKK 41 million)\u00a0. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4395": {
"value": "(b) Further explanation of impairment testing of goodwill \u00a0
The Group\u2019s goodwill is tested for\u00a0impairment at least once\u00a0a year by testing\u00a0at the\u00a0level of\u00a0identifiable cash-generating units to\u00a0which goodwill has been \u00a0
allocated. Further, if goodwill in a cash-generating unit is fully impaired,\u00a0a further\u00a0impairment loss\u00a0is recognised as an impairment\u00a0loss on intangible\u00a0or \u00a0
tangible assets, if\u00a0any. \u00a0
The impairment tests\u00a0conducted in\u00a02023 resulted in no impairment charges on goodwill. In 2022, impairment charges of DKK 1.6 billion was, due to \u00a0
increasing discount\u00a0rates and lower financial outlook, recognised to the goodwill in Danica Pension amounting\u00a0to DKK\u00a01.6 billion. \u00a0
G19. Intangible assets continued \u00a0
1 January \u00a0
Foreign 31\u00a0December \u00a0
Foreign 31\u00a0December \u00a0
2022 \u00a0
Impairment \u00a0
currency \u00a0
2022 \u00a0
currency \u00a0
2023 \u00a0
(DKK millions) \u00a0
Goodwill \u00a0
Sale \u00a0
charges \u00a0
translation \u00a0
Goodwill \u00a0
translation \u00a0
Goodwill \u00a0
LC&I, General Banking \u00a0
507 \u00a0
-
-
-
507 \u00a0
1
508 \u00a0
LC&I, Markets and Investment Banking \u00a0
& Securities \u00a0
2,094 \u00a0
-
-
-
2,094 \u00a0
5
2,099 \u00a0
LC&I, Asset Management \u00a0
1,807 \u00a0
-
-
-
1,807 \u00a0
4
1,811 \u00a0
Danica Pension \u00a0
1,627 \u00a0
-
1,627 \u00a0
-
-
-
-
Others \u00a0
96 \u00a0
-73 \u00a0
-
-4 \u00a0
19 \u00a0
-
19 \u00a0
Total \u00a0
6,131 \u00a0
-73 \u00a0
1,627 \u00a0
-4 \u00a0
4,427 \u00a0
10 \u00a0
4,437 \u00a0
Model applied\u00a0in the\u00a0goodwill impairment\u00a0tests for 2023 and 2022 \u00a0
The impairment\u00a0test compares the recoverable amount and\u00a0the carrying amount for\u00a0each cash-generating\u00a0unit. The recoverable amount is represented \u00a0
by the present value\u00a0of expected future cash flows (value\u00a0in use). The special debt structure of financial inst\u00a0itutions requires\u00a0the use of a discounte\u00a0d \u00a0
dividend (equity)\u00a0model to calculate the present value of expected future cash flows, as the interest on lending and borrowin\u00a0gs is included as part of the \u00a0
cash flows. \u00a0
The carrying amount for\u00a0each cash-generating\u00a0unit is the aggregate of the cash-generating unit\u2019s goodwill and\u00a0allocated capital. The cash-generating \u00a0
unit\u2019s allocated capital is\u00a0derived using the Group\u2019s capital allocation framework. The capital framework is based on a regulatory approach to identify the \u00a0
individual business\u00a0unit\u2019s capital consumption and\u00a0is in accordance with the Group\u2019s capital targets.\u00a0In the\u00a02023 test, allocated capital is allocated\u00a0as \u00a0
14.0% of the cash-generating\u00a0unit`s risk\u00a0exposure amount\u00a0(2022: 14.0%). \u00a0
For each cash generating\u00a0unit, the expected future cash\u00a0flow is based on approved strategies\u00a0and earnings estimates for\u00a0the budget period r\u00a0epresenting \u00a0
the first five years. For the terminal period, the steady state normalised level of earnings (expected dividend)\u00a0is expected to grow at a constant\u00a0growth \u00a0
rate equal to expected real GDP growth. Cash flow estimates are post-tax, and\u00a0the risks of\u00a0the individual\u00a0cash-generating units are reflected in the \u00a0
estimated earnings. Accordingly, the\u00a0risk-adjusted cash\u00a0flows carry\u00a0a similar risk profile. The estimated cash flows\u00a0are discounted\u00a0at the Group\u2019s\u00a0risk- \u00a0
adjusted required rates of return post-tax. \u00a0
Cash generating\u00a0units with\u00a0goodwill \u00a0
Large Corporates & Institutions,\u00a0General Banking \u00a0
In 2007, Danske\u00a0Bank acquired\u00a0the shares of the Sampo Bank group and incorporated\u00a0its banking\u00a0activities into\u00a0the business\u00a0structure of Danske\u00a0Bank\u2019s \u00a0
banking activities. In\u00a0the beginning of\u00a02011, General Banking was\u00a0separated from banking activities\u00a0into an independent\u00a0unit, resulting in reallocation\u00a0of \u00a0
goodwill to the unit. As a result of organisational\u00a0changes in 2012, General Banking\u00a0became part of Corporates & Institutions\u00a0as a separate\u00a0cash \u00a0
generating unit. At the organisational\u00a0changes in 2021, Corporates & Institutions\u00a0was renamed to Large Cor\u00a0porates &\u00a0Institutions. \u00a0
Large Corporates & Institutions,\u00a0Markets and\u00a0Investment Banking & Securities \u00a0
The trading activities\u00a0of Sampo Bank were incorporated\u00a0into the business structure of Danske Markets\u00a0in 2007. As a result of organisational\u00a0changes in \u00a0
2012, Danske Markets became part of Corporates & Institutions\u00a0as a separate cash generating unit.\u00a0In 2015,\u00a0the unit was\u00a0renamed to FI&C and Capital \u00a0
Markets. At\u00a0the organisation changes\u00a0in 2021, Corporates & Institutions\u00a0was renamed to Large Corporates & Institutions\u00a0and FI&C and Ca pital\u00a0Markets \u00a0
to Markets and Investment\u00a0Banking &\u00a0Securities. \u00a0
Large Corporates & Institutions,\u00a0Asset Management \u00a0
The asset management activities of Sampo\u00a0Bank were\u00a0incorporated into\u00a0the business structure of Danske Capital in 2007. In addition to t\u00a0he acquisitio\u00a0n \u00a0
of Sampo Bank, goodwill recognised by Danske Capital is attributable\u00a0to a number of smaller acquisitions.\u00a0As a result of organisational\u00a0changes in 2016, \u00a0
Danske Capital\u00a0became part\u00a0of Wealth Management\u00a0as a separate cash generating\u00a0unit. At the organisational\u00a0changes in 2021, the Wealth Management \u00a0
segment was dissolved\u00a0and the asset management activities\u00a0were transferred\u00a0to Large Corporates & Institutions\u00a0as a separate subsegment. \u00a0
Danica Pension \u00a0
This includes the acquisition\u00a0of Danica\u00a0Pensionsforsikring (formerly\u00a0SEB Pension Danmark) in 2018 by the subsidiary Danica Pension. In 2019, Danic\u00a0a \u00a0
Pensionsforsikring was\u00a0merged with Danica Pension. After the merger and\u00a0integration of\u00a0Danica Pensionsforsikring\u00a0into Danica Pension, this goodwill is \u00a0
tested on the cash generating unit consisting of Danica Pension\u2019s Danish activities.\u00a0Danica Pension used to be part of the Wealth Management segment. \u00a0
At the organisational\u00a0changes in 2021, the Wealth Management\u00a0segment was dissolved\u00a0and Danica Pension became a separate segment. \u00a0
Key assumptions\u00a0for goodwill\u00a0impairment tests \u00a0
Discount rate \u00a0
The discount rate used to calculate the present value of expected future cash flows was\u00a0changed from\u00a08% after\u00a0tax in the 2022 test to 9% after tax in \u00a0
the 2023 test due to an increase in the risk-free rate and market risk premium\u00a0compared to the test in year 2022. The discount rate has been determine\u00a0d \u00a0
on the basis of the Capital Asset Pricing Model and comprises a\u00a0risk-free interest rate, the market risk premium and a factor covering the systematic \u00a0
market risk (beta factor). The values for the risk-free interest rate, the market risk premium and the beta factor are determined\u00a0and updated yearly using \u00a0
external sources of information.\u00a0The Group applies\u00a0the same discount rate to all cash-generating units, as the risks of the individual\u00a0cash-generating units \u00a0
are reflected\u00a0in their\u00a0estimated cash\u00a0flows. \u00a0
G19. Intangible assets continued \u00a0
Cash flows in the terminal period \u00a0
Cash flows in the terminal period reflect net earnings (dividend) in the preceding year growing at a constant rate. The growt\u00a0h estimates are\u00a0determine d \u00a0
on the basis of Danske Research\u2019s forecasts of real GDP growth for the relevant\u00a0markets For Asset Management,\u00a0(2022: 1.3%), General Banking \u00a0
(2022:1.5%) as\u00a0well as for Markets\u00a0and Investment\u00a0Banking &\u00a0Securities (2022: 1.5%), the\u00a0assumed growth rate in the terminal period is 1.3%. Around \u00a0
77% of the net present value\u00a0of future cash flows is expected to be generated in the terminal period (2022: 74%). \u00a0
Large Corporates & Institutions,\u00a0General Banking \u00a0
Earnings are primarily affected by expectations\u00a0for the interest\u00a0level and\u00a0its resulting\u00a0effect on net interest income,\u00a0as well as expectations\u00a0for net fee \u00a0
income, on operating expenses\u00a0and on credit losses. \u00a0
The interest rate levels used in the impairment\u00a0test are based on Danske\u00a0Research\u2019s expectations\u00a0for developments\u00a0in overnight\u00a0money market interes\u00a0t \u00a0
rates. When interest rate levels\u00a0increase, the return on allocated capital will increase. Earnings on lending and\u00a0deposits depend\u00a0on the growth in lending \u00a0
and deposits volumes and on changes in lending\u00a0and deposit margins. Expectations\u00a0for growth in lending is due to the Forward\u00a0\u201928 Strategy above Danske \u00a0
Research\u2019s forecasts for real GDP growth. The growth in lending\u00a0is 6% in 2024 and from 2025 to 2028 between 5% and 6%. Deposits\u00a0are expected to \u00a0
decline from\u00a0the high level during Covid-19 towards end 2024 and from 2025 to 2028 to reflect Danske Research\u2019s forecasts for real GDP growth. As \u00a0
lending and deposit margins are assumed to be constant regardless of the interest rate level, earnings from lending and depos\u00a0its are not particular\u00a0ly \u00a0
sensitive to changes in the interest rate level. \u00a0
Fee income\u00a0is in especially 2024 to 2026 expected to increase driven by growth in corporate daily banking above GDP due to th\u00a0e Forward \u201828 strategy. \u00a0
Increase in fee income is also expected, but at a lower level,\u00a0in the years 2027 and 2028. \u00a0
For 2024-2028 operating expenses is due to Forward \u201928\u00a0strategy, higher level for\u00a0wages and general inflation\u00a0compared to last year, expected to \u00a0
increase. \u00a0
The expectations for\u00a0credit losses are for the budget period based on Danske Bank\u2019s estimates\u00a0for the through-the-cycle level\u00a0throughout the budget \u00a0
period, reflecting historical data adjusted to reflect the current situation, including the increasing macroeconomic risk due to the uncertainty related to \u00a0
the elevated inflation and severity of\u00a0the economic downturn as well\u00a0as the global tension uncertainty. Level for\u00a0credit loss es is expected\u00a0to increase and \u00a0
stabilise at\u00a0a higher level compared to the test in 2022. \u00a0
Large Corporates & Institutions,\u00a0Markets and\u00a0Investment Banking & Securities \u00a0
Earnings are\u00a0primarily affected by expectations for net fee income, net trading income and costs. \u00a0
Fee and trading\u00a0income have been forecasted initially with the growth in GDP and reduced due to uncertainty in the financial markets. Projections\u00a0ar e \u00a0
based on expected fee and trading\u00a0income for 2024. Income is impacted by interest\u00a0on calculated\u00a0equity and Capital cost. Inte\u00a0rest on calculated equity \u00a0
is calculated based\u00a0on the overnight money market interest rate and the allocated capital. \u00a0
For 2024 operating expenses is expected to increase based on the investment\u00a0in the\u00a0Forward \u201928 strategy\u00a0together with general assumptions for \u00a0
expected wage\u00a0inflation and other costs with general inflation. 2025 to 2028 is based on\u00a0expected wage\u00a0inflation and other co\u00a0sts with general inflation. \u00a0
Large Corporates & Institutions,\u00a0Asset Management \u00a0
Earnings at\u00a0Asset Management depend primarily on the management fee\u00a0on assets under management. Expected cash flows therefore depend on \u00a0
expectations for\u00a0changes in assets under management and the average margin on those assets. For the period until the terminal\u00a0period, changes in \u00a0
assets under management depend on net sales and on the accumulation\u00a0of market\u00a0returns on\u00a0the assets. Assets under management decr\u00a0eased in 2023 \u00a0
compared to 2022. Asset under management is expected to grow using R\u00e5det for Afkastforve\u00a0ntningers\u2019 assumptions. The\u00a0average margin on assets \u00a0
under management is\u00a0expected to\u00a0be 0.37% (2022: 0.36%). The budgeted average margin on assets under management is in line wit\u00a0h the realised \u00a0
margin for 2023.\u00a0Staff related\u00a0costs are forecasted based on expectations\u00a0about inflation for\u00a0wages and other costs based on general inflation.\u00a0All \u00a0
assumptions reflect\u00a0management\u2019s expectations. \u00a0
Sensitivity analysis \u00a0
For General Banking, the\u00a0excess value (the amount by which the recoverable amount exceeds the carrying amount of\u00a0goodwill) amounts to DKK 9,683 \u00a0
million (2022:\u00a0DKK 26,471 million). The decrease in excess value is\u00a0, despite a higher level of\u00a0profit after tax, mainly driven by an increase in allocate\u00a0d \u00a0
capital caused\u00a0by increased regulatory requirements\u00a0together with the increase in the discount rate. If the growth in the ter\u00a0minal period is reduced from \u00a0
1.3% to \u20132.7% (2022: from\u00a01.5% to -12.6%) or\u00a0the discount rate is increased from\u00a09.0% to 11.7% (2022: increased from 8.0% to 15.5%) the excess \u00a0
value would be\u00a0zero. \u00a0
For Markets and\u00a0Investment Banking &\u00a0Securities, the excess value amounts to DKK 6,055 million (2022: DKK 10,540 million).\u00a0The decrease in the \u00a0
excess value is mainly due to the increase in the discount rate from 8.0% in the 2022 test to 9.0% in the 2023 test but also affected by slightly lower \u00a0
earnings. If the growth in the terminal period is reduced from 1.3% to \u20133.2% (2022:\u00a0from 1.5% to -5.1%) or the discount rate is increased from 9.0% to \u00a0
12.0% (2022: increase from 8.0% to 12.2%), the excess value would\u00a0be zero. \u00a0
G19. Intangible assets continued \u00a0
For Asset Management, the excess value amounts to DKK 1,160 million (2022: DKK 913 million). The increase in excess value is mainly driven by \u00a0
increase in income due to growth in asset under management,\u00a0and a\u00a0higher average margin. If the growth in\u00a0the terminal period is\u00a0reduced from 1.3% to \u00a0
-6.2% (2022: from 1.3% to -6.5%) or the discount rate is increased from 9.0% to 13.5% (2022: from 8.0% to 11.2%), the excess value\u00a0would be zero. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoodwillExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4408": {
"value": "(a) Due to credit institutions\u00a0and central banks (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Designated at\u00a0fair value: \u00a0
Repo transactions \u00a0
80,108 \u00a0
47,618 \u00a0
Other amounts due \u00a0
5,440 \u00a0
4,634 \u00a0
Total designated at\u00a0fair value \u00a0
85,548 \u00a0
52,252 \u00a0
Amortised cost: \u00a0
Repo transactions \u00a0
3,727 \u00a0
-
Other amounts due \u00a0
65,333 \u00a0
86,525 \u00a0
Total amortised cost \u00a0
69,060 \u00a0
86,525 \u00a0
Total \u00a0
154,608 \u00a0
138,777 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDepositsFromBanksExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4410": {
"value": "(b) Deposits (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Designated at\u00a0fair value: \u00a0
Repo transactions \u00a0
113,306 \u00a0
90,168 \u00a0
Time deposits \u00a0
6,907 \u00a0
7,749 \u00a0
Total designated at\u00a0fair value \u00a0
120,213 \u00a0
97,917 \u00a0
Amortised cost: \u00a0
Repo transactions \u00a0
-
134 \u00a0
Transaction accounts \u00a0
930,083 \u00a0
1,023,795 \u00a0
Time deposits \u00a0
158,222 \u00a0
124,872 \u00a0
Pension savings\u00a0etc. \u00a0
13,685 \u00a0
15,574 \u00a0
Total amortised cost \u00a0
1,101,990 \u00a0
1,164,375 \u00a0
Total \u00a0
1,222,203 \u00a0
1,262,293 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDepositsFromCustomersExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4412": {
"value": "G21. Tax \u00a0
Tax assets and liabilities\u00a0are divided into current and deferred tax in this note. Current tax relates to expected tax to be paid on the profit for the year, whereas \u00a0
deferred tax relates\u00a0to temporary differences between the tax base of assets and liabilities and their carrying amount in the balance sheet. Further, this note \u00a0
gives an overview of the Group\u2019s tax expense for the year and the effective tax rate broken down by country. \u00a0
Accounting policy \u00a0
Current tax \u00a0
Current tax assets and liabilities\u00a0are recognised\u00a0in the balance sheet as the estimated\u00a0tax payable\u00a0on the profit for the year adjusted\u00a0for prepaid tax and \u00a0
prior-year tax payables and receivables. Tax assets and liabilities\u00a0are offset\u00a0if the Group has a legally enforceable right to set off such assets and \u00a0
liabilities and\u00a0intends either to settle the assets and liabilities\u00a0on a net basis or to realise the assets and settle the liabilities\u00a0simultaneously. \u00a0
Deferred tax \u00a0
Deferred tax on all temporary differences between the tax base of assets and liabilities\u00a0and their carrying amounts is\u00a0accounted for\u00a0in accordance with \u00a0
the balance sheet liability method. Deferred tax is measured on the basis of enacted or substantially\u00a0enacted tax regulations and rates that are \u00a0
applicable in\u00a0the relevant countries at the time the deferred tax is expected to crystallise\u00a0as current tax. Changes in deferred tax as a result of changes \u00a0
in tax rates are recognised in the income statement on the basis of\u00a0expected cash\u00a0flows. The Group does not recognise deferred tax on temporar\u00a0y \u00a0
differences between the tax base and the carrying amounts of\u00a0goodwill not subject to amortisation\u00a0for tax\u00a0purposes and other items if the temporar\u00a0y \u00a0
differences arose at the time of acquisition without effect on\u00a0net profit or taxable income.\u00a0If the tax base may be calculated\u00a0according to several sets of \u00a0
tax regulations,\u00a0deferred tax is\u00a0measured in accordance with the regulations that apply to the use\u00a0of the asset or settlement\u00a0of the liability\u00a0as planne d \u00a0
by management.\u00a0Tax assets arising from unused tax losses are only recognised if it is expected that such tax losses can be offset against tax on future \u00a0
profit in the next five years. Deferred tax assets and liabilities\u00a0are offset when they relate to the same tax jurisdiction,\u00a0a legally enforceable right to offset \u00a0
exists and the Group intends to settle on\u00a0a net basis. \u00a0
Current and deferred tax is calculated\u00a0on the\u00a0profit for the year, and adjustments\u00a0of prior-year tax charges are recognised in the income statement.\u00a0Tax \u00a0
on items\u00a0recognised under Other comprehensive income is\u00a0recognised under Other comprehensive income. Similarly, tax on items recognised in\u00a0equity \u00a0
is recognised in equity. When uncertainty\u00a0over tax treatment\u00a0exists, the uncertainty\u00a0is reflected by using either\u00a0the most likely outcome (if the poss\u00a0ible \u00a0
outcomes are binary or are concentrated on one value)\u00a0or the expected value,\u00a0probability weighted\u00a0amounts in\u00a0a range of possible outcomes\u00a0(if there is \u00a0
a range of possible\u00a0outcomes that are\u00a0neither binary\u00a0nor concentrated on one value). \u00a0
G21. Tax continued \u00a0
(a) Tax assets and liabilities \u00a0
Tax assets \u00a0
Tax liabilities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
2023 \u00a0
2022* \u00a0
Current tax charge \u00a0
2,018 \u00a0
4,230 \u00a0
450 \u00a0
712 \u00a0
Deferred tax \u00a0
1,246 \u00a0
969 \u00a0
1,107 \u00a0
1,391 \u00a0
Total \u00a0
3,264 \u00a0
5,199 \u00a0
1,557 \u00a0
2,103 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
(b) Change in deferred tax \u00a0
(DKK millions) \u00a0
Foreign Recognised\u00a0in Recognised\u00a0in \u00a0
currency profit\u00a0for the\u00a0shareholders' \u00a0
Deduction due \u00a0
2023 \u00a0
1 January \u00a0
translation \u00a0
year \u00a0
equity \u00a0
31 December \u00a0
to sale \u00a0
Intangible assets \u00a0
217 \u00a0
-2 \u00a0
310 \u00a0
-
525 \u00a0
Tangible assets \u00a0
-179 \u00a0
-16 \u00a0
-794 \u00a0
-4 \u00a0
-
-993 \u00a0
Securities \u00a0
94 \u00a0
-6 \u00a0
447 \u00a0
-
535 \u00a0
Provisions for obligations \u00a0
391 \u00a0
7
1,166 \u00a0
-359 \u00a0
-
1,205 \u00a0
Tax loss carry forwards \u00a0
-504 \u00a0
-8 \u00a0
-111 \u00a0
-
-623 \u00a0
Other \u00a0
404 \u00a0
-6 \u00a0
-1,273 \u00a0
88 \u00a0
-
-787 \u00a0
Total \u00a0
422 \u00a0
-31 \u00a0
-255 \u00a0
-275 \u00a0
-
-139 \u00a0
2022* \u00a0
Intangible assets \u00a0
145 \u00a0
2
120 \u00a0
-
-50 \u00a0
217 \u00a0
Tangible assets \u00a0
1,446 \u00a0
-13 \u00a0
-1,606 \u00a0
-6 \u00a0
-
-179 \u00a0
Securities \u00a0
10 \u00a0
-
90 \u00a0
-6 \u00a0
-
94 \u00a0
Provisions for obligations \u00a0
116 \u00a0
-21 \u00a0
474 \u00a0
-178 \u00a0
-
391 \u00a0
Tax loss carry forwards \u00a0
-251 \u00a0
12 \u00a0
-265 \u00a0
-
-
-504 \u00a0
Other \u00a0
-643 \u00a0
13 \u00a0
1,119 \u00a0
-85 \u00a0
-
404 \u00a0
Total \u00a0
822 \u00a0
-7 \u00a0
-68 \u00a0
-275 \u00a0
-50 \u00a0
422 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Recognition of\u00a0deferred tax requires management to assess the probability\u00a0and amount of future profit. Deferred tax assets arising from unused tax \u00a0
losses are recognised to the extent that such losses can be offset against tax on future profit in the next five years. The tax base of unrecognised\u00a0tax loss \u00a0
carry-forwards, relating primarily to the Group\u2019s banking operations in\u00a0Ireland, amounted to DKK 2.4\u00a0billion (2022: DKK 2.6\u00a0billion). \u00a0
G21. Tax continued \u00a0
(c) Tax expense \u00a0
Tax 2023 \u00a0
(DKK millions) \u00a0
Denmark \u00a0
Finland \u00a0
Sweden \u00a0
Norway \u00a0
UK \u00a0
Ireland \u00a0
Other \u00a0
Total \u00a0
Profit before tax \u00a0
18,444 \u00a0
2,375 \u00a0
552 \u00a0
2,461 \u00a0
2,052 \u00a0
364 \u00a0
434 \u00a0
26,682 \u00a0
Tax on profit for the year \u00a0
3,686 \u00a0
494 \u00a0
176 \u00a0
596 \u00a0
374 \u00a0
-44 \u00a0
138 \u00a0
5,420 \u00a0
Tax on other comprehensive income \u00a0
201 \u00a0
-
-26 \u00a0
-
-170 \u00a0
-
-
5
Tax on profit for the year \u00a0
Current tax charge \u00a0
4,847 \u00a0
573 \u00a0
114 \u00a0
333 \u00a0
511 \u00a0
-
80 \u00a0
6,458 \u00a0
Transferred to other comprehensive \u00a0
income \u00a0
201 \u00a0
-
-26 \u00a0
-
-170 \u00a0
-
-
5
Change in deferred tax \u00a0
29 \u00a0
-99 \u00a0
36 \u00a0
300 \u00a0
158 \u00a0
44 \u00a0
10 \u00a0
478 \u00a0
Adjustment recognised\u00a0tax loss \u00a0
-
-
-
-
-134 \u00a0
-44 \u00a0
-
-178 \u00a0
Adjustment of\u00a0prior-year tax charges \u00a0
-1,391 \u00a0
20 \u00a0
52 \u00a0
-37 \u00a0
3
-44 \u00a0
48 \u00a0
-1,349 \u00a0
Change in deferred tax charge as a result \u00a0
of increased tax rate \u00a0
-
-
-
-
6
-
-
6
Total \u00a0
3,686 \u00a0
494 \u00a0
176 \u00a0
596 \u00a0
374 \u00a0
-44 \u00a0
138 \u00a0
5,420 \u00a0
Effective tax rate % \u00a0
Tax rate \u00a0
25.2 \u00a0
20.0 \u00a0
20.6 \u00a0
25.0 \u00a0
26.2 \u00a0
12.5 \u00a0
Non-recognised tax loss \u00a0
-12.5 \u00a0
Non - taxable income \u00a0
-0.9 \u00a0
-0.1 \u00a0
-0.4 \u00a0
-0.5 \u00a0
-2.2 \u00a0
-
Non-deductible expenses** \u00a0
3.2 \u00a0
-
2.2 \u00a0
1.2 \u00a0
0.3 \u00a0
-
Tax on profit for the year \u00a0
27.5 \u00a0
19.9 \u00a0
22.4 \u00a0
25.7 \u00a0
24.3 \u00a0
-
Adjustment of\u00a0prior-year tax charges \u00a0
-7.5 \u00a0
0.9 \u00a0
9.4 \u00a0
-1.5 \u00a0
0.1 \u00a0
-12.0 \u00a0
Adjustment recognised\u00a0tax loss \u00a0
-
-
-
-
-6.5 \u00a0
-
Change in deferred tax charge as a result \u00a0
of increased tax rate* \u00a0
-
-
-
-
0.3 \u00a0
-
Effective tax\u00a0rate \u00a0
20.0 \u00a0
20.8 \u00a0
31.8 \u00a0
24.2 \u00a0
18.2 \u00a0
-12.0 \u00a0
-
20.3 \u00a0
Tax on other comprehensive income \u00a0
Remeasurement of defined benefit plans \u00a0
-18 \u00a0
-
-26 \u00a0
-
-257 \u00a0
-
-
-301 \u00a0
Hedging of units outside Denmark \u00a0
-10 \u00a0
-
-
-
-
-
-
-10 \u00a0
Unrealised value adjustments of bonds \u00a0
229 \u00a0
-
-
-
87 \u00a0
-
-
316 \u00a0
Total \u00a0
201 \u00a0
-
-26 \u00a0
-
-170 \u00a0
-
-
5
G21. Tax continued \u00a0
Tax 2022* \u00a0
(DKK millions) \u00a0
Denmark \u00a0
Finland \u00a0
Sweden \u00a0
Norway \u00a0
UK \u00a0
Ireland \u00a0
Other \u00a0
Total \u00a0
Profit before tax \u00a0
-9,495 \u00a0
1,706 \u00a0
2,118 \u00a0
2,586 \u00a0
577 \u00a0
113 \u00a0
697 \u00a0
-1,697 \u00a0
Tax on profit for the year \u00a0
1,555 \u00a0
348 \u00a0
376 \u00a0
690 \u00a0
-89 \u00a0
-130 \u00a0
133 \u00a0
2,883 \u00a0
Tax on other comprehensive income \u00a0
-594 \u00a0
-
-6 \u00a0
-
-253 \u00a0
-
-
-853 \u00a0
Tax on profit for the year \u00a0
Current tax charge \u00a0
1,197 \u00a0
341 \u00a0
371 \u00a0
615 \u00a0
356 \u00a0
-
194 \u00a0
3,074 \u00a0
Transferred to other comprehensive income \u00a0
-594 \u00a0
-
-6 \u00a0
-
-253 \u00a0
-
-
-853 \u00a0
Change in deferred tax \u00a0
944 \u00a0
20 \u00a0
-14 \u00a0
58 \u00a0
17 \u00a0
130 \u00a0
-17 \u00a0
1,138 \u00a0
Adjustment recognised\u00a0tax loss \u00a0
-155 \u00a0
-130 \u00a0
-
-285 \u00a0
Adjustment of\u00a0prior-year tax charges \u00a0
-139 \u00a0
-13 \u00a0
25 \u00a0
17 \u00a0
-113 \u00a0
-130 \u00a0
-44 \u00a0
-397 \u00a0
Change in deferred tax charge as a result of increased tax \u00a0
rate** \u00a0
147 \u00a0
-
-
-
59 \u00a0
-
-
206 \u00a0
Total \u00a0
1,555 \u00a0
348 \u00a0
376 \u00a0
690 \u00a0
-89 \u00a0
-130 \u00a0
133 \u00a0
2,883 \u00a0
Effective tax rate % \u00a0
Tax rate \u00a0
22.0 \u00a0
20.0 \u00a0
20.6 \u00a0
25.0 \u00a0
23.5 \u00a0
12.5 \u00a0
Non-recognised tax loss \u00a0
-
-
-
-
-
-12.5 \u00a0
Non-taxable income \u00a0
3.1 \u00a0
-0.1 \u00a0
-4.4 \u00a0
-1.3 \u00a0
-3.3 \u00a0
-
Non-deductible expenses*** \u00a0
-41,4 \u00a0
1.2 \u00a0
0.4 \u00a0
2.3 \u00a0
0.6 \u00a0
-
Tax on profit for the year \u00a0
-16,3 \u00a0
21.1 \u00a0
16.6 \u00a0
26.0 \u00a0
20.8 \u00a0
-
Adjustment of\u00a0prior-year tax charges \u00a0
1.4 \u00a0
-0.7 \u00a0
1.2 \u00a0
0.7 \u00a0
-19.5 \u00a0
-114.9 \u00a0
Adjustment recognised\u00a0tax loss \u00a0
-
-
-
-
-26.9 \u00a0
-
Change in deferred tax charge as a result of increased tax \u00a0
rate** \u00a0
-1.5 \u00a0
-
-
-
10.1 \u00a0
-
Effective tax\u00a0rate \u00a0
-16,4 \u00a0
20.4 \u00a0
17.8 \u00a0
26.7 \u00a0
-15.5 \u00a0
-114.9 \u00a0
-
-169,9 \u00a0
Tax on other comprehensive income \u00a0
Remeasurement of defined benefit plans \u00a0
-5 \u00a0
-
-6 \u00a0
-
-168 \u00a0
-
-
-179 \u00a0
Hedging of units outside Denmark \u00a0
-311 \u00a0
-
-
-
-
-
-
-311 \u00a0
Bonds at fair value (OCI) \u00a0
-278 \u00a0
-
-
-
-85 \u00a0
-
-
-363 \u00a0
Total \u00a0
-594 \u00a0
-
-6 \u00a0
-
-253 \u00a0
-
-
-853 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
** The corporate tax rate for credit institutions and insurance companies inDenmark increase from 22% in2022 to 25,2% in 2023and 26% for 2024 and onwards. Balances for deferred taxes \u00a0
in Denmark by end of 2022 has been adjusted accordantly . \u00a0
*** Non-deductible expenses affecting the effectivetax ratein Denmark include the additional provision for the Estonia matter DKK13,800 million and impairment charges on goodwill DKK 1,627 \u00a0
million. \u00a0
During 2023,\u00a0a provision\u00a0to cover an expected\u00a0tax payment of DKK\u00a0576 million was\u00a0reversed following\u00a0a final decision from the\u00a0tax authorities\u00a0regarding \u00a0
the exit from the international\u00a0joint taxation\u00a0scheme in 2019. A further payment of DKK 670 million was received during 2023 due to a correction of tax \u00a0
paid in previous\u00a0years on\u00a0certain financial assets and liabilities\u00a0measured at amortised cost. \u00a0
(c) Pillar II disclosure \u00a0
The Global Anti-Base\u00a0Erosion Model Rules (GLoBE Rules or\u00a0Pillar Two model rules) apply to multinational\u00a0enterprises (MNEs) with revenue in excess of \u00a0
EUR 750 million per\u00a0their consolidated financial\u00a0statements. The Pillar Two\u00a0model rules introduce new taxing mechanisms under\u00a0which MNEs would pay \u00a0
a minimum\u00a0level of tax (the Minimum\u00a0Tax). The new taxing mechanisms\u00a0impose a minimum\u00a0Tax on the income arising in each jurisdiction\u00a0in which an MNE \u00a0
operates by imposing a Top-up Tax in a jurisdiction\u00a0whenever the effective tax rate (ETR), determined\u00a0on a jurisdic\u00a0tional basis\u00a0under the GloBE Rules, is \u00a0
below a 15% minimum\u00a0rate (Minimum Rate). \u00a0
Pillar Two legislation\u00a0has been\u00a0enacted or substantively\u00a0enacted in most\u00a0jurisdictions where\u00a0Danske Bank\u00a0Group operates. The legislation will be effective \u00a0
for the Group\u2019s\u00a0financial year beginning\u00a01 January 2024. The Danske Bank Group is in scope of the en\u00a0acted or\u00a0substantively enacted\u00a0legislation and\u00a0has \u00a0
performed an assessment of the potential\u00a0exposure to Pillar Two income taxes. The assessment of the potential\u00a0exposure to Pil\u00a0lar Two income taxes is \u00a0
based on the most recent tax filings\u00a0and country-by-country\u00a0reporting for\u00a0the entities in the Group. Based on\u00a0the assessment, the Pillar Two effective tax \u00a0
rates in\u00a0almost all\u00a0the jurisdictions\u00a0in which the Group\u00a0operates are above 15%. In one jurisdiction\u00a0the Pillar Two effective\u00a0tax rate is close to 15%. \u00a0
However, no\u00a0material exposure to\u00a0Pillar Two income taxes affecting the income statement for\u00a0Danske Bank Group are\u00a0expected in this\u00a0jurisdiction. \u00a0
.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4413": {
"value": "G21. Tax \u00a0
Tax assets and liabilities\u00a0are divided into current and deferred tax in this note. Current tax relates to expected tax to be paid on the profit for the year, whereas \u00a0
deferred tax relates\u00a0to temporary differences between the tax base of assets and liabilities and their carrying amount in the balance sheet. Further, this note \u00a0
gives an overview of the Group\u2019s tax expense for the year and the effective tax rate broken down by country. \u00a0
Accounting policy \u00a0
Current tax \u00a0
Current tax assets and liabilities\u00a0are recognised\u00a0in the balance sheet as the estimated\u00a0tax payable\u00a0on the profit for the year adjusted\u00a0for prepaid tax and \u00a0
prior-year tax payables and receivables. Tax assets and liabilities\u00a0are offset\u00a0if the Group has a legally enforceable right to set off such assets and \u00a0
liabilities and\u00a0intends either to settle the assets and liabilities\u00a0on a net basis or to realise the assets and settle the liabilities\u00a0simultaneously. \u00a0
Deferred tax \u00a0
Deferred tax on all temporary differences between the tax base of assets and liabilities\u00a0and their carrying amounts is\u00a0accounted for\u00a0in accordance with \u00a0
the balance sheet liability method. Deferred tax is measured on the basis of enacted or substantially\u00a0enacted tax regulations and rates that are \u00a0
applicable in\u00a0the relevant countries at the time the deferred tax is expected to crystallise\u00a0as current tax. Changes in deferred tax as a result of changes \u00a0
in tax rates are recognised in the income statement on the basis of\u00a0expected cash\u00a0flows. The Group does not recognise deferred tax on temporar\u00a0y \u00a0
differences between the tax base and the carrying amounts of\u00a0goodwill not subject to amortisation\u00a0for tax\u00a0purposes and other items if the temporar\u00a0y \u00a0
differences arose at the time of acquisition without effect on\u00a0net profit or taxable income.\u00a0If the tax base may be calculated\u00a0according to several sets of \u00a0
tax regulations,\u00a0deferred tax is\u00a0measured in accordance with the regulations that apply to the use\u00a0of the asset or settlement\u00a0of the liability\u00a0as planne d \u00a0
by management.\u00a0Tax assets arising from unused tax losses are only recognised if it is expected that such tax losses can be offset against tax on future \u00a0
profit in the next five years. Deferred tax assets and liabilities\u00a0are offset when they relate to the same tax jurisdiction,\u00a0a legally enforceable right to offset \u00a0
exists and the Group intends to settle on\u00a0a net basis. \u00a0
Current and deferred tax is calculated\u00a0on the\u00a0profit for the year, and adjustments\u00a0of prior-year tax charges are recognised in the income statement.\u00a0Tax \u00a0
on items\u00a0recognised under Other comprehensive income is\u00a0recognised under Other comprehensive income. Similarly, tax on items recognised in\u00a0equity \u00a0
is recognised in equity. When uncertainty\u00a0over tax treatment\u00a0exists, the uncertainty\u00a0is reflected by using either\u00a0the most likely outcome (if the poss\u00a0ible \u00a0
outcomes are binary or are concentrated on one value)\u00a0or the expected value,\u00a0probability weighted\u00a0amounts in\u00a0a range of possible outcomes\u00a0(if there is \u00a0
a range of possible\u00a0outcomes that are\u00a0neither binary\u00a0nor concentrated on one value). \u00a0
G21. Tax continued \u00a0
(a) Tax assets and liabilities \u00a0
Tax assets \u00a0
Tax liabilities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
2023 \u00a0
2022* \u00a0
Current tax charge \u00a0
2,018 \u00a0
4,230 \u00a0
450 \u00a0
712 \u00a0
Deferred tax \u00a0
1,246 \u00a0
969 \u00a0
1,107 \u00a0
1,391 \u00a0
Total \u00a0
3,264 \u00a0
5,199 \u00a0
1,557 \u00a0
2,103 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
(b) Change in deferred tax \u00a0
(DKK millions) \u00a0
Foreign Recognised\u00a0in Recognised\u00a0in \u00a0
currency profit\u00a0for the\u00a0shareholders' \u00a0
Deduction due \u00a0
2023 \u00a0
1 January \u00a0
translation \u00a0
year \u00a0
equity \u00a0
31 December \u00a0
to sale \u00a0
Intangible assets \u00a0
217 \u00a0
-2 \u00a0
310 \u00a0
-
525 \u00a0
Tangible assets \u00a0
-179 \u00a0
-16 \u00a0
-794 \u00a0
-4 \u00a0
-
-993 \u00a0
Securities \u00a0
94 \u00a0
-6 \u00a0
447 \u00a0
-
535 \u00a0
Provisions for obligations \u00a0
391 \u00a0
7
1,166 \u00a0
-359 \u00a0
-
1,205 \u00a0
Tax loss carry forwards \u00a0
-504 \u00a0
-8 \u00a0
-111 \u00a0
-
-623 \u00a0
Other \u00a0
404 \u00a0
-6 \u00a0
-1,273 \u00a0
88 \u00a0
-
-787 \u00a0
Total \u00a0
422 \u00a0
-31 \u00a0
-255 \u00a0
-275 \u00a0
-
-139 \u00a0
2022* \u00a0
Intangible assets \u00a0
145 \u00a0
2
120 \u00a0
-
-50 \u00a0
217 \u00a0
Tangible assets \u00a0
1,446 \u00a0
-13 \u00a0
-1,606 \u00a0
-6 \u00a0
-
-179 \u00a0
Securities \u00a0
10 \u00a0
-
90 \u00a0
-6 \u00a0
-
94 \u00a0
Provisions for obligations \u00a0
116 \u00a0
-21 \u00a0
474 \u00a0
-178 \u00a0
-
391 \u00a0
Tax loss carry forwards \u00a0
-251 \u00a0
12 \u00a0
-265 \u00a0
-
-
-504 \u00a0
Other \u00a0
-643 \u00a0
13 \u00a0
1,119 \u00a0
-85 \u00a0
-
404 \u00a0
Total \u00a0
822 \u00a0
-7 \u00a0
-68 \u00a0
-275 \u00a0
-50 \u00a0
422 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Recognition of\u00a0deferred tax requires management to assess the probability\u00a0and amount of future profit. Deferred tax assets arising from unused tax \u00a0
losses are recognised to the extent that such losses can be offset against tax on future profit in the next five years. The tax base of unrecognised\u00a0tax loss \u00a0
carry-forwards, relating primarily to the Group\u2019s banking operations in\u00a0Ireland, amounted to DKK 2.4\u00a0billion (2022: DKK 2.6\u00a0billion). \u00a0
G21. Tax continued \u00a0
(c) Tax expense \u00a0
Tax 2023 \u00a0
(DKK millions) \u00a0
Denmark \u00a0
Finland \u00a0
Sweden \u00a0
Norway \u00a0
UK \u00a0
Ireland \u00a0
Other \u00a0
Total \u00a0
Profit before tax \u00a0
18,444 \u00a0
2,375 \u00a0
552 \u00a0
2,461 \u00a0
2,052 \u00a0
364 \u00a0
434 \u00a0
26,682 \u00a0
Tax on profit for the year \u00a0
3,686 \u00a0
494 \u00a0
176 \u00a0
596 \u00a0
374 \u00a0
-44 \u00a0
138 \u00a0
5,420 \u00a0
Tax on other comprehensive income \u00a0
201 \u00a0
-
-26 \u00a0
-
-170 \u00a0
-
-
5
Tax on profit for the year \u00a0
Current tax charge \u00a0
4,847 \u00a0
573 \u00a0
114 \u00a0
333 \u00a0
511 \u00a0
-
80 \u00a0
6,458 \u00a0
Transferred to other comprehensive \u00a0
income \u00a0
201 \u00a0
-
-26 \u00a0
-
-170 \u00a0
-
-
5
Change in deferred tax \u00a0
29 \u00a0
-99 \u00a0
36 \u00a0
300 \u00a0
158 \u00a0
44 \u00a0
10 \u00a0
478 \u00a0
Adjustment recognised\u00a0tax loss \u00a0
-
-
-
-
-134 \u00a0
-44 \u00a0
-
-178 \u00a0
Adjustment of\u00a0prior-year tax charges \u00a0
-1,391 \u00a0
20 \u00a0
52 \u00a0
-37 \u00a0
3
-44 \u00a0
48 \u00a0
-1,349 \u00a0
Change in deferred tax charge as a result \u00a0
of increased tax rate \u00a0
-
-
-
-
6
-
-
6
Total \u00a0
3,686 \u00a0
494 \u00a0
176 \u00a0
596 \u00a0
374 \u00a0
-44 \u00a0
138 \u00a0
5,420 \u00a0
Effective tax rate % \u00a0
Tax rate \u00a0
25.2 \u00a0
20.0 \u00a0
20.6 \u00a0
25.0 \u00a0
26.2 \u00a0
12.5 \u00a0
Non-recognised tax loss \u00a0
-12.5 \u00a0
Non - taxable income \u00a0
-0.9 \u00a0
-0.1 \u00a0
-0.4 \u00a0
-0.5 \u00a0
-2.2 \u00a0
-
Non-deductible expenses** \u00a0
3.2 \u00a0
-
2.2 \u00a0
1.2 \u00a0
0.3 \u00a0
-
Tax on profit for the year \u00a0
27.5 \u00a0
19.9 \u00a0
22.4 \u00a0
25.7 \u00a0
24.3 \u00a0
-
Adjustment of\u00a0prior-year tax charges \u00a0
-7.5 \u00a0
0.9 \u00a0
9.4 \u00a0
-1.5 \u00a0
0.1 \u00a0
-12.0 \u00a0
Adjustment recognised\u00a0tax loss \u00a0
-
-
-
-
-6.5 \u00a0
-
Change in deferred tax charge as a result \u00a0
of increased tax rate* \u00a0
-
-
-
-
0.3 \u00a0
-
Effective tax\u00a0rate \u00a0
20.0 \u00a0
20.8 \u00a0
31.8 \u00a0
24.2 \u00a0
18.2 \u00a0
-12.0 \u00a0
-
20.3 \u00a0
Tax on other comprehensive income \u00a0
Remeasurement of defined benefit plans \u00a0
-18 \u00a0
-
-26 \u00a0
-
-257 \u00a0
-
-
-301 \u00a0
Hedging of units outside Denmark \u00a0
-10 \u00a0
-
-
-
-
-
-
-10 \u00a0
Unrealised value adjustments of bonds \u00a0
229 \u00a0
-
-
-
87 \u00a0
-
-
316 \u00a0
Total \u00a0
201 \u00a0
-
-26 \u00a0
-
-170 \u00a0
-
-
5
G21. Tax continued \u00a0
Tax 2022* \u00a0
(DKK millions) \u00a0
Denmark \u00a0
Finland \u00a0
Sweden \u00a0
Norway \u00a0
UK \u00a0
Ireland \u00a0
Other \u00a0
Total \u00a0
Profit before tax \u00a0
-9,495 \u00a0
1,706 \u00a0
2,118 \u00a0
2,586 \u00a0
577 \u00a0
113 \u00a0
697 \u00a0
-1,697 \u00a0
Tax on profit for the year \u00a0
1,555 \u00a0
348 \u00a0
376 \u00a0
690 \u00a0
-89 \u00a0
-130 \u00a0
133 \u00a0
2,883 \u00a0
Tax on other comprehensive income \u00a0
-594 \u00a0
-
-6 \u00a0
-
-253 \u00a0
-
-
-853 \u00a0
Tax on profit for the year \u00a0
Current tax charge \u00a0
1,197 \u00a0
341 \u00a0
371 \u00a0
615 \u00a0
356 \u00a0
-
194 \u00a0
3,074 \u00a0
Transferred to other comprehensive income \u00a0
-594 \u00a0
-
-6 \u00a0
-
-253 \u00a0
-
-
-853 \u00a0
Change in deferred tax \u00a0
944 \u00a0
20 \u00a0
-14 \u00a0
58 \u00a0
17 \u00a0
130 \u00a0
-17 \u00a0
1,138 \u00a0
Adjustment recognised\u00a0tax loss \u00a0
-155 \u00a0
-130 \u00a0
-
-285 \u00a0
Adjustment of\u00a0prior-year tax charges \u00a0
-139 \u00a0
-13 \u00a0
25 \u00a0
17 \u00a0
-113 \u00a0
-130 \u00a0
-44 \u00a0
-397 \u00a0
Change in deferred tax charge as a result of increased tax \u00a0
rate** \u00a0
147 \u00a0
-
-
-
59 \u00a0
-
-
206 \u00a0
Total \u00a0
1,555 \u00a0
348 \u00a0
376 \u00a0
690 \u00a0
-89 \u00a0
-130 \u00a0
133 \u00a0
2,883 \u00a0
Effective tax rate % \u00a0
Tax rate \u00a0
22.0 \u00a0
20.0 \u00a0
20.6 \u00a0
25.0 \u00a0
23.5 \u00a0
12.5 \u00a0
Non-recognised tax loss \u00a0
-
-
-
-
-
-12.5 \u00a0
Non-taxable income \u00a0
3.1 \u00a0
-0.1 \u00a0
-4.4 \u00a0
-1.3 \u00a0
-3.3 \u00a0
-
Non-deductible expenses*** \u00a0
-41,4 \u00a0
1.2 \u00a0
0.4 \u00a0
2.3 \u00a0
0.6 \u00a0
-
Tax on profit for the year \u00a0
-16,3 \u00a0
21.1 \u00a0
16.6 \u00a0
26.0 \u00a0
20.8 \u00a0
-
Adjustment of\u00a0prior-year tax charges \u00a0
1.4 \u00a0
-0.7 \u00a0
1.2 \u00a0
0.7 \u00a0
-19.5 \u00a0
-114.9 \u00a0
Adjustment recognised\u00a0tax loss \u00a0
-
-
-
-
-26.9 \u00a0
-
Change in deferred tax charge as a result of increased tax \u00a0
rate** \u00a0
-1.5 \u00a0
-
-
-
10.1 \u00a0
-
Effective tax\u00a0rate \u00a0
-16,4 \u00a0
20.4 \u00a0
17.8 \u00a0
26.7 \u00a0
-15.5 \u00a0
-114.9 \u00a0
-
-169,9 \u00a0
Tax on other comprehensive income \u00a0
Remeasurement of defined benefit plans \u00a0
-5 \u00a0
-
-6 \u00a0
-
-168 \u00a0
-
-
-179 \u00a0
Hedging of units outside Denmark \u00a0
-311 \u00a0
-
-
-
-
-
-
-311 \u00a0
Bonds at fair value (OCI) \u00a0
-278 \u00a0
-
-
-
-85 \u00a0
-
-
-363 \u00a0
Total \u00a0
-594 \u00a0
-
-6 \u00a0
-
-253 \u00a0
-
-
-853 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
** The corporate tax rate for credit institutions and insurance companies inDenmark increase from 22% in2022 to 25,2% in 2023and 26% for 2024 and onwards. Balances for deferred taxes \u00a0
in Denmark by end of 2022 has been adjusted accordantly . \u00a0
*** Non-deductible expenses affecting the effectivetax ratein Denmark include the additional provision for the Estonia matter DKK13,800 million and impairment charges on goodwill DKK 1,627 \u00a0
million. \u00a0
During 2023,\u00a0a provision\u00a0to cover an expected\u00a0tax payment of DKK\u00a0576 million was\u00a0reversed following\u00a0a final decision from the\u00a0tax authorities\u00a0regarding \u00a0
the exit from the international\u00a0joint taxation\u00a0scheme in 2019. A further payment of DKK 670 million was received during 2023 due to a correction of tax \u00a0
paid in previous\u00a0years on\u00a0certain financial assets and liabilities\u00a0measured at amortised cost. \u00a0
(c) Pillar II disclosure \u00a0
The Global Anti-Base\u00a0Erosion Model Rules (GLoBE Rules or\u00a0Pillar Two model rules) apply to multinational\u00a0enterprises (MNEs) with revenue in excess of \u00a0
EUR 750 million per\u00a0their consolidated financial\u00a0statements. The Pillar Two\u00a0model rules introduce new taxing mechanisms under\u00a0which MNEs would pay \u00a0
a minimum\u00a0level of tax (the Minimum\u00a0Tax). The new taxing mechanisms\u00a0impose a minimum\u00a0Tax on the income arising in each jurisdiction\u00a0in which an MNE \u00a0
operates by imposing a Top-up Tax in a jurisdiction\u00a0whenever the effective tax rate (ETR), determined\u00a0on a jurisdic\u00a0tional basis\u00a0under the GloBE Rules, is \u00a0
below a 15% minimum\u00a0rate (Minimum Rate). \u00a0
Pillar Two legislation\u00a0has been\u00a0enacted or substantively\u00a0enacted in most\u00a0jurisdictions where\u00a0Danske Bank\u00a0Group operates. The legislation will be effective \u00a0
for the Group\u2019s\u00a0financial year beginning\u00a01 January 2024. The Danske Bank Group is in scope of the en\u00a0acted or\u00a0substantively enacted\u00a0legislation and\u00a0has \u00a0
performed an assessment of the potential\u00a0exposure to Pillar Two income taxes. The assessment of the potential\u00a0exposure to Pil\u00a0lar Two income taxes is \u00a0
based on the most recent tax filings\u00a0and country-by-country\u00a0reporting for\u00a0the entities in the Group. Based on\u00a0the assessment, the Pillar Two effective tax \u00a0
rates in\u00a0almost all\u00a0the jurisdictions\u00a0in which the Group\u00a0operates are above 15%. In one jurisdiction\u00a0the Pillar Two effective\u00a0tax rate is close to 15%. \u00a0
However, no\u00a0material exposure to\u00a0Pillar Two income taxes affecting the income statement for\u00a0Danske Bank Group are\u00a0expected in this\u00a0jurisdiction. \u00a0
.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4414": {
"value": "Accounting policy \u00a0
Current tax \u00a0
Current tax assets and liabilities\u00a0are recognised\u00a0in the balance sheet as the estimated\u00a0tax payable\u00a0on the profit for the year adjusted\u00a0for prepaid tax and \u00a0
prior-year tax payables and receivables. Tax assets and liabilities\u00a0are offset\u00a0if the Group has a legally enforceable right to set off such assets and \u00a0
liabilities and\u00a0intends either to settle the assets and liabilities\u00a0on a net basis or to realise the assets and settle the liabilities\u00a0simultaneously. \u00a0
Deferred tax \u00a0
Deferred tax on all temporary differences between the tax base of assets and liabilities\u00a0and their carrying amounts is\u00a0accounted for\u00a0in accordance with \u00a0
the balance sheet liability method. Deferred tax is measured on the basis of enacted or substantially\u00a0enacted tax regulations and rates that are \u00a0
applicable in\u00a0the relevant countries at the time the deferred tax is expected to crystallise\u00a0as current tax. Changes in deferred tax as a result of changes \u00a0
in tax rates are recognised in the income statement on the basis of\u00a0expected cash\u00a0flows. The Group does not recognise deferred tax on temporar\u00a0y \u00a0
differences between the tax base and the carrying amounts of\u00a0goodwill not subject to amortisation\u00a0for tax\u00a0purposes and other items if the temporar\u00a0y \u00a0
differences arose at the time of acquisition without effect on\u00a0net profit or taxable income.\u00a0If the tax base may be calculated\u00a0according to several sets of \u00a0
tax regulations,\u00a0deferred tax is\u00a0measured in accordance with the regulations that apply to the use\u00a0of the asset or settlement\u00a0of the liability\u00a0as planne d \u00a0
by management.\u00a0Tax assets arising from unused tax losses are only recognised if it is expected that such tax losses can be offset against tax on future \u00a0
profit in the next five years. Deferred tax assets and liabilities\u00a0are offset when they relate to the same tax jurisdiction,\u00a0a legally enforceable right to offset \u00a0
exists and the Group intends to settle on\u00a0a net basis. \u00a0
Current and deferred tax is calculated\u00a0on the\u00a0profit for the year, and adjustments\u00a0of prior-year tax charges are recognised in the income statement.\u00a0Tax \u00a0
on items\u00a0recognised under Other comprehensive income is\u00a0recognised under Other comprehensive income. Similarly, tax on items recognised in\u00a0equity \u00a0
is recognised in equity. When uncertainty\u00a0over tax treatment\u00a0exists, the uncertainty\u00a0is reflected by using either\u00a0the most likely outcome (if the poss\u00a0ible \u00a0
outcomes are binary or are concentrated on one value)\u00a0or the expected value,\u00a0probability weighted\u00a0amounts in\u00a0a range of possible outcomes\u00a0(if there is \u00a0
a range of possible\u00a0outcomes that are\u00a0neither binary\u00a0nor concentrated on one value). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4416": {
"value": "Accounting policy \u00a0
Current tax \u00a0
Current tax assets and liabilities\u00a0are recognised\u00a0in the balance sheet as the estimated\u00a0tax payable\u00a0on the profit for the year adjusted\u00a0for prepaid tax and \u00a0
prior-year tax payables and receivables. Tax assets and liabilities\u00a0are offset\u00a0if the Group has a legally enforceable right to set off such assets and \u00a0
liabilities and\u00a0intends either to settle the assets and liabilities\u00a0on a net basis or to realise the assets and settle the liabilities\u00a0simultaneously. \u00a0
Deferred tax \u00a0
Deferred tax on all temporary differences between the tax base of assets and liabilities\u00a0and their carrying amounts is\u00a0accounted for\u00a0in accordance with \u00a0
the balance sheet liability method. Deferred tax is measured on the basis of enacted or substantially\u00a0enacted tax regulations and rates that are \u00a0
applicable in\u00a0the relevant countries at the time the deferred tax is expected to crystallise\u00a0as current tax. Changes in deferred tax as a result of changes \u00a0
in tax rates are recognised in the income statement on the basis of\u00a0expected cash\u00a0flows. The Group does not recognise deferred tax on temporar\u00a0y \u00a0
differences between the tax base and the carrying amounts of\u00a0goodwill not subject to amortisation\u00a0for tax\u00a0purposes and other items if the temporar\u00a0y \u00a0
differences arose at the time of acquisition without effect on\u00a0net profit or taxable income.\u00a0If the tax base may be calculated\u00a0according to several sets of \u00a0
tax regulations,\u00a0deferred tax is\u00a0measured in accordance with the regulations that apply to the use\u00a0of the asset or settlement\u00a0of the liability\u00a0as planne d \u00a0
by management.\u00a0Tax assets arising from unused tax losses are only recognised if it is expected that such tax losses can be offset against tax on future \u00a0
profit in the next five years. Deferred tax assets and liabilities\u00a0are offset when they relate to the same tax jurisdiction,\u00a0a legally enforceable right to offset \u00a0
exists and the Group intends to settle on\u00a0a net basis. \u00a0
Current and deferred tax is calculated\u00a0on the\u00a0profit for the year, and adjustments\u00a0of prior-year tax charges are recognised in the income statement.\u00a0Tax \u00a0
on items\u00a0recognised under Other comprehensive income is\u00a0recognised under Other comprehensive income. Similarly, tax on items recognised in\u00a0equity \u00a0
is recognised in equity. When uncertainty\u00a0over tax treatment\u00a0exists, the uncertainty\u00a0is reflected by using either\u00a0the most likely outcome (if the poss\u00a0ible \u00a0
outcomes are binary or are concentrated on one value)\u00a0or the expected value,\u00a0probability weighted\u00a0amounts in\u00a0a range of possible outcomes\u00a0(if there is \u00a0
a range of possible\u00a0outcomes that are\u00a0neither binary\u00a0nor concentrated on one value). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTaxesOtherThanIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4420": {
"value": "G21. Tax continued \u00a0
(a) Tax assets and liabilities \u00a0
Tax assets \u00a0
Tax liabilities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
2023 \u00a0
2022* \u00a0
Current tax charge \u00a0
2,018 \u00a0
4,230 \u00a0
450 \u00a0
712 \u00a0
Deferred tax \u00a0
1,246 \u00a0
969 \u00a0
1,107 \u00a0
1,391 \u00a0
Total \u00a0
3,264 \u00a0
5,199 \u00a0
1,557 \u00a0
2,103 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
(b) Change in deferred tax \u00a0
(DKK millions) \u00a0
Foreign Recognised\u00a0in Recognised\u00a0in \u00a0
currency profit\u00a0for the\u00a0shareholders' \u00a0
Deduction due \u00a0
2023 \u00a0
1 January \u00a0
translation \u00a0
year \u00a0
equity \u00a0
31 December \u00a0
to sale \u00a0
Intangible assets \u00a0
217 \u00a0
-2 \u00a0
310 \u00a0
-
525 \u00a0
Tangible assets \u00a0
-179 \u00a0
-16 \u00a0
-794 \u00a0
-4 \u00a0
-
-993 \u00a0
Securities \u00a0
94 \u00a0
-6 \u00a0
447 \u00a0
-
535 \u00a0
Provisions for obligations \u00a0
391 \u00a0
7
1,166 \u00a0
-359 \u00a0
-
1,205 \u00a0
Tax loss carry forwards \u00a0
-504 \u00a0
-8 \u00a0
-111 \u00a0
-
-623 \u00a0
Other \u00a0
404 \u00a0
-6 \u00a0
-1,273 \u00a0
88 \u00a0
-
-787 \u00a0
Total \u00a0
422 \u00a0
-31 \u00a0
-255 \u00a0
-275 \u00a0
-
-139 \u00a0
2022* \u00a0
Intangible assets \u00a0
145 \u00a0
2
120 \u00a0
-
-50 \u00a0
217 \u00a0
Tangible assets \u00a0
1,446 \u00a0
-13 \u00a0
-1,606 \u00a0
-6 \u00a0
-
-179 \u00a0
Securities \u00a0
10 \u00a0
-
90 \u00a0
-6 \u00a0
-
94 \u00a0
Provisions for obligations \u00a0
116 \u00a0
-21 \u00a0
474 \u00a0
-178 \u00a0
-
391 \u00a0
Tax loss carry forwards \u00a0
-251 \u00a0
12 \u00a0
-265 \u00a0
-
-
-504 \u00a0
Other \u00a0
-643 \u00a0
13 \u00a0
1,119 \u00a0
-85 \u00a0
-
404 \u00a0
Total \u00a0
822 \u00a0
-7 \u00a0
-68 \u00a0
-275 \u00a0
-50 \u00a0
422 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Recognition of\u00a0deferred tax requires management to assess the probability\u00a0and amount of future profit. Deferred tax assets arising from unused tax \u00a0
losses are recognised to the extent that such losses can be offset against tax on future profit in the next five years. The tax base of unrecognised\u00a0tax loss \u00a0
carry-forwards, relating primarily to the Group\u2019s banking operations in\u00a0Ireland, amounted to DKK 2.4\u00a0billion (2022: DKK 2.6\u00a0billion). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4425": {
"value": "G22. Issued bonds \u00a0
The issued bonds presented in this note consist of preferred senior, non-preferred senior and subordinated bonds issued by the Group, with the exception of \u00a0
additional tier\u00a01 capital accounted for as equity. Note G16 provides more information about issued bonds measured at fair value through profit or loss and \u00a0
note G25 provides more information about additional\u00a0tier 1 capital accounted for as equity. \u00a0
Preferred senior bonds are presented under the balance sheet item Issued bonds at amortised cost, while non-preferred senior and subordinated bonds are \u00a0
presented as separate line items in the balance sheet. Non-preferred senior bonds rank senior to subordindated debt and junior to other debt. Subordinated \u00a0
bonds are liabilities in the form of subordinated loan capital and other capital instruments which, in case of the Group\u2019s voluntary or\u00a0compulsory winding-up, \u00a0
will not be repaid until\u00a0the claims of its ordinary and non-preferred senior creditors have been met. Subordinated bonds include additional tier 1 capital that \u00a0
converts into a variable number of ordinary shares if the common equity tier 1 capital ratio falls below 7% for Danske Bank A/S or Danske\u00a0Bank Group (the \u00a0
trigger event). The number of shares the additional tier 1 capital could potentially\u00a0convert into a function of the share price at the time of conversion, however, \u00a0
minimised to USD 23.97 per share (a maximum of 62.6 million\u00a0shares for the outstanding amount of the capital of USD 1.5 billi\u00a0on). This capital utilises 70% \u00a0
of the Board of Directors\u2019 authorisation\u00a0to issue shares without pre-emption rights. For further information on the Group\u2019s additional tier 1 capital, see note \u00a0
G25. \u00a0
Accounting policy \u00a0
Issued bonds, both senior, non-preferred senior and subordinated\u00a0bonds, are at initial\u00a0recognition measured at fair value less transaction\u00a0costs and \u00a0
subsequently measured\u00a0at amortised\u00a0cost plus\u00a0the fair value of\u00a0the hedged interest rate risk. Interest expense is recognised according to the effective \u00a0
interest rate method, including amortisation\u00a0of any difference between the amount received on\u00a0issue and the redemption amount. \u00a0
The Group issues perpetual bonds with discretionary\u00a0interest payments that fulfil the requirements\u00a0for additional\u00a0tier 1 capital under the Capital \u00a0
Requirements Regulation (CRR).\u00a0If a\u00a0trigger event occurs,\u00a0those bonds must be\u00a0either written down temporarily or converted into a variable number of \u00a0
ordinary shares, depending on the terms of the individual\u00a0bond issue. Bonds that convert into a\u00a0variable number of\u00a0ordinary shares are accounted for \u00a0
as liabilities,\u00a0while bonds that are temporarily written down are accounted for as equity. For liability\u00a0accounted bonds, the interest expense is recognised \u00a0
in the income statement, i.e. the bonds are accounted for as liabilities\u00a0in their entirety. \u00a0
The yield on some issued bonds depends on an index that is not closely linked to the bonds\u2019 financial characteristics, for example an equity or commodity index. \u00a0
Such embedded derivatives\u00a0are bifurcated and measured at fair value in the trading portfolio. \u00a0
(a) Other\u00a0issued bonds \u00a0
Issued bonds\u00a0at fair value \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Bonds issued by Realkredit Danmark (covered bonds) \u00a0
741,062 \u00a0
711,773 \u00a0
Commercial papers and certificates of deposits \u00a0
5,228 \u00a0
9,119 \u00a0
Structured retail\u00a0notes \u00a0
2,489 \u00a0
3,032 \u00a0
Issued bonds\u00a0at fair value, total \u00a0
748,780 \u00a0
723,923 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
Bonds issued by Realkredit Danmark under the Group\u2019s green finance framework amounted to a nominal value of DKK 27,153 million outstanding at the end \u00a0
of 2023 (2022: DKK 21,544 million). \u00a0
Issued bonds\u00a0at amortised\u00a0cost \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Commercial papers and certificates of deposits \u00a0
24,419 \u00a0
-
Preferred senior bonds* \u00a0
63,345 \u00a0
48,356 \u00a0
Covered bonds \u00a0
124,703 \u00a0
140,829 \u00a0
Structured retail\u00a0notes* \u00a0
1,766 \u00a0
3,498 \u00a0
Issued bonds\u00a0at amortised\u00a0cost, total \u00a0
214,234 \u00a0
192,682 \u00a0
Non-preferred senior bonds \u00a0
93,194 \u00a0
93,235 \u00a0
* DKK 3.5 billion of Structured retail bonds that were included within Preferred senior bonds as at 31 December 2022 have been reclassified in the table above. There is no change to the total \u00a0
balance of Issued bonds at amortised cost as at 31 December 2022. \u00a0
Further information on issued bonds at fair value through profit or loss can be found in note G16. The issuance and redemption of bonds (including commercial \u00a0
papers and certificates of deposits at fair value) during the year and the maturity\u00a0of the outstanding bonds are presented in the tables below. \u00a0
G22. Issued bonds\u00a0continued \u00a0
Foreign \u00a0
Nominal value \u00a0
1 January \u00a0
currency \u00a0
31 December \u00a0
(DKK millions) \u00a0
2023 \u00a0
Issued \u00a0
Redeemed* \u00a0
translation \u00a0
2023 \u00a0
Commercial papers and certificate of deposits \u00a0
9,128 \u00a0
66,432 \u00a0
36,812 \u00a0
-9,135 \u00a0
29,613 \u00a0
Preferred senior bonds** \u00a0
59,348 \u00a0
39,700 \u00a0
27,843 \u00a0
-1,583 \u00a0
69,621 \u00a0
Covered bonds \u00a0
156,740 \u00a0
33,000 \u00a0
65,850 \u00a0
5,529 \u00a0
129,419 \u00a0
Non-preferred senior bonds \u00a0
100,586 \u00a0
22,500 \u00a0
23,700 \u00a0
-1,486 \u00a0
97,900 \u00a0
Other issued bonds \u00a0
325,801 \u00a0
161,633 \u00a0
154,206 \u00a0
-6,675 \u00a0
326,553 \u00a0
*Redeemed covered bonds includes DKK 25,8 billion of covered bonds that have been reclassified to Liabilities in disposal groups held for sale. See note G23 for more detail. \u00a0
** Preferred senior bonds includes structured retail notes. \u00a0
Foreign \u00a0
Nominal value \u00a0
1 January \u00a0
currency 31\u00a0December \u00a0
(DKK millions) \u00a0
2022 \u00a0
Issued \u00a0
Redeemed \u00a0
translation \u00a0
2022 \u00a0
Commercial papers and certificate of deposits \u00a0
23,712 \u00a0
13,445 \u00a0
26,709 \u00a0
-1,321 \u00a0
9,128 \u00a0
Preferred senior bonds* \u00a0
67,724 \u00a0
1,400 \u00a0
14,630 \u00a0
4,854 \u00a0
59,348 \u00a0
Covered bonds \u00a0
165,067 \u00a0
39,600 \u00a0
39,605 \u00a0
-8,322 \u00a0
156,740 \u00a0
Non-preferred senior bonds \u00a0
108,104 \u00a0
20,100 \u00a0
30,530 \u00a0
2,913 \u00a0
100,586 \u00a0
Other issued bonds \u00a0
364,607 \u00a0
74,545 \u00a0
111,475 \u00a0
-1,876 \u00a0
325,801 \u00a0
* Preferred senior bonds includes structured retail notes. \u00a0
The Group has issued non-preferred senior bonds and preferred senior bonds in accordance with the Group\u2019s green bond framework. At the end of 2023, the \u00a0
nominal value of green non-preferred senior bonds issued amounted to DKK 24,223 million (2022: DKK 13,014), and the nominal value of green preferred \u00a0
senior bonds issued amounted to DKK 9,134 million (2022: DKK\u00a00 million). \u00a0
Broken down\u00a0by maturity \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Redeemed bonds 2023 \u00a0
92,355 \u00a0
2024 \u00a0
96,248 \u00a0
70,143 \u00a0
2025 \u00a0
69,343 \u00a0
57,229 \u00a0
2026 or later \u00a0
160,961 \u00a0
106,075 \u00a0
Nominal value of other issued bonds \u00a0
326,553 \u00a0
325,801 \u00a0
Fair value hedging of interest rate risk \u00a0
-7,389 \u00a0
-19,351 \u00a0
Premium/discount \u00a0
-432 \u00a0
18 \u00a0
Own holding\u00a0of bonds issued \u00a0
3,586 \u00a0
8,401 \u00a0
Total other issued bonds \u00a0
315,145 \u00a0
298,068 \u00a0
G22. Issued bonds\u00a0continued \u00a0
(b) Subordinated\u00a0debt \u00a0
Subordinated debt\u00a0consists of\u00a0liabilities in\u00a0the form of issued subordinated bonds. Some of these bonds (presented as liability\u00a0accounted additional tier \u00a0
1 capital below) rank below other subordinated\u00a0bonds. Early redemption of\u00a0subordinated debt\u00a0must be approved by the Danish FSA. Subordinated\u00a0debt \u00a0
is included in total capital in\u00a0accordance with\u00a0the CRR. \u00a0
The issuance and redemption of subordinated\u00a0debt during the year and the maturity\u00a0of the outstanding\u00a0debt are presented in the tables\u00a0below. \u00a0
Foreign \u00a0
1 January \u00a0
currency 31\u00a0December \u00a0
Nominal value\u00a0(DKK millions) \u00a0
2023 \u00a0
Issued \u00a0
Redeemed \u00a0
translation \u00a0
2023 \u00a0
Subordinated debt, excluding liability accounted \u00a0
additional tier 1 capital \u00a0
24,837 \u00a0
-
-
58 \u00a0
24,895 \u00a0
Liability accounted additional tier 1 capital \u00a0
15,676 \u00a0
-
-
-503 \u00a0
15,174 \u00a0
Total subordinated debt \u00a0
40,514 \u00a0
-
-
-445 \u00a0
40,069 \u00a0
Foreign \u00a0
1 January \u00a0
currency 31\u00a0December \u00a0
Nominal value\u00a0(DKK millions) \u00a0
2022 \u00a0
Issued \u00a0
Redeemed \u00a0
translation \u00a0
2022 \u00a0
Subordinated debt, excluding liability accounted \u00a0
additional tier 1 capital \u00a0
24,895 \u00a0
-
-
-58 \u00a0
24,837 \u00a0
Liability accounted additional tier 1 capital \u00a0
14,754 \u00a0
-
-
922 \u00a0
15,676 \u00a0
Total subordinated debt \u00a0
39,649 \u00a0
-
-
864 \u00a0
40,514 \u00a0
Nominal \u00a0
Interest Year\u00a0of \u00a0
Redemption \u00a0
2023 \u00a0
2022 \u00a0
Currency \u00a0
Borrower Note \u00a0
(millions) \u00a0
rate \u00a0
issue \u00a0
Maturity \u00a0
price \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
Subordinated debt, excluding liability accounted additional tier 1 capital \u00a0
Redeemed loans 2023 \u00a0
-
EUR \u00a0
Danica \u00a0
a
500 \u00a0
4.375 \u00a0
2015 29.09.2045 \u00a0
100 \u00a0
3,727 \u00a0
3,718 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
b
750 \u00a0
2.50 \u00a0
2019 21.06.2029 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
SEK \u00a0
Danske Bank A/S \u00a0
c
1,000 \u00a0
var \u00a0
2019 14.11.2029 \u00a0
100 \u00a0
672 \u00a0
669 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
d
750 \u00a0
1.375 \u00a0
2019 12.02.2030 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
e
500 \u00a0
1.50 \u00a0
2020 02.09.2030 \u00a0
100 \u00a0
3,727 \u00a0
3,718 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
f
750 \u00a0
1.00 \u00a0
2021 15.05.2031 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
Subordinated debt,\u00a0excluding liability \u00a0
accounted additional\u00a0tier 1 capital \u00a0
24,895 \u00a0
24,837 \u00a0
Liability accounted additional tier 1 capital \u00a0
USD \u00a0
Danske Bank A/S \u00a0
g
750 \u00a0
6.125 \u00a0
2017 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
USD \u00a0
Danske Bank A/S \u00a0
h
750 \u00a0
7.00 \u00a0
2018 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
USD \u00a0
Danske Bank A/S \u00a0
i
750 \u00a0
4.375 \u00a0
2021 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
Liability accounted\u00a0additional tier 1 \u00a0
capital \u00a0
15,174 \u00a0
15,676 \u00a0
Nominal subordinated debt \u00a0
40,069 \u00a0
40,514 \u00a0
Discount \u00a0
-72 \u00a0
-128 \u00a0
Fair value hedging of interest rate risk \u00a0
-997 \u00a0
-1,843 \u00a0
Own holding\u00a0of subordinated debt \u00a0
-226 \u00a0
-193 \u00a0
Total subordinated debt \u00a0
38,774 \u00a0
38,350 \u00a0
Portion included\u00a0in total\u00a0capital as \u00a0
additional tier\u00a01 or tier\u00a02 capital \u00a0
instruments \u00a0
36,342 \u00a0
36,795 \u00a0
As at 31 December\u00a02023, the Group has no additional tier 1 bond issues accounted for as equity (31 December 2022: DKK 0 billion). \u00a0
G22. Issued bonds\u00a0continued \u00a0
a
Optional redemption from\u00a0September 2025. If the debt is not redeemed, the annual interest rate will be reset at 4.38 percentage points above the \u00a0
10-year EUR swap\u00a0rate every tenth year until maturity. Solvency II compliant tier 2 capital and included in Danica\u2019s capital bas\u00a0e. \u00a0
b
Optional redemption in June 2024. If the\u00a0debt is not redeemed, the annual interest rate will be reset at 2.50 percentage\u00a0points above the 5 year EUR \u00a0
swap rate for the remaining five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
c
Optional redemption in\u00a0November 2024. If\u00a0the debt is\u00a0not redeemed, the quarterly interest\u00a0rate will be reset\u00a0at 1.90 percentage points\u00a0above the 3- \u00a0
month STIBOR rate\u00a0for the remaining five years until maturity. CRR compliant\u00a0tier 2 capital. \u00a0
d
Optional redemption in February 2025. If the debt is not redeemed, the annual interest rate will be reset\u00a0at 1.70 percentage\u00a0points above the 5-year \u00a0
EUR swap\u00a0rate for the remaining\u00a0five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
e
Optional redemption in September 2025. If\u00a0the debt\u00a0is not redeemed,\u00a0the annual interest rate will be\u00a0reset at 1.90 percentage points above the 5- \u00a0
year EUR swap rate for the remaining\u00a0five years until maturity.\u00a0CRR compliant tier 2\u00a0capital. \u00a0
f
Optional redemption in May 2026. If the debt is not redeemed, the annual interest rate will be reset at 1.40 percentage point\u00a0s above the 5-year EUR \u00a0
swap rate for the remaining five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
g
Optional redemption from\u00a0March 2024.\u00a0If the debt is not redeemed, the annual interest rate will be reset at 3.896 percentage\u00a0points above 7-year \u00a0
USD swap rate. CRR compliant\u00a0tier 1 capital.\u00a0The capital converts\u00a0into a variable\u00a0number of shares if Danske Bank Group\u2019s or Danske Bank A/S\u2019 \u00a0
common equity tier 1 capital ratio falls below 7%. The instrument is included as a CRR compliant additional\u00a0tier 1 capital instrum ent\u00a0in the statemen\u00a0t \u00a0
of capital. \u00a0
h
Optional redemption from\u00a0June 2025. If the debt is not redeemed, the annual interest rate will be reset at 4.130 percentage p\u00a0oints above 5-year \u00a0
CMT rate.\u00a0CRR compliant tier 1\u00a0capital. The capital converts\u00a0into a\u00a0variable number of\u00a0shares if Danske\u00a0Bank Group\u2019s or Danske Bank A/S\u2019\u00a0comm on \u00a0
equity tier 1\u00a0capital ratio falls below 7%. The instrument is included as a CRR compliant additional tier 1 capital instrumen\u00a0t in\u00a0the statement of \u00a0
capital. \u00a0
i
Optional redemption from\u00a0May 2026. If the debt is not redeemed,\u00a0the annual\u00a0interest r\u00a0ate will be reset at 3.387 percentage points\u00a0above the 5 year \u00a0
CMT rate. The capital converts into a variable\u00a0number of shares if Danske\u00a0Bank Group\u2019s or Danske Bank A/S\u2019s common equity tier 1 capital ratio \u00a0
falls below 7%. The\u00a0instrument is included as\u00a0a CRR compliant additional\u00a0tier 1 capital instrument\u00a0in the statement\u00a0of capita l. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4426": {
"value": "G22. Issued bonds \u00a0
The issued bonds presented in this note consist of preferred senior, non-preferred senior and subordinated bonds issued by the Group, with the exception of \u00a0
additional tier\u00a01 capital accounted for as equity. Note G16 provides more information about issued bonds measured at fair value through profit or loss and \u00a0
note G25 provides more information about additional\u00a0tier 1 capital accounted for as equity. \u00a0
Preferred senior bonds are presented under the balance sheet item Issued bonds at amortised cost, while non-preferred senior and subordinated bonds are \u00a0
presented as separate line items in the balance sheet. Non-preferred senior bonds rank senior to subordindated debt and junior to other debt. Subordinated \u00a0
bonds are liabilities in the form of subordinated loan capital and other capital instruments which, in case of the Group\u2019s voluntary or\u00a0compulsory winding-up, \u00a0
will not be repaid until\u00a0the claims of its ordinary and non-preferred senior creditors have been met. Subordinated bonds include additional tier 1 capital that \u00a0
converts into a variable number of ordinary shares if the common equity tier 1 capital ratio falls below 7% for Danske Bank A/S or Danske\u00a0Bank Group (the \u00a0
trigger event). The number of shares the additional tier 1 capital could potentially\u00a0convert into a function of the share price at the time of conversion, however, \u00a0
minimised to USD 23.97 per share (a maximum of 62.6 million\u00a0shares for the outstanding amount of the capital of USD 1.5 billi\u00a0on). This capital utilises 70% \u00a0
of the Board of Directors\u2019 authorisation\u00a0to issue shares without pre-emption rights. For further information on the Group\u2019s additional tier 1 capital, see note \u00a0
G25. \u00a0
Accounting policy \u00a0
Issued bonds, both senior, non-preferred senior and subordinated\u00a0bonds, are at initial\u00a0recognition measured at fair value less transaction\u00a0costs and \u00a0
subsequently measured\u00a0at amortised\u00a0cost plus\u00a0the fair value of\u00a0the hedged interest rate risk. Interest expense is recognised according to the effective \u00a0
interest rate method, including amortisation\u00a0of any difference between the amount received on\u00a0issue and the redemption amount. \u00a0
The Group issues perpetual bonds with discretionary\u00a0interest payments that fulfil the requirements\u00a0for additional\u00a0tier 1 capital under the Capital \u00a0
Requirements Regulation (CRR).\u00a0If a\u00a0trigger event occurs,\u00a0those bonds must be\u00a0either written down temporarily or converted into a variable number of \u00a0
ordinary shares, depending on the terms of the individual\u00a0bond issue. Bonds that convert into a\u00a0variable number of\u00a0ordinary shares are accounted for \u00a0
as liabilities,\u00a0while bonds that are temporarily written down are accounted for as equity. For liability\u00a0accounted bonds, the interest expense is recognised \u00a0
in the income statement, i.e. the bonds are accounted for as liabilities\u00a0in their entirety. \u00a0
The yield on some issued bonds depends on an index that is not closely linked to the bonds\u2019 financial characteristics, for example an equity or commodity index. \u00a0
Such embedded derivatives\u00a0are bifurcated and measured at fair value in the trading portfolio. \u00a0
(a) Other\u00a0issued bonds \u00a0
Issued bonds\u00a0at fair value \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Bonds issued by Realkredit Danmark (covered bonds) \u00a0
741,062 \u00a0
711,773 \u00a0
Commercial papers and certificates of deposits \u00a0
5,228 \u00a0
9,119 \u00a0
Structured retail\u00a0notes \u00a0
2,489 \u00a0
3,032 \u00a0
Issued bonds\u00a0at fair value, total \u00a0
748,780 \u00a0
723,923 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
Bonds issued by Realkredit Danmark under the Group\u2019s green finance framework amounted to a nominal value of DKK 27,153 million outstanding at the end \u00a0
of 2023 (2022: DKK 21,544 million). \u00a0
Issued bonds\u00a0at amortised\u00a0cost \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Commercial papers and certificates of deposits \u00a0
24,419 \u00a0
-
Preferred senior bonds* \u00a0
63,345 \u00a0
48,356 \u00a0
Covered bonds \u00a0
124,703 \u00a0
140,829 \u00a0
Structured retail\u00a0notes* \u00a0
1,766 \u00a0
3,498 \u00a0
Issued bonds\u00a0at amortised\u00a0cost, total \u00a0
214,234 \u00a0
192,682 \u00a0
Non-preferred senior bonds \u00a0
93,194 \u00a0
93,235 \u00a0
* DKK 3.5 billion of Structured retail bonds that were included within Preferred senior bonds as at 31 December 2022 have been reclassified in the table above. There is no change to the total \u00a0
balance of Issued bonds at amortised cost as at 31 December 2022. \u00a0
Further information on issued bonds at fair value through profit or loss can be found in note G16. The issuance and redemption of bonds (including commercial \u00a0
papers and certificates of deposits at fair value) during the year and the maturity\u00a0of the outstanding bonds are presented in the tables below. \u00a0
G22. Issued bonds\u00a0continued \u00a0
Foreign \u00a0
Nominal value \u00a0
1 January \u00a0
currency \u00a0
31 December \u00a0
(DKK millions) \u00a0
2023 \u00a0
Issued \u00a0
Redeemed* \u00a0
translation \u00a0
2023 \u00a0
Commercial papers and certificate of deposits \u00a0
9,128 \u00a0
66,432 \u00a0
36,812 \u00a0
-9,135 \u00a0
29,613 \u00a0
Preferred senior bonds** \u00a0
59,348 \u00a0
39,700 \u00a0
27,843 \u00a0
-1,583 \u00a0
69,621 \u00a0
Covered bonds \u00a0
156,740 \u00a0
33,000 \u00a0
65,850 \u00a0
5,529 \u00a0
129,419 \u00a0
Non-preferred senior bonds \u00a0
100,586 \u00a0
22,500 \u00a0
23,700 \u00a0
-1,486 \u00a0
97,900 \u00a0
Other issued bonds \u00a0
325,801 \u00a0
161,633 \u00a0
154,206 \u00a0
-6,675 \u00a0
326,553 \u00a0
*Redeemed covered bonds includes DKK 25,8 billion of covered bonds that have been reclassified to Liabilities in disposal groups held for sale. See note G23 for more detail. \u00a0
** Preferred senior bonds includes structured retail notes. \u00a0
Foreign \u00a0
Nominal value \u00a0
1 January \u00a0
currency 31\u00a0December \u00a0
(DKK millions) \u00a0
2022 \u00a0
Issued \u00a0
Redeemed \u00a0
translation \u00a0
2022 \u00a0
Commercial papers and certificate of deposits \u00a0
23,712 \u00a0
13,445 \u00a0
26,709 \u00a0
-1,321 \u00a0
9,128 \u00a0
Preferred senior bonds* \u00a0
67,724 \u00a0
1,400 \u00a0
14,630 \u00a0
4,854 \u00a0
59,348 \u00a0
Covered bonds \u00a0
165,067 \u00a0
39,600 \u00a0
39,605 \u00a0
-8,322 \u00a0
156,740 \u00a0
Non-preferred senior bonds \u00a0
108,104 \u00a0
20,100 \u00a0
30,530 \u00a0
2,913 \u00a0
100,586 \u00a0
Other issued bonds \u00a0
364,607 \u00a0
74,545 \u00a0
111,475 \u00a0
-1,876 \u00a0
325,801 \u00a0
* Preferred senior bonds includes structured retail notes. \u00a0
The Group has issued non-preferred senior bonds and preferred senior bonds in accordance with the Group\u2019s green bond framework. At the end of 2023, the \u00a0
nominal value of green non-preferred senior bonds issued amounted to DKK 24,223 million (2022: DKK 13,014), and the nominal value of green preferred \u00a0
senior bonds issued amounted to DKK 9,134 million (2022: DKK\u00a00 million). \u00a0
Broken down\u00a0by maturity \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Redeemed bonds 2023 \u00a0
92,355 \u00a0
2024 \u00a0
96,248 \u00a0
70,143 \u00a0
2025 \u00a0
69,343 \u00a0
57,229 \u00a0
2026 or later \u00a0
160,961 \u00a0
106,075 \u00a0
Nominal value of other issued bonds \u00a0
326,553 \u00a0
325,801 \u00a0
Fair value hedging of interest rate risk \u00a0
-7,389 \u00a0
-19,351 \u00a0
Premium/discount \u00a0
-432 \u00a0
18 \u00a0
Own holding\u00a0of bonds issued \u00a0
3,586 \u00a0
8,401 \u00a0
Total other issued bonds \u00a0
315,145 \u00a0
298,068 \u00a0
G22. Issued bonds\u00a0continued \u00a0
(b) Subordinated\u00a0debt \u00a0
Subordinated debt\u00a0consists of\u00a0liabilities in\u00a0the form of issued subordinated bonds. Some of these bonds (presented as liability\u00a0accounted additional tier \u00a0
1 capital below) rank below other subordinated\u00a0bonds. Early redemption of\u00a0subordinated debt\u00a0must be approved by the Danish FSA. Subordinated\u00a0debt \u00a0
is included in total capital in\u00a0accordance with\u00a0the CRR. \u00a0
The issuance and redemption of subordinated\u00a0debt during the year and the maturity\u00a0of the outstanding\u00a0debt are presented in the tables\u00a0below. \u00a0
Foreign \u00a0
1 January \u00a0
currency 31\u00a0December \u00a0
Nominal value\u00a0(DKK millions) \u00a0
2023 \u00a0
Issued \u00a0
Redeemed \u00a0
translation \u00a0
2023 \u00a0
Subordinated debt, excluding liability accounted \u00a0
additional tier 1 capital \u00a0
24,837 \u00a0
-
-
58 \u00a0
24,895 \u00a0
Liability accounted additional tier 1 capital \u00a0
15,676 \u00a0
-
-
-503 \u00a0
15,174 \u00a0
Total subordinated debt \u00a0
40,514 \u00a0
-
-
-445 \u00a0
40,069 \u00a0
Foreign \u00a0
1 January \u00a0
currency 31\u00a0December \u00a0
Nominal value\u00a0(DKK millions) \u00a0
2022 \u00a0
Issued \u00a0
Redeemed \u00a0
translation \u00a0
2022 \u00a0
Subordinated debt, excluding liability accounted \u00a0
additional tier 1 capital \u00a0
24,895 \u00a0
-
-
-58 \u00a0
24,837 \u00a0
Liability accounted additional tier 1 capital \u00a0
14,754 \u00a0
-
-
922 \u00a0
15,676 \u00a0
Total subordinated debt \u00a0
39,649 \u00a0
-
-
864 \u00a0
40,514 \u00a0
Nominal \u00a0
Interest Year\u00a0of \u00a0
Redemption \u00a0
2023 \u00a0
2022 \u00a0
Currency \u00a0
Borrower Note \u00a0
(millions) \u00a0
rate \u00a0
issue \u00a0
Maturity \u00a0
price \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
Subordinated debt, excluding liability accounted additional tier 1 capital \u00a0
Redeemed loans 2023 \u00a0
-
EUR \u00a0
Danica \u00a0
a
500 \u00a0
4.375 \u00a0
2015 29.09.2045 \u00a0
100 \u00a0
3,727 \u00a0
3,718 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
b
750 \u00a0
2.50 \u00a0
2019 21.06.2029 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
SEK \u00a0
Danske Bank A/S \u00a0
c
1,000 \u00a0
var \u00a0
2019 14.11.2029 \u00a0
100 \u00a0
672 \u00a0
669 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
d
750 \u00a0
1.375 \u00a0
2019 12.02.2030 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
e
500 \u00a0
1.50 \u00a0
2020 02.09.2030 \u00a0
100 \u00a0
3,727 \u00a0
3,718 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
f
750 \u00a0
1.00 \u00a0
2021 15.05.2031 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
Subordinated debt,\u00a0excluding liability \u00a0
accounted additional\u00a0tier 1 capital \u00a0
24,895 \u00a0
24,837 \u00a0
Liability accounted additional tier 1 capital \u00a0
USD \u00a0
Danske Bank A/S \u00a0
g
750 \u00a0
6.125 \u00a0
2017 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
USD \u00a0
Danske Bank A/S \u00a0
h
750 \u00a0
7.00 \u00a0
2018 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
USD \u00a0
Danske Bank A/S \u00a0
i
750 \u00a0
4.375 \u00a0
2021 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
Liability accounted\u00a0additional tier 1 \u00a0
capital \u00a0
15,174 \u00a0
15,676 \u00a0
Nominal subordinated debt \u00a0
40,069 \u00a0
40,514 \u00a0
Discount \u00a0
-72 \u00a0
-128 \u00a0
Fair value hedging of interest rate risk \u00a0
-997 \u00a0
-1,843 \u00a0
Own holding\u00a0of subordinated debt \u00a0
-226 \u00a0
-193 \u00a0
Total subordinated debt \u00a0
38,774 \u00a0
38,350 \u00a0
Portion included\u00a0in total\u00a0capital as \u00a0
additional tier\u00a01 or tier\u00a02 capital \u00a0
instruments \u00a0
36,342 \u00a0
36,795 \u00a0
As at 31 December\u00a02023, the Group has no additional tier 1 bond issues accounted for as equity (31 December 2022: DKK 0 billion). \u00a0
G22. Issued bonds\u00a0continued \u00a0
a
Optional redemption from\u00a0September 2025. If the debt is not redeemed, the annual interest rate will be reset at 4.38 percentage points above the \u00a0
10-year EUR swap\u00a0rate every tenth year until maturity. Solvency II compliant tier 2 capital and included in Danica\u2019s capital bas\u00a0e. \u00a0
b
Optional redemption in June 2024. If the\u00a0debt is not redeemed, the annual interest rate will be reset at 2.50 percentage\u00a0points above the 5 year EUR \u00a0
swap rate for the remaining five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
c
Optional redemption in\u00a0November 2024. If\u00a0the debt is\u00a0not redeemed, the quarterly interest\u00a0rate will be reset\u00a0at 1.90 percentage points\u00a0above the 3- \u00a0
month STIBOR rate\u00a0for the remaining five years until maturity. CRR compliant\u00a0tier 2 capital. \u00a0
d
Optional redemption in February 2025. If the debt is not redeemed, the annual interest rate will be reset\u00a0at 1.70 percentage\u00a0points above the 5-year \u00a0
EUR swap\u00a0rate for the remaining\u00a0five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
e
Optional redemption in September 2025. If\u00a0the debt\u00a0is not redeemed,\u00a0the annual interest rate will be\u00a0reset at 1.90 percentage points above the 5- \u00a0
year EUR swap rate for the remaining\u00a0five years until maturity.\u00a0CRR compliant tier 2\u00a0capital. \u00a0
f
Optional redemption in May 2026. If the debt is not redeemed, the annual interest rate will be reset at 1.40 percentage point\u00a0s above the 5-year EUR \u00a0
swap rate for the remaining five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
g
Optional redemption from\u00a0March 2024.\u00a0If the debt is not redeemed, the annual interest rate will be reset at 3.896 percentage\u00a0points above 7-year \u00a0
USD swap rate. CRR compliant\u00a0tier 1 capital.\u00a0The capital converts\u00a0into a variable\u00a0number of shares if Danske Bank Group\u2019s or Danske Bank A/S\u2019 \u00a0
common equity tier 1 capital ratio falls below 7%. The instrument is included as a CRR compliant additional\u00a0tier 1 capital instrum ent\u00a0in the statemen\u00a0t \u00a0
of capital. \u00a0
h
Optional redemption from\u00a0June 2025. If the debt is not redeemed, the annual interest rate will be reset at 4.130 percentage p\u00a0oints above 5-year \u00a0
CMT rate.\u00a0CRR compliant tier 1\u00a0capital. The capital converts\u00a0into a\u00a0variable number of\u00a0shares if Danske\u00a0Bank Group\u2019s or Danske Bank A/S\u2019\u00a0comm on \u00a0
equity tier 1\u00a0capital ratio falls below 7%. The instrument is included as a CRR compliant additional tier 1 capital instrumen\u00a0t in\u00a0the statement of \u00a0
capital. \u00a0
i
Optional redemption from\u00a0May 2026. If the debt is not redeemed,\u00a0the annual\u00a0interest r\u00a0ate will be reset at 3.387 percentage points\u00a0above the 5 year \u00a0
CMT rate. The capital converts into a variable\u00a0number of shares if Danske\u00a0Bank Group\u2019s or Danske Bank A/S\u2019s common equity tier 1 capital ratio \u00a0
falls below 7%. The\u00a0instrument is included as\u00a0a CRR compliant additional\u00a0tier 1 capital instrument\u00a0in the statement\u00a0of capita l. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4441": {
"value": "G22. Issued bonds\u00a0continued \u00a0
(b) Subordinated\u00a0debt \u00a0
Subordinated debt\u00a0consists of\u00a0liabilities in\u00a0the form of issued subordinated bonds. Some of these bonds (presented as liability\u00a0accounted additional tier \u00a0
1 capital below) rank below other subordinated\u00a0bonds. Early redemption of\u00a0subordinated debt\u00a0must be approved by the Danish FSA. Subordinated\u00a0debt \u00a0
is included in total capital in\u00a0accordance with\u00a0the CRR. \u00a0
The issuance and redemption of subordinated\u00a0debt during the year and the maturity\u00a0of the outstanding\u00a0debt are presented in the tables\u00a0below. \u00a0
Foreign \u00a0
1 January \u00a0
currency 31\u00a0December \u00a0
Nominal value\u00a0(DKK millions) \u00a0
2023 \u00a0
Issued \u00a0
Redeemed \u00a0
translation \u00a0
2023 \u00a0
Subordinated debt, excluding liability accounted \u00a0
additional tier 1 capital \u00a0
24,837 \u00a0
-
-
58 \u00a0
24,895 \u00a0
Liability accounted additional tier 1 capital \u00a0
15,676 \u00a0
-
-
-503 \u00a0
15,174 \u00a0
Total subordinated debt \u00a0
40,514 \u00a0
-
-
-445 \u00a0
40,069 \u00a0
Foreign \u00a0
1 January \u00a0
currency 31\u00a0December \u00a0
Nominal value\u00a0(DKK millions) \u00a0
2022 \u00a0
Issued \u00a0
Redeemed \u00a0
translation \u00a0
2022 \u00a0
Subordinated debt, excluding liability accounted \u00a0
additional tier 1 capital \u00a0
24,895 \u00a0
-
-
-58 \u00a0
24,837 \u00a0
Liability accounted additional tier 1 capital \u00a0
14,754 \u00a0
-
-
922 \u00a0
15,676 \u00a0
Total subordinated debt \u00a0
39,649 \u00a0
-
-
864 \u00a0
40,514 \u00a0
Nominal \u00a0
Interest Year\u00a0of \u00a0
Redemption \u00a0
2023 \u00a0
2022 \u00a0
Currency \u00a0
Borrower Note \u00a0
(millions) \u00a0
rate \u00a0
issue \u00a0
Maturity \u00a0
price \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
Subordinated debt, excluding liability accounted additional tier 1 capital \u00a0
Redeemed loans 2023 \u00a0
-
EUR \u00a0
Danica \u00a0
a
500 \u00a0
4.375 \u00a0
2015 29.09.2045 \u00a0
100 \u00a0
3,727 \u00a0
3,718 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
b
750 \u00a0
2.50 \u00a0
2019 21.06.2029 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
SEK \u00a0
Danske Bank A/S \u00a0
c
1,000 \u00a0
var \u00a0
2019 14.11.2029 \u00a0
100 \u00a0
672 \u00a0
669 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
d
750 \u00a0
1.375 \u00a0
2019 12.02.2030 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
e
500 \u00a0
1.50 \u00a0
2020 02.09.2030 \u00a0
100 \u00a0
3,727 \u00a0
3,718 \u00a0
EUR \u00a0
Danske Bank A/S \u00a0
f
750 \u00a0
1.00 \u00a0
2021 15.05.2031 \u00a0
100 \u00a0
5,590 \u00a0
5,577 \u00a0
Subordinated debt,\u00a0excluding liability \u00a0
accounted additional\u00a0tier 1 capital \u00a0
24,895 \u00a0
24,837 \u00a0
Liability accounted additional tier 1 capital \u00a0
USD \u00a0
Danske Bank A/S \u00a0
g
750 \u00a0
6.125 \u00a0
2017 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
USD \u00a0
Danske Bank A/S \u00a0
h
750 \u00a0
7.00 \u00a0
2018 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
USD \u00a0
Danske Bank A/S \u00a0
i
750 \u00a0
4.375 \u00a0
2021 \u00a0
Perpetual \u00a0
100 \u00a0
5,058 \u00a0
5,225 \u00a0
Liability accounted\u00a0additional tier 1 \u00a0
capital \u00a0
15,174 \u00a0
15,676 \u00a0
Nominal subordinated debt \u00a0
40,069 \u00a0
40,514 \u00a0
Discount \u00a0
-72 \u00a0
-128 \u00a0
Fair value hedging of interest rate risk \u00a0
-997 \u00a0
-1,843 \u00a0
Own holding\u00a0of subordinated debt \u00a0
-226 \u00a0
-193 \u00a0
Total subordinated debt \u00a0
38,774 \u00a0
38,350 \u00a0
Portion included\u00a0in total\u00a0capital as \u00a0
additional tier\u00a01 or tier\u00a02 capital \u00a0
instruments \u00a0
36,342 \u00a0
36,795 \u00a0
As at 31 December\u00a02023, the Group has no additional tier 1 bond issues accounted for as equity (31 December 2022: DKK 0 billion). \u00a0
G22. Issued bonds\u00a0continued \u00a0
a
Optional redemption from\u00a0September 2025. If the debt is not redeemed, the annual interest rate will be reset at 4.38 percentage points above the \u00a0
10-year EUR swap\u00a0rate every tenth year until maturity. Solvency II compliant tier 2 capital and included in Danica\u2019s capital bas\u00a0e. \u00a0
b
Optional redemption in June 2024. If the\u00a0debt is not redeemed, the annual interest rate will be reset at 2.50 percentage\u00a0points above the 5 year EUR \u00a0
swap rate for the remaining five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
c
Optional redemption in\u00a0November 2024. If\u00a0the debt is\u00a0not redeemed, the quarterly interest\u00a0rate will be reset\u00a0at 1.90 percentage points\u00a0above the 3- \u00a0
month STIBOR rate\u00a0for the remaining five years until maturity. CRR compliant\u00a0tier 2 capital. \u00a0
d
Optional redemption in February 2025. If the debt is not redeemed, the annual interest rate will be reset\u00a0at 1.70 percentage\u00a0points above the 5-year \u00a0
EUR swap\u00a0rate for the remaining\u00a0five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
e
Optional redemption in September 2025. If\u00a0the debt\u00a0is not redeemed,\u00a0the annual interest rate will be\u00a0reset at 1.90 percentage points above the 5- \u00a0
year EUR swap rate for the remaining\u00a0five years until maturity.\u00a0CRR compliant tier 2\u00a0capital. \u00a0
f
Optional redemption in May 2026. If the debt is not redeemed, the annual interest rate will be reset at 1.40 percentage point\u00a0s above the 5-year EUR \u00a0
swap rate for the remaining five years until maturity. CRR compliant tier 2\u00a0capital. \u00a0
g
Optional redemption from\u00a0March 2024.\u00a0If the debt is not redeemed, the annual interest rate will be reset at 3.896 percentage\u00a0points above 7-year \u00a0
USD swap rate. CRR compliant\u00a0tier 1 capital.\u00a0The capital converts\u00a0into a variable\u00a0number of shares if Danske Bank Group\u2019s or Danske Bank A/S\u2019 \u00a0
common equity tier 1 capital ratio falls below 7%. The instrument is included as a CRR compliant additional\u00a0tier 1 capital instrum ent\u00a0in the statemen\u00a0t \u00a0
of capital. \u00a0
h
Optional redemption from\u00a0June 2025. If the debt is not redeemed, the annual interest rate will be reset at 4.130 percentage p\u00a0oints above 5-year \u00a0
CMT rate.\u00a0CRR compliant tier 1\u00a0capital. The capital converts\u00a0into a\u00a0variable number of\u00a0shares if Danske\u00a0Bank Group\u2019s or Danske Bank A/S\u2019\u00a0comm on \u00a0
equity tier 1\u00a0capital ratio falls below 7%. The instrument is included as a CRR compliant additional tier 1 capital instrumen\u00a0t in\u00a0the statement of \u00a0
capital. \u00a0
i
Optional redemption from\u00a0May 2026. If the debt is not redeemed,\u00a0the annual\u00a0interest r\u00a0ate will be reset at 3.387 percentage points\u00a0above the 5 year \u00a0
CMT rate. The capital converts into a variable\u00a0number of shares if Danske\u00a0Bank Group\u2019s or Danske Bank A/S\u2019s common equity tier 1 capital ratio \u00a0
falls below 7%. The\u00a0instrument is included as\u00a0a CRR compliant additional\u00a0tier 1 capital instrument\u00a0in the statement\u00a0of capita l. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSubordinatedLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4448": {
"value": "G23. Assets held for sale and Liabilities in disposal groups \u00a0
Assets held for sale and Liabilities\u00a0in disposal groups held for sale includes\u00a0assets and\u00a0liabilities that\u00a0fall under IFRS 5. \u00a0
Accounting policy \u00a0
Assets held for sale and Liabilities\u00a0in disposal groups \u00a0
Assets held\u00a0for sale are disposal groups of assets actively\u00a0marketed for\u00a0sale and for\u00a0which a sale is expected to occur withi\u00a0n 12 months. A disposal \u00a0
group is a group of assets that will be disposed of in a single transaction\u00a0and includes\u00a0any directly\u00a0associated liabilities.\u00a0A disposal group in\u00a0cludes for \u00a0
example companies (subsidiaries) or\u00a0properties taken\u00a0over under non-performing loan agreements. Further, loans that are marketed for sale are \u00a0
transferred to Assets held for sale. The loans\u00a0are written\u00a0down to their\u00a0expected selling\u00a0price. \u00a0
The net assets in the disposal group are remeasured at the lower of the carrying amount of the net assets in the disposal group at the time of \u00a0
reclassification and fair value less expected cost to sell. \u00a0
If a disposal group of assets and liabilities\u00a0represents a separate\u00a0major line of business (typically\u00a0a reportable\u00a0segment) o\u00a0r a geographical area of \u00a0
operation or\u00a0is a subsidiary\u00a0acquired exclusively with a\u00a0view of resale, it is presented as a discontinued\u00a0operation. For a discontinued\u00a0operation, net \u00a0
profit is presented as a single item \u2018Net profit from discontinued\u00a0operations\u2019 in\u00a0the income statement, i.e. no longer includ\u00a0ed as\u00a0income and expenses \u00a0
from the Group\u2019s\u00a0continuing operations. \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Assets held for sale \u00a0
Loans held for sale \u00a0
110,415 \u00a0
-
Other \u00a0
289 \u00a0
350 \u00a0
Total \u00a0
110,704 \u00a0
350 \u00a0
Liabilities in disposal\u00a0groups \u00a0
Deposits held for sale \u00a0
30,599 \u00a0
-
Issued bonds at amortised cost \u00a0
25,877 \u00a0
-
Total \u00a0
56,476 \u00a0
-
Loans held for sale and associated\u00a0deposits consists of\u00a0loan portfolios\u00a0where the Group\u00a0has entered\u00a0into sales agreements.\u00a0As announced in July 2023, \u00a0
Danske Bank has entered into an agreement to sell its personal customers business Norway. The sale will include loans, deposits and issued bonds at \u00a0
amortised cost. On reclassification\u00a0to held for sale, a loss of DKK 0.7 billion\u00a0was recognised in relation\u00a0to the expected loss and the expected costs directly \u00a0
attributable to\u00a0the sale, and is included in Gain or loss on sale of disposal groups. \u00a0
In June\u00a02023, Danske\u00a0Bank also announced\u00a0that it would sell Danske IT, a fully-owned subsidiary of Danske\u00a0Bank, to Infosys. The sale, which include\u00a0d \u00a0
approximately DKK 0.3\u00a0billion of assets\u00a0and DKK 0.2\u00a0billion of\u00a0liabilities, settled\u00a0in the third quarter of 2023. \u00a0
Assets held\u00a0for sale also includes\u00a0lease assets (where the\u00a0Group acts as lessor) put up for sale at the end of the lease and\u00a0properties taken over by the \u00a0
Group under non-performing loan agreements. The Group expects to sell the properties through a real es\u00a0tate agent within 12 months from\u00a0the date of \u00a0
acquisition. The\u00a0properties comprise properties in Denmark and in other countries. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4449": {
"value": "Accounting policy \u00a0
Assets held for sale and Liabilities\u00a0in disposal groups \u00a0
Assets held\u00a0for sale are disposal groups of assets actively\u00a0marketed for\u00a0sale and for\u00a0which a sale is expected to occur withi\u00a0n 12 months. A disposal \u00a0
group is a group of assets that will be disposed of in a single transaction\u00a0and includes\u00a0any directly\u00a0associated liabilities.\u00a0A disposal group in\u00a0cludes for \u00a0
example companies (subsidiaries) or\u00a0properties taken\u00a0over under non-performing loan agreements. Further, loans that are marketed for sale are \u00a0
transferred to Assets held for sale. The loans\u00a0are written\u00a0down to their\u00a0expected selling\u00a0price. \u00a0
The net assets in the disposal group are remeasured at the lower of the carrying amount of the net assets in the disposal group at the time of \u00a0
reclassification and fair value less expected cost to sell. \u00a0
If a disposal group of assets and liabilities\u00a0represents a separate\u00a0major line of business (typically\u00a0a reportable\u00a0segment) o\u00a0r a geographical area of \u00a0
operation or\u00a0is a subsidiary\u00a0acquired exclusively with a\u00a0view of resale, it is presented as a discontinued\u00a0operation. For a discontinued\u00a0operation, net \u00a0
profit is presented as a single item \u2018Net profit from discontinued\u00a0operations\u2019 in\u00a0the income statement, i.e. no longer includ\u00a0ed as\u00a0income and expenses \u00a0
from the Group\u2019s\u00a0continuing operations. \u00a0
Held-for-sale group undertakings \u00a0
Companies taken over by the Group under non-performing loan agreements and actively marketed for sale\u00a0and expected to be sold within 12\u00a0months of \u00a0
classification are\u00a0recognised as held-for-sale. Assets and liabilities\u00a0in such companies\u00a0are presented under Assets held for sale and Liabilities\u00a0in disposal \u00a0
groups held for sale. The assets are recognised at the lower of cost and fair value\u00a0less expected\u00a0costs to sell. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4450": {
"value": "Accounting policy \u00a0
Assets held for sale and Liabilities\u00a0in disposal groups \u00a0
Assets held\u00a0for sale are disposal groups of assets actively\u00a0marketed for\u00a0sale and for\u00a0which a sale is expected to occur withi\u00a0n 12 months. A disposal \u00a0
group is a group of assets that will be disposed of in a single transaction\u00a0and includes\u00a0any directly\u00a0associated liabilities.\u00a0A disposal group in\u00a0cludes for \u00a0
example companies (subsidiaries) or\u00a0properties taken\u00a0over under non-performing loan agreements. Further, loans that are marketed for sale are \u00a0
transferred to Assets held for sale. The loans\u00a0are written\u00a0down to their\u00a0expected selling\u00a0price. \u00a0
The net assets in the disposal group are remeasured at the lower of the carrying amount of the net assets in the disposal group at the time of \u00a0
reclassification and fair value less expected cost to sell. \u00a0
If a disposal group of assets and liabilities\u00a0represents a separate\u00a0major line of business (typically\u00a0a reportable\u00a0segment) o\u00a0r a geographical area of \u00a0
operation or\u00a0is a subsidiary\u00a0acquired exclusively with a\u00a0view of resale, it is presented as a discontinued\u00a0operation. For a discontinued\u00a0operation, net \u00a0
profit is presented as a single item \u2018Net profit from discontinued\u00a0operations\u2019 in\u00a0the income statement, i.e. no longer includ\u00a0ed as\u00a0income and expenses \u00a0
from the Group\u2019s\u00a0continuing operations. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4453": {
"value": "If a disposal group of assets and liabilities\u00a0represents a separate\u00a0major line of business (typically\u00a0a reportable\u00a0segment) o\u00a0r a geographical area of \u00a0
operation or\u00a0is a subsidiary\u00a0acquired exclusively with a\u00a0view of resale, it is presented as a discontinued\u00a0operation. For a discontinued\u00a0operation, net \u00a0
profit is presented as a single item \u2018Net profit from discontinued\u00a0operations\u2019 in\u00a0the income statement, i.e. no longer includ\u00a0ed as\u00a0income and expenses \u00a0
from the Group\u2019s\u00a0continuing operations. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4454": {
"value": "G24. Other assets and Other liabilities \u00a0
The Group uses quantitative\u00a0and qualitative\u00a0materiality considerations\u00a0when aggregating\u00a0line items in the balance sheet\u00a0that are\u00a0not considered \u00a0
individually material. Such\u00a0line items are presented under Other assets or Other liabilities\u00a0and consist of net assets or net liabilities\u00a0in defined benefit \u00a0
pension plans, investment property, tangible assets, right-of-use lease assets\u00a0and lease liabilities\u00a0and holdings in\u00a0associates. \u00a0
The Group uses clean pricing of\u00a0financial instruments, and\u00a0accrued interest\u00a0is therefore included\u00a0in Other assets and Other liabilities.\u00a0In addition\u00a0, \u00a0
prepayments and\u00a0accrued income and expenses are included under Other assets and Other liabilities.\u00a0Other staff\u00a0commitments includes provisions for \u00a0
holiday payments, variable remuneration,\u00a0severance pay\u00a0etc. The\u00a0provisions recognised represent\u00a0the compensation\u00a0that the\u00a0employee has earned and \u00a0
that is expected to\u00a0be paid to the employee. \u00a0
Accounting policy \u00a0
Defined benefit\u00a0pension plans \u00a0
When the Group has entered into defined benefit pension plans, the amounts payable are recognised on the basis of an actuarial computation\u00a0of the \u00a0
present value of expected benefits. The present value is calculated on the basis of expected future trends in salaries and interest rates, the time of \u00a0
retirement, mortality rates\u00a0and other factors. The present value of pension benefits less the fair value of pension assets is recognised as a pension \u00a0
obligation for\u00a0each plan under Other liabilities.\u00a0If the net amount of a defined benefit pension plan is positive\u00a0and may be repaid to the Group or reduce \u00a0
its future contributions\u00a0to the plan, the net amount is recognised under Other assets. The discount rate is determined by reference to yields on high- \u00a0
quality corporate bonds with terms matching the terms of\u00a0the pension obligations. \u00a0
Right of\u00a0use lease assets and lease liabilities \u00a0
The Group recognise a right-of-use asset and a lease liability\u00a0at the commencement\u00a0date, for all lease agreements,\u00a0that the Group has entered into as \u00a0
lessee, except short-term leases and leases of low value\u00a0asset. The lease liability\u00a0is initially\u00a0measured at the present value\u00a0of the future payme\u00a0nts from \u00a0
lease components, discounted using the\u00a0incremental borrowing\u00a0rate for the individual\u00a0lease. The lease liability\u00a0is subsequently measured\u00a0by increasing \u00a0
the carrying amount, to reflect interest and by reducing the carrying amount to reflect the lease payments\u00a0made. Fur\u00a0ther lease liabilities\u00a0are changed \u00a0
when remeasurements\u00a0are needed, corresponding adjustment is\u00a0the related right-of-use asset. Gain or\u00a0loss from a lease modification,\u00a0(excluding \u00a0
modifications that\u00a0change the basis for determining\u00a0future lease\u00a0payments as a\u00a0result of\u00a0the Interest Rate Benchmark Reform) that are\u00a0not accounte\u00a0d \u00a0
for as a separate lease, is recognised in profit and loss. If a lease modification\u00a0is necessary\u00a0as a direct consequence of the interest\u00a0rate benchmar\u00a0k \u00a0
reform, and the new basis for determining\u00a0the lease payments is\u00a0economically equivalent to the previous basis immediately\u00a0pre ceding\u00a0the modification, \u00a0
then the lease liability\u00a0shall be remeasured by discounting\u00a0the revised lease payments.\u00a0The initial\u00a0right-of-use asset comprise the amount of the initial \u00a0
measurement of the lease liability,\u00a0lease payments made at or before the commencement day,\u00a0initial direct costs and costs to restore the underlyin\u00a0g \u00a0
asset. The right-of-use asset are subsequently\u00a0measured at cost less accumulated\u00a0depreciation and impairment losses.\u00a0The right-of-use assets are \u00a0
depreciated over the shorter period of the lease term and the useful life of the underlying asset. When the Group is an inter\u00a0mediate lessor,\u00a0the Group \u00a0
accounts for the head lease and the sublease as two separate contracts.\u00a0The sublease is\u00a0classified as\u00a0a finance\u00a0or operating\u00a0lease by reference to the \u00a0
right-of-use asset arising from the head lease. \u00a0
Tangible assets \u00a0
Tangible assets include domicile property and plant and equipment.\u00a0Plant and equipment\u00a0cover equipment,\u00a0vehicles, furniture, fixtures and\u00a0leasehold \u00a0
improvements. Tangible assets\u00a0also include lease assets, i.e. assets let under operating leases, except real property. Lease assets includes cars, lorries \u00a0
and equipement.\u00a0Tangible assets\u00a0are measured\u00a0at cost and depreciated\u00a0over the estimated useful\u00a0life. The estimated useful life is 20-50 years for \u00a0
domicile property, 3-10 years for plant and equipment and three years for\u00a0lease assets. Depreciation\u00a0charges are recognised under Operating expenses. \u00a0
Tangible assets are\u00a0tested for\u00a0impairment if indications of impairment exist. An impaired asset is written down to its recoverable amount, which is\u00a0the \u00a0
higher of its fair value less costs to sell and its value in use. \u00a0
Loan commitments\u00a0and guarantees \u00a0
The Group issues a number of loan commitments and guarantees. Such exposures are subject to impairment for expected credit losses. Further \u00a0
information can be\u00a0found in note G15. \u00a0
Other provisions,\u00a0including litigations \u00a0
Provisions for\u00a0other obligations,\u00a0such as lawsuits,\u00a0are recognised\u00a0if the obligation\u00a0is likely to\u00a0result in\u00a0a payment obligat\u00a0ion and the amount can be \u00a0
measured reliably.\u00a0Liabilities are\u00a0recognised at\u00a0the present value of expected payments. \u00a0
G24. Other assets and Other liabilities continued \u00a0
(a) Other assets\u00a0and other liabilities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Other assets \u00a0
Accrued interest and commissions due \u00a0
7,264 \u00a0
2,256 \u00a0
Prepayments, accruals and other amounts due \u00a0
10,811 \u00a0
17,048 \u00a0
Defined benefit\u00a0pension plan, net assets \u00a0
806 \u00a0
1,486 \u00a0
Investment property \u00a0
157 \u00a0
146 \u00a0
Tangible assets \u00a0
7,418 \u00a0
7,586 \u00a0
Right of use lease assets \u00a0
4,010 \u00a0
2,615 \u00a0
Holdings in associates \u00a0
612 \u00a0
536 \u00a0
Total \u00a0
31,079 \u00a0
31,673 \u00a0
Other liabilities \u00a0
Sundry creditors \u00a0
33,005 \u00a0
35,823 \u00a0
Estonia settlement \u00a0
-
15,300 \u00a0
Accrued interest and commissions due \u00a0
12,902 \u00a0
7,634 \u00a0
Defined benefit\u00a0pension plans, net liabilities \u00a0
301 \u00a0
366 \u00a0
Other staff commitments \u00a0
1,175 \u00a0
1,804 \u00a0
Lease liabilities \u00a0
4,102 \u00a0
2,743 \u00a0
Loan commitments\u00a0and guarantees etc. \u00a0
3,161 \u00a0
2,627 \u00a0
Reserves subject to a reimbursement obligation \u00a0
2
4
Provisions, including litigations \u00a0
2,398 \u00a0
2,676 \u00a0
Total \u00a0
57,046 \u00a0
68,978 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Information on defined benefit plans and holdings in associates is provided in notes G9 and G38, respectively. \u00a0
(a) Further explanation other assets \u00a0
Right-of-use lease assets consists of domicile property of DKK 4,010 million (2022: DKK 2,615 million).\u00a0The depreciation\u00a0charge is respectively\u00a0DKK \u00a0
704 million (2022:\u00a0DKK 660\u00a0million). The interest expense on the corresponding lease liability\u00a0is DKK 91 million (2022: DKK 50 million).\u00a0There has been \u00a0
no significant impairment losses of the right-of-use lease assets in 2023 and 2022. \u00a0
Tangible assets consist primarily of lease assets (where the Group acts as lessor). Further,\u00a0it includes d\u00a0omicile property (not\u00a0held for sale) amounting\u00a0to \u00a0
DKK 86 million (2022: DKK 119 million).\u00a0If indications\u00a0of impairment\u00a0exist, the properties are written down to the lower of the carrying amount and its \u00a0
value in\u00a0use determined on the basis of the rate of return used for investment\u00a0property. There was\u00a0no write-down in 2023, nor in 2022. The fair value of \u00a0
the properties was DKK 255 million (2022: DKK 267 million). The required rate of return of\u00a07.8% (2022: 7.8%) was determined\u00a0in accordance\u00a0with \u00a0
Danish FSA\u00a0rules. \u00a0
G24. Other assets and Other liabilities continued \u00a0
(b) Further explanation other liabilities \u00a0
(DKK millions) \u00a0
The table below shows an analysis of provisions by class of provision \u00a0
Customer \u00a0
Regulatory and \u00a0
Restructuring \u00a0
Other \u00a0
Provisions \u00a0
remediations legal\u00a0proceedings \u00a0
cost \u00a0
provisions \u00a0
Total \u00a0
Balance as at 1 January 2023 \u00a0
1,930 \u00a0
2
312 \u00a0
433 \u00a0
2,676 \u00a0
Additional provisions made \u00a0
415 \u00a0
23 \u00a0
46 \u00a0
33 \u00a0
517 \u00a0
Amounts used \u00a0
732 \u00a0
-
62 \u00a0
5
798 \u00a0
Reversals \u00a0
58 \u00a0
-
-61 \u00a0
4
2
Transfer to other liabililties \u00a0
-
-
Foreign exchange adjustments \u00a0
4
-
-
1
4
Balance as at\u00a031 December 2023 \u00a0
1,559 \u00a0
24 \u00a0
357 \u00a0
457 \u00a0
2,398 \u00a0
Customer remediation refers\u00a0to activities to\u00a0compensate customers for\u00a0losses or damages associated\u00a0with a failure to comply\u00a0with regulations or to \u00a0
treat customers\u00a0fairly. Customer remediation is often initiated by the Group in response to customer complaints and/or industry developments\u00a0in sales \u00a0
practices and is not necessarily initiated\u00a0by regulatory action. Customer remediation\u00a0includes the provision for\u00a0customer compensation in\u00a0the debt \u00a0
collection case, issues with the Group\u2019s tax services\u00a0and other investor protection cases. In 2023, DKK 0.7 billion has been paid out from the provisio\u00a0n \u00a0
for debt collection\u00a0customers in Denmark. The payments will continue in 2024. \u00a0
Regulatory and\u00a0legal proceedings\u00a0include civil court, arbitration or tribunal proceedings brought against companies within the Danske Bank Group \u00a0
(whether by way of claim or counterclaim)\u00a0or civil\u00a0disputes that may,\u00a0if not\u00a0settled, result\u00a0in court, arbitration or\u00a0tribunal proceedings.\u00a0Regulatory matters \u00a0
refer to investigations,\u00a0reviews and other actions carried out by, or in response to the actions of,\u00a0regulators or\u00a0law enforcement agencies in connection \u00a0
with alleged wrongdoing by companies within the Danske Bank Group. For\u00a0further information on regulatory and legal proceedings, including the Estonia \u00a0
matter, see note G27(c). \u00a0
Restructuring costs include provisions for\u00a0severance pay in connection with termination\u00a0of employees\u00a0and provisions\u00a0for branch mergers and closure of \u00a0
office sites. Other\u00a0provisions includes a\u00a0provision of\u00a0DKK 0.4 billion (2022: DK 0.3 billion) for\u00a0restoration of\u00a0lease assets. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4455": {
"value": "G24. Other assets and Other liabilities \u00a0
The Group uses quantitative\u00a0and qualitative\u00a0materiality considerations\u00a0when aggregating\u00a0line items in the balance sheet\u00a0that are\u00a0not considered \u00a0
individually material. Such\u00a0line items are presented under Other assets or Other liabilities\u00a0and consist of net assets or net liabilities\u00a0in defined benefit \u00a0
pension plans, investment property, tangible assets, right-of-use lease assets\u00a0and lease liabilities\u00a0and holdings in\u00a0associates. \u00a0
The Group uses clean pricing of\u00a0financial instruments, and\u00a0accrued interest\u00a0is therefore included\u00a0in Other assets and Other liabilities.\u00a0In addition\u00a0, \u00a0
prepayments and\u00a0accrued income and expenses are included under Other assets and Other liabilities.\u00a0Other staff\u00a0commitments includes provisions for \u00a0
holiday payments, variable remuneration,\u00a0severance pay\u00a0etc. The\u00a0provisions recognised represent\u00a0the compensation\u00a0that the\u00a0employee has earned and \u00a0
that is expected to\u00a0be paid to the employee. \u00a0
Accounting policy \u00a0
Defined benefit\u00a0pension plans \u00a0
When the Group has entered into defined benefit pension plans, the amounts payable are recognised on the basis of an actuarial computation\u00a0of the \u00a0
present value of expected benefits. The present value is calculated on the basis of expected future trends in salaries and interest rates, the time of \u00a0
retirement, mortality rates\u00a0and other factors. The present value of pension benefits less the fair value of pension assets is recognised as a pension \u00a0
obligation for\u00a0each plan under Other liabilities.\u00a0If the net amount of a defined benefit pension plan is positive\u00a0and may be repaid to the Group or reduce \u00a0
its future contributions\u00a0to the plan, the net amount is recognised under Other assets. The discount rate is determined by reference to yields on high- \u00a0
quality corporate bonds with terms matching the terms of\u00a0the pension obligations. \u00a0
Right of\u00a0use lease assets and lease liabilities \u00a0
The Group recognise a right-of-use asset and a lease liability\u00a0at the commencement\u00a0date, for all lease agreements,\u00a0that the Group has entered into as \u00a0
lessee, except short-term leases and leases of low value\u00a0asset. The lease liability\u00a0is initially\u00a0measured at the present value\u00a0of the future payme\u00a0nts from \u00a0
lease components, discounted using the\u00a0incremental borrowing\u00a0rate for the individual\u00a0lease. The lease liability\u00a0is subsequently measured\u00a0by increasing \u00a0
the carrying amount, to reflect interest and by reducing the carrying amount to reflect the lease payments\u00a0made. Fur\u00a0ther lease liabilities\u00a0are changed \u00a0
when remeasurements\u00a0are needed, corresponding adjustment is\u00a0the related right-of-use asset. Gain or\u00a0loss from a lease modification,\u00a0(excluding \u00a0
modifications that\u00a0change the basis for determining\u00a0future lease\u00a0payments as a\u00a0result of\u00a0the Interest Rate Benchmark Reform) that are\u00a0not accounte\u00a0d \u00a0
for as a separate lease, is recognised in profit and loss. If a lease modification\u00a0is necessary\u00a0as a direct consequence of the interest\u00a0rate benchmar\u00a0k \u00a0
reform, and the new basis for determining\u00a0the lease payments is\u00a0economically equivalent to the previous basis immediately\u00a0pre ceding\u00a0the modification, \u00a0
then the lease liability\u00a0shall be remeasured by discounting\u00a0the revised lease payments.\u00a0The initial\u00a0right-of-use asset comprise the amount of the initial \u00a0
measurement of the lease liability,\u00a0lease payments made at or before the commencement day,\u00a0initial direct costs and costs to restore the underlyin\u00a0g \u00a0
asset. The right-of-use asset are subsequently\u00a0measured at cost less accumulated\u00a0depreciation and impairment losses.\u00a0The right-of-use assets are \u00a0
depreciated over the shorter period of the lease term and the useful life of the underlying asset. When the Group is an inter\u00a0mediate lessor,\u00a0the Group \u00a0
accounts for the head lease and the sublease as two separate contracts.\u00a0The sublease is\u00a0classified as\u00a0a finance\u00a0or operating\u00a0lease by reference to the \u00a0
right-of-use asset arising from the head lease. \u00a0
Tangible assets \u00a0
Tangible assets include domicile property and plant and equipment.\u00a0Plant and equipment\u00a0cover equipment,\u00a0vehicles, furniture, fixtures and\u00a0leasehold \u00a0
improvements. Tangible assets\u00a0also include lease assets, i.e. assets let under operating leases, except real property. Lease assets includes cars, lorries \u00a0
and equipement.\u00a0Tangible assets\u00a0are measured\u00a0at cost and depreciated\u00a0over the estimated useful\u00a0life. The estimated useful life is 20-50 years for \u00a0
domicile property, 3-10 years for plant and equipment and three years for\u00a0lease assets. Depreciation\u00a0charges are recognised under Operating expenses. \u00a0
Tangible assets are\u00a0tested for\u00a0impairment if indications of impairment exist. An impaired asset is written down to its recoverable amount, which is\u00a0the \u00a0
higher of its fair value less costs to sell and its value in use. \u00a0
Loan commitments\u00a0and guarantees \u00a0
The Group issues a number of loan commitments and guarantees. Such exposures are subject to impairment for expected credit losses. Further \u00a0
information can be\u00a0found in note G15. \u00a0
Other provisions,\u00a0including litigations \u00a0
Provisions for\u00a0other obligations,\u00a0such as lawsuits,\u00a0are recognised\u00a0if the obligation\u00a0is likely to\u00a0result in\u00a0a payment obligat\u00a0ion and the amount can be \u00a0
measured reliably.\u00a0Liabilities are\u00a0recognised at\u00a0the present value of expected payments. \u00a0
G24. Other assets and Other liabilities continued \u00a0
(a) Other assets\u00a0and other liabilities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Other assets \u00a0
Accrued interest and commissions due \u00a0
7,264 \u00a0
2,256 \u00a0
Prepayments, accruals and other amounts due \u00a0
10,811 \u00a0
17,048 \u00a0
Defined benefit\u00a0pension plan, net assets \u00a0
806 \u00a0
1,486 \u00a0
Investment property \u00a0
157 \u00a0
146 \u00a0
Tangible assets \u00a0
7,418 \u00a0
7,586 \u00a0
Right of use lease assets \u00a0
4,010 \u00a0
2,615 \u00a0
Holdings in associates \u00a0
612 \u00a0
536 \u00a0
Total \u00a0
31,079 \u00a0
31,673 \u00a0
Other liabilities \u00a0
Sundry creditors \u00a0
33,005 \u00a0
35,823 \u00a0
Estonia settlement \u00a0
-
15,300 \u00a0
Accrued interest and commissions due \u00a0
12,902 \u00a0
7,634 \u00a0
Defined benefit\u00a0pension plans, net liabilities \u00a0
301 \u00a0
366 \u00a0
Other staff commitments \u00a0
1,175 \u00a0
1,804 \u00a0
Lease liabilities \u00a0
4,102 \u00a0
2,743 \u00a0
Loan commitments\u00a0and guarantees etc. \u00a0
3,161 \u00a0
2,627 \u00a0
Reserves subject to a reimbursement obligation \u00a0
2
4
Provisions, including litigations \u00a0
2,398 \u00a0
2,676 \u00a0
Total \u00a0
57,046 \u00a0
68,978 \u00a0
* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0
Information on defined benefit plans and holdings in associates is provided in notes G9 and G38, respectively. \u00a0
(a) Further explanation other assets \u00a0
Right-of-use lease assets consists of domicile property of DKK 4,010 million (2022: DKK 2,615 million).\u00a0The depreciation\u00a0charge is respectively\u00a0DKK \u00a0
704 million (2022:\u00a0DKK 660\u00a0million). The interest expense on the corresponding lease liability\u00a0is DKK 91 million (2022: DKK 50 million).\u00a0There has been \u00a0
no significant impairment losses of the right-of-use lease assets in 2023 and 2022. \u00a0
Tangible assets consist primarily of lease assets (where the Group acts as lessor). Further,\u00a0it includes d\u00a0omicile property (not\u00a0held for sale) amounting\u00a0to \u00a0
DKK 86 million (2022: DKK 119 million).\u00a0If indications\u00a0of impairment\u00a0exist, the properties are written down to the lower of the carrying amount and its \u00a0
value in\u00a0use determined on the basis of the rate of return used for investment\u00a0property. There was\u00a0no write-down in 2023, nor in 2022. The fair value of \u00a0
the properties was DKK 255 million (2022: DKK 267 million). The required rate of return of\u00a07.8% (2022: 7.8%) was determined\u00a0in accordance\u00a0with \u00a0
Danish FSA\u00a0rules. \u00a0
G24. Other assets and Other liabilities continued \u00a0
(b) Further explanation other liabilities \u00a0
(DKK millions) \u00a0
The table below shows an analysis of provisions by class of provision \u00a0
Customer \u00a0
Regulatory and \u00a0
Restructuring \u00a0
Other \u00a0
Provisions \u00a0
remediations legal\u00a0proceedings \u00a0
cost \u00a0
provisions \u00a0
Total \u00a0
Balance as at 1 January 2023 \u00a0
1,930 \u00a0
2
312 \u00a0
433 \u00a0
2,676 \u00a0
Additional provisions made \u00a0
415 \u00a0
23 \u00a0
46 \u00a0
33 \u00a0
517 \u00a0
Amounts used \u00a0
732 \u00a0
-
62 \u00a0
5
798 \u00a0
Reversals \u00a0
58 \u00a0
-
-61 \u00a0
4
2
Transfer to other liabililties \u00a0
-
-
Foreign exchange adjustments \u00a0
4
-
-
1
4
Balance as at\u00a031 December 2023 \u00a0
1,559 \u00a0
24 \u00a0
357 \u00a0
457 \u00a0
2,398 \u00a0
Customer remediation refers\u00a0to activities to\u00a0compensate customers for\u00a0losses or damages associated\u00a0with a failure to comply\u00a0with regulations or to \u00a0
treat customers\u00a0fairly. Customer remediation is often initiated by the Group in response to customer complaints and/or industry developments\u00a0in sales \u00a0
practices and is not necessarily initiated\u00a0by regulatory action. Customer remediation\u00a0includes the provision for\u00a0customer compensation in\u00a0the debt \u00a0
collection case, issues with the Group\u2019s tax services\u00a0and other investor protection cases. In 2023, DKK 0.7 billion has been paid out from the provisio\u00a0n \u00a0
for debt collection\u00a0customers in Denmark. The payments will continue in 2024. \u00a0
Regulatory and\u00a0legal proceedings\u00a0include civil court, arbitration or tribunal proceedings brought against companies within the Danske Bank Group \u00a0
(whether by way of claim or counterclaim)\u00a0or civil\u00a0disputes that may,\u00a0if not\u00a0settled, result\u00a0in court, arbitration or\u00a0tribunal proceedings.\u00a0Regulatory matters \u00a0
refer to investigations,\u00a0reviews and other actions carried out by, or in response to the actions of,\u00a0regulators or\u00a0law enforcement agencies in connection \u00a0
with alleged wrongdoing by companies within the Danske Bank Group. For\u00a0further information on regulatory and legal proceedings, including the Estonia \u00a0
matter, see note G27(c). \u00a0
Restructuring costs include provisions for\u00a0severance pay in connection with termination\u00a0of employees\u00a0and provisions\u00a0for branch mergers and closure of \u00a0
office sites. Other\u00a0provisions includes a\u00a0provision of\u00a0DKK 0.4 billion (2022: DK 0.3 billion) for\u00a0restoration of\u00a0lease assets. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4457": {
"value": "Accounting policy \u00a0
Defined benefit\u00a0pension plans \u00a0
When the Group has entered into defined benefit pension plans, the amounts payable are recognised on the basis of an actuarial computation\u00a0of the \u00a0
present value of expected benefits. The present value is calculated on the basis of expected future trends in salaries and interest rates, the time of \u00a0
retirement, mortality rates\u00a0and other factors. The present value of pension benefits less the fair value of pension assets is recognised as a pension \u00a0
obligation for\u00a0each plan under Other liabilities.\u00a0If the net amount of a defined benefit pension plan is positive\u00a0and may be repaid to the Group or reduce \u00a0
its future contributions\u00a0to the plan, the net amount is recognised under Other assets. The discount rate is determined by reference to yields on high- \u00a0
quality corporate bonds with terms matching the terms of\u00a0the pension obligations. \u00a0
Right of\u00a0use lease assets and lease liabilities \u00a0
The Group recognise a right-of-use asset and a lease liability\u00a0at the commencement\u00a0date, for all lease agreements,\u00a0that the Group has entered into as \u00a0
lessee, except short-term leases and leases of low value\u00a0asset. The lease liability\u00a0is initially\u00a0measured at the present value\u00a0of the future payme\u00a0nts from \u00a0
lease components, discounted using the\u00a0incremental borrowing\u00a0rate for the individual\u00a0lease. The lease liability\u00a0is subsequently measured\u00a0by increasing \u00a0
the carrying amount, to reflect interest and by reducing the carrying amount to reflect the lease payments\u00a0made. Fur\u00a0ther lease liabilities\u00a0are changed \u00a0
when remeasurements\u00a0are needed, corresponding adjustment is\u00a0the related right-of-use asset. Gain or\u00a0loss from a lease modification,\u00a0(excluding \u00a0
modifications that\u00a0change the basis for determining\u00a0future lease\u00a0payments as a\u00a0result of\u00a0the Interest Rate Benchmark Reform) that are\u00a0not accounte\u00a0d \u00a0
for as a separate lease, is recognised in profit and loss. If a lease modification\u00a0is necessary\u00a0as a direct consequence of the interest\u00a0rate benchmar\u00a0k \u00a0
reform, and the new basis for determining\u00a0the lease payments is\u00a0economically equivalent to the previous basis immediately\u00a0pre ceding\u00a0the modification, \u00a0
then the lease liability\u00a0shall be remeasured by discounting\u00a0the revised lease payments.\u00a0The initial\u00a0right-of-use asset comprise the amount of the initial \u00a0
measurement of the lease liability,\u00a0lease payments made at or before the commencement day,\u00a0initial direct costs and costs to restore the underlyin\u00a0g \u00a0
asset. The right-of-use asset are subsequently\u00a0measured at cost less accumulated\u00a0depreciation and impairment losses.\u00a0The right-of-use assets are \u00a0
depreciated over the shorter period of the lease term and the useful life of the underlying asset. When the Group is an inter\u00a0mediate lessor,\u00a0the Group \u00a0
accounts for the head lease and the sublease as two separate contracts.\u00a0The sublease is\u00a0classified as\u00a0a finance\u00a0or operating\u00a0lease by reference to the \u00a0
right-of-use asset arising from the head lease. \u00a0
Tangible assets \u00a0
Tangible assets include domicile property and plant and equipment.\u00a0Plant and equipment\u00a0cover equipment,\u00a0vehicles, furniture, fixtures and\u00a0leasehold \u00a0
improvements. Tangible assets\u00a0also include lease assets, i.e. assets let under operating leases, except real property. Lease assets includes cars, lorries \u00a0
and equipement.\u00a0Tangible assets\u00a0are measured\u00a0at cost and depreciated\u00a0over the estimated useful\u00a0life. The estimated useful life is 20-50 years for \u00a0
domicile property, 3-10 years for plant and equipment and three years for\u00a0lease assets. Depreciation\u00a0charges are recognised under Operating expenses. \u00a0
Tangible assets are\u00a0tested for\u00a0impairment if indications of impairment exist. An impaired asset is written down to its recoverable amount, which is\u00a0the \u00a0
higher of its fair value less costs to sell and its value in use. \u00a0
Loan commitments\u00a0and guarantees \u00a0
The Group issues a number of loan commitments and guarantees. Such exposures are subject to impairment for expected credit losses. Further \u00a0
information can be\u00a0found in note G15. \u00a0
Other provisions,\u00a0including litigations \u00a0
Provisions for\u00a0other obligations,\u00a0such as lawsuits,\u00a0are recognised\u00a0if the obligation\u00a0is likely to\u00a0result in\u00a0a payment obligat\u00a0ion and the amount can be \u00a0
measured reliably.\u00a0Liabilities are\u00a0recognised at\u00a0the present value of expected payments. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4461": {
"value": "Tangible assets \u00a0
Tangible assets include domicile property and plant and equipment.\u00a0Plant and equipment\u00a0cover equipment,\u00a0vehicles, furniture, fixtures and\u00a0leasehold \u00a0
improvements. Tangible assets\u00a0also include lease assets, i.e. assets let under operating leases, except real property. Lease assets includes cars, lorries \u00a0
and equipement.\u00a0Tangible assets\u00a0are measured\u00a0at cost and depreciated\u00a0over the estimated useful\u00a0life. The estimated useful life is 20-50 years for \u00a0
domicile property, 3-10 years for plant and equipment and three years for\u00a0lease assets. Depreciation\u00a0charges are recognised under Operating expenses. \u00a0
Tangible assets are\u00a0tested for\u00a0impairment if indications of impairment exist. An impaired asset is written down to its recoverable amount, which is\u00a0the \u00a0
higher of its fair value less costs to sell and its value in use. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4464": {
"value": "Other provisions,\u00a0including litigations \u00a0
Provisions for\u00a0other obligations,\u00a0such as lawsuits,\u00a0are recognised\u00a0if the obligation\u00a0is likely to\u00a0result in\u00a0a payment obligat\u00a0ion and the amount can be \u00a0
measured reliably.\u00a0Liabilities are\u00a0recognised at\u00a0the present value of expected payments. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4467": {
"value": "G24. Other assets and Other liabilities continued \u00a0
(a) Other assets\u00a0and other liabilities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Other assets \u00a0
Accrued interest and commissions due \u00a0
7,264 \u00a0
2,256 \u00a0
Prepayments, accruals and other amounts due \u00a0
10,811 \u00a0
17,048 \u00a0
Defined benefit\u00a0pension plan, net assets \u00a0
806 \u00a0
1,486 \u00a0
Investment property \u00a0
157 \u00a0
146 \u00a0
Tangible assets \u00a0
7,418 \u00a0
7,586 \u00a0
Right of use lease assets \u00a0
4,010 \u00a0
2,615 \u00a0
Holdings in associates \u00a0
612 \u00a0
536 \u00a0
Total \u00a0
31,079 \u00a0
31,673 \u00a0
Other liabilities \u00a0
Sundry creditors \u00a0
33,005 \u00a0
35,823 \u00a0
Estonia settlement \u00a0
-
15,300 \u00a0
Accrued interest and commissions due \u00a0
12,902 \u00a0
7,634 \u00a0
Defined benefit\u00a0pension plans, net liabilities \u00a0
301 \u00a0
366 \u00a0
Other staff commitments \u00a0
1,175 \u00a0
1,804 \u00a0
Lease liabilities \u00a0
4,102 \u00a0
2,743 \u00a0
Loan commitments\u00a0and guarantees etc. \u00a0
3,161 \u00a0
2,627 \u00a0
Reserves subject to a reimbursement obligation \u00a0
2
4
Provisions, including litigations \u00a0
2,398 \u00a0
2,676 \u00a0
Total \u00a0
57,046 \u00a0
68,978 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4468": {
"value": "G24. Other assets and Other liabilities continued \u00a0
(a) Other assets\u00a0and other liabilities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Other assets \u00a0
Accrued interest and commissions due \u00a0
7,264 \u00a0
2,256 \u00a0
Prepayments, accruals and other amounts due \u00a0
10,811 \u00a0
17,048 \u00a0
Defined benefit\u00a0pension plan, net assets \u00a0
806 \u00a0
1,486 \u00a0
Investment property \u00a0
157 \u00a0
146 \u00a0
Tangible assets \u00a0
7,418 \u00a0
7,586 \u00a0
Right of use lease assets \u00a0
4,010 \u00a0
2,615 \u00a0
Holdings in associates \u00a0
612 \u00a0
536 \u00a0
Total \u00a0
31,079 \u00a0
31,673 \u00a0
Other liabilities \u00a0
Sundry creditors \u00a0
33,005 \u00a0
35,823 \u00a0
Estonia settlement \u00a0
-
15,300 \u00a0
Accrued interest and commissions due \u00a0
12,902 \u00a0
7,634 \u00a0
Defined benefit\u00a0pension plans, net liabilities \u00a0
301 \u00a0
366 \u00a0
Other staff commitments \u00a0
1,175 \u00a0
1,804 \u00a0
Lease liabilities \u00a0
4,102 \u00a0
2,743 \u00a0
Loan commitments\u00a0and guarantees etc. \u00a0
3,161 \u00a0
2,627 \u00a0
Reserves subject to a reimbursement obligation \u00a0
2
4
Provisions, including litigations \u00a0
2,398 \u00a0
2,676 \u00a0
Total \u00a0
57,046 \u00a0
68,978 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4469": {
"value": "G24. Other assets and Other liabilities continued \u00a0
(a) Other assets\u00a0and other liabilities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Other assets \u00a0
Accrued interest and commissions due \u00a0
7,264 \u00a0
2,256 \u00a0
Prepayments, accruals and other amounts due \u00a0
10,811 \u00a0
17,048 \u00a0
Defined benefit\u00a0pension plan, net assets \u00a0
806 \u00a0
1,486 \u00a0
Investment property \u00a0
157 \u00a0
146 \u00a0
Tangible assets \u00a0
7,418 \u00a0
7,586 \u00a0
Right of use lease assets \u00a0
4,010 \u00a0
2,615 \u00a0
Holdings in associates \u00a0
612 \u00a0
536 \u00a0
Total \u00a0
31,079 \u00a0
31,673 \u00a0
Other liabilities \u00a0
Sundry creditors \u00a0
33,005 \u00a0
35,823 \u00a0
Estonia settlement \u00a0
-
15,300 \u00a0
Accrued interest and commissions due \u00a0
12,902 \u00a0
7,634 \u00a0
Defined benefit\u00a0pension plans, net liabilities \u00a0
301 \u00a0
366 \u00a0
Other staff commitments \u00a0
1,175 \u00a0
1,804 \u00a0
Lease liabilities \u00a0
4,102 \u00a0
2,743 \u00a0
Loan commitments\u00a0and guarantees etc. \u00a0
3,161 \u00a0
2,627 \u00a0
Reserves subject to a reimbursement obligation \u00a0
2
4
Provisions, including litigations \u00a0
2,398 \u00a0
2,676 \u00a0
Total \u00a0
57,046 \u00a0
68,978 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4470": {
"value": "G24. Other assets and Other liabilities continued \u00a0
(a) Other assets\u00a0and other liabilities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Other assets \u00a0
Accrued interest and commissions due \u00a0
7,264 \u00a0
2,256 \u00a0
Prepayments, accruals and other amounts due \u00a0
10,811 \u00a0
17,048 \u00a0
Defined benefit\u00a0pension plan, net assets \u00a0
806 \u00a0
1,486 \u00a0
Investment property \u00a0
157 \u00a0
146 \u00a0
Tangible assets \u00a0
7,418 \u00a0
7,586 \u00a0
Right of use lease assets \u00a0
4,010 \u00a0
2,615 \u00a0
Holdings in associates \u00a0
612 \u00a0
536 \u00a0
Total \u00a0
31,079 \u00a0
31,673 \u00a0
Other liabilities \u00a0
Sundry creditors \u00a0
33,005 \u00a0
35,823 \u00a0
Estonia settlement \u00a0
-
15,300 \u00a0
Accrued interest and commissions due \u00a0
12,902 \u00a0
7,634 \u00a0
Defined benefit\u00a0pension plans, net liabilities \u00a0
301 \u00a0
366 \u00a0
Other staff commitments \u00a0
1,175 \u00a0
1,804 \u00a0
Lease liabilities \u00a0
4,102 \u00a0
2,743 \u00a0
Loan commitments\u00a0and guarantees etc. \u00a0
3,161 \u00a0
2,627 \u00a0
Reserves subject to a reimbursement obligation \u00a0
2
4
Provisions, including litigations \u00a0
2,398 \u00a0
2,676 \u00a0
Total \u00a0
57,046 \u00a0
68,978 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4472": {
"value": "G24. Other assets and Other liabilities continued \u00a0
(a) Other assets\u00a0and other liabilities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Other assets \u00a0
Accrued interest and commissions due \u00a0
7,264 \u00a0
2,256 \u00a0
Prepayments, accruals and other amounts due \u00a0
10,811 \u00a0
17,048 \u00a0
Defined benefit\u00a0pension plan, net assets \u00a0
806 \u00a0
1,486 \u00a0
Investment property \u00a0
157 \u00a0
146 \u00a0
Tangible assets \u00a0
7,418 \u00a0
7,586 \u00a0
Right of use lease assets \u00a0
4,010 \u00a0
2,615 \u00a0
Holdings in associates \u00a0
612 \u00a0
536 \u00a0
Total \u00a0
31,079 \u00a0
31,673 \u00a0
Other liabilities \u00a0
Sundry creditors \u00a0
33,005 \u00a0
35,823 \u00a0
Estonia settlement \u00a0
-
15,300 \u00a0
Accrued interest and commissions due \u00a0
12,902 \u00a0
7,634 \u00a0
Defined benefit\u00a0pension plans, net liabilities \u00a0
301 \u00a0
366 \u00a0
Other staff commitments \u00a0
1,175 \u00a0
1,804 \u00a0
Lease liabilities \u00a0
4,102 \u00a0
2,743 \u00a0
Loan commitments\u00a0and guarantees etc. \u00a0
3,161 \u00a0
2,627 \u00a0
Reserves subject to a reimbursement obligation \u00a0
2
4
Provisions, including litigations \u00a0
2,398 \u00a0
2,676 \u00a0
Total \u00a0
57,046 \u00a0
68,978 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentPropertyExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4473": {
"value": "G24. Other assets and Other liabilities continued \u00a0
(a) Other assets\u00a0and other liabilities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Other assets \u00a0
Accrued interest and commissions due \u00a0
7,264 \u00a0
2,256 \u00a0
Prepayments, accruals and other amounts due \u00a0
10,811 \u00a0
17,048 \u00a0
Defined benefit\u00a0pension plan, net assets \u00a0
806 \u00a0
1,486 \u00a0
Investment property \u00a0
157 \u00a0
146 \u00a0
Tangible assets \u00a0
7,418 \u00a0
7,586 \u00a0
Right of use lease assets \u00a0
4,010 \u00a0
2,615 \u00a0
Holdings in associates \u00a0
612 \u00a0
536 \u00a0
Total \u00a0
31,079 \u00a0
31,673 \u00a0
Other liabilities \u00a0
Sundry creditors \u00a0
33,005 \u00a0
35,823 \u00a0
Estonia settlement \u00a0
-
15,300 \u00a0
Accrued interest and commissions due \u00a0
12,902 \u00a0
7,634 \u00a0
Defined benefit\u00a0pension plans, net liabilities \u00a0
301 \u00a0
366 \u00a0
Other staff commitments \u00a0
1,175 \u00a0
1,804 \u00a0
Lease liabilities \u00a0
4,102 \u00a0
2,743 \u00a0
Loan commitments\u00a0and guarantees etc. \u00a0
3,161 \u00a0
2,627 \u00a0
Reserves subject to a reimbursement obligation \u00a0
2
4
Provisions, including litigations \u00a0
2,398 \u00a0
2,676 \u00a0
Total \u00a0
57,046 \u00a0
68,978 \u00a0
(a) Further explanation other assets \u00a0
Right-of-use lease assets consists of domicile property of DKK 4,010 million (2022: DKK 2,615 million).\u00a0The depreciation\u00a0charge is respectively\u00a0DKK \u00a0
704 million (2022:\u00a0DKK 660\u00a0million). The interest expense on the corresponding lease liability\u00a0is DKK 91 million (2022: DKK 50 million).\u00a0There has been \u00a0
no significant impairment losses of the right-of-use lease assets in 2023 and 2022. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLeasesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4474": {
"value": "G24. Other assets and Other liabilities continued \u00a0
(a) Other assets\u00a0and other liabilities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Other assets \u00a0
Accrued interest and commissions due \u00a0
7,264 \u00a0
2,256 \u00a0
Prepayments, accruals and other amounts due \u00a0
10,811 \u00a0
17,048 \u00a0
Defined benefit\u00a0pension plan, net assets \u00a0
806 \u00a0
1,486 \u00a0
Investment property \u00a0
157 \u00a0
146 \u00a0
Tangible assets \u00a0
7,418 \u00a0
7,586 \u00a0
Right of use lease assets \u00a0
4,010 \u00a0
2,615 \u00a0
Holdings in associates \u00a0
612 \u00a0
536 \u00a0
Total \u00a0
31,079 \u00a0
31,673 \u00a0
Other liabilities \u00a0
Sundry creditors \u00a0
33,005 \u00a0
35,823 \u00a0
Estonia settlement \u00a0
-
15,300 \u00a0
Accrued interest and commissions due \u00a0
12,902 \u00a0
7,634 \u00a0
Defined benefit\u00a0pension plans, net liabilities \u00a0
301 \u00a0
366 \u00a0
Other staff commitments \u00a0
1,175 \u00a0
1,804 \u00a0
Lease liabilities \u00a0
4,102 \u00a0
2,743 \u00a0
Loan commitments\u00a0and guarantees etc. \u00a0
3,161 \u00a0
2,627 \u00a0
Reserves subject to a reimbursement obligation \u00a0
2
4
Provisions, including litigations \u00a0
2,398 \u00a0
2,676 \u00a0
Total \u00a0
57,046 \u00a0
68,978 \u00a0
Tangible assets consist primarily of lease assets (where the Group acts as lessor). Further,\u00a0it includes d\u00a0omicile property (not\u00a0held for sale) amounting\u00a0to \u00a0
DKK 86 million (2022: DKK 119 million).\u00a0If indications\u00a0of impairment\u00a0exist, the properties are written down to the lower of the carrying amount and its \u00a0
value in\u00a0use determined on the basis of the rate of return used for investment\u00a0property. There was\u00a0no write-down in 2023, nor in 2022. The fair value of \u00a0
the properties was DKK 255 million (2022: DKK 267 million). The required rate of return of\u00a07.8% (2022: 7.8%) was determined\u00a0in accordance\u00a0with \u00a0
Danish FSA\u00a0rules. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4475": {
"value": "G24. Other assets and Other liabilities continued \u00a0
(a) Other assets\u00a0and other liabilities \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022* \u00a0
Other assets \u00a0
Accrued interest and commissions due \u00a0
7,264 \u00a0
2,256 \u00a0
Prepayments, accruals and other amounts due \u00a0
10,811 \u00a0
17,048 \u00a0
Defined benefit\u00a0pension plan, net assets \u00a0
806 \u00a0
1,486 \u00a0
Investment property \u00a0
157 \u00a0
146 \u00a0
Tangible assets \u00a0
7,418 \u00a0
7,586 \u00a0
Right of use lease assets \u00a0
4,010 \u00a0
2,615 \u00a0
Holdings in associates \u00a0
612 \u00a0
536 \u00a0
Total \u00a0
31,079 \u00a0
31,673 \u00a0
Other liabilities \u00a0
Sundry creditors \u00a0
33,005 \u00a0
35,823 \u00a0
Estonia settlement \u00a0
-
15,300 \u00a0
Accrued interest and commissions due \u00a0
12,902 \u00a0
7,634 \u00a0
Defined benefit\u00a0pension plans, net liabilities \u00a0
301 \u00a0
366 \u00a0
Other staff commitments \u00a0
1,175 \u00a0
1,804 \u00a0
Lease liabilities \u00a0
4,102 \u00a0
2,743 \u00a0
Loan commitments\u00a0and guarantees etc. \u00a0
3,161 \u00a0
2,627 \u00a0
Reserves subject to a reimbursement obligation \u00a0
2
4
Provisions, including litigations \u00a0
2,398 \u00a0
2,676 \u00a0
Total \u00a0
57,046 \u00a0
68,978 \u00a0
G24. Other assets and Other liabilities continued \u00a0
(b) Further explanation other liabilities \u00a0
(DKK millions) \u00a0
The table below shows an analysis of provisions by class of provision \u00a0
Customer \u00a0
Regulatory and \u00a0
Restructuring \u00a0
Other \u00a0
Provisions \u00a0
remediations legal\u00a0proceedings \u00a0
cost \u00a0
provisions \u00a0
Total \u00a0
Balance as at 1 January 2023 \u00a0
1,930 \u00a0
2
312 \u00a0
433 \u00a0
2,676 \u00a0
Additional provisions made \u00a0
415 \u00a0
23 \u00a0
46 \u00a0
33 \u00a0
517 \u00a0
Amounts used \u00a0
732 \u00a0
-
62 \u00a0
5
798 \u00a0
Reversals \u00a0
58 \u00a0
-
-61 \u00a0
4
2
Transfer to other liabililties \u00a0
-
-
Foreign exchange adjustments \u00a0
4
-
-
1
4
Balance as at\u00a031 December 2023 \u00a0
1,559 \u00a0
24 \u00a0
357 \u00a0
457 \u00a0
2,398 \u00a0
Customer remediation refers\u00a0to activities to\u00a0compensate customers for\u00a0losses or damages associated\u00a0with a failure to comply\u00a0with regulations or to \u00a0
treat customers\u00a0fairly. Customer remediation is often initiated by the Group in response to customer complaints and/or industry developments\u00a0in sales \u00a0
practices and is not necessarily initiated\u00a0by regulatory action. Customer remediation\u00a0includes the provision for\u00a0customer compensation in\u00a0the debt \u00a0
collection case, issues with the Group\u2019s tax services\u00a0and other investor protection cases. In 2023, DKK 0.7 billion has been paid out from the provisio\u00a0n \u00a0
for debt collection\u00a0customers in Denmark. The payments will continue in 2024. \u00a0
Regulatory and\u00a0legal proceedings\u00a0include civil court, arbitration or tribunal proceedings brought against companies within the Danske Bank Group \u00a0
(whether by way of claim or counterclaim)\u00a0or civil\u00a0disputes that may,\u00a0if not\u00a0settled, result\u00a0in court, arbitration or\u00a0tribunal proceedings.\u00a0Regulatory matters \u00a0
refer to investigations,\u00a0reviews and other actions carried out by, or in response to the actions of,\u00a0regulators or\u00a0law enforcement agencies in connection \u00a0
with alleged wrongdoing by companies within the Danske Bank Group. For\u00a0further information on regulatory and legal proceedings, including the Estonia \u00a0
matter, see note G27(c). \u00a0
Restructuring costs include provisions for\u00a0severance pay in connection with termination\u00a0of employees\u00a0and provisions\u00a0for branch mergers and closure of \u00a0
office sites. Other\u00a0provisions includes a\u00a0provision of\u00a0DKK 0.4 billion (2022: DK 0.3 billion) for\u00a0restoration of\u00a0lease assets. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProvisionsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4481": {
"value": "G24. Other assets and Other liabilities continued \u00a0
(b) Further explanation other liabilities \u00a0
(DKK millions) \u00a0
The table below shows an analysis of provisions by class of provision \u00a0
Customer \u00a0
Regulatory and \u00a0
Restructuring \u00a0
Other \u00a0
Provisions \u00a0
remediations legal\u00a0proceedings \u00a0
cost \u00a0
provisions \u00a0
Total \u00a0
Balance as at 1 January 2023 \u00a0
1,930 \u00a0
2
312 \u00a0
433 \u00a0
2,676 \u00a0
Additional provisions made \u00a0
415 \u00a0
23 \u00a0
46 \u00a0
33 \u00a0
517 \u00a0
Amounts used \u00a0
732 \u00a0
-
62 \u00a0
5
798 \u00a0
Reversals \u00a0
58 \u00a0
-
-61 \u00a0
4
2
Transfer to other liabililties \u00a0
-
-
Foreign exchange adjustments \u00a0
4
-
-
1
4
Balance as at\u00a031 December 2023 \u00a0
1,559 \u00a0
24 \u00a0
357 \u00a0
457 \u00a0
2,398 \u00a0
Customer remediation refers\u00a0to activities to\u00a0compensate customers for\u00a0losses or damages associated\u00a0with a failure to comply\u00a0with regulations or to \u00a0
treat customers\u00a0fairly. Customer remediation is often initiated by the Group in response to customer complaints and/or industry developments\u00a0in sales \u00a0
practices and is not necessarily initiated\u00a0by regulatory action. Customer remediation\u00a0includes the provision for\u00a0customer compensation in\u00a0the debt \u00a0
collection case, issues with the Group\u2019s tax services\u00a0and other investor protection cases. In 2023, DKK 0.7 billion has been paid out from the provisio\u00a0n \u00a0
for debt collection\u00a0customers in Denmark. The payments will continue in 2024. \u00a0
Regulatory and\u00a0legal proceedings\u00a0include civil court, arbitration or tribunal proceedings brought against companies within the Danske Bank Group \u00a0
(whether by way of claim or counterclaim)\u00a0or civil\u00a0disputes that may,\u00a0if not\u00a0settled, result\u00a0in court, arbitration or\u00a0tribunal proceedings.\u00a0Regulatory matters \u00a0
refer to investigations,\u00a0reviews and other actions carried out by, or in response to the actions of,\u00a0regulators or\u00a0law enforcement agencies in connection \u00a0
with alleged wrongdoing by companies within the Danske Bank Group. For\u00a0further information on regulatory and legal proceedings, including the Estonia \u00a0
matter, see note G27(c). \u00a0
Restructuring costs include provisions for\u00a0severance pay in connection with termination\u00a0of employees\u00a0and provisions\u00a0for branch mergers and closure of \u00a0
office sites. Other\u00a0provisions includes a\u00a0provision of\u00a0DKK 0.4 billion (2022: DK 0.3 billion) for\u00a0restoration of\u00a0lease assets. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4482": {
"value": "G25. Equity \u00a0
Equity is\u00a0the residual\u00a0interest in the assets after deducting all liabilities\u00a0recognised in the balance sheet. Equity is divided\u00a0between capital and reserves \u00a0
that are attributable\u00a0to holders of shares issued by the Group (owners of Danske\u00a0Bank A/S) and other parties holding\u00a0an interest in\u00a0the net assets of the \u00a0
Group. \u00a0
At the end of\u00a02023, the nominal value of issued additional tier 1 capital in Danske\u00a0Bank Group amounted to\u00a0DKK 15,174 million (2022: DKK 15,676 \u00a0
million), all\u00a0accounted for as liability\u00a0instruments; see\u00a0note G22. Danske\u00a0Bank A/S may, at its sole discretion, omit interest and principal payments to \u00a0
bondholders. Additional\u00a0tier 1 capital that are\u00a0accounted for as\u00a0equity instruments are\u00a0included in equity\u00a0as a non-controlling\u00a0interest. This means that \u00a0
equity was\u00a0increased at\u00a0the time of issue by the net proceeds received.\u00a0When interest is paid, the amount paid to investors\u00a0reduces equity at the time of \u00a0
payment and does not affect net profit. If the Group decides to repay the capital, equity will be reduced by the redemption\u00a0amount at the time of redemption. \u00a0
The capital issued is included in tier 1 capital instruments\u00a0in the statement of capital as it meets the criteria of the CRR for such instruments. \u00a0
Accounting policy \u00a0
Equity is the\u00a0residual interest in\u00a0recognised assets after deduction of recognised liabilities. In this context, the following items are of particular interest: \u00a0
Own shares \u00a0
Amounts received or\u00a0paid for the Group\u2019s sale or purchase of Danske\u00a0Bank shares that are neither held on behalf of customers or are underlying\u00a0items \u00a0
of insurance contracts with direct participation\u00a0features are\u00a0recognised directly in equity under transactions\u00a0with owners. The same applies to \u00a0
premiums received or paid for derivatives\u00a0entailing settlement in\u00a0own shares. A capital\u00a0reduction by\u00a0cancellation of\u00a0own shares will lower the share \u00a0
capital by an\u00a0amount equal to the nominal value of the shares at the time of registration\u00a0of the capital reduction. \u00a0
With effect\u00a0from 1 January 2023 the Group has\u00a0elected to not deduct from equity own shares that are\u00a0held on behalf of\u00a0customers or\u00a0those that are \u00a0
underlying items of\u00a0insurance contracts with direct participation\u00a0features. \u00a0
Additional tier\u00a01 capital \u00a0
The capital instruments accounted for\u00a0as equity\u00a0instruments include no\u00a0contractual obligation to deliver cash\u00a0or another\u00a0financial asset\u00a0to the holders, \u00a0
as Danske\u00a0Bank A/S may, at its sole discretion,\u00a0omit payment of\u00a0interest and principal payments to the bondholders. Therefore, the issue does not fall \u00a0
under the definition\u00a0of financial liabilities\u00a0under IAS 32. The net amount received at the time of issue is recognised as an increase in equity. Interes\u00a0t \u00a0
payments are\u00a0accounted for as dividends,\u00a0which are recognised directly in equity at the time the payment obligation arises. If Danske Bank A/S chooses \u00a0
to redeem the bonds, equity will be reduced by the redemption amount at the time of redemption. Amounts received or\u00a0paid for\u00a0the sale or acquisitio\u00a0n \u00a0
of own holdings of additional tier 1 capital instruments are recognised directly in equity, similarly\u00a0to holdings of own shares. \u00a0
(a) Further explanation \u00a0
Equity consists\u00a0of various components, including the accumulated balance of\u00a0each class of other comprehensive\u00a0income, retained earnings and issued \u00a0
additional tier\u00a01 capital. The various components\u00a0of equity\u00a0are described\u00a0below. Tax on items recognised directly in equity is recognised under Retaine\u00a0d \u00a0
earnings. \u00a0
Foreign currency translation\u00a0reserve \u00a0
Assets and liabilities\u00a0of units outside\u00a0Denmark are\u00a0translated into\u00a0DKK at the applicable\u00a0exchange rates at\u00a0the balance sheet date. Income and expenses \u00a0
are translated\u00a0at the applicable\u00a0exchange rates at the transaction date. Gains and losses arising at the translation\u00a0of net investments\u00a0in units outside \u00a0
Denmark are recognised under Other comprehensive\u00a0income and recognised in the foreign currency translation reserve in\u00a0equity. Net\u00a0investments \u00a0
include the net\u00a0assets and goodwill of\u00a0the units as well as holdings in the form of\u00a0subordinated loan\u00a0capital and other loans to the units\u00a0for which\u00a0settlement \u00a0
is neither planned nor likely to occur in the foreseeable future. Exchange rate adjustments\u00a0of financial\u00a0liabilities used\u00a0for hedging the Group\u2019s net \u00a0
investments are\u00a0also recognised under Other comprehensive\u00a0income and in the foreign currency translation\u00a0reserve. Further information\u00a0can be found \u00a0
in Note G12(d). \u00a0
If the net investment\u00a0in \u00a0
a
unit outside Denmark is sold, translation\u00a0differences, including\u00a0the impact from hedge,\u00a0are reclassified from Other \u00a0
comprehensive income to\u00a0the income statement. \u00a0
Reserve for bonds at fair value through other comprehensive\u00a0income \u00a0
The reserve covers unrealised fair\u00a0value adjustments, other\u00a0than expected credit losses and\u00a0foreign exchanges\u00a0gains and losses, of bonds measured at \u00a0
fair value through other comprehensive\u00a0income. Unrealised\u00a0fair value adjustments\u00a0of hedged interest rate risks that qualify for fair value hedge accounting \u00a0
are recognised in the income statement\u00a0and are not included\u00a0in the reserve. When bonds are sold, the Group reclassifies unrealised value adjustments \u00a0
from the reserve to the income statement. \u00a0
Proposed dividends \u00a0
The Board of\u00a0Directors\u2019 proposal for dividends\u00a0for the\u00a0year submitted\u00a0to the general meeting\u00a0is included\u00a0as a separate\u00a0reserve in equity.\u00a0The dividend\u00a0s \u00a0
are recognised as a liability\u00a0when the general meeting has adopted the proposal. Any interim dividend payments\u00a0approved by\u00a0the Board of Director\u00a0s \u00a0
during the year are deducted from retained earnings at\u00a0time of\u00a0payment, and\u00a0are therefore not included in proposed dividends. \u00a0
G25. Equity continued \u00a0
Share-based payments \u00a0
Share-based payments\u00a0by the Group are settled in Danske Bank shares. The fair value at the grant date is expensed over the vesting period and set off \u00a0
against equity.\u00a0At the time of exercise, payments\u00a0by employees\u00a0are recognised as an increase in equity.\u00a0As with other purchases of Danske Bank shares, \u00a0
shares acquired for hedging\u00a0purposes reduce equity by\u00a0the amount paid. \u00a0
Additional tier\u00a01 capital holders \u00a0
This reserve includes the net proceed received at the time of issuance and accrued interest not yet paid to the holders of the capital. \u00a0
As described above, Danske Bank A/S\u00a0may, at its sole discretion,\u00a0cancel interest payments to\u00a0additional tier\u00a01 bond holders\u00a0(equity accounted\u00a0as well as \u00a0
liability accounted bonds).\u00a0Any interest payments must be paid out of\u00a0distributable items,\u00a0which primarily\u00a0consist of\u00a0retained earnings at\u00a0Danske Bank \u00a0
A/S and\u00a0Danske Bank\u00a0Group. The additional\u00a0tier 1 capital\u00a0will be either written down temporarily\u00a0or converted into a variable\u00a0number of shares (depending \u00a0
on if the common equity tier 1 ratio falls below 7% for Danske Bank A/S or\u00a0Danske Bank\u00a0Group). The ratio at year-end is disclosed in the statement\u00a0of \u00a0
capital for\u00a0Danske Bank\u00a0A/S and\u00a0Danske Bank Group. Bonds that are temporarily written down\u00a0are accounted for as equity,\u00a0while bonds that convert into \u00a0
a variable\u00a0number of\u00a0ordinary shares\u00a0are accounted for as liabilities\u00a0(included in\u00a0note G22). \u00a0
There was no issue or redemption during\u00a02023. In April 2022, the Group redeemed EUR 750 million of additional tier 1 capital, which led to a reductio\u00a0n \u00a0
in shareholders\u2019\u00a0equity of DKK 5,419 million. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4483": {
"value": "G25. Equity \u00a0
Equity is\u00a0the residual\u00a0interest in the assets after deducting all liabilities\u00a0recognised in the balance sheet. Equity is divided\u00a0between capital and reserves \u00a0
that are attributable\u00a0to holders of shares issued by the Group (owners of Danske\u00a0Bank A/S) and other parties holding\u00a0an interest in\u00a0the net assets of the \u00a0
Group. \u00a0
At the end of\u00a02023, the nominal value of issued additional tier 1 capital in Danske\u00a0Bank Group amounted to\u00a0DKK 15,174 million (2022: DKK 15,676 \u00a0
million), all\u00a0accounted for as liability\u00a0instruments; see\u00a0note G22. Danske\u00a0Bank A/S may, at its sole discretion, omit interest and principal payments to \u00a0
bondholders. Additional\u00a0tier 1 capital that are\u00a0accounted for as\u00a0equity instruments are\u00a0included in equity\u00a0as a non-controlling\u00a0interest. This means that \u00a0
equity was\u00a0increased at\u00a0the time of issue by the net proceeds received.\u00a0When interest is paid, the amount paid to investors\u00a0reduces equity at the time of \u00a0
payment and does not affect net profit. If the Group decides to repay the capital, equity will be reduced by the redemption\u00a0amount at the time of redemption. \u00a0
The capital issued is included in tier 1 capital instruments\u00a0in the statement of capital as it meets the criteria of the CRR for such instruments. \u00a0
Accounting policy \u00a0
Equity is the\u00a0residual interest in\u00a0recognised assets after deduction of recognised liabilities. In this context, the following items are of particular interest: \u00a0
Own shares \u00a0
Amounts received or\u00a0paid for the Group\u2019s sale or purchase of Danske\u00a0Bank shares that are neither held on behalf of customers or are underlying\u00a0items \u00a0
of insurance contracts with direct participation\u00a0features are\u00a0recognised directly in equity under transactions\u00a0with owners. The same applies to \u00a0
premiums received or paid for derivatives\u00a0entailing settlement in\u00a0own shares. A capital\u00a0reduction by\u00a0cancellation of\u00a0own shares will lower the share \u00a0
capital by an\u00a0amount equal to the nominal value of the shares at the time of registration\u00a0of the capital reduction. \u00a0
With effect\u00a0from 1 January 2023 the Group has\u00a0elected to not deduct from equity own shares that are\u00a0held on behalf of\u00a0customers or\u00a0those that are \u00a0
underlying items of\u00a0insurance contracts with direct participation\u00a0features. \u00a0
Additional tier\u00a01 capital \u00a0
The capital instruments accounted for\u00a0as equity\u00a0instruments include no\u00a0contractual obligation to deliver cash\u00a0or another\u00a0financial asset\u00a0to the holders, \u00a0
as Danske\u00a0Bank A/S may, at its sole discretion,\u00a0omit payment of\u00a0interest and principal payments to the bondholders. Therefore, the issue does not fall \u00a0
under the definition\u00a0of financial liabilities\u00a0under IAS 32. The net amount received at the time of issue is recognised as an increase in equity. Interes\u00a0t \u00a0
payments are\u00a0accounted for as dividends,\u00a0which are recognised directly in equity at the time the payment obligation arises. If Danske Bank A/S chooses \u00a0
to redeem the bonds, equity will be reduced by the redemption amount at the time of redemption. Amounts received or\u00a0paid for\u00a0the sale or acquisitio\u00a0n \u00a0
of own holdings of additional tier 1 capital instruments are recognised directly in equity, similarly\u00a0to holdings of own shares. \u00a0
(a) Further explanation \u00a0
Equity consists\u00a0of various components, including the accumulated balance of\u00a0each class of other comprehensive\u00a0income, retained earnings and issued \u00a0
additional tier\u00a01 capital. The various components\u00a0of equity\u00a0are described\u00a0below. Tax on items recognised directly in equity is recognised under Retaine\u00a0d \u00a0
earnings. \u00a0
Foreign currency translation\u00a0reserve \u00a0
Assets and liabilities\u00a0of units outside\u00a0Denmark are\u00a0translated into\u00a0DKK at the applicable\u00a0exchange rates at\u00a0the balance sheet date. Income and expenses \u00a0
are translated\u00a0at the applicable\u00a0exchange rates at the transaction date. Gains and losses arising at the translation\u00a0of net investments\u00a0in units outside \u00a0
Denmark are recognised under Other comprehensive\u00a0income and recognised in the foreign currency translation reserve in\u00a0equity. Net\u00a0investments \u00a0
include the net\u00a0assets and goodwill of\u00a0the units as well as holdings in the form of\u00a0subordinated loan\u00a0capital and other loans to the units\u00a0for which\u00a0settlement \u00a0
is neither planned nor likely to occur in the foreseeable future. Exchange rate adjustments\u00a0of financial\u00a0liabilities used\u00a0for hedging the Group\u2019s net \u00a0
investments are\u00a0also recognised under Other comprehensive\u00a0income and in the foreign currency translation\u00a0reserve. Further information\u00a0can be found \u00a0
in Note G12(d). \u00a0
If the net investment\u00a0in \u00a0
a
unit outside Denmark is sold, translation\u00a0differences, including\u00a0the impact from hedge,\u00a0are reclassified from Other \u00a0
comprehensive income to\u00a0the income statement. \u00a0
Reserve for bonds at fair value through other comprehensive\u00a0income \u00a0
The reserve covers unrealised fair\u00a0value adjustments, other\u00a0than expected credit losses and\u00a0foreign exchanges\u00a0gains and losses, of bonds measured at \u00a0
fair value through other comprehensive\u00a0income. Unrealised\u00a0fair value adjustments\u00a0of hedged interest rate risks that qualify for fair value hedge accounting \u00a0
are recognised in the income statement\u00a0and are not included\u00a0in the reserve. When bonds are sold, the Group reclassifies unrealised value adjustments \u00a0
from the reserve to the income statement. \u00a0
Proposed dividends \u00a0
The Board of\u00a0Directors\u2019 proposal for dividends\u00a0for the\u00a0year submitted\u00a0to the general meeting\u00a0is included\u00a0as a separate\u00a0reserve in equity.\u00a0The dividend\u00a0s \u00a0
are recognised as a liability\u00a0when the general meeting has adopted the proposal. Any interim dividend payments\u00a0approved by\u00a0the Board of Director\u00a0s \u00a0
during the year are deducted from retained earnings at\u00a0time of\u00a0payment, and\u00a0are therefore not included in proposed dividends. \u00a0
G25. Equity continued \u00a0
Share-based payments \u00a0
Share-based payments\u00a0by the Group are settled in Danske Bank shares. The fair value at the grant date is expensed over the vesting period and set off \u00a0
against equity.\u00a0At the time of exercise, payments\u00a0by employees\u00a0are recognised as an increase in equity.\u00a0As with other purchases of Danske Bank shares, \u00a0
shares acquired for hedging\u00a0purposes reduce equity by\u00a0the amount paid. \u00a0
Additional tier\u00a01 capital holders \u00a0
This reserve includes the net proceed received at the time of issuance and accrued interest not yet paid to the holders of the capital. \u00a0
As described above, Danske Bank A/S\u00a0may, at its sole discretion,\u00a0cancel interest payments to\u00a0additional tier\u00a01 bond holders\u00a0(equity accounted\u00a0as well as \u00a0
liability accounted bonds).\u00a0Any interest payments must be paid out of\u00a0distributable items,\u00a0which primarily\u00a0consist of\u00a0retained earnings at\u00a0Danske Bank \u00a0
A/S and\u00a0Danske Bank\u00a0Group. The additional\u00a0tier 1 capital\u00a0will be either written down temporarily\u00a0or converted into a variable\u00a0number of shares (depending \u00a0
on if the common equity tier 1 ratio falls below 7% for Danske Bank A/S or\u00a0Danske Bank\u00a0Group). The ratio at year-end is disclosed in the statement\u00a0of \u00a0
capital for\u00a0Danske Bank\u00a0A/S and\u00a0Danske Bank Group. Bonds that are temporarily written down\u00a0are accounted for as equity,\u00a0while bonds that convert into \u00a0
a variable\u00a0number of\u00a0ordinary shares\u00a0are accounted for as liabilities\u00a0(included in\u00a0note G22). \u00a0
There was no issue or redemption during\u00a02023. In April 2022, the Group redeemed EUR 750 million of additional tier 1 capital, which led to a reductio\u00a0n \u00a0
in shareholders\u2019\u00a0equity of DKK 5,419 million. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4489": {
"value": "Proposed dividends \u00a0
The Board of\u00a0Directors\u2019 proposal for dividends\u00a0for the\u00a0year submitted\u00a0to the general meeting\u00a0is included\u00a0as a separate\u00a0reserve in equity.\u00a0The dividend\u00a0s \u00a0
are recognised as a liability\u00a0when the general meeting has adopted the proposal. Any interim dividend payments\u00a0approved by\u00a0the Board of Director\u00a0s \u00a0
during the year are deducted from retained earnings at\u00a0time of\u00a0payment, and\u00a0are therefore not included in proposed dividends. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4493": {
"value": "G26. Note to the cash flow statement \u00a0
This note provides further information\u00a0on the cash flow statement,\u00a0including a\u00a0reconciliation of\u00a0the cash flows arising from\u00a0financing activities. \u00a0
Accounting policy \u00a0
The cash flow statement\u00a0is prepared\u00a0according to the indirect method. The statement is based on\u00a0pre -tax\u00a0profit for the year and shows the cash flows \u00a0
from operating,\u00a0investing and\u00a0financing activities\u00a0as well as the increase or decrease in cash and cash equ\u00a0ivalents during the\u00a0year. Cash and cash \u00a0
equivalents consists\u00a0of cash in hand and demand deposits with central banks\u00a0as well as amounts due from credit institutions\u00a0a nd\u00a0central banks with an \u00a0
original maturity shorter than three months. \u00a0
In the cash flow statement,\u00a0cash flows are divided into cash flows from operations,\u00a0investing activities\u00a0and financing\u00a0activi ties.\u00a0Investing activities includ\u00a0e \u00a0
cash flows from the sale or acquisition\u00a0of tangible\u00a0and intangible assets as\u00a0well as businesses.\u00a0Financing activities include cash\u00a0flows from the Group\u2019s \u00a0
issued non-preferred senior bonds, subordinated\u00a0debt, additional\u00a0tier 1 capital (both liability-\u00a0and equity-accounted\u00a0bonds) and\u00a0share capital. \u00a0
All credit institutions\u00a0and insurance companies supervised by national FSAs are subject to local statutory capital requiremen\u00a0ts. These requirements \u00a0
restrict intra-group\u00a0facilities. Note G31 provides information on amounts due from\u00a0credit institutions\u00a0that are provided as collateral for liabilities\u00a0or \u00a0
contingent liabilities. \u00a0
Adjustment for\u00a0non-cash operating\u00a0items \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Unrealised income from holdings in associates \u00a0
110 \u00a0
-8 \u00a0
Amortisation/depreciation of\u00a0intangible, tangible and right-of-use assets \u00a0
4,244 \u00a0
4,706 \u00a0
Impairment charge on goodwill \u00a0
-
1,627 \u00a0
Loan impairment charges \u00a0
262 \u00a0
1,502 \u00a0
Provisions \u00a0
-
13,800 \u00a0
Other \u00a0
3,810 \u00a0
-168 \u00a0
Total \u00a0
8,426 \u00a0
21,459 \u00a0
Other mostly comprises change in accrued interest and commissions due and payable. \u00a0
Reconciliation of\u00a0liabilities from\u00a0financing activities \u00a0
Cash flows \u00a0
Non-cash changes \u00a0
1 January \u00a0
Foreign exchange \u00a0
Fair value\u00a031 December \u00a0
(DKK millions) \u00a0
2023 \u00a0
Issued \u00a0
Redeemed \u00a0
movement \u00a0
changes \u00a0
2023 \u00a0
Subordinated debt \u00a0
38,350 \u00a0
-
-
-445 \u00a0
869 \u00a0
38,774 \u00a0
Non-preferred senior\u00a0bonds \u00a0
93,235 \u00a0
22,425 \u00a0
23,696 \u00a0
-1,486 \u00a0
2,716 \u00a0
93,194 \u00a0
Cash Flows \u00a0
Non-Cash Changes \u00a0
1 January \u00a0
Foreign exchange \u00a0
Fair Value\u00a031 December \u00a0
(DKK millions) \u00a0
2022 \u00a0
Issued \u00a0
Redeemed \u00a0
movement \u00a0
changes \u00a0
2022 \u00a0
Subordinated debt \u00a0
39,321 \u00a0
-
-
-58 \u00a0
-914 \u00a0
38,350 \u00a0
Non-preferred senior\u00a0bonds \u00a0
107,654 \u00a0
20,052 \u00a0
30,590 \u00a0
2,913 \u00a0
-6,794 \u00a0
93,235 \u00a0
Fair value changes include the impact from\u00a0fair value hedge accounting, amortisation of\u00a0transaction costs\u00a0and changes in own holdings.\u00a0The cash flows \u00a0
from debt issued and redeemed are based on the applicable\u00a0foreign exchange rate at the transaction\u00a0date and\u00a0net of any transaction\u00a0costs etc. In note \u00a0
G22, which shows changes in the nominal value of subordinated\u00a0debt, issue and redemption\u00a0amounts excludes transaction costs etc. \u00a0
Liabilities from\u00a0financing activities includes lease\u00a0liabilities that\u00a0are recognised on the balance sheet under IFRS 16. At t\u00a0he end of 2023, lease liabilitie\u00a0s \u00a0
amounted to DKK 4,102 million (2022: DKK 2,743 million). The cash flows included\u00a0in the cash flow statement as cash flows from financing activitie\u00a0s \u00a0
relates to the principal portion of the lease payments. Other changes are non-cash changes, which primarily consists of interest expenses, new leases, \u00a0
terminated leases and modifications of existing leases. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4494": {
"value": "Accounting policy \u00a0
The cash flow statement\u00a0is prepared\u00a0according to the indirect method. The statement is based on\u00a0pre -tax\u00a0profit for the year and shows the cash flows \u00a0
from operating,\u00a0investing and\u00a0financing activities\u00a0as well as the increase or decrease in cash and cash equ\u00a0ivalents during the\u00a0year. Cash and cash \u00a0
equivalents consists\u00a0of cash in hand and demand deposits with central banks\u00a0as well as amounts due from credit institutions\u00a0a nd\u00a0central banks with an \u00a0
original maturity shorter than three months. \u00a0
In the cash flow statement,\u00a0cash flows are divided into cash flows from operations,\u00a0investing activities\u00a0and financing\u00a0activi ties.\u00a0Investing activities includ\u00a0e \u00a0
cash flows from the sale or acquisition\u00a0of tangible\u00a0and intangible assets as\u00a0well as businesses.\u00a0Financing activities include cash\u00a0flows from the Group\u2019s \u00a0
issued non-preferred senior bonds, subordinated\u00a0debt, additional\u00a0tier 1 capital (both liability-\u00a0and equity-accounted\u00a0bonds) and\u00a0share capital. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4495": {
"value": "Accounting policy \u00a0
The cash flow statement\u00a0is prepared\u00a0according to the indirect method. The statement is based on\u00a0pre -tax\u00a0profit for the year and shows the cash flows \u00a0
from operating,\u00a0investing and\u00a0financing activities\u00a0as well as the increase or decrease in cash and cash equ\u00a0ivalents during the\u00a0year. Cash and cash \u00a0
equivalents consists\u00a0of cash in hand and demand deposits with central banks\u00a0as well as amounts due from credit institutions\u00a0a nd\u00a0central banks with an \u00a0
original maturity shorter than three months. \u00a0
In the cash flow statement,\u00a0cash flows are divided into cash flows from operations,\u00a0investing activities\u00a0and financing\u00a0activi ties.\u00a0Investing activities includ\u00a0e \u00a0
cash flows from the sale or acquisition\u00a0of tangible\u00a0and intangible assets as\u00a0well as businesses.\u00a0Financing activities include cash\u00a0flows from the Group\u2019s \u00a0
issued non-preferred senior bonds, subordinated\u00a0debt, additional\u00a0tier 1 capital (both liability-\u00a0and equity-accounted\u00a0bonds) and\u00a0share capital. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4498": {
"value": "All credit institutions\u00a0and insurance companies supervised by national FSAs are subject to local statutory capital requiremen\u00a0ts. These requirements \u00a0
restrict intra-group\u00a0facilities. Note G31 provides information on amounts due from\u00a0credit institutions\u00a0that are provided as collateral for liabilities\u00a0or \u00a0
contingent liabilities. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4499": {
"value": "G27. Guarantees, commitments and contingent liabilities \u00a0
The Group uses\u00a0a variety\u00a0of loan-related\u00a0financial instruments to meet customers\u2019 financial requirements. Such instruments include loan commitments\u00a0, \u00a0
loan offers, other credit facilities\u00a0and guarantees.\u00a0This note provides information on such instruments and on other contingent liabilities. \u00a0
Accounting policy \u00a0
Guarantees and\u00a0loan commitments\u00a0are subject\u00a0to the expected\u00a0credit loss impairment model in IFRS 9. For further information,\u00a0see note\u00a0G15. \u00a0
Contingent liabilities\u00a0consist of possible\u00a0obligations arising from\u00a0past events. The existence of such obligations\u00a0will be confirmed\u00a0only by the occurrence \u00a0
or non-occurrence of one or more uncertain future events not wholly within the Group\u2019s control.\u00a0Further, contingent\u00a0liabilities consists of\u00a0present \u00a0
obligations arising from\u00a0past events, for which it is either not probable that the obligation will result in an outflow of financial resources, or it is not \u00a0
possible to\u00a0reliably estimate the amount of\u00a0the obligation. \u00a0
A contingent liability\u00a0is not recognised in the financial statement but disclosed, unless the possibility of an\u00a0outflow of\u00a0fi nancial\u00a0resources is remote. \u00a0
(a) Guarantees \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Financial guarantees \u00a0
4,348 \u00a0
5,512 \u00a0
Other guarantees \u00a0
71,536 \u00a0
75,884 \u00a0
Total \u00a0
75,883 \u00a0
81,396 \u00a0
(b) Commitments \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Loan commitments\u00a0shorter than 1 year \u00a0
197,007 \u00a0
236,062 \u00a0
Loan commitments\u00a0longer than 1 year \u00a0
220,285 \u00a0
199,888 \u00a0
Other unutilised commitments \u00a0
16,719 \u00a0
15,196 \u00a0
Total \u00a0
434,011 \u00a0
451,146 \u00a0
In addition to\u00a0credit exposure from lending activities,\u00a0loan offers made and uncommitted\u00a0lines of credit granted by the Group amounted\u00a0to DKK 232 billio\u00a0n \u00a0
(2022: DKK 216 billion).\u00a0These items are\u00a0included in the calculation of\u00a0the total risk exposure amount in accordance with the CRR. \u00a0
(c) Regulatory\u00a0and legal proceedings \u00a0
Estonia matter \u00a0
In December 2022, Danske Bank entered into final coordinated resolutions\u00a0with the US Department of Justice (DoJ), the US Secu\u00a0rities and Exchange \u00a0
Commission (SEC)\u00a0and the Danish Special Crime Unit (SCU) following the investigations\u00a0into failings and miscond\u00a0uct related to the non-resident portfolio \u00a0
at Danske\u00a0Bank\u2019s former Estonia branch. The aggregate amounts payable to the US and Danish authorities were paid in January 2\u00a0023. The coordinate\u00a0d \u00a0
resolutions marked the end\u00a0of the criminal and regulatory investigations\u00a0into Danske Bank by\u00a0the authorities\u00a0in Denmark and the United States. \u00a0
As part of the Bank\u2019s agreement with DoJ,\u00a0Danske Bank\u00a0was placed on corporate probation for three years from 13 December 2022\u00a0until 13 December \u00a0
2025 and Danske\u00a0Bank committed\u00a0to continue\u00a0improving its compliance programs.\u00a0Danske Bank\u00a0has taken extensive re\u00a0mediation act\u00a0ion to address \u00a0
those failings to prevent any similar occurrences, and the Bank remains in contact with DoJ as\u00a0a matter of post\u00a0-resolution obligations set\u00a0forth in the \u00a0
agreement with\u00a0DoJ. \u00a0
The Bank remains\u00a0subject to a criminal investigation\u00a0by authorities\u00a0in France and has posted bail in the amount of DKK 80 mil\u00a0lion. The Bank continues to \u00a0
cooperate with the authorities. \u00a0
The civil claims filed against Danske Bank by institutional\u00a0investors can\u00a0be summarised\u00a0to six case complexes\u00a0with a current\u00a0total claim amount of \u00a0
approximately DKK 12.8\u00a0billion. One of the case\u00a0complexes has partly been referred\u00a0to the Eastern High Court, while the remaining case\u00a0complexes are \u00a0
stayed or\u00a0pending before the Copenhagen City Court. The civil claims were\u00a0not included in the coordinated\u00a0resolutions with Do\u00a0J, SEC, and SCU. Danske \u00a0
Bank will continue to defend itself vigorously against these claims. The timing of completion of such civil claims (pending or threatening) and their outcome \u00a0
are uncertain\u00a0and could be material. \u00a0
Danske Bank has been procedurally\u00a0notified in two claims filed against Thomas F.\u00a0Borgen. Under Danish law, the purpose of\u00a0a p\u00a0rocedural notification is \u00a0
to make a formal reservation\u00a0of rights\u00a0to bring\u00a0a potential\u00a0claim against the notified party. The first c\u00a0ase was dismissed\u00a0in the\u00a0first instance\u00a0and \u00a0
subsequently appealed\u00a0by the claimants.\u00a0The original claim amount for both claims\u00a0was approximately\u00a0DKK 3.2 billion but has b\u00a0een reduced to \u00a0
approximately DKK 1.7\u00a0billion. \u00a0
G27. Guarantees,\u00a0commitments and\u00a0contingent liabilities continued \u00a0
An action has been filed in the United States District Court for\u00a0the Eastern District of\u00a0New York against Danske\u00a0Bank and others. The complaint sought \u00a0
unspecified punitive and compensatory damages. On\u00a029 December 2022, the action was dismissed by the court and on 27 January 2\u00a0023, the \u00a0
complainants filed\u00a0an appeal of the dismissal. The timing\u00a0of the completion\u00a0of the lawsuit and the outcome are uncertain. \u00a0
Other \u00a0
Owing to\u00a0its business volume, Danske\u00a0Bank is continually\u00a0a party to various\u00a0other lawsuits and disputes, and has an ongoing d\u00a0ialogue with public \u00a0
authorities, such\u00a0as the Danish FSA\u00a0and the Danish Tax Agency on other matters. In general, Danske Bank does no\u00a0t expect the outcomes\u00a0of any of these \u00a0
other pending lawsuits and disputes, or its dialogue with public authorities\u00a0to have any material effect on its financial pos\u00a0ition. Provisions for\u00a0litigatio ns \u00a0
are included\u00a0in Other Liabilities, see note G24. \u00a0
(d) Other contingent\u00a0liabilities \u00a0
A limited\u00a0number of employees are\u00a0employed under\u00a0terms which, if\u00a0they are dismissed before reaching their normal retirement\u00a0a ge,\u00a0grant them \u00a0
a
severance and/or pension payment in excess of\u00a0their entitlement\u00a0under ordinary terms of\u00a0employment. As the\u00a0sponsor ing\u00a0employer, the Group is also \u00a0
liable for\u00a0the pension obligations\u00a0of a number\u00a0of company pension\u00a0funds. \u00a0
The Group participates in\u00a0the Danish\u00a0Guarantee Fund\u00a0and the Danish Resolution\u00a0Fund. The funds\u2019 capital\u00a0must amount to at leas\u00a0t 0.8% and 1%, \u00a0
respectively, of\u00a0the covered deposits of\u00a0all Danish credit institutions\u00a0by 31 December 2024.\u00a0The Danish Guarantee Fu\u00a0nd is\u00a0currently fully\u00a0funded, but\u00a0if \u00a0
the fund subsequently does not have sufficient means to make the required payments,\u00a0extraordinary contributions of\u00a0up to 0.5%\u00a0of the individua\u00a0l \u00a0
institution\u2019s covered\u00a0deposits may\u00a0be required. Extraordinary contributions\u00a0above this percentage require the consent of the Danish FSA. The first \u00a0
contribution to\u00a0the Danish Resolution Fund was\u00a0made in December 2015. Danske Bank A/S and Realkredit\u00a0Danmark A/S make contrib\u00a0utions to\u00a0the \u00a0
Resolution Fund on\u00a0the basis of their size and risk relative\u00a0to other credit institutions\u00a0in Denmark.\u00a0The contribution\u00a0to the Danish\u00a0Resolution Fund is \u00a0
recognised as operating expenses. \u00a0
If the\u00a0Resolution Fund does not have sufficient means to make the required payments, extraordinary contributions\u00a0of up to thr ee\u00a0times the latest annual \u00a0
contributions may\u00a0be required.\u00a0In addition,\u00a0Danish banks participate\u00a0in the Danish Restructuring\u00a0Fund, w\u00a0hich reimburses creditors if the final dividend\u00a0is \u00a0
lower than the interim dividend in respect of banks that were in distress before 1 June 2015. Similarly, Danish banks have ma\u00a0de payment commitments \u00a0
(totalling DKK\u00a01 billion)\u00a0to cover losses incurred by the\u00a0Danish Restructuring\u00a0Fund for the with drawal of distressed banks from data centres etc. \u00a0
Payments to the Danish Restructuring\u00a0Fund are calculated\u00a0on the basis of the individual\u00a0credit institution\u2019s\u00a0share of covered\u00a0deposits relative to\u00a0other \u00a0
credit institutions\u00a0in Denmark.\u00a0However, each institution\u2019s contribution to\u00a0the Danish Restructuring\u00a0Fund may not exceed 0.2% of its covered deposits. \u00a0
The Group is\u00a0a member of deposit guarantee\u00a0schemes and other\u00a0compensation schemes in\u00a0Norway and\u00a0the UK. As\u00a0in Denmark,\u00a0the contributions\u00a0to the \u00a0
schemes in these countries are\u00a0annual contributions\u00a0combined with extraordinary\u00a0contributions if\u00a0the means of the schemes are\u00a0not sufficient to cover \u00a0
the required payments. \u00a0
Danske Bank A/S is taxed jointly\u00a0with all Danish entities of\u00a0Danske Bank\u00a0Group and is jointly\u00a0and severally liable with these for payment of\u00a0Danis h \u00a0
corporation tax and withholding\u00a0tax, etc. \u00a0
With effect\u00a0from 1 April\u00a02022, Danske\u00a0Bank A/S is no longer registered jointly with all significant Danish entities\u00a0of Danske Bank Group\u00a0for financia l \u00a0
services employer tax and VAT, for which Danske Bank A/S and the entities\u00a0had been jointly and severally liable. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4502": {
"value": "Guarantees and\u00a0loan commitments\u00a0are subject\u00a0to the expected\u00a0credit loss impairment model in IFRS 9. For further information,\u00a0see note\u00a0G15. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialGuaranteesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4503": {
"value": "Contingent liabilities\u00a0consist of possible\u00a0obligations arising from\u00a0past events. The existence of such obligations\u00a0will be confirmed\u00a0only by the occurrence \u00a0
or non-occurrence of one or more uncertain future events not wholly within the Group\u2019s control.\u00a0Further, contingent\u00a0liabilities consists of\u00a0present \u00a0
obligations arising from\u00a0past events, for which it is either not probable that the obligation will result in an outflow of financial resources, or it is not \u00a0
possible to\u00a0reliably estimate the amount of\u00a0the obligation. \u00a0
A contingent liability\u00a0is not recognised in the financial statement but disclosed, unless the possibility of an\u00a0outflow of\u00a0fi nancial\u00a0resources is remote. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4504": {
"value": "(a) Guarantees \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Financial guarantees \u00a0
4,348 \u00a0
5,512 \u00a0
Other guarantees \u00a0
71,536 \u00a0
75,884 \u00a0
Total \u00a0
75,883 \u00a0
81,396 \u00a0
(b) Commitments \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Loan commitments\u00a0shorter than 1 year \u00a0
197,007 \u00a0
236,062 \u00a0
Loan commitments\u00a0longer than 1 year \u00a0
220,285 \u00a0
199,888 \u00a0
Other unutilised commitments \u00a0
16,719 \u00a0
15,196 \u00a0
Total \u00a0
434,011 \u00a0
451,146 \u00a0
In addition to\u00a0credit exposure from lending activities,\u00a0loan offers made and uncommitted\u00a0lines of credit granted by the Group amounted\u00a0to DKK 232 billio\u00a0n \u00a0
(2022: DKK 216 billion).\u00a0These items are\u00a0included in the calculation of\u00a0the total risk exposure amount in accordance with the CRR. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4505": {
"value": "(c) Regulatory\u00a0and legal proceedings \u00a0
Estonia matter \u00a0
In December 2022, Danske Bank entered into final coordinated resolutions\u00a0with the US Department of Justice (DoJ), the US Secu\u00a0rities and Exchange \u00a0
Commission (SEC)\u00a0and the Danish Special Crime Unit (SCU) following the investigations\u00a0into failings and miscond\u00a0uct related to the non-resident portfolio \u00a0
at Danske\u00a0Bank\u2019s former Estonia branch. The aggregate amounts payable to the US and Danish authorities were paid in January 2\u00a0023. The coordinate\u00a0d \u00a0
resolutions marked the end\u00a0of the criminal and regulatory investigations\u00a0into Danske Bank by\u00a0the authorities\u00a0in Denmark and the United States. \u00a0
As part of the Bank\u2019s agreement with DoJ,\u00a0Danske Bank\u00a0was placed on corporate probation for three years from 13 December 2022\u00a0until 13 December \u00a0
2025 and Danske\u00a0Bank committed\u00a0to continue\u00a0improving its compliance programs.\u00a0Danske Bank\u00a0has taken extensive re\u00a0mediation act\u00a0ion to address \u00a0
those failings to prevent any similar occurrences, and the Bank remains in contact with DoJ as\u00a0a matter of post\u00a0-resolution obligations set\u00a0forth in the \u00a0
agreement with\u00a0DoJ. \u00a0
The Bank remains\u00a0subject to a criminal investigation\u00a0by authorities\u00a0in France and has posted bail in the amount of DKK 80 mil\u00a0lion. The Bank continues to \u00a0
cooperate with the authorities. \u00a0
The civil claims filed against Danske Bank by institutional\u00a0investors can\u00a0be summarised\u00a0to six case complexes\u00a0with a current\u00a0total claim amount of \u00a0
approximately DKK 12.8\u00a0billion. One of the case\u00a0complexes has partly been referred\u00a0to the Eastern High Court, while the remaining case\u00a0complexes are \u00a0
stayed or\u00a0pending before the Copenhagen City Court. The civil claims were\u00a0not included in the coordinated\u00a0resolutions with Do\u00a0J, SEC, and SCU. Danske \u00a0
Bank will continue to defend itself vigorously against these claims. The timing of completion of such civil claims (pending or threatening) and their outcome \u00a0
are uncertain\u00a0and could be material. \u00a0
Danske Bank has been procedurally\u00a0notified in two claims filed against Thomas F.\u00a0Borgen. Under Danish law, the purpose of\u00a0a p\u00a0rocedural notification is \u00a0
to make a formal reservation\u00a0of rights\u00a0to bring\u00a0a potential\u00a0claim against the notified party. The first c\u00a0ase was dismissed\u00a0in the\u00a0first instance\u00a0and \u00a0
subsequently appealed\u00a0by the claimants.\u00a0The original claim amount for both claims\u00a0was approximately\u00a0DKK 3.2 billion but has b\u00a0een reduced to \u00a0
approximately DKK 1.7\u00a0billion. \u00a0
An action has been filed in the United States District Court for\u00a0the Eastern District of\u00a0New York against Danske\u00a0Bank and others. The complaint sought \u00a0
unspecified punitive and compensatory damages. On\u00a029 December 2022, the action was dismissed by the court and on 27 January 2\u00a0023, the \u00a0
complainants filed\u00a0an appeal of the dismissal. The timing\u00a0of the completion\u00a0of the lawsuit and the outcome are uncertain. \u00a0
Other \u00a0
Owing to\u00a0its business volume, Danske\u00a0Bank is continually\u00a0a party to various\u00a0other lawsuits and disputes, and has an ongoing d\u00a0ialogue with public \u00a0
authorities, such\u00a0as the Danish FSA\u00a0and the Danish Tax Agency on other matters. In general, Danske Bank does no\u00a0t expect the outcomes\u00a0of any of these \u00a0
other pending lawsuits and disputes, or its dialogue with public authorities\u00a0to have any material effect on its financial pos\u00a0ition. Provisions for\u00a0litigatio ns \u00a0
are included\u00a0in Other Liabilities, see note G24. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4510": {
"value": "G30. Transferred financial\u00a0assets that are not derecognised \u00a0
The Group enters into transactions that transfer ownership of financial assets, such as bonds and shares, to a counterparty,\u00a0while the\u00a0Group retains the \u00a0
risks associated with the holding of the assets. If the Group retains all significant risks, the securities remain in the balance sheet, and the transaction\u00a0s \u00a0
are accounted for\u00a0as loans received against collateral.\u00a0Such transactions\u00a0are repo transactions and securities lending. The transactions\u00a0involve selling \u00a0
the securities to\u00a0be repurchased at a fixed price at a later\u00a0date. Counterparties are entitled to sell the securities or\u00a0deposit them as\u00a0collateral for\u00a0loans. \u00a0
Trading portfolio \u00a0
2023 \u00a0
2022 \u00a0
(DKK millions) \u00a0
Bonds \u00a0
Shares \u00a0
Bonds \u00a0
Shares \u00a0
Carrying amount\u00a0of transferred assets \u00a0
Repo transactions \u00a0
164,189 \u00a0
139,807 \u00a0
Securities lending \u00a0
1,047 \u00a0
2,008 \u00a0
Total transferred assets \u00a0
164,189 \u00a0
1,047 \u00a0
139,807 \u00a0
2,008 \u00a0
Repo transactions, own issued bonds \u00a0
33,693 \u00a0
31,064 \u00a0
Carrying amount\u00a0of associated liabilities \u00a0
197,140 \u00a0
1,099 \u00a0
171,384 \u00a0
2,109 \u00a0
Net positions \u00a0
-742 \u00a0
52 \u00a0
513 \u00a0
100 \u00a0
The Group has\u00a0not entered\u00a0into any agreements on the sale of assets that entail the Group\u2019s continuing involvement in\u00a0derecognised financial assets. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRepurchaseAndReverseRepurchaseAgreementsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4513": {
"value": "G31. Assets provided or received as collateral \u00a0
At the end of 2023, the Group had deposited securities (including bonds issued by the Group) worth DKK 4.5 billion as collateral with Danish and \u00a0
international clearing centres\u00a0and other\u00a0institutions (2022:\u00a0DKK 30.6\u00a0billion). \u00a0
At the end of 2023, the Group had provided cash and securities\u00a0(including bonds\u00a0issued by the Group) worth DKK 90.6 billion as collateral for derivative\u00a0s \u00a0
transactions (2022: DKK 90.4 billion). \u00a0
At the end of 2023, the Group had registered assets (including bonds and shares issued by the Group) under insurance contracts and unit\u00a0-linke d \u00a0
investment contracts\u00a0worth DKK\u00a0443.2 billion\u00a0(2022: DKK\u00a0417.5 billion) as collateral for\u00a0policyholders\u2019 savings of DKK 426.0 billion (2022: DKK 404.6 \u00a0
billion). \u00a0
At the end of 2023, the Group had registered loans at fair value\u00a0and securities worth a total of DKK 759.6 billion (2022: DKK 728.6 billion) as collatera\u00a0l \u00a0
for bonds issued by Realkredit\u00a0Danmark. Note G16 provides additional information.\u00a0Similarly, the Group had registered DKK 308.8 billion worth of loans \u00a0
and other assets (2022: DKK 306.3 billion)\u00a0as collateral for\u00a0covered bonds issued under Danish, Swedish and Finnish law. \u00a0
The table below shows assets provided as collateral for liabilities\u00a0or contingent\u00a0liabilities. Assets\u00a0provided as\u00a0collateral under repo\u00a0transactions is\u00a0shown \u00a0
separately whereas the types explained above\u00a0are included in the column \u2018Other\u2019. \u00a0
2023 \u00a0
2022* \u00a0
(DKK millions) \u00a0
Repo \u00a0
Other \u00a0
Total \u00a0
Repo \u00a0
Other \u00a0
Total \u00a0
Due from credit institutions \u00a0
-
15,922 \u00a0
15,922 \u00a0
-
22,917 \u00a0
22,917 \u00a0
Trading and\u00a0investment securities \u00a0
164,189 \u00a0
48,326 \u00a0
212,514 \u00a0
139,807 \u00a0
57,162 \u00a0
196,969 \u00a0
Loans at fair value \u00a0
-
753,277 \u00a0
753,277 \u00a0
-
724,051 \u00a0
724,051 \u00a0
Loans at amortised cost \u00a0
-
340,297 \u00a0
340,297 \u00a0
-
328,800 \u00a0
328,800 \u00a0
Assets under insurance contracts and unit- \u00a0
linked investment\u00a0contracts \u00a0
-
420,701 \u00a0
420,701 \u00a0
-
390,651 \u00a0
390,651 \u00a0
Total \u00a0
164,189 \u00a0
1,578,522 \u00a0
1,742,711 \u00a0
139,807 \u00a0
1,523,581 \u00a0
1,663,388 \u00a0
Own issued bonds \u00a0
33,693 \u00a0
30,665 \u00a0
64,358 \u00a0
31,064 \u00a0
76,754 \u00a0
107,818 \u00a0
Total, including\u00a0own issued bonds \u00a0
197,882 \u00a0
1,609,187 \u00a0
1,807,069 \u00a0
170,871 \u00a0
1,600,335 \u00a0
1,771,206 \u00a0
* Comparative information has been restated as described in note G2(a). \u00a0
Securities provided as\u00a0collateral under\u00a0agreements that entitle the counterparty\u00a0to sell the securities\u00a0or provide them as\u00a0collateral for\u00a0other loans \u00a0
amounted to DKK 164.2 billion\u00a0at the\u00a0end of 2023 (2022: DKK 139.8 billion). \u00a0
At the end of 2023, the Group had received DKK 315.5 billion worth of securities (2022: DKK 303.8 billion) as collateral for reverse repo transactions\u00a0, \u00a0
securities lending, derivatives\u00a0transactions and\u00a0other transactions entered into on the standard terms for\u00a0such transactions.\u00a0As the party receiving\u00a0the \u00a0
collateral, the Group is\u00a0entitled in many cases to sell\u00a0the securities or\u00a0provide the securities as\u00a0collateral for\u00a0other loans in exchange for returning\u00a0similar \u00a0
securities to the counterparty at\u00a0the expiry of the transactions.\u00a0At the end of\u00a02023, the Group had sold securities\u00a0or provided securities as collatera\u00a0l \u00a0
worth DKK 113.6 billion (2022: DKK 119.2 billion). \u00a0
The Group also receives many other types of\u00a0assets as collateral in connection with its ordinary lending activities.\u00a0The Group has not transferred the \u00a0
ownership of\u00a0these assets. Note G40 provide more details on\u00a0assets received as\u00a0collateral. \u00a0
Collateral \u00a0
The Group uses\u00a0a number\u00a0of measures to mitigate\u00a0credit risk, including\u00a0collateral, guarantees and\u00a0covenants. The main\u00a0method is\u00a0obtaining collateral. \u00a0
The value of collateral is monitored and reassessed by advisers, internal or external assessors, and automatic valuation mode ls to ensure it reflects current \u00a0
market prices. The Groups Collateral System supports this process by only accepting up-to-date values, thus ensuring that the Group complies with regulatory \u00a0
requirements. \u00a0
The validity of the internal and external inputs on which the valuation\u00a0models depend is assessed regularly and the performan ce of the models themselves is \u00a0
validated annually by\u00a0an independent unit, to assess their performance and highlight any deficiencies that need to be addressed. \u00a0
The market value of collateral is subject to a haircut to reflect the fact that the Group may not be able to obtain the estim ated market value upon the sale of \u00a0
the individual\u00a0asset in a distressed situation. Hence, the haircut includes a forced sale reduction, price volatility\u00a0during the sales period, realisation costs and \u00a0
maintenance costs. The haircut applied depends on the type of collateral. For regulatory purposes, the Group also applies mor e conservative haircuts in order \u00a0
to capture the risk of an economic downturn. \u00a0
Type of collateral\u00a0in core activities\u00a0(after haircuts) \u00a0
Personal \u00a0
Business \u00a0
Large Corporates & \u00a0
Other areas (ex - \u00a0
Customers \u00a0
Customers \u00a0
Institutions \u00a0
Northern Ireland\u00a0Group Functions) \u00a0
Total \u00a0
(DKK billions) \u00a0
2023 \u00a0
2022 2023 2022 \u00a0
2023 \u00a0
2022 2023 \u00a0
2022 2023 \u00a0
2022 \u00a0
2023 \u00a0
2022 \u00a0
Real property \u00a0
696.2 \u00a0
730.4 489.9 458.1 \u00a0
42.6 \u00a0
38.0 \u00a0
40.3 \u00a0
36.5 \u00a0
0.1 \u00a0
0.2 1,269.1 1,263.2 \u00a0
- Personal \u00a0
687.3 \u00a0
717.4 \u00a0
1.5 \u00a0
1.8 \u00a0
-
-
26.6 \u00a0
24.7 \u00a0
0.1 \u00a0
0.1 \u00a0
715.6 \u00a0
744.0 \u00a0
- Commercial \u00a0
6.8 \u00a0
10.8 452.4 419.3 \u00a0
40.7 \u00a0
36.4 \u00a0
11.4 \u00a0
9.8 \u00a0
-
0.1 \u00a0
511.4 \u00a0
476.3 \u00a0
- Agricultural \u00a0
2.0 \u00a0
2.2 \u00a0
36.0 \u00a0
37.0 \u00a0
1.9 \u00a0
1.6 \u00a0
2.2 \u00a0
2.1 \u00a0
-
-
42.1 \u00a0
42.9 \u00a0
Bank accounts \u00a0
0.2 \u00a0
0.2 \u00a0
0.4 \u00a0
0.4 \u00a0
-
0.1 \u00a0
-
-
-
-
0.6 \u00a0
0.7 \u00a0
Custody account and securities \u00a0
3.6 \u00a0
3.0 \u00a0
4.1 \u00a0
4.4 \u00a0
10.2 \u00a0
6.6 \u00a0
-
-
-
-
17.9 \u00a0
14.0 \u00a0
Vehicles \u00a0
2.0 \u00a0
1.8 \u00a0
19.7 \u00a0
19.0 \u00a0
3.2 \u00a0
2.8 \u00a0
-
-
-
-
24.9 \u00a0
23.6 \u00a0
Equipment \u00a0
-
-
12.2 \u00a0
11.7 \u00a0
3.4 \u00a0
3.3 \u00a0
2.5 \u00a0
2.5 \u00a0
-
-
18.1 \u00a0
17.5 \u00a0
Vessels \u00a0
-
-
1.1 \u00a0
1.0 \u00a0
18.1 \u00a0
13.3 \u00a0
-
-
-
-
19.2 \u00a0
14.3 \u00a0
Guarantees \u00a0
6.2 \u00a0
6.2 \u00a0
3.6 \u00a0
3.6 \u00a0
12.1 \u00a0
11.6 \u00a0
1.9 \u00a0
2.5 \u00a0
-
-
23.8 \u00a0
23.8 \u00a0
Amounts due \u00a0
0.1 \u00a0
0.2 \u00a0
2.3 \u00a0
2.5 \u00a0
0.8 \u00a0
0.6 \u00a0
0.2 \u00a0
0.2 \u00a0
-
-
3.3 \u00a0
3.5 \u00a0
Other assets \u00a0
0.1 \u00a0
-
29.2 \u00a0
29.8 \u00a0
3.5 \u00a0
3.4 \u00a0
1.4 \u00a0
1.3 \u00a0
-
-
34.3 \u00a0
34.4 \u00a0
Total collateral \u00a0
708.3 \u00a0
741.8 562.5\u00a0530.5 \u00a0
94.0 \u00a0
79.6 \u00a0
46.2 \u00a0
42.9 \u00a0
0.1 \u00a0
0.2 1,411.2 1,395.1 \u00a0
Total unsecured credit exposure \u00a0
135.7 \u00a0
140.8 182.7\u00a0214.8 \u00a0
539.3 \u00a0
568.7 \u00a0
49.0 \u00a0
46.2 \u00a0
-
-
906.7 \u00a0
970.6 \u00a0
Unsecured portion\u00a0of credit \u00a0
exposure (%) \u00a0
16.1 \u00a0
16.0 \u00a0
24.5 \u00a0
28.8 \u00a0
85.2 \u00a0
87.7 \u00a0
51.4 \u00a0
51.8 \u00a0
-
-
39.1 \u00a0
41.0 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCollateralExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4515": {
"value": "Accounting policy \u00a0
Assets and liabilities\u00a0are offset\u00a0when the Group and the counterparty\u00a0have a legally enforceable right to offset recognised amounts\u00a0and have agreed to \u00a0
settle the balances on a\u00a0net basis or to realise the asset and settle the liability\u00a0simultaneously. Positive and\u00a0negative fair values of\u00a0derivatives with\u00a0the \u00a0
same counterparty\u00a0are offset if the Group has agreed with the counterparty\u00a0to settle\u00a0contractual cash\u00a0flows net\u00a0and to make cash payments\u00a0or provid e \u00a0
collateral on a daily basis to cover changes in the fair value of the derivative\u00a0position. Master netting agreements or\u00a0similar agreements give the right \u00a0
to additional\u00a0offsetting in\u00a0the event of default. Such agreements reduce the exposure further in the event of\u00a0default, but do\u00a0not qualify for offsetting in \u00a0
accordance with IFRS. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4519": {
"value": "G33. Fair value information\u00a0for financial instruments \u00a0
Financial instruments\u00a0are carried in the balance sheet at fair value or amortised cost. The Group breaks down its financial instruments\u00a0according to the \u00a0
valuation method\u00a0(note G1 provides\u00a0additional information). \u00a0
2023 \u00a0
2022* \u00a0
(DKK millions) \u00a0
Fair value \u00a0
Amortised cost \u00a0
Fair value \u00a0
Amortised cost \u00a0
Financial assets \u00a0
Cash in hand and demand deposits with central banks \u00a0
-
259,156 \u00a0
-
175,052 \u00a0
Due from credit institutions\u00a0and central banks \u00a0
92,985 \u00a0
21,829 \u00a0
38,147 \u00a0
22,639 \u00a0
Trading portfolio assets \u00a0
548,189 \u00a0
-
638,799 \u00a0
-
Investment securities held at amortised cost \u00a0
-
155,398 \u00a0
-
151,573 \u00a0
Investment securities held at fair value \u00a0
128,516 \u00a0
-
135,850 \u00a0
-
Loans at amortised cost \u00a0
-
918,628 \u00a0
-
1,082,818 \u00a0
Loans at fair value \u00a0
928,239 \u00a0
-
932,677 \u00a0
-
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
70,900 \u00a0
-
66,739 \u00a0
-
Assets under insurance contracts \u00a0
460,747 \u00a0
-
465,720 \u00a0
-
Loans held for sale \u00a0
-
110,415 \u00a0
-
-
Total \u00a0
2,229,576 \u00a0
1,465,426 \u00a0
2,277,932 \u00a0
1,432,082 \u00a0
Financial liabilities \u00a0
Due to credit institutions and central banks \u00a0
85,548 \u00a0
69,060 \u00a0
52,252 \u00a0
86,525 \u00a0
Trading portfolio liabilities \u00a0
454,487 \u00a0
-
554,321 \u00a0
-
Deposits \u00a0
120,213 \u00a0
1,101,990 \u00a0
97,917 \u00a0
1,164,375 \u00a0
Issued bonds at fair value \u00a0
748,780 \u00a0
-
723,923 \u00a0
-
Issued bonds at amortised cost \u00a0
-
214,234 \u00a0
-
192,682 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
71,253 \u00a0
-
66,725 \u00a0
-
Liabilities held for sale \u00a0
-
56,476 \u00a0
-
-
Non-preferred senior bonds \u00a0
-
93,194 \u00a0
-
93,235 \u00a0
Subordinated debt \u00a0
-
38,774 \u00a0
-
38,350 \u00a0
Loan commitments\u00a0and guarantees \u00a0
-
3,161 \u00a0
-
2,627 \u00a0
Total \u00a0
1,480,281 \u00a0
1,576,889 \u00a0
1,495,138 \u00a0
1,577,795 \u00a0
* Comparative information has been restated as described in note G2(a). \u00a0
Liabilties under insurance contracts are measured using the General Measurement Model, Variable Fee Approach or\u00a0Premium Allocation Appro\u00a0ach in \u00a0
line with IFRS 17. Liabilities under insurance contracts are\u00a0therefore not included in the table above. \u00a0
(a) Financial\u00a0instruments at fair value \u00a0
The fair value is the amount for which a financial asset or a financial liability\u00a0can be exchanged\u00a0between knowledgeable,\u00a0willing parties. Fair value is \u00a0
measured on the basis of the following hierarchy: \u00a0
The fair value hierarchy \u00a0
\u2022
Quoted price\u00a0(level 1) consists of financial instruments\u00a0that are quoted in an active market.\u00a0The Group uses the price quoted in the principal market. \u00a0
\u2022
Valuation based\u00a0on observable input (level 2) consists of financial instruments\u00a0valued substantially\u00a0on the\u00a0basis of observable input other than a \u00a0
quoted price for the instrument\u00a0itself. If a financial instrument\u00a0is quoted\u00a0in a market\u00a0that is not active, the Group bases its measurement on the most \u00a0
recent transaction\u00a0price. Adjustment\u00a0is made for subsequent changes to market conditions,\u00a0for instance,\u00a0by including transactions\u00a0in similar \u00a0
financial instruments that are\u00a0assumed to be motivated by normal business considerations. For a\u00a0number of financial assets and liabilities,\u00a0no \u00a0
market exists. In such cases, the Group uses recent transactions\u00a0in similar instruments\u00a0and discounted cash flows or other generally accepted \u00a0
estimation and\u00a0valuation techniques\u00a0based on market conditions at the balance sheet date to calculate an estimated\u00a0value. This category covers \u00a0
instruments such\u00a0as derivatives\u00a0valued on\u00a0the basis of observable\u00a0yield curves and exchange rates and illiquid\u00a0mortgage bonds valued by reference \u00a0
to the value of similar\u00a0liquid bonds. \u00a0
\u2022
Valuation based on\u00a0significant non-observable input\u00a0(level 3): The valuation\u00a0of certain financial instruments\u00a0is based substantially\u00a0on non-observable \u00a0
input. Such\u00a0instruments include unlisted shares,\u00a0some unlisted bonds and a\u00a0limited portion of\u00a0the derivatives\u00a0portfolio (2%). \u00a0
If, at the balance sheet date, a financial instrument\u2019s classification differs\u00a0from its classification at the beginning of the year, the classification of the \u00a0
instrument changes.\u00a0Changes are\u00a0considered to have taken place at the balance sheet date. Developments\u00a0in the financial markets have resulted in \u00a0
reclassifications between\u00a0the categories. Some bonds have become illiquid and have therefore been\u00a0moved from\u00a0the Quoted\u00a0prices to\u00a0the Observable \u00a0
input category, while other bonds have instead become liquid and have been moved from the Observable input to the\u00a0Quoted prices category. \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
Valuation techniques \u00a0
The most frequently\u00a0used valuation\u00a0techniques include the pricing of transactions with future settlement and swap\u00a0models that apply present value \u00a0
calculations, credit\u00a0pricing models and options models, such as Black & Scholes models. As part of the Group\u2019s\u00a0control environment, valuation models are \u00a0
validated by\u00a0units that\u00a0are independent\u00a0of the business units\u00a0that develop\u00a0the models and trade in the products covered by\u00a0th e\u00a0models. Validation\u00a0is made \u00a0
to test the implementation,\u00a0quality and operating stability\u00a0of models\u00a0to ensure that the models can be used for pricing and risk management of financial \u00a0
products. \u00a0
Loans granted and bonds issued by Realkredit Danmark\u00a0are recognised at the fair value of the issued bonds (the quoted price in an active market). The \u00a0
Group adjusts\u00a0for changes to the fair value of the credit risk on borrowers\u00a0etc. The adjustment\u00a0is described further\u00a0in note\u00a0G16. \u00a0
The value of derivatives,\u00a0primarily long-term contracts, is determined on\u00a0observable yields extrapolated\u00a0to yield curves for the full duration of the contracts. \u00a0
Moreover, the very limited portfolio of\u00a0credit derivatives\u00a0is valued\u00a0on the basis of observable\u00a0input as\u00a0well as assumptions\u00a0about the probability\u00a0of default \u00a0
(recovery rate).\u00a0Unlisted shares\u00a0are measured at fair value in accordance with the International\u00a0Private Equity and Venture C\u00a0apital Valuation Guideline\u00a0s \u00a0
(IPEV) which are compliant with IFRS. IPEV guides the calculation of the estimated fair\u00a0value of\u00a0unlisted shares as the price\u00a0that would be received to sell \u00a0
an asset or paid to transfer a liability\u00a0in an orderly transaction between market participants\u00a0at the measurement\u00a0date. Valua\u00a0tion methods include \u00a0
discounted cash flow models and pricing based on a multiple\u00a0of earnings or equity. \u00a0
Fair value adjustments \u00a0
Management estimates underlie the\u00a0valuation of\u00a0financial instruments\u00a0for which the value is based on valuation\u00a0techniques. The Group makes fair value \u00a0
adjustments to\u00a0cover changes in counterparty\u00a0risk (CVA) on derivatives,\u00a0funding risk (FVA and ColVA),\u00a0bid-offer spreads on\u00a0the net\u00a0open position of \u00a0
portfolios with\u00a0offsetting market risk, and model risk on level 3 derivatives. \u00a0
Credit value\u00a0adjustment (CVA)\u00a0and funding value adjustment\u00a0(FVA and ColVA) \u00a0
The Group makes a\u00a0fair value adjustment to cover the counterparty credit risk on derivatives\u00a0with a positive fair value (CVA). For\u00a0a given counterparty\u2019 s \u00a0
portfolio of\u00a0derivatives, CVA\u00a0is calculated as\u00a0a function\u00a0of the probability\u00a0of default\u00a0(PD), the expected\u00a0positive exposure (EPE) and the loss given default in \u00a0
the event of bankruptcy\u00a0(LGD). The Group enters into derivatives\u00a0transactions mainly with counterparties\u00a0in the Scandinavian\u00a0market. \u00a0
The PDs used in the CVA model are derived\u00a0from single name liquid credit default swap (CDS). If this is not available,\u00a0the PDs are derived using proxy- \u00a0
mapping to a CDS index. For the calculation of EPE, the Group uses simulations\u00a0to estimate\u00a0the expected positive exposures to\u00a0the counterparty\u2019s portfolio \u00a0
over the term of\u00a0the derivatives.\u00a0The exposure model is\u00a0based fully on market-implied\u00a0data. For\u00a0the calculation\u00a0of LGD, the Group uses market compliant \u00a0
LGD. However, for customers classified in stage 3 in relation to the expected credit loss impairment, CVA is calculated\u00a0as if the\u00a0derivatives were\u00a0loans \u00a0
subject to\u00a0impairment because\u00a0of credit losses. \u00a0
A fair value adjustment\u00a0for derivatives\u00a0to cover expected funding costs (FVA\u00a0and ColVA) is calculated.\u00a0FVA primarily\u00a0arises from the cost or benefit of \u00a0
funding uncollateralised\u00a0derivatives. The adjustment is\u00a0a function\u00a0of the unsecured funding curve and expected future exposures. ColVA takes into account \u00a0
the funding cost and benefit on collateralised\u00a0derivatives. The ColVA adjustment is a function of expected collateral balance\u00a0s and cross-currency\u00a0basis \u00a0
and repo spreads. \u00a0
At the end of 2023, CVA, DVA,\u00a0FVA and ColVA came to a net amount of DKK\u00a0153 million (2022: DKK -94\u00a0million), including the adjustment for\u00a0credit risk \u00a0
on derivatives\u00a0in stage 3. \u00a0
Bid-offer spread \u00a0
For portfolios\u00a0of assets and liabilities\u00a0with offsetting market risk, the Group bases its measurement of the portfolios on mid-market prices and\u00a0makes fair \u00a0
value adjustments\u00a0to recognise net assets at the bid price and net liabilities\u00a0at the\u00a0offer price (exit prices). At the end of 2023, these fair value adjustmen\u00a0ts \u00a0
totalled DKK 138 million (2022: DKK 151 million). \u00a0
Model risk \u00a0
To account for the uncertainty\u00a0associated with measuring\u00a0the value of derivatives\u00a0on the basis of non-observable\u00a0input (level 3\u00a0in the fair value\u00a0hierarchy), \u00a0
the Group has established guidelines to quantify risk. The Group calculates and\u00a0monitors the reserve\u00a0on an ongoing basis. At the end of 2023, the reserve \u00a0
totalled DKK 1\u00a0million (2022: DKK 0\u00a0million). \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
Amortisation of\u00a0initial margin \u00a0
If, at the time of acquisition,\u00a0a difference\u00a0arises between the model value of\u00a0a financial instrument,\u00a0calculated on\u00a0the basi\u00a0s of\u00a0non-observable input\u00a0and \u00a0
actual cost (day-one profit or\u00a0loss), and the difference is not the result of transaction\u00a0costs, the Group adjusts model parameters to actual cost to take \u00a0
the initial\u00a0margin into account. Accordingly,\u00a0the valuation\u00a0of derivatives\u00a0includes amortisation of\u00a0the value of initial\u00a0margins over the remaining term to \u00a0
maturity. The initial margins relate to elements not covered by\u00a0the above CVA and FVA adjustments,\u00a0such as future administrative\u00a0expenses and capital \u00a0
consumption. At 31\u00a0December 2023,\u00a0the value of\u00a0unamortised initial margins was DKK 1,176 million\u00a0(2022: DKK\u00a01,101 million). \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Unamortised initial margins at\u00a01 January \u00a0
1,101 \u00a0
1,381 \u00a0
Amortised to the income statement during the year \u00a0
-342 \u00a0
-592 \u00a0
Initial margins on new derivatives contracts \u00a0
596 \u00a0
530 \u00a0
Terminated derivatives contracts \u00a0
-179 \u00a0
-218 \u00a0
Unamortised initial\u00a0margins as\u00a0at 31 December \u00a0
1,176 \u00a0
1,101 \u00a0
Observable Non-observable \u00a0
(DKK millions) \u00a0
Quoted prices \u00a0
input \u00a0
input \u00a0
Total \u00a0
31 December 2023 \u00a0
Financial assets \u00a0
Due from credit institutions\u00a0and central banks \u00a0
-
92,985 \u00a0
-
92,985 \u00a0
Derivatives \u00a0
6,723 \u00a0
343,134 \u00a0
1,865 \u00a0
351,722 \u00a0
Interest rate contracts \u00a0
6,723 \u00a0
232,885 \u00a0
1,014 \u00a0
240,621 \u00a0
Currency contracts etc. \u00a0
-
110,250 \u00a0
851 \u00a0
111,101 \u00a0
Trading portfolio bonds \u00a0
168,031 \u00a0
9,532 \u00a0
-
177,563 \u00a0
Trading portfolio shares \u00a0
18,785 \u00a0
-
119 \u00a0
18,904 \u00a0
Investment securities, bonds \u00a0
100,554 \u00a0
27,470 \u00a0
-
128,023 \u00a0
Investment securities, shares \u00a0
-
-
493 \u00a0
493 \u00a0
Loans at fair value \u00a0
-
928,239 \u00a0
-
928,239 \u00a0
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
70,900 \u00a0
-
-
70,900 \u00a0
Assets under insurance contracts, bonds \u00a0
189,297 \u00a0
22,318 \u00a0
2,458 \u00a0
214,073 \u00a0
Danish mortgage bonds \u00a0
92,182 \u00a0
10,865 \u00a0
334 \u00a0
103,381 \u00a0
Other covered bonds \u00a0
97,115 \u00a0
11,453 \u00a0
2,124 \u00a0
110,692 \u00a0
Assets under insurance contracts, shares \u00a0
153,310 \u00a0
5,121 \u00a0
34,755 \u00a0
193,186 \u00a0
Assets under insurance contracts, derivatives \u00a0
141 \u00a0
52,436 \u00a0
911 \u00a0
53,488 \u00a0
Total \u00a0
707,741 \u00a0
1,481,235 \u00a0
40,601 \u00a0
2,229,576 \u00a0
Financial liabilities \u00a0
Due to credit institutions and central banks \u00a0
-
85,548 \u00a0
-
85,548 \u00a0
Derivatives \u00a0
7,360 \u00a0
331,954 \u00a0
1,604 \u00a0
340,918 \u00a0
Interest rate contracts \u00a0
7,360 \u00a0
204,035 \u00a0
803 \u00a0
212,198 \u00a0
Currency contracts etc. \u00a0
-
127,919 \u00a0
801 \u00a0
128,720 \u00a0
Obligations to repurchase securities \u00a0
111,657 \u00a0
1,853 \u00a0
59 \u00a0
113,569 \u00a0
Deposits \u00a0
-
120,213 \u00a0
-
120,213 \u00a0
Issued bonds at fair value \u00a0
748,780 \u00a0
-
-
748,780 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
-
71,253 \u00a0
-
71,253 \u00a0
Total \u00a0
867,797 \u00a0
610,821 \u00a0
1,663 \u00a0
1,480,281 \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
Observable Non-observable \u00a0
(DKK millions) \u00a0
Quoted prices \u00a0
input \u00a0
input \u00a0
Total \u00a0
31 December 2022* \u00a0
Financial assets \u00a0
Due from credit institutions\u00a0and central banks \u00a0
-
38,147 \u00a0
-
38,147 \u00a0
Derivatives \u00a0
6,942 \u00a0
421,917 \u00a0
1,263 \u00a0
430,123 \u00a0
Interest rate contracts \u00a0
6,942 \u00a0
298,988 \u00a0
317 \u00a0
306,248 \u00a0
Currency contracts etc. \u00a0
-
122,929 \u00a0
946 \u00a0
123,875 \u00a0
Trading portfolio\u00a0bonds \u00a0
183,205 \u00a0
17,190 \u00a0
-
200,395 \u00a0
Trading portfolio\u00a0shares \u00a0
8,198 \u00a0
-
83 \u00a0
8,281 \u00a0
Investment securities, bonds \u00a0
97,209 \u00a0
37,454 \u00a0
-
134,663 \u00a0
Investment securities, shares \u00a0
-
-
1,187 \u00a0
1,187 \u00a0
Loans at fair value \u00a0
-
932,677 \u00a0
-
932,677 \u00a0
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
66,739 \u00a0
-
-
66,739 \u00a0
Assets under insurance contracts, bonds \u00a0
188,260 \u00a0
23,834 \u00a0
3,369 \u00a0
215,463 \u00a0
Danish mortgage bonds \u00a0
82,523 \u00a0
13,308 \u00a0
327 \u00a0
96,158 \u00a0
Other covered bonds \u00a0
105,737 \u00a0
10,526 \u00a0
3,042 \u00a0
119,305 \u00a0
Assets under insurance contracts, shares \u00a0
124,338 \u00a0
4,788 \u00a0
47,045 \u00a0
176,171 \u00a0
Assets under insurance contracts, derivatives \u00a0
817 \u00a0
72,406 \u00a0
863 \u00a0
74,086 \u00a0
Total \u00a0
675,708 \u00a0
1,548,413 \u00a0
53,810 \u00a0
2,277,932 \u00a0
Financial liabilities \u00a0
Due to credit institutions and central banks \u00a0
-
52,252 \u00a0
-
52,252 \u00a0
Derivatives \u00a0
4,967 \u00a0
429,138 \u00a0
1,036 \u00a0
435,141 \u00a0
Interest rate contracts \u00a0
4,967 \u00a0
292,552 \u00a0
332 \u00a0
297,852 \u00a0
Currency contracts etc. \u00a0
-
136,585 \u00a0
704 \u00a0
137,289 \u00a0
Obligations to repurchase securities \u00a0
113,830 \u00a0
5,327 \u00a0
23 \u00a0
119,180 \u00a0
Deposits \u00a0
-
97,917 \u00a0
-
97,917 \u00a0
Issued bonds at fair value \u00a0
723,923 \u00a0
-
-
723,923 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
-
66,725 \u00a0
-
66,725 \u00a0
Total \u00a0
842,721 \u00a0
651,358 \u00a0
1,059 \u00a0
1,495,138 \u00a0
* Comparative information has been restated as described in note G2(a) \u00a0
Financial instruments valued on\u00a0the basis\u00a0of non-observable input \u00a0
The tables below shows financial instruments valued on the basis of non-observable input. \u00a0
Sensitivity \u00a0
(change in fair \u00a0
Gains/losses \u00a0
value) \u00a0
for the period \u00a0
(DKK millions) \u00a0
Carrying amount \u00a0
Increase \u00a0
Decrease \u00a0
Realised \u00a0
Unrealised \u00a0
31 December 2023 \u00a0
Unlisted shares \u00a0
allocated to insurance contract policyholders \u00a0
34,755 \u00a0
-
-
472 \u00a0
-522 \u00a0
other \u00a0
553 \u00a0
55 \u00a0
55 \u00a0
352 \u00a0
-160 \u00a0
Illiquid bonds \u00a0
2,458 \u00a0
56 \u00a0
56 \u00a0
2
-152 \u00a0
Derivatives, net\u00a0fair value \u00a0
1,172 \u00a0
-
-
-
234 \u00a0
31 December 2022 \u00a0
Unlisted shares \u00a0
allocated to insurance contract policyholders \u00a0
47,045 \u00a0
-
-
6,423 \u00a0
-706 \u00a0
other \u00a0
1,247 \u00a0
125 \u00a0
125 \u00a0
175 \u00a0
-31 \u00a0
Illiquid bonds \u00a0
3,369 \u00a0
67 \u00a0
67 \u00a0
-128 \u00a0
-61 \u00a0
Derivatives, net\u00a0fair value \u00a0
1,090 \u00a0
-
-
-
-420 \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
For unlisted\u00a0shares allocated to insurance contract policyholders, the policyholders assume most of the risk on the shares. T\u00a0herefore, changes in the fair \u00a0
value of those shares will only to a\u00a0limited extent\u00a0affect the\u00a0Group\u2019s net\u00a0profit. The Group\u2019s remain\u00a0ing portfolio\u00a0of unlisted shares consists primarily of \u00a0
banking-related investments and\u00a0holdings in\u00a0private equity funds.\u00a0The sensitivity\u00a0of the fair value\u00a0measurement to\u00a0changes in\u00a0the uno\u00a0bservable input \u00a0
disclosed in the table is calculated as a 10% increase or 10 % decrease in fair value. Under\u00a0current market conditions, a\u00a010 % decrease in the fair value \u00a0
is considered\u00a0to be below a possible\u00a0alternative estimate of\u00a0the fair value at the end of the period.\u00a0The unrealised adjustments\u00a0in 2023 were attributab\u00a0le \u00a0
to various unlisted\u00a0shares. \u00a0
The estimated fair value of\u00a0illiquid bonds\u00a0depends significantly\u00a0on the estimated credit spre\u00a0ad. In the\u00a0table, the sensitivity\u00a0of the fair value measurement \u00a0
to changes in non-observable\u00a0input is\u00a0calculated as a\u00a050bps widening or\u00a0narrowing of the credit spread. \u00a0
A substantial\u00a0number of derivatives\u00a0valued on the basis of non-observable input are hedged by similar derivatives\u00a0or are used for hedging\u00a0the credit risk \u00a0
on bonds also valued\u00a0on the basis of non-observable\u00a0input. Changing one\u00a0or more of the non-observable\u00a0inputs to\u00a0reflect reasonable,\u00a0possible alternative \u00a0
assumptions would\u00a0not change the fair value of the derivatives\u00a0significantly above what\u00a0is already covered by the reserve rel\u00a0ated to fair value\u00a0adjustment \u00a0
for model risk. \u00a0
Shares, bonds and derivatives valued on the basis of non-observable input \u00a0
Reconciliation from\u00a0beginning to\u00a0end of period \u00a0
2023 \u00a0
2022 \u00a0
(DKK millions) \u00a0
Shares \u00a0
Bonds \u00a0
Derivatives \u00a0
Shares \u00a0
Bonds \u00a0
Derivatives \u00a0
Fair value at 1 January \u00a0
48,292 \u00a0
3,369 \u00a0
1,090 \u00a0
46,573 \u00a0
5,300 \u00a0
2,504 \u00a0
Value adjustment through profit or loss \u00a0
142 \u00a0
-150 \u00a0
234 \u00a0
5,861 \u00a0
-189 \u00a0
-420 \u00a0
Acquisitions \u00a0
3,152 \u00a0
161 \u00a0
-250 \u00a0
20,800 \u00a0
107 \u00a0
186 \u00a0
Sale and redemption \u00a0
-16,278 \u00a0
-922 \u00a0
-272 \u00a0
-24,942 \u00a0
-1,849 \u00a0
-42 \u00a0
Transferred from quoted prices and observable input \u00a0
-
-
295 \u00a0
-
-
-
Transferred to quoted prices and observable input \u00a0
-
-
74 \u00a0
-
-
-1,136 \u00a0
Fair value\u00a0end of period \u00a0
35,308 \u00a0
2,458 \u00a0
1,172 \u00a0
48,292 \u00a0
3,369 \u00a0
1,090 \u00a0
The value adjustment through profit or loss\u00a0is recognised under Net trading\u00a0income or loss. The transfer of derivatives\u00a0to the Observable input category \u00a0
consists primarily\u00a0of maturity\u00a0reductions, implying that the yield curves have become observable. \u00a0
(b) Financial instruments at amortised\u00a0cost \u00a0
In this section, the fair value of financial instruments recognised at amortised cost is presented. The fair value is based on quoted market prices, if \u00a0
available. If\u00a0quoted prices are not available,\u00a0the value is approximated\u00a0to reflect\u00a0the price that would have been fixed had the terms been agreed at the \u00a0
balance sheet date. \u00a0
The fair values disclosed below are\u00a0determined on the basis of the following principles: \u00a0
Investment securities\u00a0(bonds classified as\u00a0held-to-collect), other issued bonds and subordinated\u00a0debt \u00a0
Quoted prices in an active market exist for a significant part of these financial instruments.\u00a0If quoted prices in an active market do not exist, the Group \u00a0
uses an\u00a0estimate of\u00a0the current return required by the market to estimate the fair value. \u00a0
Other financial instruments \u00a0
The determination\u00a0of the fair value of financial instruments\u00a0recognised at amortised cost is based on the following\u00a0preconditions relating to\u00a0interest rate \u00a0
risk: \u00a0
\u2022
For a significant\u00a0number of the Group\u2019s deposits and loans, the interest rate depends on the standard variable rate fixed by the Group. The rate is \u00a0
adjusted only\u00a0upon certain changes in market conditions.\u00a0Such deposits\u00a0and loans are considered\u00a0to carry interest\u00a0at a variable\u00a0rate, as the standard \u00a0
variable rate fixed by the Group at any time applies to both new and existing arrangements. \u00a0
\u2022
The interest\u00a0rate risk on some fixed-rate loans extended\u00a0by the Group is designated as a\u00a0hedge of\u00a0the interest\u00a0rate risk on liabilities.\u00a0Interest rate \u00a0
risk not hedging the interest rate risk on liabilities\u00a0is hedged by derivatives.\u00a0Such hedges are accounted for\u00a0as fair value\u00a0hedges, and the fair value \u00a0
of the hedged\u00a0interest risk is adjusted in the carrying amount of the hedged financial instruments. Consequently,\u00a0only fair value changes related to \u00a0
fixed-rate loans not hedged by derivatives\u00a0are adjusted in the fair values presented in the table below. \u00a0
For financial instruments\u00a0that are only to a\u00a0limited extent\u00a0influenced by\u00a0changes in\u00a0credit risk, the amortised\u00a0cost, including the adjustment for\u00a0the fair \u00a0
value hedge accounting of the interest rate risk, is a reasonable approximation\u00a0of fair value. This is the case for Due from/to credit institutions\u00a0and central \u00a0
banks and Deposits. \u00a0
It is assessed that the expected credit loss impairment\u00a0model used for loans\u00a0measured at amortised cost is a reasonable proxy for the fair value of the \u00a0
credit risk. \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
In the table below, fair value is presented for classes of financial\u00a0instruments for\u00a0which the carrying amount is not a reasonable approximation\u00a0of fair \u00a0
value. \u00a0
Carrying \u00a0
Observable Non-observable \u00a0
2023 \u00a0
amount \u00a0
Fair value \u00a0
Quoted prices \u00a0
input \u00a0
input \u00a0
(DKK millions) \u00a0
Financial assets \u00a0
Investment securities \u00a0
155,398 \u00a0
148,908 \u00a0
141,789 \u00a0
7,119 \u00a0
-
Loans at amortised cost \u00a0
918,628 \u00a0
918,474 \u00a0
-
150 \u00a0
918,324 \u00a0
Financial liabilities \u00a0
Issued bonds, including non-preferred senior bonds \u00a0
307,428 \u00a0
307,523 \u00a0
273,830 \u00a0
19,286 \u00a0
14,406 \u00a0
Subordinated debt \u00a0
38,774 \u00a0
38,172 \u00a0
37,924 \u00a0
248 \u00a0
-
2022 \u00a0
(DKK millions) \u00a0
Financial assets \u00a0
Investment securities \u00a0
151,573 \u00a0
139,815 \u00a0
128,391 \u00a0
11,424 \u00a0
-
Loans at amortised cost \u00a0
1,082,818 \u00a0
1,075,778 \u00a0
-
7,972 \u00a0
1,067,807 \u00a0
Financial liabilities \u00a0
Issued bonds, including non-preferred senior bonds \u00a0
285,918 \u00a0
285,755 \u00a0
259,335 \u00a0
8,230 \u00a0
18,189 \u00a0
Subordinated debt \u00a0
38,350 \u00a0
36,579 \u00a0
37,091 \u00a0
-512 \u00a0
-
For investment\u00a0securities classified as hold-to-collect,\u00a0amortised cost\u00a0exceeded fair value\u00a0as at 31 December 2023 by DKK\u00a06,489 million (31 December \u00a0
2022: DKK 11,758 million). This portfolio mainly contains Danish mortgage bonds and central and local government bonds, and h\u00a0as a weighted average \u00a0
rating factor of 4.8 following Moody\u2019s numerical rating factor to scale,\u00a0which corresponds to a\u00a0strong Aa1 rating. The interest rate risk duriation\u00a0for the \u00a0
portfolio is 3.3 years. Without any reinvestments,\u00a0respectively 24%,\u00a057% and 19% of this portfolio will reach maturity\u00a0within a\u00a0period of\u00a01 year, 1 to 5 \u00a0
years, and after 5 years. The difference between amortised cost and fair value will reduce along with time to maturity\u00a0of the\u00a0bonds running off. \u00a0
(c) Impact\u00a0of IBOR Reform on financial instruments \u00a0
The Interest Rate Benchmark Reform is progressively replacing inter-bank offered\u00a0rates (IBORs) with alternative\u00a0risk-free rates. The Group had \u00a0
established an IBOR Transition\u00a0Programme, the main objectives\u00a0being to\u00a0identify how the IBOR transition would aff\u00a0ect the Group financially and \u00a0
operationally, and\u00a0to identify how\u00a0cessation of IBOR publications\u00a0would affect the Group\u2019s\u00a0ability to service its customer base.\u00a0The IBOR\u00a0Transitio n \u00a0
programme has achieved its aims and\u00a0will be\u00a0wound down during\u00a0the first\u00a0quarter of\u00a02024. Interest rate developments\u00a0are continuously\u00a0monitored, and \u00a0
any future introduction\u00a0of new risk-free rates will be managed and resourced as required. \u00a0
As at 31 December 2023, there are\u00a0no non-derivative\u00a0financial assets or non-derivative\u00a0financial liabilities\u00a0that are yet to transition\u00a0to alternative \u00a0
benchmark rates (31\u00a0December 2022: DKK 5,191 million and 2,608 million respectively). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4524": {
"value": "If, at the balance sheet date, a financial instrument\u2019s classification differs\u00a0from its classification at the beginning of the year, the classification of the \u00a0
instrument changes.\u00a0Changes are\u00a0considered to have taken place at the balance sheet date. Developments\u00a0in the financial markets have resulted in \u00a0
reclassifications between\u00a0the categories. Some bonds have become illiquid and have therefore been\u00a0moved from\u00a0the Quoted\u00a0prices to\u00a0the Observable \u00a0
input category, while other bonds have instead become liquid and have been moved from the Observable input to the\u00a0Quoted prices category. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReclassificationOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4534": {
"value": "Amortisation of\u00a0initial margin \u00a0
If, at the time of acquisition,\u00a0a difference\u00a0arises between the model value of\u00a0a financial instrument,\u00a0calculated on\u00a0the basi\u00a0s of\u00a0non-observable input\u00a0and \u00a0
actual cost (day-one profit or\u00a0loss), and the difference is not the result of transaction\u00a0costs, the Group adjusts model parameters to actual cost to take \u00a0
the initial\u00a0margin into account. Accordingly,\u00a0the valuation\u00a0of derivatives\u00a0includes amortisation of\u00a0the value of initial\u00a0margins over the remaining term to \u00a0
maturity. The initial margins relate to elements not covered by\u00a0the above CVA and FVA adjustments,\u00a0such as future administrative\u00a0expenses and capital \u00a0
consumption. At 31\u00a0December 2023,\u00a0the value of\u00a0unamortised initial margins was DKK 1,176 million\u00a0(2022: DKK\u00a01,101 million). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognisingDifferenceBetweenFairValueAtInitialRecognitionAndAmountDeterminedUsingValuationTechniqueExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4535": {
"value": "Observable Non-observable \u00a0
(DKK millions) \u00a0
Quoted prices \u00a0
input \u00a0
input \u00a0
Total \u00a0
31 December 2023 \u00a0
Financial assets \u00a0
Due from credit institutions\u00a0and central banks \u00a0
-
92,985 \u00a0
-
92,985 \u00a0
Derivatives \u00a0
6,723 \u00a0
343,134 \u00a0
1,865 \u00a0
351,722 \u00a0
Interest rate contracts \u00a0
6,723 \u00a0
232,885 \u00a0
1,014 \u00a0
240,621 \u00a0
Currency contracts etc. \u00a0
-
110,250 \u00a0
851 \u00a0
111,101 \u00a0
Trading portfolio bonds \u00a0
168,031 \u00a0
9,532 \u00a0
-
177,563 \u00a0
Trading portfolio shares \u00a0
18,785 \u00a0
-
119 \u00a0
18,904 \u00a0
Investment securities, bonds \u00a0
100,554 \u00a0
27,470 \u00a0
-
128,023 \u00a0
Investment securities, shares \u00a0
-
-
493 \u00a0
493 \u00a0
Loans at fair value \u00a0
-
928,239 \u00a0
-
928,239 \u00a0
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
70,900 \u00a0
-
-
70,900 \u00a0
Assets under insurance contracts, bonds \u00a0
189,297 \u00a0
22,318 \u00a0
2,458 \u00a0
214,073 \u00a0
Danish mortgage bonds \u00a0
92,182 \u00a0
10,865 \u00a0
334 \u00a0
103,381 \u00a0
Other covered bonds \u00a0
97,115 \u00a0
11,453 \u00a0
2,124 \u00a0
110,692 \u00a0
Assets under insurance contracts, shares \u00a0
153,310 \u00a0
5,121 \u00a0
34,755 \u00a0
193,186 \u00a0
Assets under insurance contracts, derivatives \u00a0
141 \u00a0
52,436 \u00a0
911 \u00a0
53,488 \u00a0
Total \u00a0
707,741 \u00a0
1,481,235 \u00a0
40,601 \u00a0
2,229,576 \u00a0
Financial liabilities \u00a0
Due to credit institutions and central banks \u00a0
-
85,548 \u00a0
-
85,548 \u00a0
Derivatives \u00a0
7,360 \u00a0
331,954 \u00a0
1,604 \u00a0
340,918 \u00a0
Interest rate contracts \u00a0
7,360 \u00a0
204,035 \u00a0
803 \u00a0
212,198 \u00a0
Currency contracts etc. \u00a0
-
127,919 \u00a0
801 \u00a0
128,720 \u00a0
Obligations to repurchase securities \u00a0
111,657 \u00a0
1,853 \u00a0
59 \u00a0
113,569 \u00a0
Deposits \u00a0
-
120,213 \u00a0
-
120,213 \u00a0
Issued bonds at fair value \u00a0
748,780 \u00a0
-
-
748,780 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
-
71,253 \u00a0
-
71,253 \u00a0
Total \u00a0
867,797 \u00a0
610,821 \u00a0
1,663 \u00a0
1,480,281 \u00a0
G33. Fair\u00a0value information\u00a0for financial\u00a0instruments continued \u00a0
Observable Non-observable \u00a0
(DKK millions) \u00a0
Quoted prices \u00a0
input \u00a0
input \u00a0
Total \u00a0
31 December 2022* \u00a0
Financial assets \u00a0
Due from credit institutions\u00a0and central banks \u00a0
-
38,147 \u00a0
-
38,147 \u00a0
Derivatives \u00a0
6,942 \u00a0
421,917 \u00a0
1,263 \u00a0
430,123 \u00a0
Interest rate contracts \u00a0
6,942 \u00a0
298,988 \u00a0
317 \u00a0
306,248 \u00a0
Currency contracts etc. \u00a0
-
122,929 \u00a0
946 \u00a0
123,875 \u00a0
Trading portfolio\u00a0bonds \u00a0
183,205 \u00a0
17,190 \u00a0
-
200,395 \u00a0
Trading portfolio\u00a0shares \u00a0
8,198 \u00a0
-
83 \u00a0
8,281 \u00a0
Investment securities, bonds \u00a0
97,209 \u00a0
37,454 \u00a0
-
134,663 \u00a0
Investment securities, shares \u00a0
-
-
1,187 \u00a0
1,187 \u00a0
Loans at fair value \u00a0
-
932,677 \u00a0
-
932,677 \u00a0
Assets under pooled schemes and unit-linked\u00a0investment contracts \u00a0
66,739 \u00a0
-
-
66,739 \u00a0
Assets under insurance contracts, bonds \u00a0
188,260 \u00a0
23,834 \u00a0
3,369 \u00a0
215,463 \u00a0
Danish mortgage bonds \u00a0
82,523 \u00a0
13,308 \u00a0
327 \u00a0
96,158 \u00a0
Other covered bonds \u00a0
105,737 \u00a0
10,526 \u00a0
3,042 \u00a0
119,305 \u00a0
Assets under insurance contracts, shares \u00a0
124,338 \u00a0
4,788 \u00a0
47,045 \u00a0
176,171 \u00a0
Assets under insurance contracts, derivatives \u00a0
817 \u00a0
72,406 \u00a0
863 \u00a0
74,086 \u00a0
Total \u00a0
675,708 \u00a0
1,548,413 \u00a0
53,810 \u00a0
2,277,932 \u00a0
Financial liabilities \u00a0
Due to credit institutions and central banks \u00a0
-
52,252 \u00a0
-
52,252 \u00a0
Derivatives \u00a0
4,967 \u00a0
429,138 \u00a0
1,036 \u00a0
435,141 \u00a0
Interest rate contracts \u00a0
4,967 \u00a0
292,552 \u00a0
332 \u00a0
297,852 \u00a0
Currency contracts etc. \u00a0
-
136,585 \u00a0
704 \u00a0
137,289 \u00a0
Obligations to repurchase securities \u00a0
113,830 \u00a0
5,327 \u00a0
23 \u00a0
119,180 \u00a0
Deposits \u00a0
-
97,917 \u00a0
-
97,917 \u00a0
Issued bonds at fair value \u00a0
723,923 \u00a0
-
-
723,923 \u00a0
Deposits under pooled schemes and unit-linked\u00a0investment contracts \u00a0
-
66,725 \u00a0
-
66,725 \u00a0
Total \u00a0
842,721 \u00a0
651,358 \u00a0
1,059 \u00a0
1,495,138 \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4545": {
"value": "G34. Related parties \u00a0
Danske Bank\u00a0A/S acts as the bank of a number of its related parties.\u00a0Payment services,\u00a0trading in securities and other instruments,\u00a0depositing of\u00a0surplus \u00a0
liquidity and\u00a0provision of\u00a0short- and long-term financing are\u00a0the primary services provided by Danske Bank A/S. \u00a0
Danica Pension manages\u00a0the pension plans of a number of related parties, and Danske\u00a0Bank manages the assets of a number of the Group\u2019s pension \u00a0
funds. \u00a0
Accounting policy \u00a0
A related party to the Group\u00a0is either a party\u00a0over which the Group has control or significant influence or a party that has control or significant influence \u00a0
over the Group. All entities over which the Group has\u00a0control are\u00a0consolidated and\u00a0are therefore not considered a\u00a0related party to the Group. \u00a0
Entities that\u00a0are related\u00a0parties to the Group comprise shareholders that have a significant holding of shares (significant influence\u00a0over the Group), \u00a0
associates, joint venture partners or\u00a0defined benefit\u00a0pension plan providers (the Group has\u00a0significant influence over\u00a0the entity). Further, key \u00a0
management personnel, defined as\u00a0members of the Board of Directors\u00a0and the Executive\u00a0Leadership Team, are related parties to\u00a0the Group. \u00a0
Transactions with\u00a0related parties are settled on an arm\u2019s-length basis and recognised in the financial statements\u00a0according to the same accounting \u00a0
policy as\u00a0for similar\u00a0transactions with\u00a0unrelated parties. \u00a0
Parties with significant \u00a0
Executive \u00a0
(a) Related parties \u00a0
influence* \u00a0
Associates \u00a0
Board of Directors \u00a0
Leadership Team \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
2023 \u00a0
2022 \u00a0
2023 \u00a0
2022 \u00a0
2023 \u00a0
2022 \u00a0
Loans and loan commitments \u00a0
7,060 \u00a0
7,544 \u00a0
2,065 \u00a0
2,644 \u00a0
46 \u00a0
47 \u00a0
33 \u00a0
28 \u00a0
Securities and derivatives \u00a0
1,197 \u00a0
1,035 \u00a0
10,545 \u00a0
11,698 \u00a0
-
-
-
-
Deposits \u00a0
12,353 \u00a0
9,889 \u00a0
1,358 \u00a0
1,218 \u00a0
30 \u00a0
29 \u00a0
16 \u00a0
12 \u00a0
Derivatives \u00a0
203 \u00a0
387 \u00a0
19 \u00a0
34 \u00a0
-
-
-
-
Pension obligation \u00a0
-
-
-
-
-
-
-
-
Guarantees issued \u00a0
260 \u00a0
166 \u00a0
4
6
-
-
-
-
Guarantees and collateral received \u00a0
1,131 \u00a0
288 \u00a0
308 \u00a0
192 \u00a0
33 \u00a0
31 \u00a0
23 \u00a0
16 \u00a0
Interest income \u00a0
333 \u00a0
121 \u00a0
125 \u00a0
77 \u00a0
1
1
1
-
Interest expense \u00a0
485 \u00a0
19 \u00a0
61 \u00a0
15 \u00a0
-
-
-
-
Fee income \u00a0
28 \u00a0
15 \u00a0
6
84 \u00a0
-
-
-
-
Dividend income \u00a0
242 \u00a0
125 \u00a0
-
-
-
-
-
-
Other income \u00a0
3
1
-
1
-
-
-
-
Loan impairment charges* \u00a0
1
1
-9 \u00a0
-
-
-
-
-
Trade in Danske Bank shares \u00a0
Acquisitions \u00a0
-
-
-
-
2
2
1
6
Sales \u00a0
-
-
-
-
-
-
-
-
* For parties with signifianct influence, all exposures are in stage 1. \u00a0
The Group is a listed company, with no shareholder having control over the Group. Related parties with significant influence include shareholders with \u00a0
holdings exceeding 20%\u00a0of Danske Bank A/S\u2019s share capital. The A.P. M\u00f8ller and Chastine Mc-Kinney M\u00f8ller Foundation and companies of\u00a0A.P. M\u00f8lle\u00a0r \u00a0
Holding Group,\u00a0Copenhagen, hold\u00a021.3% of\u00a0the share capital. Note G38 lists significant holdings in associates. The Board of Directors\u00a0and Executive \u00a0
Leadership Team columns list the personal facilities, deposits, etc. held by members of\u00a0the Board of\u00a0Directors and\u00a0the Executive\u00a0Leadership Team and \u00a0
their dependants,\u00a0and facilities\u00a0with businesses\u00a0in which these parties have control, joint control or significant influence. \u00a0
In 2023, the average interest rates on credit facilities\u00a0granted to members of the Board of Directors\u00a0and the Executive\u00a0Leadership Team were 2.0% \u00a0
(2022: 1.2%) and\u00a02.1% (2022: 1.7%), respectively.\u00a0Notes G35 and G36 specify the remuneration and shareholdings\u00a0of management. \u00a0
Pension funds set\u00a0up for the purpose of paying out pension benefits to employees of the Danske\u00a0Bank Group\u00a0are also considered\u00a0related parties. The \u00a0
Danske Bank Group has entered into transactions with these funds. Such transactions are not eliminated\u00a0in the consolidated\u00a0financial statements\u00a0. \u00a0
Transactions with\u00a0pension funds comprised loans in the amount of DKK 6 million\u00a0(2022: DKK 6 million), deposits amounting\u00a0to DKK\u00a062 million (2022: \u00a0
DKK 79 million), DKK 10 million worth of bonds issued (2022: DKK 10 million),\u00a0derivatives with\u00a0a positive\u00a0fair value\u00a0of DKK 0 million (2022: DKK 0 million)\u00a0, \u00a0
derivatives with\u00a0a negative\u00a0fair value of\u00a0DKK 464 million (2022: DKK 404 million), interest expenses of\u00a0DKK 2 million (2022: DKK 2 million), fee\u00a0income \u00a0
of DKK\u00a00 million\u00a0(2022: DKK 0\u00a0million) and\u00a0pension contributions\u00a0of DKK 96\u00a0million (2022: DKK 12 million). \u00a0
The figures above do not include debt to related parties in the form\u00a0of issued notes or bonds. Such notes or\u00a0bonds are bearer securities, which means \u00a0
that Danske Bank does not know the identity\u00a0of the holders. Danske Bank shares may be registered by name. Related parties\u2019 holdings of\u00a0Danske Bank \u00a0
shares equalling 5% or\u00a0more of Danske\u00a0Bank\u2019s share capital are\u00a0determined on the basis of the most recent reporting\u00a0of holdings to Danske\u00a0Bank. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4546": {
"value": "Accounting policy \u00a0
A related party to the Group\u00a0is either a party\u00a0over which the Group has control or significant influence or a party that has control or significant influence \u00a0
over the Group. All entities over which the Group has\u00a0control are\u00a0consolidated and\u00a0are therefore not considered a\u00a0related party to the Group. \u00a0
Entities that\u00a0are related\u00a0parties to the Group comprise shareholders that have a significant holding of shares (significant influence\u00a0over the Group), \u00a0
associates, joint venture partners or\u00a0defined benefit\u00a0pension plan providers (the Group has\u00a0significant influence over\u00a0the entity). Further, key \u00a0
management personnel, defined as\u00a0members of the Board of Directors\u00a0and the Executive\u00a0Leadership Team, are related parties to\u00a0the Group. \u00a0
Transactions with\u00a0related parties are settled on an arm\u2019s-length basis and recognised in the financial statements\u00a0according to the same accounting \u00a0
policy as\u00a0for similar\u00a0transactions with\u00a0unrelated parties. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithRelatedPartiesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4549": {
"value": "G35. Remuneration of management and material risk takers \u00a0
This note gives information on the total remuneration of the Group\u2019s management\u00a0in the form of the Board of Directors and the Executive Leadership Team, \u00a0
and remuneration of\u00a0other material\u00a0risk takers. This note further includes information on the Group\u2019s share-based payment.\u00a0Remuneration Report 2023 \u00a0
available at\u00a0danskebank.com/remuneration provides a detailed description of remuneration paid to the Board of Directors and the Executive Leadership team. \u00a0
(a) Remuneration\u00a0of the Board of Directors \u00a0
The Board of Directors\u00a0receive fixed remuneration and are\u00a0not covered\u00a0by any of the Group\u2019s incentive\u00a0programmes. In addition, the Directors\u00a0also receive \u00a0
a fee for board committee\u00a0membership. The Board of\u00a0Directors is\u00a0remunerated by\u00a0the parent company, Danske Bank A/S. The Group\u00a0has no pension \u00a0
obligations towards the directors. At the end of 2023 there were 12 members of the Board (2022: 13 members). \u00a0
Remuneration of\u00a0the Board of Directors \u00a0
(DKK thousands) \u00a0
2023 \u00a0
2022 \u00a0
Directors' remuneration \u00a0
10,699 \u00a0
11,156 \u00a0
Remuneration for committee work \u00a0
4,518 \u00a0
4,350 \u00a0
Total \u00a0
15,217 \u00a0
15,506 \u00a0
(b) Remuneration\u00a0of the Executive\u00a0Leadership Team \u00a0
For the Executive\u00a0Leadership Team, a\u00a0total remuneration of\u00a0DKK 130.2 million for\u00a02023 (2022: DKK 95.1 million) has\u00a0been expensed, \u00a0
Remuneration of\u00a0the Executive\u00a0Leadership Team \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Fixed remuneration \u00a0
90 \u00a0
84 \u00a0
Variable remuneration* \u00a0
40 \u00a0
11 \u00a0
Total \u00a0
130 \u00a0
95 \u00a0
* Variable\u00a0remuneration in 2023 includes sign-on fee. See Remuneration Report 2023 for details. \u00a0
At the end of 2023, the Executive\u00a0Leadership Team had 9 members (2022: 8 members). Changes in the Executive\u00a0Leadership Team\u00a0during 2023 are \u00a0
detailed in the Management Report. \u00a0
Part of the variable\u00a0remuneration of\u00a0the Executive\u00a0Leadership Team is provided as\u00a0a share\u00a0-based long-term incentive programme and deferred variable \u00a0
payments from\u00a0the short-term incentive. The incentive\u00a0programmes are further described in section (d). \u00a0
In the Remuneration\u00a0Report, the value of the long-term incentive\u00a0programme grant is the grant value of the award for the performance period 2023\u00a0- \u00a0
2025, of\u00a0which one third of the award granted is included\u00a0within total variable\u00a0remuneration in\u00a0this note. In the Remuneration\u00a0Report, the value\u00a0of the \u00a0
long-term incentive corresponds to the grant\u00a0value of\u00a0the award for the three-year performance period, 2023-2025. In accordance with EBA regulations\u00a0, \u00a0
prorated provisions\u00a0for the long-term incentive\u00a0and deferrals from the short-term\u00a0incentive, will\u00a0be paid in future financial years. \u00a0
Membership of\u00a0the Board of Directors in one or more of the Group\u2019s subsidiaries\u00a0is not remunerated\u00a0separately but\u00a0considered part of the Executive \u00a0
Leadership Team\u2019s responsibilities\u00a0and as such part of the\u00a0remuneration of\u00a0the Executive Leadership Team. Dan\u00a0ske Bank\u00a0Group\u2019s Remuneration Policy \u00a0
provides more\u00a0information about\u00a0remuneration in\u00a0the Group. The policy is available at danskebank.com/remuneration-po licy. \u00a0
G35. Remuneration of management and material risk takers continued \u00a0
(c) Remuneration\u00a0of other material\u00a0risk takers \u00a0
Danske Bank Group is required to identify all employees whose professional activities could have a material impact on the ris\u00a0k profile of Danske Bank in \u00a0
accordance with current legislation. Other material risk takers do not include members of the Board of Directors or the Executive Leadership Team. \u00a0
At the end of 2023, 429 other material risk takers were designated (end of 2022: 429 other material risk takers). During 2023 , 421 full-time-equivalents \u00a0
(FTEs) were designated as other material risk takers (2022: 451 FTEs). The 421 FTEs designated as other material risk takers earned remuneration of DKK \u00a0
1,000 million (2022: 451 FTEs earned remuneration of DKK 1,088 million), with fixed remuneration amounting to DKK 774 million\u00a0and variable remuneration \u00a0
amounting to DKK 227 million (2022: DKK 864 million and DKK 224 million, respectively).\u00a0Fixed and Variable pay for 2023 is estimated and the final figure \u00a0
is determined at the end of February, 2024. The final fixed and variable pay for material risk takers will be published in th\u00a0e quantitative\u00a0disclosure on material \u00a0
risk takers\u2019 remuneration, compliant with the Danish FSA\u00a0and EBA requirements.\u00a0The disclosure will be available at danskebank.com/remuneration in May, \u00a0
2024. \u00a0
Of the above remuneration for 2023, 271 FTEs designated as other material risk takers at the parent company, Danske Bank A/S,\u00a0earned remuneration of \u00a0
DKK 787 million (2022: DKK 830 million to 299 FTEs), with fixed remuneration amounting to DKK 588 million a\u00a0nd variable remuneration amounting to DKK \u00a0
199 million\u00a0(2022: DKK 650 million and DKK 180 million, respectively). \u00a0
The Group\u2019s pension obligations towards other material risk takers amounted to DKK 84 million to 22 employees at year -end 2023 (2022: DKK 139 million \u00a0
and 62 employees). Variable\u00a0payment for other material risk takers is split into cash and equity shares ac\u00a0cording to EBA regulations. Further, 40-60% of \u00a0
variable payments are deferred for a minimum of three years. All variable payments are subject to back testing and claw -back if granted on the basis of results \u00a0
which has subsequently\u00a0proven to not be sustainable or accurate. \u00a0
(d) Share-based\u00a0payment \u00a0
The total expense recognised as Operating\u00a0expenses in 2023 arising from share-based payments\u00a0was DKK 172 million (2022: DKK 57 million). All \u00a0
share-based payments\u00a0are equity-settled.\u00a0The exact number of shares granted for 2023\u00a0will be determined\u00a0at the end of March, 2024. \u00a0
The Group has granted rights to conditional\u00a0shares under the bonus structure\u00a0for material\u00a0risk takers and other employees\u00a0as part of their variable \u00a0
remuneration. Such\u00a0employees have a\u00a0performance agreement based on the performance of the Group, the busines\u00a0s unit\u00a0and the individual\u00a0employee. \u00a0
Part of the Danske\u00a0Bank shares granted to material risk takers\u00a0are deferred, as required by the EBA (see section (c) above on variable\u00a0payment). The fair \u00a0
value at\u00a0the grant date is measured at the monetary value of the underlying\u00a0performance agreement. \u00a0
The variable remuneration\u00a0of the Executive\u00a0Leadership Team is\u00a0provided as part of a short-term\u00a0incentive- and\u00a0a long-term\u00a0incentive programme. \u00a0
The short-term incentive programme is structured similarly\u00a0to that of other material\u00a0risk takers, as described above. However,\u00a0the righ ts\u00a0to Danske Bank \u00a0
shares are deferred for five years, followed by a one year retention period before shares are available\u00a0to trade. \u00a0
The long-term incentive programme is\u00a0based on total shareholder return performance relative\u00a0to peers over\u00a0a three -year\u00a0performance period. In 2023, \u00a0
there were three long-term incentive\u00a0programmes running.. The programmes running during 2023 were the 2021\u00a0-2023, the 2022-2024 and the 2023- \u00a0
2025. After the vesting period of\u00a0three years, part of the shares will be paid out. The remaining shares are deferred for fiv\u00a0e years from the grant date \u00a0
followed by a one year retention period before shares are available\u00a0to trade. \u00a0
The remuneration\u00a0is subject\u00a0to backtesting and claw back. \u00a0
The fair value of the long-term incentive\u00a0programmes at the grant date was DKK 6.1 million for the 2023\u00a0-2025 programme and DKK 5.6 million for\u00a0the \u00a0
2022-2024 programme. The fair\u00a0value of\u00a0the shares is calculated at\u00a0the grant date and is based on relevant as\u00a0sumptions, which\u00a0relate to volatility \u00a0
relative to peers.\u00a0The fair value at\u00a0grant date is expensed over the three-year vesting period. \u00a0
G35. Remuneration of management and material risk takers continued \u00a0
Conditional shares \u00a0
Number \u00a0
Fair value \u00a0
Fair value \u00a0
Executive \u00a0
Other \u00a0
Employee payment \u00a0
At issue \u00a0
End of year \u00a0
Leadership Team \u00a0
staff \u00a0
Total \u00a0
price (DKK) \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
Granted in\u00a02016 \u00a0
1 January 2022 \u00a0
-
239 \u00a0
239 \u00a0
-
-
-
Vested 2022 \u00a0
-
-
-
-
Forfeited 2022 \u00a0
-
-
-
-
Other changes 2022 \u00a0
-
-
-
-
31 December 2022 \u00a0
-
239 \u00a0
239 \u00a0
-
-
-
Vested 2023 \u00a0
-
-
-
-
Forfeited 2023 \u00a0
-
-
-
-
Other changes 2023 \u00a0
-
-
-
-
31 December 2023 \u00a0
-
239 \u00a0
239 \u00a0
-
-
-
Granted in\u00a02017 \u00a0
1 January 2022 \u00a0
-
5,378 \u00a0
5,378 \u00a0
-
1.3 \u00a0
1.0 \u00a0
Vested 2022 \u00a0
-
-
-
-
Forfeited 2022 \u00a0
-
-
-
-
Other changes 2022 \u00a0
-
-
-
-
31 December 2022 \u00a0
-
5,378 \u00a0
5,378 \u00a0
-
1.3 \u00a0
1.0 \u00a0
Vested 2023 \u00a0
-
-2,998 \u00a0
-2,998 \u00a0
-
Forfeited 2023 \u00a0
-
-
-
-
Other changes 2023 \u00a0
-
-
-
-
31 December 2023 \u00a0
-
2,380 \u00a0
2,380 \u00a0
-
0.6 \u00a0
0.4 \u00a0
Granted in\u00a02018 \u00a0
1 January 2022 \u00a0
7,071 \u00a0
31,794 \u00a0
38,865 \u00a0
-
9.1 \u00a0
7.0 \u00a0
Vested 2022 \u00a0
-
-3,517 \u00a0
-3,517 \u00a0
-
Forfeited 2022 \u00a0
-
-
-
-
Other changes 2022 \u00a0
-6,009 \u00a0
-14,253 \u00a0
-20,262 \u00a0
-
31 December 2022 \u00a0
1,062 \u00a0
14,024 \u00a0
15,086 \u00a0
-
3.5 \u00a0
2.7 \u00a0
Vested 2023 \u00a0
-1,062 \u00a0
-10,391 \u00a0
-11,453 \u00a0
-
Forfeited 2023 \u00a0
-
-3,075 \u00a0
-3,075 \u00a0
-
Other changes 2023 \u00a0
-
-558 \u00a0
-558 \u00a0
-
31 December 2023 \u00a0
-
-
-
-
-
-
Granted in\u00a02019 \u00a0
1 January 2022 \u00a0
40,874 \u00a0
464,167 \u00a0
505,041 \u00a0
-
62.7 \u00a0
91.1 \u00a0
Vested 2022 \u00a0
-837 \u00a0
-357,950 \u00a0
-358,787 \u00a0
-
Forfeited 2022 \u00a0
-
-13,588 \u00a0
-13,588 \u00a0
-
Other changes 2022 \u00a0
-40,037 \u00a0
-61,507 \u00a0
-101,544 \u00a0
-
31 December 2022 \u00a0
-
31,122 \u00a0
31,122 \u00a0
-
3.9 \u00a0
5.6 \u00a0
Vested 2023 \u00a0
-
-9,390 \u00a0
-9,390 \u00a0
-
Forfeited 2023 \u00a0
-
-
-
-
Other changes 2023 \u00a0
-
-19,397 \u00a0
-19,397 \u00a0
-
31 December 2023 \u00a0
-
2,335 \u00a0
2,335 \u00a0
-
0.3 \u00a0
0.4 \u00a0
Granted in\u00a02020 \u00a0
1 January 2022 \u00a0
118,852 \u00a0
692,589 \u00a0
811,441 \u00a0
-
78.4 \u00a0
146.4 \u00a0
Vested 2022 \u00a0
-
-844 \u00a0
-844 \u00a0
-
Forfeited 2022 \u00a0
-
-13,579 \u00a0
-13,579 \u00a0
-
Other changes 2022 \u00a0
-38,632 \u00a0
38,632 \u00a0
-
-
31 December 2022 \u00a0
80,220 \u00a0
716,798 \u00a0
797,018 \u00a0
-
77.0 \u00a0
143.8 \u00a0
Vested 2023 \u00a0
-2,922 \u00a0
-526,301 \u00a0
-529,223 \u00a0
-
Forfeited 2023 \u00a0
-64,350 \u00a0
-133,887 \u00a0
-198,237 \u00a0
-
Other changes 2023 \u00a0
-6,543 \u00a0
3,347 \u00a0
-3,196 \u00a0
-
31 December 2023 \u00a0
6,405 \u00a0
59,957 \u00a0
66,362 \u00a0
-
6.4 \u00a0
12.0 \u00a0
G35. Remuneration of management and material risk takers continued \u00a0
Conditional shares \u00a0
Number \u00a0
Fair value \u00a0
Fair value \u00a0
Executive \u00a0
Other \u00a0
Employee payment \u00a0
At issue \u00a0
End of year \u00a0
Leadership Team \u00a0
staff \u00a0
Total \u00a0
price (DKK) \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
Granted in\u00a02021 \u00a0
1 January 2022 \u00a0
161,622 \u00a0
713,516 \u00a0
875,138 \u00a0
-
103.2 \u00a0
157.9 \u00a0
Vested 2022 \u00a0
-
-
-
-
Forfeited 2022 \u00a0
-
-36,838 \u00a0
-36,838 \u00a0
-
Other changes 2022 \u00a0
-48,001 \u00a0
42,061 \u00a0
-5,940 \u00a0
-
31 December 2022 \u00a0
113,621 \u00a0
718,739 \u00a0
832,360 \u00a0
-
98.7 \u00a0
150.2 \u00a0
Vested 2023 \u00a0
-
-5,523 \u00a0
-5,523 \u00a0
-
Forfeited 2023 \u00a0
-
-28,586 \u00a0
-28,586 \u00a0
-
Other changes 2023 \u00a0
-769 \u00a0
125 \u00a0
-644 \u00a0
-
31 December 2023 \u00a0
112,852 \u00a0
684,755 \u00a0
797,607 \u00a0
-
94.5 \u00a0
143.9 \u00a0
Granted in\u00a02022 \u00a0
1 January 2022 \u00a0
201,501 \u00a0
1,491,389 \u00a0
1,692,890 \u00a0
-
194.3 \u00a0
305.4 \u00a0
Vested 2022 \u00a0
-
-443,007 \u00a0
-443,007 \u00a0
-
Forfeited 2022 \u00a0
-
-23,465 \u00a0
-23,465 \u00a0
-
Other changes 2022 \u00a0
-28,873 \u00a0
28,873 \u00a0
-
-
31 December 2022 \u00a0
172,628 \u00a0
1,053,790 \u00a0
1,226,418 \u00a0
-
140.7 \u00a0
221.2 \u00a0
Vested 2023 \u00a0
-7,389 \u00a0
-299,858 \u00a0
-307,247 \u00a0
-
Forfeited 2023 \u00a0
-
-14,126 \u00a0
-14,126 \u00a0
-
Other changes 2023 \u00a0
-39,217 \u00a0
2,534 \u00a0
-36,683 \u00a0
-
31 December 2023 \u00a0
126,022 \u00a0
742,340 \u00a0
868,362 \u00a0
-
99.7 \u00a0
156.7 \u00a0
Granted in\u00a02023 \u00a0
Granted in 2023 \u00a0
140,524 \u00a0
633,671 \u00a0
774,195 \u00a0
-
109.6 \u00a0
139.7 \u00a0
Vested 2023 \u00a0
-549 \u00a0
-269,062 \u00a0
-269,611 \u00a0
-
Forfeited 2023 \u00a0
-
-11,834 \u00a0
-11,834 \u00a0
-
Other changes 2023 \u00a0
-12,396 \u00a0
15,451 \u00a0
3,055 \u00a0
-
31 December 2023 \u00a0
127,579 \u00a0
368,226 \u00a0
495,805 \u00a0
-
70.2 \u00a0
89.4 \u00a0
Other staff includes material risk takers and other employees eligible for share\u00a0-based payment. \u00a0
At the end of 2023, the Executive\u00a0Leadership Team held a\u00a0total of 372,858 conditional\u00a0shares with\u00a0fair value\u00a0of DKK 67.3 million (2022: 367,531 \u00a0
conditional shares\u00a0with fair\u00a0value of\u00a0DKK 50.5\u00a0million). See Remuneration Report 2023 for further details\u00a0of the Executive\u00a0Leadership Team\u2019s holdings. \u00a0
In 2023, the average price at the vesting date for rights to conditional shares was DKK\u00a0141.5 (2022: DKK 113.3). \u00a0
G36. Danske Bank shares held by the Board of Directors and the Executive Leadership Team \u00a0
Upon \u00a0
Beginning of \u00a0
appointment/ \u00a0
(Number) \u00a0
2023 \u00a0
retirement \u00a0
Additions \u00a0
Disposals \u00a0
End of 2023 \u00a0
Board of Directors \u00a0
Martin Blessing \u00a0
15,000 \u00a0
-
6,000 \u00a0
-
21,000 \u00a0
Jan Thorsgaard Nielsen \u00a0
20,000 \u00a0
-
5,000 \u00a0
-
25,000 \u00a0
Carol Sergeant \u00a0
7,023 \u00a0
-
-
-
7,023 \u00a0
Lars-Erik Bren\u00f8e \u00a0
29,295 \u00a0
-
3,591 \u00a0
-
32,886 \u00a0
Jacob Dahl \u00a0
-
-
13,408 \u00a0
-
13,408 \u00a0
Raija-Leena Hankonen-Nybom \u00a0
5,890 \u00a0
-
2,110 \u00a0
-
8,000 \u00a0
Allan Polack \u00a0
4,466* \u00a0
-
-
-
4,466 \u00a0
Helle Valentin \u00a0
600 \u00a0
-
-
-
600 \u00a0
Bente Bang \u00a0
1,262 \u00a0
-
-
-
1,262 \u00a0
Kirsten Ebbe Brich \u00a0
3,796 \u00a0
-
-
-
3,796 \u00a0
Aleksandras Cicasovas \u00a0
-
-
600 \u00a0
-
600 \u00a0
Louise Aggerstr\u00f8m Hansen \u00a0
676 \u00a0
-
-
-
676 \u00a0
Bente Avnung Landsnes \u00a0
8,000 \u00a0
-8,000 \u00a0
-
-
-
Total \u00a0
96,008 \u00a0
-8,000 \u00a0
30,709 \u00a0
-
118,717 \u00a0
* Beginning of 2023 balance has been adjusted from 3,800 to 4,466 shares \u00a0
Executive Leadership\u00a0Team \u00a0
Carsten Rasch Egeriis \u00a0
24,474 \u00a0
-
7,087 \u00a0
-
31,561 \u00a0
Magnus Agustsson \u00a0
-
-
-
-
-
Joachim Alpen \u00a0
-
-
-
-
-
Christian Bornfeld \u00a0
8,000 \u00a0
-
-
-
8,000 \u00a0
Karsten Breum \u00a0
62,013 \u00a0
-
1,600 \u00a0
-
63,613 \u00a0
Stephan Engels \u00a0
23,000 \u00a0
-
-
-
23,000 \u00a0
Johanna Norberg \u00a0
16,307 \u00a0
-
4,385 \u00a0
-
20,692 \u00a0
Dorthe Tolborg \u00a0
-
-
5,000 \u00a0
-
5,000 \u00a0
Frans Woelders \u00a0
5,000 \u00a0
-
-
-
5,000 \u00a0
Berit Behring \u00a0
19,966 \u00a0
-19,966 \u00a0
-
-
-
Total \u00a0
158,760 \u00a0
-19,966 \u00a0
18,072 \u00a0
-
156,866 \u00a0
Danske Bank\u00a0discloses all additions, disposals and total holdings of members of the Board of Directors and the Executive\u00a0Leadership Team and their \u00a0
immediate family. The total holdings of conditional shares of the members of the Executive Leadership Team is disclosed in note G35. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4557": {
"value": "G37. Group holdings\u00a0and undertakings \u00a0
This note provides information on subsidiaries. \u00a0
Accounting policy \u00a0
The financial\u00a0statements consolidate Danske Bank A/S and group undertakings\u00a0in which the Group has control over financial and operating\u00a0policy \u00a0
decisions. Control is said to exist if Danske\u00a0Bank A/S, directly or indirectly,\u00a0is exposed, or\u00a0has rights, to variable\u00a0returns from the involvement\u00a0with the \u00a0
entity and\u00a0has the ability to affect these returns through the power over the entity.\u00a0Power exists if\u00a0Danske Bank\u00a0A/S, directly\u00a0or indirectly,\u00a0holds more \u00a0
than half of\u00a0the voting rights in\u00a0an undertaking\u00a0or otherwise has power to control management and operating policy decisions. Operating\u00a0policy control \u00a0
may be exercised through agreements about the undertaking\u2019s activities. In\u00a0the rare situations\u00a0where potential\u00a0voting rights exist, these are taken into \u00a0
account if Danske Bank has the practical ability to exercise these rights. \u00a0
When assessing whether to consolidate investment\u00a0funds, the Group reviews all\u00a0facts and circumstances\u00a0to determine\u00a0whether the Group, as\u00a0fund \u00a0
manager, is acting as agent or principal. The Group is deemed to be a principal,\u00a0and the Group controls\u00a0and consolidates\u00a0a fund when it acts as fund \u00a0
manager and cannot be removed without\u00a0cause (i.e. when kick-out rights are weak), has variable returns through significant holdings, and is able to \u00a0
influence the returns of\u00a0the funds by exercising its power. Holdings\u00a0where all returns\u00a0belong to customers (pooled schemes and unit-linked\u00a0investme n t \u00a0
contracts) are\u00a0not considered\u00a0as exposure to variable\u00a0returns, whereas holdings where the majority of the returns belong to customers (holdings related \u00a0
to insurance contracts)\u00a0are considered\u00a0only limited\u00a0exposure to variable returns. \u00a0
The consolidated financial statements are\u00a0prepared by consolidating\u00a0items of\u00a0the same nature and eliminating\u00a0intra-group transactions, balances\u00a0and \u00a0
trading profits and losses. \u00a0
Undertakings acquired\u00a0are included\u00a0in the financial\u00a0statements at\u00a0the time of acquisition.\u00a0The net\u00a0assets of such undertakings\u00a0(assets, including \u00a0
identifiable intangible assets,\u00a0less liabilities\u00a0and contingent\u00a0liabilities) are\u00a0measured at\u00a0fair value at the date of acquisition\u00a0according to\u00a0the acquisitio\u00a0n \u00a0
method. \u00a0
If the cost of acquisition\u00a0(until 1 January 2010 including direct transaction costs) exceeds the fair value of\u00a0the net\u00a0assets acquired, the excess amount \u00a0
is recognised\u00a0as goodwill. Goodwill\u00a0is recognised in the functional currency of the undertaking\u00a0acquired. The portion of the acquisition that is attributab\u00a0le \u00a0
to non-controlling\u00a0interests does not include goodwill. \u00a0
Divested undertakings are\u00a0included in the financial statements until the transfer date. Changes in\u00a0the ownership share in a\u00a0subsidiary that\u00a0do not result \u00a0
in loss\u00a0of control are accounted for as equity\u00a0transactions. This\u00a0implies that\u00a0the carrying amounts of the controlling\u00a0and non-controlling\u00a0interests are \u00a0
adjusted to reflect the changes in the relative interest in the subsidiary, and\u00a0any difference between the fair value of the consideration paid/received and \u00a0
the adjustment made to non-controlling interests is\u00a0attributed to\u00a0the shareholders\u00a0of Danske\u00a0Bank A/S. If changes in the ownership\u00a0share in a subsidiar\u00a0y \u00a0
result in the loss of control, any investment\u00a0retained in the former subsidiary is recognised at fair value,\u00a0and amounts recognised under Other \u00a0
comprehensive income are reclassified to\u00a0the income statement or\u00a0transferred directly\u00a0to retained earnings if so required by other IFRSs. The difference \u00a0
between the fair\u00a0value of the consideration received plus any investment retained in the former subsidiary and the carrying amount of\u00a0the net assets in \u00a0
the subsidiary less the carrying amounts of any non-controlling\u00a0interests is\u00a0recognised in the income statement. \u00a0
Held-for-sale group undertakings \u00a0
Companies taken over by the Group under non-performing loan agreements and actively marketed for sale\u00a0and expected to be sold within 12\u00a0months of \u00a0
classification are\u00a0recognised as held-for-sale. Assets and liabilities\u00a0in such companies\u00a0are presented under Assets held for sale and Liabilities\u00a0in disposal \u00a0
groups held for sale. The assets are recognised at the lower of cost and fair value\u00a0less expected\u00a0costs to sell. \u00a0
(a) Further\u00a0explanation \u00a0
All credit institutions\u00a0and insurance companies supervised by national FSAs are subject to local statutory capital requirements.\u00a0These requirements \u00a0
restrict intra-group facilities and dividend payouts. \u00a0
Danica Pension has an obligation to allocate part of the margin by\u00a0which Danica Pension\u2019s equity exceeds the statutory\u00a0solvency requirement to certain \u00a0
policyholders who\u00a0were previously\u00a0policyholders of\u00a0Statsanstalten for\u00a0Livsforsikring (now\u00a0part of Danica\u00a0Pension). This applies only if the margin exceeds \u00a0
the margin in Statsanstalten\u00a0for Livsforsikring\u00a0before the privatisation\u00a0in 1990 and relates to any\u00a0excess included in the\u00a0shareholders\u2019 equity or\u00a0paid out \u00a0
as dividend.\u00a0Such special\u00a0allotments are expensed and recognised under Net insurance benefits. \u00a0
Restrictions impacting the Group\u2019s ability to use assets are disclosed in note G31 and include, among others, assets pledged as\u00a0collateral under repo \u00a0
transactions funded\u00a0by covered\u00a0bonds and\u00a0assets held by insurance subsidiaries that are primarily held to satisfy obligations\u00a0to policyholders\u2019 savings. \u00a0
The Group has established\u00a0a number of investment\u00a0funds in which the Group\u00a0acts as fund manager. The Group has consolidated\u00a0investment funds of DKK \u00a0
6,357 million (2022:\u00a0DKK 6,033 million), as the Group is deemed to be acting as principal rather than agent in its role as fund manager and as the Group \u00a0
is the sole investor. The investments\u00a0are held to satisfy obligations towards insurance policyholders\u00a0and are recognised under Assets under insurance \u00a0
contracts. The Group does not have consolidated structured entities in the form of securitisation\u00a0vehicles or\u00a0asset-backed financing vehicles. \u00a0
(b) Acquisition\u00a0of subsidiary\u00a0undertaking s \u00a0
The Group did not make any acquisitions of undertakings in 2023 or 2022. \u00a0
G37. Group holdings\u00a0and undertakings continued \u00a0
(c) List of significant\u00a0subsidiaries \u00a0
Share capital \u00a0
Net profit\u00a0Shareholders' equity \u00a0
Share capital \u00a0
(thousands) \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
(%) \u00a0
Danske Bank A/S, Copenhagen \u00a0
DKK \u00a0
8,621,846 \u00a0
21,262 \u00a0
175,739 \u00a0
Credit institutions \u00a0
Danske Hypotek AB (publ), Stockholm \u00a0
SEK \u00a0
50,000 \u00a0
375 \u00a0
5,225 \u00a0
100 \u00a0
Danske Mortgage Bank\u00a0Plc, Helsinki \u00a0
EUR \u00a0
70,000 \u00a0
206 \u00a0
2,734 \u00a0
100 \u00a0
Northern Bank Limited, Belfast \u00a0
GBP \u00a0
218,170 \u00a0
1,576 \u00a0
5,892 \u00a0
100 \u00a0
Realkredit Danmark A/S, Copenhagen \u00a0
DKK \u00a0
630,000 \u00a0
4,394 \u00a0
50,223 \u00a0
100 \u00a0
Insurance operations \u00a0
Danica Pension, Livsforsikringsaktieselskab,\u00a0Copenhagen \u00a0
DKK \u00a0
1,101,000 \u00a0
1,140 \u00a0
20,525 \u00a0
100 \u00a0
Investment and real estate operations etc. \u00a0
Danica Ejendomsselskab ApS, Copenhagen \u00a0
DKK \u00a0
4,410,000 \u00a0
-1,336 \u00a0
34,738 \u00a0
100 \u00a0
Danica Kapitalforvaltning K/S \u00a0
DKK \u00a0
10,000 \u00a0
590 \u00a0
600 \u00a0
100 \u00a0
Danske Invest Asset Management AS, Trondheim \u00a0
NOK \u00a0
6,000 \u00a0
35 \u00a0
86 \u00a0
100 \u00a0
Danske Invest Management A/S, Copenhagen \u00a0
DKK \u00a0
120,000 \u00a0
130 \u00a0
377 \u00a0
100 \u00a0
Danske Leasing A/S, Birker\u00f8d \u00a0
DKK \u00a0
10,000 \u00a0
442 \u00a0
2,262 \u00a0
100 \u00a0
Danske Markets Inc., New York \u00a0
USD \u00a0
2,000 \u00a0
21 \u00a0
359 \u00a0
100 \u00a0
Danske Private Equity A/S, Copenhagen \u00a0
DKK \u00a0
6,000 \u00a0
66 \u00a0
121 \u00a0
100 \u00a0
DDB Invest AB,\u00a0Stockholm \u00a0
SEK \u00a0
100,000 \u00a0
2
159 \u00a0
100 \u00a0
home a/s, \u00c5byh\u00f8j \u00a0
DKK \u00a0
15,000 \u00a0
21 \u00a0
124 \u00a0
100 \u00a0
The list\u00a0above includes significant active subsidiary operations only. \u00a0
During 2023,\u00a0the Group sold Danske IT, a\u00a0fully-owned subsidiary in India, to Infosys. See note G23 for more information. In addition, the voluntary solvent \u00a0
liquidation of\u00a0the Danske Bank International S.A. in Luxembourg was completed during the third quarter of 2023. \u00a0
As of 31 December 2023, Danske\u00a0Finance Oy (Finland) no longer exists as it has been merged with Danske Bank A/S. \u00a0
The Group\u00b4s ownership share of the other subsidiaries is unchanged from 2022 to 2023. The financial information above is extracted from the companies\u00b4 \u00a0
most recent annual reports prior to 2 February 2024. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4559": {
"value": "Accounting policy \u00a0
The financial\u00a0statements consolidate Danske Bank A/S and group undertakings\u00a0in which the Group has control over financial and operating\u00a0policy \u00a0
decisions. Control is said to exist if Danske\u00a0Bank A/S, directly or indirectly,\u00a0is exposed, or\u00a0has rights, to variable\u00a0returns from the involvement\u00a0with the \u00a0
entity and\u00a0has the ability to affect these returns through the power over the entity.\u00a0Power exists if\u00a0Danske Bank\u00a0A/S, directly\u00a0or indirectly,\u00a0holds more \u00a0
than half of\u00a0the voting rights in\u00a0an undertaking\u00a0or otherwise has power to control management and operating policy decisions. Operating\u00a0policy control \u00a0
may be exercised through agreements about the undertaking\u2019s activities. In\u00a0the rare situations\u00a0where potential\u00a0voting rights exist, these are taken into \u00a0
account if Danske Bank has the practical ability to exercise these rights. \u00a0
When assessing whether to consolidate investment\u00a0funds, the Group reviews all\u00a0facts and circumstances\u00a0to determine\u00a0whether the Group, as\u00a0fund \u00a0
manager, is acting as agent or principal. The Group is deemed to be a principal,\u00a0and the Group controls\u00a0and consolidates\u00a0a fund when it acts as fund \u00a0
manager and cannot be removed without\u00a0cause (i.e. when kick-out rights are weak), has variable returns through significant holdings, and is able to \u00a0
influence the returns of\u00a0the funds by exercising its power. Holdings\u00a0where all returns\u00a0belong to customers (pooled schemes and unit-linked\u00a0investme n t \u00a0
contracts) are\u00a0not considered\u00a0as exposure to variable\u00a0returns, whereas holdings where the majority of the returns belong to customers (holdings related \u00a0
to insurance contracts)\u00a0are considered\u00a0only limited\u00a0exposure to variable returns. \u00a0
The consolidated financial statements are\u00a0prepared by consolidating\u00a0items of\u00a0the same nature and eliminating\u00a0intra-group transactions, balances\u00a0and \u00a0
trading profits and losses. \u00a0
Undertakings acquired\u00a0are included\u00a0in the financial\u00a0statements at\u00a0the time of acquisition.\u00a0The net\u00a0assets of such undertakings\u00a0(assets, including \u00a0
identifiable intangible assets,\u00a0less liabilities\u00a0and contingent\u00a0liabilities) are\u00a0measured at\u00a0fair value at the date of acquisition\u00a0according to\u00a0the acquisitio\u00a0n \u00a0
method. \u00a0
If the cost of acquisition\u00a0(until 1 January 2010 including direct transaction costs) exceeds the fair value of\u00a0the net\u00a0assets acquired, the excess amount \u00a0
is recognised\u00a0as goodwill. Goodwill\u00a0is recognised in the functional currency of the undertaking\u00a0acquired. The portion of the acquisition that is attributab\u00a0le \u00a0
to non-controlling\u00a0interests does not include goodwill. \u00a0
Divested undertakings are\u00a0included in the financial statements until the transfer date. Changes in\u00a0the ownership share in a\u00a0subsidiary that\u00a0do not result \u00a0
in loss\u00a0of control are accounted for as equity\u00a0transactions. This\u00a0implies that\u00a0the carrying amounts of the controlling\u00a0and non-controlling\u00a0interests are \u00a0
adjusted to reflect the changes in the relative interest in the subsidiary, and\u00a0any difference between the fair value of the consideration paid/received and \u00a0
the adjustment made to non-controlling interests is\u00a0attributed to\u00a0the shareholders\u00a0of Danske\u00a0Bank A/S. If changes in the ownership\u00a0share in a subsidiar\u00a0y \u00a0
result in the loss of control, any investment\u00a0retained in the former subsidiary is recognised at fair value,\u00a0and amounts recognised under Other \u00a0
comprehensive income are reclassified to\u00a0the income statement or\u00a0transferred directly\u00a0to retained earnings if so required by other IFRSs. The difference \u00a0
between the fair\u00a0value of the consideration received plus any investment retained in the former subsidiary and the carrying amount of\u00a0the net assets in \u00a0
the subsidiary less the carrying amounts of any non-controlling\u00a0interests is\u00a0recognised in the income statement. \u00a0
Held-for-sale group undertakings \u00a0
Companies taken over by the Group under non-performing loan agreements and actively marketed for sale\u00a0and expected to be sold within 12\u00a0months of \u00a0
classification are\u00a0recognised as held-for-sale. Assets and liabilities\u00a0in such companies\u00a0are presented under Assets held for sale and Liabilities\u00a0in disposal \u00a0
groups held for sale. The assets are recognised at the lower of cost and fair value\u00a0less expected\u00a0costs to sell. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4561": {
"value": "Accounting policy \u00a0
The financial\u00a0statements consolidate Danske Bank A/S and group undertakings\u00a0in which the Group has control over financial and operating\u00a0policy \u00a0
decisions. Control is said to exist if Danske\u00a0Bank A/S, directly or indirectly,\u00a0is exposed, or\u00a0has rights, to variable\u00a0returns from the involvement\u00a0with the \u00a0
entity and\u00a0has the ability to affect these returns through the power over the entity.\u00a0Power exists if\u00a0Danske Bank\u00a0A/S, directly\u00a0or indirectly,\u00a0holds more \u00a0
than half of\u00a0the voting rights in\u00a0an undertaking\u00a0or otherwise has power to control management and operating policy decisions. Operating\u00a0policy control \u00a0
may be exercised through agreements about the undertaking\u2019s activities. In\u00a0the rare situations\u00a0where potential\u00a0voting rights exist, these are taken into \u00a0
account if Danske Bank has the practical ability to exercise these rights. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4564": {
"value": "(c) List of significant\u00a0subsidiaries \u00a0
Share capital \u00a0
Net profit\u00a0Shareholders' equity \u00a0
Share capital \u00a0
(thousands) \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
(%) \u00a0
Danske Bank A/S, Copenhagen \u00a0
DKK \u00a0
8,621,846 \u00a0
21,262 \u00a0
175,739 \u00a0
Credit institutions \u00a0
Danske Hypotek AB (publ), Stockholm \u00a0
SEK \u00a0
50,000 \u00a0
375 \u00a0
5,225 \u00a0
100 \u00a0
Danske Mortgage Bank\u00a0Plc, Helsinki \u00a0
EUR \u00a0
70,000 \u00a0
206 \u00a0
2,734 \u00a0
100 \u00a0
Northern Bank Limited, Belfast \u00a0
GBP \u00a0
218,170 \u00a0
1,576 \u00a0
5,892 \u00a0
100 \u00a0
Realkredit Danmark A/S, Copenhagen \u00a0
DKK \u00a0
630,000 \u00a0
4,394 \u00a0
50,223 \u00a0
100 \u00a0
Insurance operations \u00a0
Danica Pension, Livsforsikringsaktieselskab,\u00a0Copenhagen \u00a0
DKK \u00a0
1,101,000 \u00a0
1,140 \u00a0
20,525 \u00a0
100 \u00a0
Investment and real estate operations etc. \u00a0
Danica Ejendomsselskab ApS, Copenhagen \u00a0
DKK \u00a0
4,410,000 \u00a0
-1,336 \u00a0
34,738 \u00a0
100 \u00a0
Danica Kapitalforvaltning K/S \u00a0
DKK \u00a0
10,000 \u00a0
590 \u00a0
600 \u00a0
100 \u00a0
Danske Invest Asset Management AS, Trondheim \u00a0
NOK \u00a0
6,000 \u00a0
35 \u00a0
86 \u00a0
100 \u00a0
Danske Invest Management A/S, Copenhagen \u00a0
DKK \u00a0
120,000 \u00a0
130 \u00a0
377 \u00a0
100 \u00a0
Danske Leasing A/S, Birker\u00f8d \u00a0
DKK \u00a0
10,000 \u00a0
442 \u00a0
2,262 \u00a0
100 \u00a0
Danske Markets Inc., New York \u00a0
USD \u00a0
2,000 \u00a0
21 \u00a0
359 \u00a0
100 \u00a0
Danske Private Equity A/S, Copenhagen \u00a0
DKK \u00a0
6,000 \u00a0
66 \u00a0
121 \u00a0
100 \u00a0
DDB Invest AB,\u00a0Stockholm \u00a0
SEK \u00a0
100,000 \u00a0
2
159 \u00a0
100 \u00a0
home a/s, \u00c5byh\u00f8j \u00a0
DKK \u00a0
15,000 \u00a0
21 \u00a0
124 \u00a0
100 \u00a0
The list\u00a0above includes significant active subsidiary operations only. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4565": {
"value": "During 2023,\u00a0the Group sold Danske IT, a\u00a0fully-owned subsidiary in India, to Infosys. See note G23 for more information. In addition, the voluntary solvent \u00a0
liquidation of\u00a0the Danske Bank International S.A. in Luxembourg was completed during the third quarter of 2023. \u00a0
As of 31 December 2023, Danske\u00a0Finance Oy (Finland) no longer exists as it has been merged with Danske Bank A/S. \u00a0
The Group\u00b4s ownership share of the other subsidiaries is unchanged from 2022 to 2023. The financial information above is extracted from the companies\u00b4 \u00a0
most recent annual reports prior to 2 February 2024. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4566": {
"value": "G38. Interests in associates and joint arrangements \u00a0
This note provides information\u00a0about the Group\u2019s interests in\u00a0associates and joint arrangements. \u00a0
Accounting policy \u00a0
Joint ventures and associates are entities other than group undertakings in which the Group has holdings and joint\u00a0control with one\u00a0or more parties\u00a0or \u00a0
significant but not controlling\u00a0influence, respectively. The Group generally classifies entities as\u00a0joint ventures/associates if Danske Bank A/S, directly or \u00a0
indirectly, holds 20-50% of the share capital and has influence over management and operating policy decisions. Holdings in joint ventures and associates \u00a0
are recognised at cost at the\u00a0date of acquisition and are subsequently measured according to the equity method. The proportionate share of the net profit or \u00a0
loss of the individual\u00a0entity is\u00a0included under Income from holdings in associates. The share is calculated on the basis of data from financial statements with \u00a0
balance sheet\u00a0dates no earlier than three months before the Group\u2019s balance sheet date. If objective evidence of impairment exists, the investment is \u00a0
recognised at the\u00a0lower of carrying amount and the present value of future cash flows. \u00a0
The proportionate share of the profit or loss on transactions between associates/joint ventures and group undertakings\u00a0is eliminated. \u00a0
Ownership shares held by the Group\u2019s insurance business are treated as held by a venture capital organisation and are measured at fair value. \u00a0
Shareholders' \u00a0
Share \u00a0
Share capital \u00a0
Net profit \u00a0
equity \u00a0
capital \u00a0
(thousands) \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
(%) \u00a0
Vipps MobilePay, Oslo \u00a0
NOK \u00a0
23,123 \u00a0
-79 \u00a0
1,721 \u00a0
27.8 \u00a0
The financial information above is extracted from\u00a0the most recent annual reports prior to 2 February 2024. \u00a0
The total carrying amount of holdings in associates amounted to DKK 612 million (2022: DKK 536 million) and is presented under Other assets in note \u00a0
G24. The list above includes significant associates held at end 2023. \u00a0
In October 2022, the agreement between Danske\u00a0Bank and the consortium\u00a0of banks\u00a0behind Vipps to me\u00a0rge MobilePay\u00a0and Vipps\u00a0was approved by all \u00a0
relevant authorities, including the EU\u00a0Commission. The parties completed the transaction during the\u00a0fourth quarter of 2022, resulting\u00a0in a gain\u00a0DKK 415 \u00a0
million for\u00a0Danske Bank. Danske Bank\u00a0now owns 27.8% of the new parent company, Vipps AS, which is classified as a joint venture. \u00a0
The Group does\u00a0not have any other significant holdings in joint ventures or\u00a0joint operations. \u00a0
There are no other\u00a0significant restrictions on the ability of\u00a0associates to transfer funds\u00a0to Danske Bank Group in the form of dividends\u00a0or to repay loans \u00a0
granted. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4567": {
"value": "G38. Interests in associates and joint arrangements \u00a0
This note provides information\u00a0about the Group\u2019s interests in\u00a0associates and joint arrangements. \u00a0
Accounting policy \u00a0
Joint ventures and associates are entities other than group undertakings in which the Group has holdings and joint\u00a0control with one\u00a0or more parties\u00a0or \u00a0
significant but not controlling\u00a0influence, respectively. The Group generally classifies entities as\u00a0joint ventures/associates if Danske Bank A/S, directly or \u00a0
indirectly, holds 20-50% of the share capital and has influence over management and operating policy decisions. Holdings in joint ventures and associates \u00a0
are recognised at cost at the\u00a0date of acquisition and are subsequently measured according to the equity method. The proportionate share of the net profit or \u00a0
loss of the individual\u00a0entity is\u00a0included under Income from holdings in associates. The share is calculated on the basis of data from financial statements with \u00a0
balance sheet\u00a0dates no earlier than three months before the Group\u2019s balance sheet date. If objective evidence of impairment exists, the investment is \u00a0
recognised at the\u00a0lower of carrying amount and the present value of future cash flows. \u00a0
The proportionate share of the profit or loss on transactions between associates/joint ventures and group undertakings\u00a0is eliminated. \u00a0
Ownership shares held by the Group\u2019s insurance business are treated as held by a venture capital organisation and are measured at fair value. \u00a0
Shareholders' \u00a0
Share \u00a0
Share capital \u00a0
Net profit \u00a0
equity \u00a0
capital \u00a0
(thousands) \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
(%) \u00a0
Vipps MobilePay, Oslo \u00a0
NOK \u00a0
23,123 \u00a0
-79 \u00a0
1,721 \u00a0
27.8 \u00a0
The financial information above is extracted from\u00a0the most recent annual reports prior to 2 February 2024. \u00a0
The total carrying amount of holdings in associates amounted to DKK 612 million (2022: DKK 536 million) and is presented under Other assets in note \u00a0
G24. The list above includes significant associates held at end 2023. \u00a0
In October 2022, the agreement between Danske\u00a0Bank and the consortium\u00a0of banks\u00a0behind Vipps to me\u00a0rge MobilePay\u00a0and Vipps\u00a0was approved by all \u00a0
relevant authorities, including the EU\u00a0Commission. The parties completed the transaction during the\u00a0fourth quarter of 2022, resulting\u00a0in a gain\u00a0DKK 415 \u00a0
million for\u00a0Danske Bank. Danske Bank\u00a0now owns 27.8% of the new parent company, Vipps AS, which is classified as a joint venture. \u00a0
The Group does\u00a0not have any other significant holdings in joint ventures or\u00a0joint operations. \u00a0
There are no other\u00a0significant restrictions on the ability of\u00a0associates to transfer funds\u00a0to Danske Bank Group in the form of dividends\u00a0or to repay loans \u00a0
granted. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfJointVenturesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4568": {
"value": "G38. Interests in associates and joint arrangements \u00a0
This note provides information\u00a0about the Group\u2019s interests in\u00a0associates and joint arrangements. \u00a0
Accounting policy \u00a0
Joint ventures and associates are entities other than group undertakings in which the Group has holdings and joint\u00a0control with one\u00a0or more parties\u00a0or \u00a0
significant but not controlling\u00a0influence, respectively. The Group generally classifies entities as\u00a0joint ventures/associates if Danske Bank A/S, directly or \u00a0
indirectly, holds 20-50% of the share capital and has influence over management and operating policy decisions. Holdings in joint ventures and associates \u00a0
are recognised at cost at the\u00a0date of acquisition and are subsequently measured according to the equity method. The proportionate share of the net profit or \u00a0
loss of the individual\u00a0entity is\u00a0included under Income from holdings in associates. The share is calculated on the basis of data from financial statements with \u00a0
balance sheet\u00a0dates no earlier than three months before the Group\u2019s balance sheet date. If objective evidence of impairment exists, the investment is \u00a0
recognised at the\u00a0lower of carrying amount and the present value of future cash flows. \u00a0
The proportionate share of the profit or loss on transactions between associates/joint ventures and group undertakings\u00a0is eliminated. \u00a0
Ownership shares held by the Group\u2019s insurance business are treated as held by a venture capital organisation and are measured at fair value. \u00a0
Shareholders' \u00a0
Share \u00a0
Share capital \u00a0
Net profit \u00a0
equity \u00a0
capital \u00a0
(thousands) \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
(%) \u00a0
Vipps MobilePay, Oslo \u00a0
NOK \u00a0
23,123 \u00a0
-79 \u00a0
1,721 \u00a0
27.8 \u00a0
The financial information above is extracted from\u00a0the most recent annual reports prior to 2 February 2024. \u00a0
The total carrying amount of holdings in associates amounted to DKK 612 million (2022: DKK 536 million) and is presented under Other assets in note \u00a0
G24. The list above includes significant associates held at end 2023. \u00a0
In October 2022, the agreement between Danske\u00a0Bank and the consortium\u00a0of banks\u00a0behind Vipps to me\u00a0rge MobilePay\u00a0and Vipps\u00a0was approved by all \u00a0
relevant authorities, including the EU\u00a0Commission. The parties completed the transaction during the\u00a0fourth quarter of 2022, resulting\u00a0in a gain\u00a0DKK 415 \u00a0
million for\u00a0Danske Bank. Danske Bank\u00a0now owns 27.8% of the new parent company, Vipps AS, which is classified as a joint venture. \u00a0
The Group does\u00a0not have any other significant holdings in joint ventures or\u00a0joint operations. \u00a0
There are no other\u00a0significant restrictions on the ability of\u00a0associates to transfer funds\u00a0to Danske Bank Group in the form of dividends\u00a0or to repay loans \u00a0
granted. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4569": {
"value": "G38. Interests in associates and joint arrangements \u00a0
This note provides information\u00a0about the Group\u2019s interests in\u00a0associates and joint arrangements. \u00a0
Accounting policy \u00a0
Joint ventures and associates are entities other than group undertakings in which the Group has holdings and joint\u00a0control with one\u00a0or more parties\u00a0or \u00a0
significant but not controlling\u00a0influence, respectively. The Group generally classifies entities as\u00a0joint ventures/associates if Danske Bank A/S, directly or \u00a0
indirectly, holds 20-50% of the share capital and has influence over management and operating policy decisions. Holdings in joint ventures and associates \u00a0
are recognised at cost at the\u00a0date of acquisition and are subsequently measured according to the equity method. The proportionate share of the net profit or \u00a0
loss of the individual\u00a0entity is\u00a0included under Income from holdings in associates. The share is calculated on the basis of data from financial statements with \u00a0
balance sheet\u00a0dates no earlier than three months before the Group\u2019s balance sheet date. If objective evidence of impairment exists, the investment is \u00a0
recognised at the\u00a0lower of carrying amount and the present value of future cash flows. \u00a0
The proportionate share of the profit or loss on transactions between associates/joint ventures and group undertakings\u00a0is eliminated. \u00a0
Ownership shares held by the Group\u2019s insurance business are treated as held by a venture capital organisation and are measured at fair value. \u00a0
Shareholders' \u00a0
Share \u00a0
Share capital \u00a0
Net profit \u00a0
equity \u00a0
capital \u00a0
(thousands) \u00a0
(DKK m) \u00a0
(DKK m) \u00a0
(%) \u00a0
Vipps MobilePay, Oslo \u00a0
NOK \u00a0
23,123 \u00a0
-79 \u00a0
1,721 \u00a0
27.8 \u00a0
The financial information above is extracted from\u00a0the most recent annual reports prior to 2 February 2024. \u00a0
The total carrying amount of holdings in associates amounted to DKK 612 million (2022: DKK 536 million) and is presented under Other assets in note \u00a0
G24. The list above includes significant associates held at end 2023. \u00a0
In October 2022, the agreement between Danske\u00a0Bank and the consortium\u00a0of banks\u00a0behind Vipps to me\u00a0rge MobilePay\u00a0and Vipps\u00a0was approved by all \u00a0
relevant authorities, including the EU\u00a0Commission. The parties completed the transaction during the\u00a0fourth quarter of 2022, resulting\u00a0in a gain\u00a0DKK 415 \u00a0
million for\u00a0Danske Bank. Danske Bank\u00a0now owns 27.8% of the new parent company, Vipps AS, which is classified as a joint venture. \u00a0
The Group does\u00a0not have any other significant holdings in joint ventures or\u00a0joint operations. \u00a0
There are no other\u00a0significant restrictions on the ability of\u00a0associates to transfer funds\u00a0to Danske Bank Group in the form of dividends\u00a0or to repay loans \u00a0
granted. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4570": {
"value": "Accounting policy \u00a0
Joint ventures and associates are entities other than group undertakings in which the Group has holdings and joint\u00a0control with one\u00a0or more parties\u00a0or \u00a0
significant but not controlling\u00a0influence, respectively. The Group generally classifies entities as\u00a0joint ventures/associates if Danske Bank A/S, directly or \u00a0
indirectly, holds 20-50% of the share capital and has influence over management and operating policy decisions. Holdings in joint ventures and associates \u00a0
are recognised at cost at the\u00a0date of acquisition and are subsequently measured according to the equity method. The proportionate share of the net profit or \u00a0
loss of the individual\u00a0entity is\u00a0included under Income from holdings in associates. The share is calculated on the basis of data from financial statements with \u00a0
balance sheet\u00a0dates no earlier than three months before the Group\u2019s balance sheet date. If objective evidence of impairment exists, the investment is \u00a0
recognised at the\u00a0lower of carrying amount and the present value of future cash flows. \u00a0
The proportionate share of the profit or loss on transactions between associates/joint ventures and group undertakings\u00a0is eliminated. \u00a0
Ownership shares held by the Group\u2019s insurance business are treated as held by a venture capital organisation and are measured at fair value. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4576": {
"value": "G40. Risk management\u00a0notes \u00a0
The Danske Bank Group assumes risks to\u00a0support the activities of\u00a0the Group\u2019s customers, while ensuring stability\u00a0of the Group\u2019s financial pos\u00a0ition to\u00a0the \u00a0
benefit of a\u00a0shareholders, society,\u00a0customers and employees. The\u00a0Group applies an\u00a0enterprise risk management (ERM) framework approach that sets \u00a0
common standards\u00a0for how the Group manages risk across all risk types\u00a0and organisational entities.\u00a0The framework defines the Group\u2019s risk taxonomy, \u00a0
risk roles and responsibilities,\u00a0risk governance, approach to risk appetite\u00a0, and\u00a0risk culture.\u00a0The framework is supported by policies approved by\u00a0the Board \u00a0
of Directors. \u00a0
Risk management \u00a0
The Group\u2019s risk management practices are organised in line with the principles\u00a0of the three\u00a0-lines-of-defence model. The three lines of defence segregate \u00a0
duties between\u00a01) units\u00a0that enter into business transactions with customers or otherwise expose the Group to risk (risk ownership), 2) units in charge \u00a0
of risk oversight\u00a0and challenge in respect of risk owners (risk oversight), and 3) Group Internal Audit (risk assurance). \u00a0
The first line of defence owns and manages the business activities\u00a0and related risks. It consists of business units and support functions, which are \u00a0
responsible for identifying,\u00a0assessing, managing and\u00a0reporting risks,\u00a0in line with delegated\u00a0responsibilities and\u00a0policies as set by the second line of defence \u00a0
and approved by\u00a0the Board of\u00a0Directors. \u00a0
The second line of defence consists of Group Risk Management\u00a0and Group Compliance.\u00a0These units\u00a0set policies\u00a0and the overall risk management. The \u00a0
second line of defence supports, challenges and is responsible for the risk oversight of the first line of defence, and operates independently\u00a0of the first \u00a0
line of defence. The second line of defence has the authority to veto any decisions proposed by the first line of defence tha\u00a0t fall\u00a0outside the set\u00a0risk appetite \u00a0
or are not aligned with agreed policies. \u00a0
The chief risk officer (CRO)\u00a0as head of Group Risk Management and the chief compliance officer (CCO) as head of Group Compliance are r\u00a0esponsible for \u00a0
the independent\u00a0risk and\u00a0compliance functions. The CRO and CCO are both members of\u00a0the Executive Leadership Team (ELT).\u00a0In cooperation\u00a0with and \u00a0
under the responsibility\u00a0of the chief executive\u00a0officer (CEO), the CRO and CCO submit risk and compliance reports to the ELT and Board of Directors. \u00a0
Group Risk\u00a0Management is\u00a0organised in risk functions with group-wide risk type oversight responsibility.\u00a0Furthermore, each\u00a0business unit is assigned a \u00a0
separate CRO who has oversight responsibility\u00a0across all risk types for their unit. \u00a0
Group Compliance is\u00a0responsible for monitoring\u00a0and assessing the Group\u2019s compliance with applicable\u00a0laws, rules and regulatio\u00a0ns. Group Complianc\u00a0e \u00a0
has specific second-line responsibility\u00a0for organising compliance\u00a0training, providing independent advice,\u00a0guidance and challenge, undertaking\u00a0ris k \u00a0
assessments and risk-based monitoring, and providing independent reporting to\u00a0senior management and\u00a0the Boar\u00a0d of Directors on compliance risks and \u00a0
issues. Group Compliance also\u00a0undertakes compliance oversight\u00a0assessments to evaluate the\u00a0adequacy and\u00a0effectiveness of\u00a0other risk management \u00a0
frameworks. \u00a0
The third line of defence consists of Group Internal Audit (GIA). GIA is an\u00a0independent and\u00a0objective assurance entity that\u00a0a ssists\u00a0the Board of Director\u00a0s \u00a0
and the ELT in protecting\u00a0the assets, reputation\u00a0and sustainability\u00a0of the Group by evaluating\u00a0the ef\u00a0fectiveness of\u00a0risk management, controls and \u00a0
governance. GIA\u00a0is headed by the chief audit executive (CAE) who\u00a0reports directly to\u00a0the Board of Directors. \u00a0
The Management\u2019s report and Risk Management\u00a02023 provide\u00a0a detailed description\u00a0of Danske\u00a0Bank Group\u2019s risk management\u00a0practices, including non- \u00a0
financial risk. Risk Management\u00a02023 is available\u00a0at danskebank.com/reports. The publication\u00a0is not covered by the statutory audit. \u00a0
Risk governance \u00a0
The Board of Directors\u00a0approves the Group\u2019s risk appetite, policies and instructions on the basis of recommendation\u00a0of the EL T. In\u00a0addition the Board of \u00a0
Directors receives regular reports, oversees the\u00a0main risks, and reviews the largest credit exposures. \u00a0
The ELT is\u00a0responsible for the Group\u2019s day-to-day management. It\u00a0supervises the Group\u2019s risk\u00a0management practices, oversees developments\u00a0in Group \u00a0
Compliance\u2019s methods, approves credit applications\u00a0up to a defined limit,\u00a0and ensures that bookkeeping\u00a0and ass\u00a0et management are both sound and \u00a0
consistent with the Group\u2019s strategy and in compliance with applicable legislation. \u00a0
Risk exposure \u00a0
The risk taxonomy\u00a0organises and visualises\u00a0the most material risk types applicable\u00a0to the Group and is intended\u00a0to ensure ade\u00a0quate risk identificatio\u00a0n \u00a0
and ownership across the Group.\u00a0The risk types\u00a0cover both financial and non-financial risks. The taxonomy\u00a0is reviewed\u00a0on an annual basis to ensure its \u00a0
relevance. \u00a0
The main categories of risks are the following: \u00a0
\u2022
Credit risk: The risk of losses because debtors or counterparties\u00a0fail to meet all or part of their payment obligations\u00a0to the Group. \u00a0
\u2022
Market risk:\u00a0The risk of losses because the fair value of the Group\u2019s assets, liabilities and off-balance-sheet items varies with changes in market \u00a0
conditions. \u00a0
\u2022
Liquidity risk:\u00a0The risk that\u00a0a lack of funding leads to excessive costs or prevents\u00a0the Group\u00a0from maintaining\u00a0its business\u00a0model, or from fulfilling\u00a0its \u00a0
payment obligations. \u00a0
\u2022
Life insurance\u00a0risk: All types of risk at Danica Pension, including\u00a0pension-related market\u00a0risk, insurance risk and operational\u00a0risk and ESG risk. \u00a0
\u2022
Non-financial risks:\u00a0The risk of\u00a0financial losses\u00a0or gains, regulatory\u00a0impact, reputational impact or customer impact resulting\u00a0from inadequate\u00a0or \u00a0
failed internal processes, people or systems or from external events, including legal and compliance risks. \u00a0
Cross-taxonomy risk drivers are elements that can\u00a0impact all the risk types listed in the risk taxonomy.\u00a0These must be considered as part of\u00a0the risk \u00a0
assessment process, as they can affect the size of the risk. Cross-taxonomy\u00a0risk drivers\u00a0include Conduct risk and Sustainability\u00a0risk. As an example, the \u00a0
Group defines sustainability\u00a0risk as the risk of a significant negative impact on the Group\u2019s performance \u2013 including financial and reputational impacts \u2013 \u00a0
as a result of current or future environmental,\u00a0social and governance\u00a0(ESG) events or conditions. \u00a0
Danica Pension is a wholly-owned\u00a0subsidiary of\u00a0Danske Bank A/S. As required by Danish\u00a0law and the Danish Executive\u00a0Order on the Contribution\u00a0Principle , \u00a0
Danica Pension has notified the Danish Financial Supervisory Authority\u00a0(the Danish\u00a0FSA) of its profit policy. The contribution\u00a0principle and\u00a0the profit policy \u00a0
mean that policyholders\u00a0assume risks and receive the returns on assets allocated to them. Assets are allocated\u00a0to policyholders\u00a0to secure their \u00a0
guaranteed benefits. Market risk\u00a0and other risks on assets and liabilities\u00a0allocated to policyholders\u00a0are therefore not consolidated\u00a0in the tables of this \u00a0
section, but are treated in the section on\u00a0life insurance risk. \u00a0
Total capital \u00a0
Capital risk is the risk of not having\u00a0enough capital to\u00a0cover all material risks arising from\u00a0the Group\u2019s chosen\u00a0business st\u00a0rategy. \u00a0
The Danske Bank Group (the Group) has licences to provide\u00a0financial services and must therefore comply with the capital requirements\u00a0of the Capital \u00a0
Requirements Regulation (CRR) and the Danish Financial Business Act. The Danish rules are\u00a0based on the EU Capital Requirement\u00a0s Directive (CRD)\u00a0and \u00a0
apply to both Danske\u00a0Bank A/S (the Parent Company) and the Group. Similarly, the Group\u2019s financial subsidiaries\u00a0in and outside Denmark must comply \u00a0
with local capital requirements.\u00a0The regulatory requirements stipulate a\u00a0minimum capital\u00a0level of\u00a08% of the total risk exposu re amount\u00a0(REA) under Pillar \u00a0
I (including\u00a0risk exposure amounts\u00a0for credit risk, counterparty credit risk, market risk and operational risk). In addition,\u00a0f inancial institutions\u00a0are required \u00a0
to calculate their solvency need\u00a0under Pillar II to\u00a0reflect all relevant risks. As stipulated in the CRD, a\u00a0combined buffer\u00a0requirement (CBR) applies to \u00a0
financial institutions\u00a0in addition to\u00a0the solvency need ratio. The Group\u2019s CBR consists of\u00a0a systemic risk buffer, a counterc\u00a0yclical buffer,\u00a0a capital \u00a0
conservation buffer\u00a0and a SIFI buffer and must be funded with common equity tier 1 (CET1) capital.\u00a0Because Danske\u00a0Bank A/S is designated\u00a0a systemically \u00a0
important financial institution\u00a0(SIFI) in Denmark,\u00a0the Group must meet a SIFI buffer requirement\u00a0of 3%. \u00a0
The Group\u2019s total capital consists of tier 1 capital (share capital and additional tier 1 capital after deductions)\u00a0and tier 2 capital\u00a0(subordinated loan\u00a0capital \u00a0
after deductions). \u00a0
The Group\u2019s CET1 capital is\u00a0based on the carrying amount of shareholders\u2019 equity and\u00a0adjusted with the following main deductions. \u00a0
\u2022
Adjustments to\u00a0eligible capital instruments \u00a0
\u2022
Deferred tax assets that rely on future profitability \u00a0
\u2022
Defined benefit\u00a0pension fund\u00a0assets \u00a0
\u2022
Intangible assets\u00a0of banking\u00a0operations, including goodwill \u00a0
\u2022
Minimum loss coverage for non-performing exposures \u00a0
\u2022
Expected/proposed dividends \u00a0
\u2022
Prudent valuation \u00a0
\u2022
Prudential filters \u00a0
\u2022
Reversal of\u00a0the effect\u00a0of IFRS 9 (expected\u00a0credit losses) implementation\u00a0due to transitional\u00a0rules \u00a0
\u2022
Statutory deductions\u00a0for insurance subsidiaries \u00a0
The presentation\u00a0of the Group\u2019s total capital in the statement\u00a0of capital\u00a0shows the difference between the carrying amount of shareholders\u2019 equity and \u00a0
CET1 capital. At the end of 2023, the Group\u2019s CET1 capital amounted to DKK 155.3 billion (2022: DKK 149.2 billion), and\u00a0its CET1 capital ratio was \u00a0
18.8% (2022: 17.8%) \u00a0
The Group\u2019s additional tier 1\u00a0capital and tier 2 capital may, subject to certain conditions, be\u00a0included in total capital. Th\u00a0e conditions are described in the \u00a0
CRR. Notes G22 and G25 show additional tier 1 capital and tier 2 capital. At the end of\u00a02023, the Group\u2019s total capital was DKK 190.9 billion (2022: \u00a0
DKK 185.3\u00a0billion), and its total capital ratio was 23.1% (2022: 22.1%). The Group\u2019s tier 1 capital was DKK 170.1 billion (20\u00a022: DKK 164.5 billion), and \u00a0
its tier 1 capital ratio was 20.5% (2022: 19.6%). \u00a0
Internal Capital Adequacy Assessment 2023 provides a\u00a0description of\u00a0the Group\u2019s solvency need. \u00a0
The target\u00a0for the CET1 capital\u00a0ratio of above 16% was reaffirmed at the Group\u2019s Investor Update\u00a0on 7 June 2023 and ensures a\u00a0sufficiently prudent \u00a0
buffer in relation\u00a0to the capital requirement.\u00a0This implies a\u00a0capital target buffer of at least\u00a018.8% in relation to the fully phased-in CET1 capital \u00a0
requirement. \u00a0
The Group aspires to improve\u00a0its credit ratings, which are important for its access to liquidity\u00a0and for the pricing of its long-term funding. The Group \u00a0
therefore includes rating targets in its capital considerations. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4580": {
"value": "Credit risk \u00a0
The Group offers\u00a0loans, credits, guarantees and other products as part of its business\u00a0model and thus takes on credit risk. \u00a0
Credit risk is the risk of losses because debtors\u00a0or counterparties\u00a0fail to\u00a0meet all or part of their payment obligations\u00a0to the Group. \u00a0
In accordance with the Group\u2019s Credit Policy, the Group carefully assesses the financial situation of customers to ensure that loans granted are suited to their \u00a0
needs and financial capacity and that customers understand their financial obligations. \u00a0
In order to mitigate\u00a0credit risk, the Group uses a number of measures, including\u00a0collateral, guarantees and covenants. \u00a0
Further information\u00a0on the\u00a0Group\u2019s risk management\u00a0practices related to\u00a0credit risk can\u00a0be found in the report Risk Management 2023. \u00a0
Sustainabilit y\u00a0risk \u00a0
The Group may be exposed to sustainability\u00a0drivers. Credit risk is deemed to be the risk type most materially\u00a0affected by sustainability\u00a0drivers. \u00a0
Sustainability and\u00a0ESG considerations\u00a0are integrated into the Group\u2019s lending practices. \u00a0
Sustainability and\u00a0credit risk \u00a0
Sustainability risks\u00a0are identified,\u00a0assessed and monitored\u00a0at the portfolio level as part of the annual sector reviews, whic\u00a0h include\u00a0an in-depth \u00a0
assessment of sub-sectors and the largest customers. This enables the Group to map the most material sustaina\u00a0bility risks\u00a0facing the individua\u00a0l \u00a0
portfolios, monitor aggregate risk\u00a0levels on\u00a0an ongoing basis, and identify additional\u00a0Credit Risk Policy requirements. When\u00a0deemed necessary, the \u00a0
sustainability risk\u00a0findings are integrated into the Group\u2019s credit risk tolerance to allow for\u00a0portfolio management. \u00a0
Relationship managers use\u00a0a digital system to identify and assess each customer\u2019s sustainability\u00a0risk level through a set of\u00a0sector-specific environmenta\u00a0l, \u00a0
social and governance\u00a0questions for both new and existing business customers. The customer\u00a0-level sustainability risk\u00a0assessments serve as\u00a0input \u00a0
factors in the overall credit decision process and also enable the Group to monitor\u00a0the overall sustainability\u00a0risk level.\u00a0On the\u00a0back of\u00a0results from the \u00a0
ESG Tracker\u00a0tool, relationship\u00a0managers are required to engage with customers with a significant exposure and a high level of identified risks in order to \u00a0
agree on a future\u00a0action plan to mitigate these risks. \u00a0
The Group implemented\u00a0functional enhancements to facilitate customer engagement in human rights and\u00a0a more in\u00a0-depth analysis of\u00a0drivers of \u00a0
customers\u2019 ESG risk levels.\u00a0These bottom-up customer assessments will increasingly be\u00a0tied to the top-down portfolio\u00a0risk management efforts. This will \u00a0
ensure a consistent feedback loop between strategic and\u00a0customer considerations in\u00a0the Group\u2019s sustainability\u00a0risk management\u00a0. \u00a0
Climate risk\u00a0management \u00a0
Climate risk\u00a0is currently the most urgent of all ESG-related drivers\u00a0capable of\u00a0affecting the Group\u2019s credit risk. From\u00a0a financial significance\u00a0perspective , \u00a0
climate-related risks\u00a0have been\u00a0deemed most relevant for the Group\u2019s lending activities\u00a0and risk\u00a0practices are\u00a0being enhanced\u00a0in accordance with \u00a0
regulatory and industry developments. \u00a0
Climate risk\u00a0pertains to\u00a0transition risks, which are the risks associated with shifting to a low\u00a0-carbon economy, and to physical risks arising from projecte\u00a0d \u00a0
climate changes, including both long-term shifts (chronic changes) and\u00a0event-driven changes\u00a0(acute changes) to weather patterns. Credit risk will be \u00a0
affected by both of these climate-related\u00a0risks in the medium\u00a0and long\u00a0term, and efforts are being made to obtain\u00a0improved climate data to\u00a0refine the long\u00a0- \u00a0
term view of climate\u00a0risk across sectors. \u00a0
The Group has identified flooding risk (river and coastal flooding) as the key physical\u00a0hazard applicable to the portfolio on the basis of\u00a0the report on high \u00a0
confidence of hazard increase in Northern Europe issued by the Intergovernmental\u00a0Panel on Climate\u00a0Change. The current mapping of exposures subject \u00a0
to the risk of flooding focuses on residential and commercial property. \u00a0
The Group has taken into consideration\u00a0the financed emissions of the sector portfolios identified\u00a0as climate\u00a0change contribut\u00a0ors and\u00a0has identified\u00a0that \u00a0
most of the emissions\u00a0are attributable\u00a0to only\u00a0a few sectors, which the Group actively monitors\u00a0and manage.\u00a0For instance, this is evidenc ed by the decline \u00a0
in the oil and gas books in recent years. \u00a0
Moreover, the Group performs ad-hoc climate stress tests to assess physical and transition risks of climate changes. Stress tests in relation to physical ris ks \u00a0
cover collateral-related exposures and are based on river and coastal flooding. Stress tests in\u00a0relation to transition risks consider an introduction of carbon \u00a0
taxes. \u00a0
Customer transition risk\u00a0assessments \u00a0
Managing transition risks\u00a0takes place at both portfolio and customer levels. At the portfolio level, the Group sets long\u00a0-term targets for\u00a0sectors with high \u00a0
financed emissions such as for the segments Shipping, Utilities\u00a0etc. Climate risks are\u00a0also taken in\u00a0to consideration when\u00a0the Group determines its risk \u00a0
tolerance process\u00a0for high-risk\u00a0segments to further manage the portfolios. \u00a0
The Group has also developed a methodology\u00a0to assess transition\u00a0risks at the customer\u00a0level to gain a more granular overview\u00a0of transition\u00a0risks in \u00a0
relevant high-emitting sectors.\u00a0The methodology considers the\u00a0customers\u2019 current performance as well as their short-, medium-, and long-term ambition\u00a0s \u00a0
and plans to meet their decarbonisation\u00a0strategy and targets.\u00a0In addition,\u00a0the assessments include an evaluation\u00a0of the custo mers\u2019 risk\u00a0of not executing \u00a0
on their strategies because\u00a0of external factors that affect their ability\u00a0to transition, i.e.\u00a0technology and\u00a0government support\u00a0factors. \u00a0
On the basis of the alignment assessment, technology and government\u00a0factors, it is possible to break down transition\u00a0risk assessment scores i\u00a0nto four \u00a0
categories. The transition\u00a0risk assessments contribute\u00a0to the overall credit evaluation of customers. \u00a0
The Group has an intensified focus on customers that are considered to be lagging in the transition\u00a0process but have started\u00a0from weak financial positions . \u00a0
For these customers, the Group has identified relevant mitigating actions, including increased recog\u00a0nition of\u00a0the expected credit loss to anticipate\u00a0losses \u00a0
during the transition phase. From\u00a0the initial assessment of\u00a0customers subject to high transition risk, the exposure to the la\u00a0gging transition\u00a0category \u00a0
remains limited but will be\u00a0monitored on an\u00a0ongoing basis. \u00a0
See the Group\u2019s risk management report; Risk Management 2023 for more information\u00a0on Sustainability\u00a0risk and the Group\u2019s additional\u00a0Pillar III \u00a0
Disclosures for\u00a0more information on\u00a0Climate risk. The publications\u00a0are available\u00a0at danskebank.com/investor-relations.\u00a0The publications\u00a0are not covered \u00a0
by the statutory audit. \u00a0
Credit exposure continued \u00a0
Credit exposure \u00a0
Credit exposure consists of\u00a0balance sheet\u00a0items and off-balance-sheet items that carry credit risk. Most of the exposure derives from lending activitie\u00a0s \u00a0
in the form of secured and unsecured loans. The Non-core business unit is not considered part of Danske\u00a0Bank\u2019s core activities\u00a0and is stated separately. \u00a0
Securities positions taken by the\u00a0Group\u2019s trading and investment units also\u00a0entail credit risk and are presented as credit exposure from trading and \u00a0
investment securities as well as derivatives\u00a0and loans at the Group\u2019s trading\u00a0units. \u00a0
The overall management of\u00a0credit risk thus covers credit risk from direct lending\u00a0activities, counterparty\u00a0credit risk on\u00a0derivatives and\u00a0loans at the \u00a0
Group\u2019s trading units and credit risk from securities\u00a0positions. \u00a0
The Group\u2019s exposure to the risk on some balance sheet items is limited.\u00a0This is the case for assets under customer-funded\u00a0investment pools, unit-linke\u00a0d \u00a0
investment contracts\u00a0and insurance\u00a0contracts. The risk on\u00a0assets under pooled schemes and\u00a0unit-linked investment contracts\u00a0is assumed solely by the \u00a0
customers, while the risk on assets under insurance contracts is assumed primarily by the customers. The section on life insurance risk describes the \u00a0
Group\u2019s credit risk on\u00a0insurance contracts. \u00a0
Breakdown of credit exposure \u00a0
Lending activities \u00a0
Trading and \u00a0
Customer- \u00a0
(DKK billions) \u00a0
Counterparty \u00a0
investment \u00a0
funded \u00a0
31 December\u00a02023 \u00a0
Total \u00a0
Core \u00a0
Non-core \u00a0
credit risk \u00a0
securities investments \u00a0
Balance sheet items \u00a0
Demand deposits with central banks \u00a0
252.7 \u00a0
252.7 \u00a0
-
-
-
-
Due from credit institutions\u00a0and central banks \u00a0
114.8 \u00a0
21.8 \u00a0
-
93.0 \u00a0
-
-
Trading portfolio assets \u00a0
548.2 \u00a0
-
-
351.7 \u00a0
196.5 \u00a0
-
Investment securities \u00a0
283.9 \u00a0
-
-
-
283.9 \u00a0
-
Loans at amortised cost \u00a0
918.6 \u00a0
917.1 \u00a0
1.5 \u00a0
-
-
-
Loans at fair value \u00a0
928.2 \u00a0
753.3 \u00a0
-
175.0 \u00a0
-
-
Assets under pooled schemes and unit-linked investment \u00a0
contracts \u00a0
70.9 \u00a0
-
-
-
-
70.9 \u00a0
Assets under insurance contracts \u00a0
496.0 \u00a0
-
-
-
-
496.0 \u00a0
Assets held for sale \u00a0
110.4 \u00a0
110.4 \u00a0
-
-
-
-
Off-balance-sheet items \u00a0
Guarantees \u00a0
75.9 \u00a0
75.9 \u00a0
-
-
-
-
Loan commitments\u00a0shorter than 1 year \u00a0
197.0 \u00a0
196.1 \u00a0
0.9 \u00a0
-
-
-
Loan commitments\u00a0longer than 1 year \u00a0
220.3 \u00a0
220.3 \u00a0
-
-
-
-
Other unutilised commitments \u00a0
16.7 \u00a0
-
-
-
0.1 \u00a0
16.6 \u00a0
Total \u00a0
4,233.8 \u00a0
2,547.6 \u00a0
2.5 \u00a0
619.7 \u00a0
480.5 \u00a0
583.6 \u00a0
31 December 2022* \u00a0
Balance sheet items \u00a0
Demand deposits with central banks \u00a0
168.4 \u00a0
168.4 \u00a0
-
-
-
-
Due from credit institutions\u00a0and central banks \u00a0
60.8 \u00a0
22.7 \u00a0
-
38.1 \u00a0
-
-
Trading portfolio assets \u00a0
638.8 \u00a0
-
-
430.1 \u00a0
208.7 \u00a0
-
Investment securities \u00a0
287.4 \u00a0
-
-
-
287.4 \u00a0
-
Loans at amortised\u00a0cost \u00a0
1,082.8 \u00a0
1,081.7 \u00a0
1.2 \u00a0
-
-
-
Loans at fair value \u00a0
932.7 \u00a0
724.1 \u00a0
-
208.6 \u00a0
-
-
Assets under pooled schemes and unit-linked investment \u00a0
contracts \u00a0
66.7 \u00a0
-
-
-
-
66.7 \u00a0
Assets under insurance contracts \u00a0
503.0 \u00a0
-
-
-
-
503.0 \u00a0
Assets held for sale \u00a0
-
-
-
-
-
-
Off-balance-sheet items \u00a0
Guarantees \u00a0
81.4 \u00a0
81.4 \u00a0
-
-
-
-
Loan commitments\u00a0shorter than 1 year \u00a0
236.1 \u00a0
234.8 \u00a0
1.3 \u00a0
-
-
-
Loan commitments\u00a0longer than 1 year \u00a0
199.9 \u00a0
199.9 \u00a0
-
-
-
-
Other unutilised commitments \u00a0
15.2 \u00a0
-
-
-
0.1 \u00a0
15.1 \u00a0
Total \u00a0
4,273.2 \u00a0
2,512.8 \u00a0
2.5 \u00a0
676.9 \u00a0
496.2 \u00a0
584.8 \u00a0
* Comparative information has been restated as described in note G2(a). \u00a0
In addition to credit exposure from\u00a0lending activities, the Group had made uncommitted loan offers\u00a0and granted uncommitted\u00a0li nes\u00a0of credit of DKK 232 \u00a0
billion at\u00a031 December 2023 (2022: DKK 216 billion). These items are included in the calculation of the total risk exposure amount in accordance with \u00a0
the Capital Requirements Directive. \u00a0
Credit exposure continued \u00a0
Credit exposure from core\u00a0lending activities \u00a0
Credit exposure\u00a0from lending activities\u00a0in the Group\u2019s\u00a0core banking\u00a0business includes loans, amounts due\u00a0from credit institut\u00a0ions and\u00a0central banks, \u00a0
guarantees and\u00a0irrevocable loan\u00a0commitments. The\u00a0exposure is measured net of expected credit losses and inc\u00a0ludes repo loans at amortised cost. For \u00a0
reporting purposes,\u00a0all collateral values are net of haircuts and capped at the exposure amount. The credit exposure from Non\u00a0-core lending activities\u00a0is \u00a0
disclosed further on\u00a0in these notes. \u00a0
For details\u00a0about the Group\u2019s credit risk management and the use of information on expected credit losses for risk management\u00a0purposes, see Risk \u00a0
Management 2023. \u00a0
Classification of\u00a0customers \u00a0
The main objectives of risk classification are to rank the Group\u2019s customers according to risk and to estimate each customer\u2019 s probability of default (PD). As \u00a0
part of the credit process, the Group classifies customers according to risk and updates their classifications upon receipt of new information. Risk \u00a0
classification comprises rating and credit scoring of customers. While all large customers are rated, the Group uses fully automated and statistically-based \u00a0
scoring models for small customers such as personal customers and small businesses. Credit scores are updated monthly in a process subject to automated \u00a0
controls. \u00a0
The Group has\u00a0developed a number of classification models to\u00a0assess customer PD and to classify customers in various\u00a0segments . \u00a0
In its credit risk management, the Group uses point in time (PIT) PD estimates\u00a0for risk classification.\u00a0These PIT PD estimate\u00a0s express a\u00a0customer\u2019s \u00a0
probability of\u00a0default within\u00a0the next 12 months in the current economic situation.\u00a0The Group\u2019s classification scale consists of 11 main rating categories \u00a0
with fixed PD bands. During a\u00a0downturn, a\u00a0customer\u2019s PIT\u00a0PD may increase,\u00a0and the customer may migrate to a lower rating cate\u00a0gory. The effect\u00a0from a \u00a0
downturn is thus larger when PIT PD is used than if the classification were based on through-the-cycle\u00a0(TTC) PD, which the Group uses to calculate the \u00a0
risk exposure amount for credit risk. \u00a0
The classification\u00a0of facilities\u00a0between stage 1 and 2 for the\u00a0purpose of calculating\u00a0expected credit\u00a0losses under IFRS 9 dep\u00a0ends on whether the credit \u00a0
risk has increased significantly\u00a0since initial recognition.\u00a0The assessment of whether\u00a0the credit risk ha\u00a0s increased significantly\u00a0since initial recognition\u00a0is \u00a0
performed by\u00a0considering the\u00a0change in\u00a0the risk of default occurring over the remaining life of\u00a0the individual\u00a0facility and\u00a0i ncorporating\u00a0forward-looking \u00a0
information. A\u00a0facility is transferred from stage 1 to stage 2 on the basis of observed increases in the probability of default: \u00a0
\u2022
For facilities\u00a0originated below 1% in PD: an increase in the facility\u2019s 12-month PD\u00a0of at least 0.5 of a percentage point since initial\u00a0recognition and\u00a0a \u00a0
doubling in\u00a0the facility\u2019s lifetime PD since origination. \u00a0
\u2022
For facilities\u00a0originated above 1% in PD: an\u00a0increase in the facility\u2019s 12-month PD\u00a0of 2 percentage points\u00a0since origination or a\u00a0doubling of\u00a0the \u00a0
facility\u2019s lifetime PD\u00a0since origination. \u00a0
In addition,\u00a0facilities that\u00a0are more than 30 days past due are moved\u00a0to stage 2. 30 days past due is considered\u00a0a backstop.\u00a0Finally, customers subject to \u00a0
forbearance measures are placed in stage 2 if the Group, in the most likely outcome, expects no loss or the customers are in the two-year probation \u00a0
period for performing\u00a0forborne exposures. \u00a0
A facility is transferred from stage 2 to stage 3 when it becomes credit-impaired.\u00a0A facility becomes credit-impaired when one or more events that have \u00a0
a detrimental\u00a0impact on\u00a0the estimated future cash flows have occurred. This includes\u00a0observable data abo\u00a0ut (a) significant financial difficulty of the issuer \u00a0
or the borrower; (b) a breach of contract,\u00a0such as a default or past due event;\u00a0(c) the borrower, for financial or contractua\u00a0l reasons relating to the \u00a0
borrower\u2019s financial difficulty,\u00a0having been\u00a0granted a concession that would not otherwise have been considered; (d) it is becoming\u00a0probable that the \u00a0
borrower will\u00a0enter into bankruptcy\u00a0or other financial restructuring;\u00a0and (e) the purchase or origination\u00a0of a financial asse t at a deep discount that reflects \u00a0
the incurred credit loss. It may not be possible to identify\u00a0a single\u00a0discrete event \u2013 instead, the combined effect\u00a0of several events may cause a\u00a0financial \u00a0
asset to become credit-impaired.\u00a0Credit-impaired facilities are\u00a0placed in rating category 10\u00a0or 11. For customers\u00a0in rating\u00a0category 10, the stage 3 \u00a0
classification applies\u00a0only to customers where a loss is expected in the most likely\u00a0scenario. For rating category 11 (defaul\u00a0t), all\u00a0facilities are classified \u00a0
as stage 3 exposures. \u00a0
Exposures which\u00a0are considered to be in default for regulatory\u00a0purposes will always be categorised as\u00a0stage 3 exposures under IFRS 9. This applies to \u00a0
90-days-past-due considerations and\u00a0unlikely-to-pay factors\u00a0leading to regulatory default. \u00a0
Management applies judgement and recognises post-model adjustments\u00a0to cover risks that are not reflected sufficiently\u00a0in the Group\u2019s expected credit \u00a0
loss model. Besides\u00a0increasing the expected credit losses, the post-model adjustments\u00a0may lead to the transfer of part of the gross exposure covered by \u00a0
the post-model adjustments\u00a0from stage 1 to stage 2 through targeted PD pushes to the current point in time estimates\u00a0of PD (i.e. incre ases in the PD for \u00a0
the underlying\u00a0customers in\u00a0the selected portfolios covered by the post-model adjustments)\u00a0to ensure consistency between the methods used for \u00a0
disclosing information about\u00a0expected credit\u00a0losses and exposures subject to significant increase in credit risk. While the d\u00a0istribution of\u00a0customers \u00a0
between the Group\u2019s 11 rating categories is unchanged and reflects the current point-in-time estimate of\u00a0the underlying customers\u2019 PDs, the PD pushes \u00a0
may lead to the transfer of gross exposures to stage 2 as the assessment of the increase in credit risk is performed by compa\u00a0ring the initial PD with the \u00a0
current PD (after the adjustment\u00a0for the targeted PD pushes). \u00a0
Credit exposure continued \u00a0
Expected credit\u00a0losses \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as a\u00a0function of\u00a0the probability\u00a0of default\u00a0(PD), the exposure at default (EAD) and the loss \u00a0
given default (LGD). For\u00a0exposures in\u00a0stage 1,\u00a012- month\u00a0expected credit losses are recognised, while lifetime expected credit losses are recognised for \u00a0
exposures in stage 2-3. For further information see note G15. \u00a0
Credit portfolio\u00a0in core activities\u00a0broken down by rating\u00a0category \u00a0
The Group\u2019s definition of\u00a0default for accounting\u00a0aligns with\u00a0the regulatory purposes. All exposures in\u00a0stage 3 are considered\u00a0default. As a\u00a0result, all non- \u00a0
performing loans are considered default, and hence equal to the total of stage 3 exposures. \u00a0
Although Stage\u00a03 and\u00a0default (rating\u00a011) are generally aligned, a\u00a0small amount of\u00a0credit exposure in stage 3 can be found out\u00a0side default. This is\u00a0due to \u00a0
impairment staging being\u00a0updated monthly (after\u00a0each month-end),\u00a0whereas default is updated daily. For the same reason, some credit exposure in default \u00a0
is outside stage 3. \u00a0
For further details about the Group\u2019s credit risk management and the use of information\u00a0on expected credit losses for risk ma\u00a0nagement purposes, see \u00a0
Risk Management\u00a02023. \u00a0
The table below breaks down\u00a0the credit exposure by rating categories and stages. \u00a0
31 December 2023 \u00a0
PD level \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK billions) \u00a0
Upper Lower\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
1
-
0.01 \u00a0
127.3 \u00a0
0.1 \u00a0
-
-
-
-
127.3 \u00a0
0.1 \u00a0
-
108.9 \u00a0
-
-
2
0.01 \u00a0
0.03 \u00a0
287.2 \u00a0
0.3 \u00a0
-
-
-
-
287.2 \u00a0
0.3 \u00a0
-
178.3 \u00a0
-
-
3
0.03 \u00a0
0.06 \u00a0
536.9 \u00a0
0.7 \u00a0
-
0.1 \u00a0
-
-
536.8 \u00a0
0.6 \u00a0
-
263.2 \u00a0
0.4 \u00a0
-
4
0.06 \u00a0
0.14 \u00a0
607.8 \u00a0
1.9 \u00a0
-
0.2 \u00a0
-
-
607.6 \u00a0
1.9 \u00a0
-
274.9 \u00a0
0.5 \u00a0
-
5
0.14 \u00a0
0.31 \u00a0
434.8 \u00a0
8.1 \u00a0
0.1 \u00a0
0.4 \u00a0
-
-
434.5 \u00a0
8.0 \u00a0
0.1 \u00a0
136.5 \u00a0
5.5 \u00a0
-
6
0.31 \u00a0
0.63 \u00a0
290.0 \u00a0
36.9 \u00a0
0.1 \u00a0
0.7 \u00a0
0.6 \u00a0
-
289.3 \u00a0
36.3 \u00a0
0.1 \u00a0
87.2 \u00a0
18.7 \u00a0
-
7
0.63 \u00a0
1.90 \u00a0
92.3 \u00a0
47.3 \u00a0
0.1 \u00a0
1.2 \u00a0
1.9 \u00a0
-
91.1 \u00a0
45.3 \u00a0
0.1 \u00a0
27.9 \u00a0
17.7 \u00a0
-
8
1.90 \u00a0
7.98 \u00a0
12.2 \u00a0
28.1 \u00a0
0.4 \u00a0
0.9 \u00a0
2.8 \u00a0
-
11.3 \u00a0
25.2 \u00a0
0.4 \u00a0
1.7 \u00a0
6.3 \u00a0
0.2 \u00a0
9
7.98 25.70 \u00a0
1.0 \u00a0
4.8 \u00a0
-
-
1.0 \u00a0
-
1.0 \u00a0
3.8 \u00a0
-
0.2 \u00a0
1.0 \u00a0
-
10 \u00a0
25.70 99.99 \u00a0
0.6 \u00a0
14.8 \u00a0
1.3 \u00a0
-
1.0 \u00a0
0.5 \u00a0
0.6 \u00a0
13.8 \u00a0
0.8 \u00a0
0.2 \u00a0
3.7 \u00a0
0.5 \u00a0
11 (default) \u00a0
100.00 100.00 \u00a0
0.6 \u00a0
1.5 \u00a0
30.7 \u00a0
-
-
8.6 \u00a0
0.6 \u00a0
1.5 \u00a0
22.1 \u00a0
0.4 \u00a0
0.2 \u00a0
2.2 \u00a0
Total \u00a0
2,390.8 \u00a0
144.2 \u00a0
32.7 \u00a0
3.6 \u00a0
7.5 \u00a0
9.1 2,387.2 \u00a0
136.7 \u00a0
23.6 1,079.4 \u00a0
54.1 \u00a0
3.0 \u00a0
31 December 2022 \u00a0
PD level \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral* \u00a0
(DKK billions) \u00a0
Upper Lower\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
1
-
0.01 \u00a0
135.9 \u00a0
0.1 \u00a0
-
-
-
-
135.9 \u00a0
0.1 \u00a0
-
115.2 \u00a0
-
-
2
0.01 \u00a0
0.03 \u00a0
233.5 \u00a0
0.2 \u00a0
-
-
-
-
233.5 \u00a0
0.2 \u00a0
-
116.8 \u00a0
0.1 \u00a0
-
3
0.03 \u00a0
0.06 \u00a0
540.9 \u00a0
0.8 \u00a0
-
0.1 \u00a0
-
-
540.8 \u00a0
0.8 \u00a0
-
262.9 \u00a0
0.3 \u00a0
-
4
0.06 \u00a0
0.14 \u00a0
630.6 \u00a0
1.9 \u00a0
-
0.6 \u00a0
-
-
630.0 \u00a0
1.9 \u00a0
-
298.0 \u00a0
0.9 \u00a0
-
5
0.14 \u00a0
0.31 \u00a0
463.1 \u00a0
14.0 \u00a0
-
0.4 \u00a0
0.1 \u00a0
-
462.7 \u00a0
13.9 \u00a0
-
148.1 \u00a0
7.7 \u00a0
-
6
0.31 \u00a0
0.63 \u00a0
235.8 \u00a0
54.3 \u00a0
-
0.5 \u00a0
0.9 \u00a0
0.1 \u00a0
235.3 \u00a0
53.3 \u00a0
-
76.1 \u00a0
21.4 \u00a0
-
7
0.63 \u00a0
1.90 \u00a0
75.5 \u00a0
59.5 \u00a0
-
0.9 \u00a0
2.6 \u00a0
-
74.6 \u00a0
56.9 \u00a0
-
24.2 \u00a0
20.7 \u00a0
-
8
1.90 \u00a0
7.98 \u00a0
7.3 \u00a0
29.9 \u00a0
-
0.4 \u00a0
2.8 \u00a0
-
6.8 \u00a0
27.0 \u00a0
-
1.7 \u00a0
4.3 \u00a0
-
9
7.98 25.70 \u00a0
0.9 \u00a0
3.1 \u00a0
0.1 \u00a0
-
0.7 \u00a0
-
0.9 \u00a0
2.4 \u00a0
0.1 \u00a0
0.2 \u00a0
0.2 \u00a0
0.1 \u00a0
10 \u00a0
25.70 99.99 \u00a0
0.6 \u00a0
12.0 \u00a0
0.2 \u00a0
-
0.9 \u00a0
0.1 \u00a0
0.6 \u00a0
11.1 \u00a0
0.1 \u00a0
0.3 \u00a0
2.1 \u00a0
-
11 (default) \u00a0
100.00 100.00 \u00a0
0.2 \u00a0
0.4 \u00a0
31.6 \u00a0
0.3 \u00a0
-
8.1 \u00a0
-
0.4 \u00a0
23.5 \u00a0
-
0.1 \u00a0
1.3 \u00a0
Total \u00a0
2,324.2 \u00a0
176.0 \u00a0
32.1 \u00a0
3.3 \u00a0
8.1 \u00a0
8.3 2,321.0 \u00a0
168.0 \u00a0
23.9 1,043.5 \u00a0
58.0 \u00a0
1.4 \u00a0
* Net exposure, ex collateral as at 31 December 2022 has been restated. \u00a0
The stage 3 coverage ratio\u00a0is 75% (31 December 2022: 85%). \u00a0
Credit exposure continued \u00a0
Credit portfolio\u00a0in core activities\u00a0broken down by industry\u00a0(NACE) \u00a0
The table below breaks down credit exposure by industry. The industry\u00a0segmentation is based on\u00a0the classification principles of\u00a0the Sta\u00a0tistica l \u00a0
Classification of\u00a0Economic Activities\u00a0in the European\u00a0Community (NACE) standard adapted to\u00a0the Group\u2019s business risk appro\u00a0ach used for the active \u00a0
management of\u00a0the credit portfolio. \u00a0
31 December\u00a02023 \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK billions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Public institutions \u00a0
298.6 \u00a0
1.0 \u00a0
0.3 \u00a0
-
-
-
298.6 \u00a0
1.0 \u00a0
0.3 295.9 \u00a0
-
-
Financials \u00a0
147.5 \u00a0
3.4 \u00a0
0.4 \u00a0
0.1 \u00a0
0.1 \u00a0
0.1 147.5 \u00a0
3.3 \u00a0
0.2 131.7 \u00a0
2.7 \u00a0
0.2 \u00a0
Agriculture \u00a0
54.8 \u00a0
4.6 \u00a0
2.2 \u00a0
0.3 \u00a0
0.7 \u00a0
0.6 \u00a0
54.5 \u00a0
3.9 \u00a0
1.7 \u00a0
13.1 \u00a0
0.9 \u00a0
-
Automotive \u00a0
24.9 \u00a0
2.5 \u00a0
0.3 \u00a0
-
0.1 \u00a0
0.1 \u00a0
24.9 \u00a0
2.4 \u00a0
0.1 \u00a0
19.9 \u00a0
1.1 \u00a0
-
Capital goods \u00a0
82.7 \u00a0
13.3 \u00a0
1.2 \u00a0
0.1 \u00a0
0.3 \u00a0
0.5 \u00a0
82.6 \u00a0
13.0 \u00a0
0.7 \u00a0
74.3 \u00a0
10.9 \u00a0
0.3 \u00a0
Commercial property* \u00a0
258.0 \u00a0
32.4 \u00a0
4.7 \u00a0
0.8 \u00a0
1.8 \u00a0
0.9 257.3 \u00a0
30.6 \u00a0
3.8 \u00a0
28.8 \u00a0
4.7 \u00a0
0.4 \u00a0
Construction and building materials \u00a0
42.8 \u00a0
6.5 \u00a0
2.1 \u00a0
0.3 \u00a0
1.0 \u00a0
0.9 \u00a0
42.5 \u00a0
5.6 \u00a0
1.2 \u00a0
30.3 \u00a0
2.8 \u00a0
0.5 \u00a0
Consumer goods \u00a0
67.5 \u00a0
8.3 \u00a0
1.3 \u00a0
0.1 \u00a0
0.4 \u00a0
0.5 \u00a0
67.4 \u00a0
7.8 \u00a0
0.9 \u00a0
53.5 \u00a0
5.6 \u00a0
0.2 \u00a0
Hotels, restaurants and leisure \u00a0
12.7 \u00a0
1.8 \u00a0
0.7 \u00a0
-
0.1 \u00a0
0.2 \u00a0
12.7 \u00a0
1.8 \u00a0
0.5 \u00a0
3.0 \u00a0
0.5 \u00a0
0.1 \u00a0
Metals and mining \u00a0
14.6 \u00a0
1.2 \u00a0
-
-
-
-
14.6 \u00a0
1.2 \u00a0
-
12.6 \u00a0
0.9 \u00a0
-
Other commercials \u00a0
11.6 \u00a0
0.3 \u00a0
0.3 \u00a0
0.1 \u00a0
-
0.1 \u00a0
11.5 \u00a0
0.3 \u00a0
0.2 \u00a0
7.9 \u00a0
0.1 \u00a0
-
Pharma and medical devices \u00a0
44.1 \u00a0
2.9 \u00a0
-
-
-
-
44.0 \u00a0
2.9 \u00a0
-
40.6 \u00a0
2.5 \u00a0
-
Private housing co-ops and non-profit \u00a0
associations \u00a0
191.1 \u00a0
4.5 \u00a0
0.6 \u00a0
0.1 \u00a0
0.3 \u00a0
0.2 191.1 \u00a0
4.2 \u00a0
0.5 \u00a0
22.6 \u00a0
1.0 \u00a0
0.1 \u00a0
Pulp, paper and chemicals \u00a0
40.7 \u00a0
3.7 \u00a0
0.9 \u00a0
-
0.1 \u00a0
0.2 \u00a0
40.7 \u00a0
3.6 \u00a0
0.7 \u00a0
29.4 \u00a0
2.6 \u00a0
0.3 \u00a0
Retailing \u00a0
27.7 \u00a0
5.2 \u00a0
1.9 \u00a0
0.1 \u00a0
0.3 \u00a0
0.7 \u00a0
27.6 \u00a0
4.9 \u00a0
1.2 \u00a0
17.6 \u00a0
3.8 \u00a0
0.5 \u00a0
Services \u00a0
63.4 \u00a0
7.6 \u00a0
1.0 \u00a0
0.2 \u00a0
0.3 \u00a0
0.4 \u00a0
63.2 \u00a0
7.3 \u00a0
0.6 \u00a0
51.3 \u00a0
5.9 \u00a0
0.3 \u00a0
Shipping, oil and gas \u00a0
36.3 \u00a0
1.9 \u00a0
2.4 \u00a0
-
0.1 \u00a0
0.4 \u00a0
36.3 \u00a0
1.9 \u00a0
2.0 \u00a0
20.4 \u00a0
0.6 \u00a0
-
Social services \u00a0
29.5 \u00a0
1.3 \u00a0
0.3 \u00a0
-
0.1 \u00a0
0.1 \u00a0
29.4 \u00a0
1.2 \u00a0
0.2 \u00a0
13.0 \u00a0
0.7 \u00a0
-
Telecom and media \u00a0
23.7 \u00a0
0.8 \u00a0
1.7 \u00a0
-
0.1 \u00a0
0.7 \u00a0
23.7 \u00a0
0.7 \u00a0
0.9 \u00a0
18.4 \u00a0
0.6 \u00a0
-
Transportation \u00a0
15.6 \u00a0
2.1 \u00a0
0.4 \u00a0
-
0.1 \u00a0
0.1 \u00a0
15.6 \u00a0
2.0 \u00a0
0.3 \u00a0
7.2 \u00a0
0.7 \u00a0
-
Utilities and\u00a0infrastructure \u00a0
84.0 \u00a0
1.3 \u00a0
-
-
-
-
84.0 \u00a0
1.3 \u00a0
-
62.2 \u00a0
1.2 \u00a0
-
Personal customers \u00a0
819.0 \u00a0
37.7 \u00a0
10.2 \u00a0
1.4 \u00a0
1.6 \u00a0
2.5 817.5 \u00a0
36.1 \u00a0
7.7 125.5 \u00a0
4.2 \u00a0
-
Total \u00a0
2,390.8 144.2 \u00a0
32.7 \u00a0
3.6 \u00a0
7.5 \u00a0
9.1 2,387.2\u00a0136.7 \u00a0
23.6 1,079.4 \u00a0
54.1 \u00a0
3.0 \u00a0
* As at 31 December 2023, DKK 139\u00a0billion of the net exposure in Commercial property is towards residential assets. \u00a0
As at\u00a031 December 2023, oil and gas exposures (within the Shipping,\u00a0oil and gas industry)\u00a0represent a gross exposure\u00a0of DKK\u00a018.1 billion\u00a0(31 December \u00a0
2022: DKK 19.3\u00a0billion) and\u00a0expected credit\u00a0losses of DKK 0.3 billion (31 December 2022: DKK 0.7 billion). Those exposures represent the majority of \u00a0
the exposures in stage 3 within the Shipping, oil and gas industry at the end of 2023. \u00a0
Credit exposure continued \u00a0
Net exposure, ex \u00a0
31 December 2022 \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
collateral* \u00a0
(DKK billions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Public institutions \u00a0
225.8 \u00a0
1.3 \u00a0
-
-
-
-
225.8 \u00a0
1.3 \u00a0
-
223.1 \u00a0
-
-
Financials \u00a0
116.6 \u00a0
3.9 \u00a0
0.3 \u00a0
0.1 \u00a0
0.2 \u00a0
0.1 116.5 \u00a0
3.7 \u00a0
0.2 104.0 \u00a0
2.7 \u00a0
0.1 \u00a0
Agriculture \u00a0
54.9 \u00a0
5.9 \u00a0
2.9 \u00a0
0.2 \u00a0
0.9 \u00a0
0.8 \u00a0
54.6 \u00a0
5.1 \u00a0
2.1 \u00a0
14.1 \u00a0
0.8 \u00a0
-
Automotive \u00a0
25.4 \u00a0
2.3 \u00a0
0.2 \u00a0
-
0.1 \u00a0
0.1 \u00a0
25.4 \u00a0
2.2 \u00a0
0.1 \u00a0
20.7 \u00a0
0.9 \u00a0
-
Capital goods \u00a0
87.3 \u00a0
9.2 \u00a0
1.3 \u00a0
0.1 \u00a0
0.3 \u00a0
0.7 \u00a0
87.2 \u00a0
8.9 \u00a0
0.7 \u00a0
79.0 \u00a0
7.2 \u00a0
-
Commercial property \u00a0
250.6 \u00a0
46.9 \u00a0
3.6 \u00a0
0.4 \u00a0
2.2 \u00a0
0.7 250.3 \u00a0
44.7 \u00a0
2.9 \u00a0
44.9 \u00a0
7.9 \u00a0
-
Construction and building materials \u00a0
43.6 \u00a0
8.6 \u00a0
1.2 \u00a0
0.1 \u00a0
0.5 \u00a0
0.5 \u00a0
43.5 \u00a0
8.1 \u00a0
0.7 \u00a0
32.4 \u00a0
4.6 \u00a0
0.1 \u00a0
Consumer goods \u00a0
72.4 \u00a0
7.6 \u00a0
0.9 \u00a0
0.1 \u00a0
0.4 \u00a0
0.2 \u00a0
72.3 \u00a0
7.2 \u00a0
0.6 \u00a0
57.1 \u00a0
5.2 \u00a0
0.3 \u00a0
Hotels, restaurants and leisure \u00a0
10.3 \u00a0
4.2 \u00a0
1.0 \u00a0
-
0.1 \u00a0
0.3 \u00a0
10.3 \u00a0
4.0 \u00a0
0.8 \u00a0
5.1 \u00a0
0.8 \u00a0
0.1 \u00a0
Metals and mining \u00a0
13.9 \u00a0
1.1 \u00a0
-
-
-
-
13.9 \u00a0
1.1 \u00a0
-
11.8 \u00a0
0.8 \u00a0
-
Other commercials \u00a0
15.4 \u00a0
0.8 \u00a0
0.2 \u00a0
0.3 \u00a0
-
0.1 \u00a0
15.1 \u00a0
0.8 \u00a0
0.2 \u00a0
11.9 \u00a0
0.3 \u00a0
-
Pharma and medical devices \u00a0
42.3 \u00a0
3.7 \u00a0
-
-
0.1 \u00a0
-
42.2 \u00a0
3.6 \u00a0
-
39.6 \u00a0
3.2 \u00a0
-
Private housing co-ops and non-profit \u00a0
associations \u00a0
187.4 \u00a0
3.8 \u00a0
0.6 \u00a0
0.1 \u00a0
0.1 \u00a0
0.1 187.3 \u00a0
3.7 \u00a0
0.5 \u00a0
26.9 \u00a0
0.8 \u00a0
-
Pulp, paper and chemicals \u00a0
47.5 \u00a0
3.9 \u00a0
0.3 \u00a0
-
0.1 \u00a0
0.1 \u00a0
47.5 \u00a0
3.8 \u00a0
0.1 \u00a0
35.8 \u00a0
2.7 \u00a0
-
Retailing \u00a0
30.3 \u00a0
3.1 \u00a0
1.7 \u00a0
0.1 \u00a0
0.1 \u00a0
0.6 \u00a0
30.2 \u00a0
3.0 \u00a0
1.1 \u00a0
19.0 \u00a0
2.2 \u00a0
0.2 \u00a0
Services \u00a0
59.7 \u00a0
6.8 \u00a0
0.8 \u00a0
0.3 \u00a0
0.2 \u00a0
0.3 \u00a0
59.4 \u00a0
6.6 \u00a0
0.4 \u00a0
49.1 \u00a0
4.8 \u00a0
0.1 \u00a0
Shipping, oil and gas \u00a0
34.6 \u00a0
1.2 \u00a0
5.4 \u00a0
-
-
1.0 \u00a0
34.6 \u00a0
1.2 \u00a0
4.4 \u00a0
22.5 \u00a0
0.9 \u00a0
-
Social services \u00a0
26.9 \u00a0
0.8 \u00a0
0.7 \u00a0
-
0.1 \u00a0
0.1 \u00a0
26.8 \u00a0
0.7 \u00a0
0.6 \u00a0
12.9 \u00a0
0.3 \u00a0
-
Telecom and media \u00a0
23.1 \u00a0
1.0 \u00a0
0.2 \u00a0
-
-
0.1 \u00a0
23.1 \u00a0
0.9 \u00a0
0.1 \u00a0
17.8 \u00a0
0.6 \u00a0
-
Transportation \u00a0
13.7 \u00a0
2.6 \u00a0
0.5 \u00a0
-
0.1 \u00a0
0.1 \u00a0
13.6 \u00a0
2.4 \u00a0
0.3 \u00a0
6.3 \u00a0
0.9 \u00a0
0.1 \u00a0
Utilities and\u00a0infrastructure \u00a0
103.4 \u00a0
4.3 \u00a0
-
0.1 \u00a0
0.2 \u00a0
-
103.2 \u00a0
4.1 \u00a0
-
80.4 \u00a0
3.6 \u00a0
-
Personal customers \u00a0
839.3 \u00a0
52.8 \u00a0
10.3 \u00a0
1.2 \u00a0
2.0 \u00a0
2.3 838.1 \u00a0
50.8 \u00a0
8.0 129.2 \u00a0
7.0 \u00a0
-
Total \u00a0
2,324.2 176.0 \u00a0
32.1 \u00a0
3.3 \u00a0
8.1 \u00a0
8.3 2,321.0\u00a0168.0 \u00a0
23.9 1,043.5 \u00a0
58.0 \u00a0
1.4 \u00a0
* Net exposure, ex collateral as at 31 December 2022 has been restated \u00a0
Credit exposure continued \u00a0
The table below breaks down\u00a0credit exposure by core business\u00a0unit and underlying\u00a0segment. \u00a0
Credit portfolio\u00a0in core activities\u00a0broken down by business\u00a0unit \u00a0
31 December 2023 \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK billions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Stage 1\u00a0Stage 2 \u00a0
Stage 3 \u00a0
Personal Customers \u00a0
Personal Customers\u00a0DK \u00a0
424.0 \u00a0
18.6 \u00a0
6.2 \u00a0
1.0 \u00a0
0.9 \u00a0
1.3 \u00a0
423.0 \u00a0
17.7 \u00a0
4.9 \u00a0
49.4 \u00a0
1.8 \u00a0
-
Personal Customers \u00a0
Nordic \u00a0
304.6 \u00a0
12.9 \u00a0
2.8 \u00a0
0.3 \u00a0
0.5 \u00a0
0.8 \u00a0
304.2 \u00a0
12.3 \u00a0
1.9 \u00a0
66.4 \u00a0
1.3 \u00a0
-
Global Private Banking \u00a0
76.5 \u00a0
3.1 \u00a0
0.7 \u00a0
-
0.1 \u00a0
0.2 \u00a0
76.4 \u00a0
3.0 \u00a0
0.5 \u00a0
16.2 \u00a0
1.0 \u00a0
-
Total Personal \u00a0
Customers \u00a0
805.0 \u00a0
34.6 \u00a0
9.6 \u00a0
1.3 \u00a0
1.6 \u00a0
2.4 \u00a0
803.7 \u00a0
33.0 \u00a0
7.3 \u00a0
132.1 \u00a0
4.1 \u00a0
-
Business Customers \u00a0
Asset Finance \u00a0
52.7 \u00a0
9.4 \u00a0
1.4 \u00a0
0.1 \u00a0
0.5 \u00a0
0.5 \u00a0
52.6 \u00a0
8.8 \u00a0
0.9 \u00a0
19.5 \u00a0
1.6 \u00a0
-
Business Customers \u00a0
309.6 \u00a0
36.8 \u00a0
10.4 \u00a0
1.1 \u00a0
3.0 \u00a0
3.7 \u00a0
308.5 \u00a0
33.8 \u00a0
6.7 \u00a0
93.3 \u00a0
13.8 \u00a0
0.6 \u00a0
Commercial Real Estate \u00a0
308.0 \u00a0
24.9 \u00a0
2.3 \u00a0
0.4 \u00a0
1.1 \u00a0
0.3 \u00a0
307.6 \u00a0
23.8 \u00a0
2.0 \u00a0
44.8 \u00a0
3.9 \u00a0
0.1 \u00a0
Business Customers \u00a0
Other \u00a0
0.4 \u00a0
-
0.1 \u00a0
-
-
-
0.4 \u00a0
-
0.1 \u00a0
0.4 \u00a0
-
-
Total Business \u00a0
Customers \u00a0
670.6 \u00a0
71.1 \u00a0
14.2 \u00a0
1.6 \u00a0
4.7 \u00a0
4.5 \u00a0
669.0 \u00a0
66.4 \u00a0
9.7 \u00a0
158.0 \u00a0
19.3 \u00a0
0.6 \u00a0
Large Corporates\u00a0& \u00a0
Institutions \u00a0
595.9 \u00a0
33.8 \u00a0
6.9 \u00a0
0.4 \u00a0
1.1 \u00a0
1.8 \u00a0
595.5 \u00a0
32.7 \u00a0
5.1 \u00a0
511.5 \u00a0
29.8 \u00a0
2.1 \u00a0
Northern Ireland \u00a0
89.4 \u00a0
4.7 \u00a0
1.9 \u00a0
0.3 \u00a0
0.1 \u00a0
0.4 \u00a0
89.1 \u00a0
4.6 \u00a0
1.5 \u00a0
48.1 \u00a0
0.8 \u00a0
0.2 \u00a0
Group Functions \u00a0
229.8 \u00a0
0.1 \u00a0
-
-
-
-
229.8 \u00a0
0.1 \u00a0
-
229.7 \u00a0
-
-
Total \u00a0
2,390.8 \u00a0
144.2 \u00a0
32.7 \u00a0
3.6 \u00a0
7.5 \u00a0
9.1 2,387.2 \u00a0
136.7 \u00a0
23.6 1,079.4 \u00a0
54.1 \u00a0
3.0 \u00a0
31 December 2022 \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral* \u00a0
(DKK billions) \u00a0
Stage 1\u00a0Stage 2 \u00a0
Stage 3\u00a0Stage 1\u00a0Stage 2 \u00a0
Stage 3\u00a0Stage 1\u00a0Stage 2 \u00a0
Stage 3\u00a0Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Personal Customers** \u00a0
Personal Customers\u00a0DK \u00a0
404.3 \u00a0
25.5 \u00a0
6.1 \u00a0
0.9 \u00a0
1.4 \u00a0
1.2 \u00a0
403.3 \u00a0
24.0 \u00a0
4.9 \u00a0
45.8 \u00a0
2.2 \u00a0
-
Personal Customers \u00a0
Nordic \u00a0
349.4 \u00a0
15.9 \u00a0
3.2 \u00a0
0.2 \u00a0
0.3 \u00a0
0.8 \u00a0
349.2 \u00a0
15.6 \u00a0
2.4 \u00a0
72.2 \u00a0
2.0 \u00a0
-
Global Private Banking \u00a0
76.1 \u00a0
7.1 \u00a0
0.6 \u00a0
0.1 \u00a0
0.2 \u00a0
0.2 \u00a0
76.0 \u00a0
6.9 \u00a0
0.4 \u00a0
16.0 \u00a0
2.9 \u00a0
-
Total Personal \u00a0
Customers \u00a0
829.8 \u00a0
48.5 \u00a0
9.9 \u00a0
1.3 \u00a0
2.0 \u00a0
2.2 \u00a0
828.5 \u00a0
46.5 \u00a0
7.7 \u00a0
134.1 \u00a0
7.1 \u00a0
-
Business Customers \u00a0
Asset Finance \u00a0
47.6 \u00a0
12.9 \u00a0
1.2 \u00a0
0.1 \u00a0
0.5 \u00a0
0.3 \u00a0
47.4 \u00a0
12.4 \u00a0
0.8 \u00a0
18.6 \u00a0
2.4 \u00a0
-
Business Customers \u00a0
324.0 \u00a0
56.4 \u00a0
11.1 \u00a0
0.9 \u00a0
3.9 \u00a0
3.5 \u00a0
323.1 \u00a0
52.5 \u00a0
7.5 \u00a0
119.7 \u00a0
17.8 \u00a0
1.0 \u00a0
Commercial Real Esate \u00a0
279.1 \u00a0
22.1 \u00a0
1.3 \u00a0
0.2 \u00a0
0.6 \u00a0
0.3 \u00a0
278.9 \u00a0
21.5 \u00a0
1.0 \u00a0
43.4 \u00a0
3.9 \u00a0
0.2 \u00a0
Business Customers \u00a0
Other \u00a0
0.1 \u00a0
-
-
-
-
-
0.1 \u00a0
-
-
0.1 \u00a0
-
-
Total Business \u00a0
Customers \u00a0
650.7 \u00a0
91.4 \u00a0
13.6 \u00a0
1.2 \u00a0
4.9 \u00a0
4.2 \u00a0
649.5 \u00a0
86.4 \u00a0
9.4 \u00a0
181.7 \u00a0
24.1 \u00a0
1.2 \u00a0
Large Corporates\u00a0& \u00a0
Institutions \u00a0
615.2 \u00a0
29.1 \u00a0
7.0 \u00a0
0.5 \u00a0
1.0 \u00a0
1.5 \u00a0
614.7 \u00a0
28.1 \u00a0
5.5 \u00a0
535.3 \u00a0
25.5 \u00a0
-
Northern Ireland \u00a0
81.4 \u00a0
6.9 \u00a0
1.7 \u00a0
0.3 \u00a0
0.2 \u00a0
0.4 \u00a0
81.1 \u00a0
6.7 \u00a0
1.2 \u00a0
45.4 \u00a0
1.1 \u00a0
0.1 \u00a0
Group Functions \u00a0
147.1 \u00a0
0.2 \u00a0
-
-
-
-
147.1 \u00a0
0.2 \u00a0
-
146.9 \u00a0
0.2 \u00a0
-
Total \u00a0
2,324.2 \u00a0
176.0 \u00a0
32.1 \u00a0
3.3 \u00a0
8.1 \u00a0
8.3 2,321.0 \u00a0
168.0 \u00a0
23.9 1,043.5 \u00a0
58.0 \u00a0
1.4 \u00a0
* Net exposure, ex collateral as at 31 December 2022 has been restated. \u00a0
** Global Private Banking is a new sub-segment in Personal Customers in 2023. Comparatives have been reclassified from other sub-segments of Personal Customers. \u00a0
Concentration risk \u00a0
The Group has implemented a set of frameworks to manage the concentration risk to which the Group is exposed. These frameworks cover single-name \u00a0
concentrations, industry concentrations and geographical concentrations. \u00a0
Industry concentrations \u00a0
The Group manages industry concentrations\u00a0as part of its credit risk tolerance framework by setting exposure limits\u00a0on select\u00a0ed industries.\u00a0For \u00a0
commercial property, this also includes reducing the number of low\u00a0-quality customers\u00a0to ensure creditworthiness\u00a0within the concentration limits. The \u00a0
industry concentrations are updated on\u00a0an ongoing basis and at least once a year. The Group\u00a0accepts the risks on material con\u00a0centrations in\u00a0accordance \u00a0
with the industry-specific\u00a0guidelines that outline the use\u00a0of credit\u00a0policies within the industry. For personal customers, the Group also manages key \u00a0
concentrations in\u00a0relation to high loan-to-value\u00a0(LTV) ratios\u00a0and short-term interest loans, for example. \u00a0
Geographical concentrations \u00a0
Credit reporting includes a breakdown by\u00a0country. For\u00a0selected countries,\u00a0exposures to sovereigns, financial institutions\u00a0and counterparties\u00a0in derivativ e s \u00a0
trading are\u00a0managed within country limits. \u00a0
Single-name concentrations and\u00a0large exposures \u00a0
Limits are set on credit risk exposures to single names, thus protecting the Group from excessive losses resulting from the d efault of a single customer group. \u00a0
The limits on\u00a0large exposures are defined within the large exposure restrictions of article 391 of the Capital Requirements Regulation (EU) No 575/2013 \u00a0
(CRR): \u00a0
\u2022
an absolute limit on the largest single aggregate exposure \u00a0
\u2022
the sum of the 20 largest exposures \u00a0
Collateral \u00a0
The Group uses\u00a0a number\u00a0of measures to mitigate\u00a0credit risk, including\u00a0collateral, guarantees and\u00a0covenants. The main\u00a0method is\u00a0obtaining collateral. \u00a0
The value of collateral is monitored and reassessed by advisers, internal or external assessors, and automatic valuation mode ls to ensure it reflects current \u00a0
market prices. The Groups Collateral System supports this process by only accepting up-to-date values, thus ensuring that the Group complies with regulatory \u00a0
requirements. \u00a0
The validity of the internal and external inputs on which the valuation\u00a0models depend is assessed regularly and the performan ce of the models themselves is \u00a0
validated annually by\u00a0an independent unit, to assess their performance and highlight any deficiencies that need to be addressed. \u00a0
The market value of collateral is subject to a haircut to reflect the fact that the Group may not be able to obtain the estim ated market value upon the sale of \u00a0
the individual\u00a0asset in a distressed situation. Hence, the haircut includes a forced sale reduction, price volatility\u00a0during the sales period, realisation costs and \u00a0
maintenance costs. The haircut applied depends on the type of collateral. For regulatory purposes, the Group also applies mor e conservative haircuts in order \u00a0
to capture the risk of an economic downturn. \u00a0
Type of collateral\u00a0in core activities\u00a0(after haircuts) \u00a0
Personal \u00a0
Business \u00a0
Large Corporates & \u00a0
Other areas (ex - \u00a0
Customers \u00a0
Customers \u00a0
Institutions \u00a0
Northern Ireland\u00a0Group Functions) \u00a0
Total \u00a0
(DKK billions) \u00a0
2023 \u00a0
2022 2023 2022 \u00a0
2023 \u00a0
2022 2023 \u00a0
2022 2023 \u00a0
2022 \u00a0
2023 \u00a0
2022 \u00a0
Real property \u00a0
696.2 \u00a0
730.4 489.9 458.1 \u00a0
42.6 \u00a0
38.0 \u00a0
40.3 \u00a0
36.5 \u00a0
0.1 \u00a0
0.2 1,269.1 1,263.2 \u00a0
- Personal \u00a0
687.3 \u00a0
717.4 \u00a0
1.5 \u00a0
1.8 \u00a0
-
-
26.6 \u00a0
24.7 \u00a0
0.1 \u00a0
0.1 \u00a0
715.6 \u00a0
744.0 \u00a0
- Commercial \u00a0
6.8 \u00a0
10.8 452.4 419.3 \u00a0
40.7 \u00a0
36.4 \u00a0
11.4 \u00a0
9.8 \u00a0
-
0.1 \u00a0
511.4 \u00a0
476.3 \u00a0
- Agricultural \u00a0
2.0 \u00a0
2.2 \u00a0
36.0 \u00a0
37.0 \u00a0
1.9 \u00a0
1.6 \u00a0
2.2 \u00a0
2.1 \u00a0
-
-
42.1 \u00a0
42.9 \u00a0
Bank accounts \u00a0
0.2 \u00a0
0.2 \u00a0
0.4 \u00a0
0.4 \u00a0
-
0.1 \u00a0
-
-
-
-
0.6 \u00a0
0.7 \u00a0
Custody account and securities \u00a0
3.6 \u00a0
3.0 \u00a0
4.1 \u00a0
4.4 \u00a0
10.2 \u00a0
6.6 \u00a0
-
-
-
-
17.9 \u00a0
14.0 \u00a0
Vehicles \u00a0
2.0 \u00a0
1.8 \u00a0
19.7 \u00a0
19.0 \u00a0
3.2 \u00a0
2.8 \u00a0
-
-
-
-
24.9 \u00a0
23.6 \u00a0
Equipment \u00a0
-
-
12.2 \u00a0
11.7 \u00a0
3.4 \u00a0
3.3 \u00a0
2.5 \u00a0
2.5 \u00a0
-
-
18.1 \u00a0
17.5 \u00a0
Vessels \u00a0
-
-
1.1 \u00a0
1.0 \u00a0
18.1 \u00a0
13.3 \u00a0
-
-
-
-
19.2 \u00a0
14.3 \u00a0
Guarantees \u00a0
6.2 \u00a0
6.2 \u00a0
3.6 \u00a0
3.6 \u00a0
12.1 \u00a0
11.6 \u00a0
1.9 \u00a0
2.5 \u00a0
-
-
23.8 \u00a0
23.8 \u00a0
Amounts due \u00a0
0.1 \u00a0
0.2 \u00a0
2.3 \u00a0
2.5 \u00a0
0.8 \u00a0
0.6 \u00a0
0.2 \u00a0
0.2 \u00a0
-
-
3.3 \u00a0
3.5 \u00a0
Other assets \u00a0
0.1 \u00a0
-
29.2 \u00a0
29.8 \u00a0
3.5 \u00a0
3.4 \u00a0
1.4 \u00a0
1.3 \u00a0
-
-
34.3 \u00a0
34.4 \u00a0
Total collateral \u00a0
708.3 \u00a0
741.8 562.5\u00a0530.5 \u00a0
94.0 \u00a0
79.6 \u00a0
46.2 \u00a0
42.9 \u00a0
0.1 \u00a0
0.2 1,411.2 1,395.1 \u00a0
Total unsecured credit exposure \u00a0
135.7 \u00a0
140.8 182.7\u00a0214.8 \u00a0
539.3 \u00a0
568.7 \u00a0
49.0 \u00a0
46.2 \u00a0
-
-
906.7 \u00a0
970.6 \u00a0
Unsecured portion\u00a0of credit \u00a0
exposure (%) \u00a0
16.1 \u00a0
16.0 \u00a0
24.5 \u00a0
28.8 \u00a0
85.2 \u00a0
87.7 \u00a0
51.4 \u00a0
51.8 \u00a0
-
-
39.1 \u00a0
41.0 \u00a0
Past due amounts in core activities (excluding loans in rating category 10 and 11) \u00a0
Past due amounts \u00a0
Personal \u00a0
Business \u00a0
Large Corporates & \u00a0
Other areas (ex \u00a0
Total past due\u00a0Total due under \u00a0
Customers \u00a0
Customers \u00a0
Institutions \u00a0
Northern Ireland\u00a0Group Functions) \u00a0
amount loans \u00a0
(DKK millions) \u00a0
2023 2022 \u00a0
2023 2022 \u00a0
2023 2022 \u00a0
2023 2022 \u00a0
2023 2022\u00a02023 2022 2023 2022 \u00a0
6-30 days \u00a0
43 \u00a0
23 \u00a0
39 \u00a0
24 \u00a0
14 \u00a0
1
2
2
-
-
98 \u00a0
49 1,592 1,547 \u00a0
31-60 days \u00a0
23 \u00a0
20 \u00a0
17 \u00a0
3
3
-
2
-
-
-
44 \u00a0
24 \u00a0
588 \u00a0
467 \u00a0
> 60 days \u00a0
34 \u00a0
58 \u00a0
12 \u00a0
4
-
1
5
-
-
-
52 \u00a0
64 \u00a0
454 \u00a0
487 \u00a0
Total past due \u00a0
amounts \u00a0
100 \u00a0
101 \u00a0
68 \u00a0
31 \u00a0
17 \u00a0
2
8
2
-
-
194 \u00a0
136 \u00a0
-
Total due under \u00a0
loans \u00a0
1,640 1,627 \u00a0
887 \u00a0
788 \u00a0
17 \u00a0
2
89 \u00a0
83 \u00a0
1
2
2,634 2,501 \u00a0
For the past due amounts, the average unsecured portion of the claims recorded was 23.6% at the end of 2023 (2022: 22.0%). Real property accounted for \u00a0
59.7% of collateral provided (2022: 67.2%). \u00a0
Forbearance practices and repossessed assets \u00a0
The Group adopts forbearance plans to assist customers in financial difficulty. Concessions granted to customers include inte\u00a0rest-reduction schedules, \u00a0
interest-only schedules, temporary payment holidays, term extensions, cancellation of outstanding fees,\u00a0w aiver\u00a0of covenant enforcement\u00a0and debt \u00a0
forgiveness. Forbearance plans must comply with the Group\u2019s Credit Policy. They are used as an instrument to retain long\u00a0-term business relationships \u00a0
during economic downturns if\u00a0there is a realistic\u00a0possibility that\u00a0the customer will be able to meet its obligations\u00a0again, or are used for minimising\u00a0losses \u00a0
in the event of default. \u00a0
If it proves impossible\u00a0to improve\u00a0the customer\u2019s financial situation\u00a0by forbearance\u00a0measures, the Group will consider whethe\u00a0r to subject the customer\u2019s \u00a0
assets to a forced sale or whether the assets could be realised later at higher net proceeds.\u00a0At the\u00a0end of 2023,\u00a0the Group had recognised propertie\u00a0s \u00a0
taken over in\u00a0Denmark at\u00a0a carrying amount of DKK 17 million (2022: DKK 4 million), and\u00a0there were no properties\u00a0taken over in other countries (2022: \u00a0
DKK 0\u00a0million). The properties are\u00a0held for sale and included under Assets held for sale in the balance sheet. \u00a0
The Group applies the European Banking Authority\u2019s\u00a0(the EBA\u2019s) definition\u00a0of loans subject to forbearance measures. The EBA d\u00a0efinition states that a \u00a0
probation period of a minimum\u00a0of two years must pass from the date when forborne exposures are considered t\u00a0o be performing again. Forbearance \u00a0
measures lead to changes in staging for impairment\u00a0purposes, and impairments\u00a0relating to forborne exposures are handled accor\u00a0ding to the principle\u00a0s \u00a0
described in note G15. \u00a0
Exposures subject\u00a0to forbearance\u00a0measures \u00a0
31 December \u00a0
31 December \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Stage 1 \u00a0
297 \u00a0
367 \u00a0
Stage 2 \u00a0
5,279 \u00a0
3,029 \u00a0
Stage 3 \u00a0
7,023 \u00a0
6,165 \u00a0
Total \u00a0
12,598 \u00a0
9,561 \u00a0
Expected credit losses (allowance account) in core\u00a0activities \u00a0
The expected credit loss is calculated for all individual\u00a0facilities as\u00a0a function of the probability\u00a0of default (PD), the exposure\u00a0at default\u00a0(EAD) and\u00a0the loss \u00a0
given default (LGD). In general, the Group\u2019s IFRS 9 impairment models and parameters draw on the bank\u2019s internal models in order to ensure alignment \u00a0
of models across the Group. New models and calculations\u00a0have been\u00a0developed especially\u00a0for IFRS 9 purposes, including\u00a0models for lifetime PD, \u00a0
prepayment and forward-looking\u00a0LGD. All expected credit loss impairments\u00a0are allocated to individual\u00a0exposures. For significant stage 3 exposures, the \u00a0
Group determines\u00a0the expected credit losses individually. \u00a0
(DKK millions) \u00a0
Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Total \u00a0
ECL allowance account as at 1 January 2022 \u00a0
2,733 \u00a0
6,804 \u00a0
12,397 \u00a0
21,935 \u00a0
Transferred to stage 1 during the period \u00a0
1,144 \u00a0
-1,062 \u00a0
-83 \u00a0
-
Transferred to stage 2 during the period \u00a0
-405 \u00a0
834 \u00a0
-428 \u00a0
-
Transferred to stage 3 during the period \u00a0
-26 \u00a0
-617 \u00a0
642 \u00a0
-
ECL on new assets \u00a0
630 \u00a0
1,643 \u00a0
844 \u00a0
3,116 \u00a0
ECL on assets derecognised \u00a0
-870 \u00a0
-1,487 \u00a0
-3,971 \u00a0
-6,329 \u00a0
Impact of net remeasurement of ECL (incl. changes in\u00a0models) \u00a0
120 \u00a0
2,101 \u00a0
1,032 \u00a0
3,253 \u00a0
Write-offs debited to the allowance account \u00a0
-
-2 \u00a0
-2,195 \u00a0
-2,198 \u00a0
Foreign exchange adjustments \u00a0
-51 \u00a0
-107 \u00a0
-15 \u00a0
-173 \u00a0
Other changes \u00a0
-1 \u00a0
-26 \u00a0
27 \u00a0
1
ECL allowance account as at\u00a031 December\u00a02022 \u00a0
3,273 \u00a0
8,082 \u00a0
8,251 \u00a0
19,605 \u00a0
ECL allowance account as at 1 January 2023 \u00a0
3,273 \u00a0
8,082 \u00a0
8,251 \u00a0
19,605 \u00a0
Transferred to stage 1 during the period \u00a0
2,406 \u00a0
-2,274 \u00a0
-132 \u00a0
-
Transferred to stage 2 during the period \u00a0
-211 \u00a0
668 \u00a0
-457 \u00a0
-
Transferred to stage 3 during\u00a0the period \u00a0
-22 \u00a0
-505 \u00a0
527 \u00a0
-
ECL on new assets \u00a0
601 \u00a0
1,249 \u00a0
607 \u00a0
2,457 \u00a0
ECL on assets derecognised \u00a0
-513 \u00a0
-1,142 \u00a0
-936 \u00a0
-2,591 \u00a0
Impact of net remeasurement of ECL (incl. changes in models) \u00a0
-1,923 \u00a0
1,393 \u00a0
1,579 \u00a0
1,048 \u00a0
Write-offs debited to the allowance account \u00a0
-5 \u00a0
-
-364 \u00a0
-370 \u00a0
Foreign exchange adjustments \u00a0
-18 \u00a0
23 \u00a0
-26 \u00a0
-22 \u00a0
Other changes \u00a0
5
-7 \u00a0
12 \u00a0
10 \u00a0
ECL allowance account as at\u00a031 December\u00a02023 \u00a0
3,592 \u00a0
7,486 \u00a0
9,062 \u00a0
20,140 \u00a0
The stage 3 allowance account includes DKK 1.9 billion (2022: DKK 2.5 billion) relating to originated credit impaired financial assets. Originated\u00a0credit \u00a0
impaired financial assets are granted as\u00a0part of\u00a0restructuring non-performing loan\u00a0exposures, and are otherwise outside the Group\u2019s credit\u00a0policy. The \u00a0
Group has not acquired any credit impaired financial assets. \u00a0
Expected credit\u00a0losses (allowance account) in\u00a0core activities\u00a0broken down by segment \u00a0
Large \u00a0
Personal \u00a0
Business \u00a0
Corporates & \u00a0
Northern \u00a0
Group \u00a0
Allowance \u00a0
(DKK millions) \u00a0
Customers \u00a0
Customers \u00a0
Institutions \u00a0
Ireland \u00a0
Functions \u00a0
account Total \u00a0
ECL allowance account as at 1 January 2022 \u00a0
5,654 \u00a0
10,186 \u00a0
5,227 \u00a0
850 \u00a0
17 \u00a0
21,935 \u00a0
ECL on new assets \u00a0
606 \u00a0
2,107 \u00a0
330 \u00a0
67 \u00a0
6
3,116 \u00a0
ECL on assets derecognised \u00a0
-713 \u00a0
-2,100 \u00a0
-3,383 \u00a0
-128 \u00a0
-4 \u00a0
-6,329 \u00a0
Impact on remeasurement of ECL (incl. change in models) \u00a0
837 \u00a0
663 \u00a0
1,494 \u00a0
244 \u00a0
15 \u00a0
3,253 \u00a0
Write-offs debited to allowance account \u00a0
-946 \u00a0
-438 \u00a0
-684 \u00a0
-129 \u00a0
-
-2,198 \u00a0
Foreign currency translation \u00a0
-32 \u00a0
-166 \u00a0
67 \u00a0
-41 \u00a0
-1 \u00a0
-173 \u00a0
Other changes \u00a0
22 \u00a0
-16 \u00a0
-2 \u00a0
-
-3 \u00a0
1
ECL allowance account as at\u00a031 December\u00a02022 \u00a0
5,427 \u00a0
10,235 \u00a0
3,050 \u00a0
863 \u00a0
31 \u00a0
19,605 \u00a0
ECL on new assets \u00a0
483 \u00a0
1,544 \u00a0
351 \u00a0
84 \u00a0
-4 \u00a0
2,457 \u00a0
ECL on assets derecognised \u00a0
-673 \u00a0
-1,825 \u00a0
-43 \u00a0
-44 \u00a0
-5 \u00a0
-2,591 \u00a0
Impact on remeasurement of ECL (incl. change in models) \u00a0
265 \u00a0
874 \u00a0
16 \u00a0
-115 \u00a0
9
1,048 \u00a0
Write-offs debited to allowance account \u00a0
-172 \u00a0
-150 \u00a0
-32 \u00a0
-15 \u00a0
-
-370 \u00a0
Foreign currency translation \u00a0
-8 \u00a0
5
-39 \u00a0
21 \u00a0
-1 \u00a0
-22 \u00a0
Other changes \u00a0
-16 \u00a0
22 \u00a0
7
-
-3 \u00a0
10 \u00a0
ECL allowance account as at\u00a031 December\u00a02023 \u00a0
5,306 \u00a0
10,705 \u00a0
3,308 \u00a0
794 \u00a0
26 \u00a0
20,140 \u00a0
The method used\u00a0for calculating expected credit losses\u00a0is described in detail in note G15. \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
Gross credit exposure in core\u00a0activities \u00a0
(DKK millions) \u00a0
Stage 1 \u00a0
Stage 2 \u00a0
Stage 3 \u00a0
Total \u00a0
Gross carrying amount at 1 January 2022 \u00a0
2,560,945 \u00a0
130,588 \u00a0
46,012 2,737,545 \u00a0
Transferred to stage 1 \u00a0
24,028 \u00a0
-21,990 \u00a0
-2,038 \u00a0
-
Transferred to stage 2 \u00a0
-67,270 \u00a0
72,996 \u00a0
-5,726 \u00a0
-
Transferred to stage 3 \u00a0
-1,991 \u00a0
-3,614 \u00a0
5,605 \u00a0
-
New assets \u00a0
874,798 \u00a0
48,923 \u00a0
7,588 \u00a0
931,309 \u00a0
Assets derecognised \u00a0
-938,904 \u00a0
-41,249 \u00a0
-15,928 -996,081 \u00a0
Changes due to modifications that did not result in derecognition \u00a0
-3 \u00a0
-
-14 -17 \u00a0
Other changes \u00a0
-127,364 \u00a0
-9,620 \u00a0
-3,366 -140,350 \u00a0
As at 31 December\u00a02022 \u00a0
2,324,240 \u00a0
176,034 \u00a0
32,132 2,532,406 \u00a0
Transferred to stage 1 \u00a0
48,832 \u00a0
-47,483 \u00a0
-1,348 \u00a0
-
Transferred to stage 2 \u00a0
-45,901 \u00a0
48,605 \u00a0
-2,704 \u00a0
-
Transferred to stage 3 \u00a0
-4,232 \u00a0
-4,443 \u00a0
8,676 \u00a0
-
New assets \u00a0
558,458 \u00a0
28,512 \u00a0
6,420 \u00a0
593,390 \u00a0
Assets derecognised \u00a0
-520,788 \u00a0
-49,712 \u00a0
-9,618 -580,117 \u00a0
Changes due to modifications that did not result in derecognition \u00a0
-4 \u00a0
-
-303 \u00a0
-308 \u00a0
Other changes \u00a0
30,219 \u00a0
-7,289 \u00a0
-568 \u00a0
22,361 \u00a0
As at 31 December\u00a02023 \u00a0
2,390,822 \u00a0
144,224 \u00a0
32,686 2,567,733 \u00a0
In the\u00a0table above, \u2018Changes due to modifications\u00a0that did not result in derecognition\u2019 includes partial forgiveness of\u00a0debt assessed to be uncollectible\u00a0. \u00a0
The modification loss\u00a0is recognised within the income statement as part of Loan impairment charges. The contractual amount of loans written off in 2023 \u00a0
and for which the Group retains the right to enforce its claims amounted to DKK\u00a01,873 million (2022: DKK 3,300\u00a0million). \u00a0
Allowance account\u00a0in core activities\u00a0broken down by balance\u00a0sheet item \u00a0
(DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
Due from credit institutions\u00a0and central banks \u00a0
15 \u00a0
47 \u00a0
Loans at amortised cost \u00a0
13,959 \u00a0
13,682 \u00a0
Loan commitments\u00a0and guarantees \u00a0
3,161 \u00a0
2,627 \u00a0
ECL Impairment,\u00a0Total \u00a0
17,134 \u00a0
16,356 \u00a0
Fair value credit risk adjustment on loans at fair value \u00a0
3,005 \u00a0
3,250 \u00a0
Total \u00a0
20,140 \u00a0
19,605 \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
Forward-looking information \u00a0
The incorporation\u00a0of forward-looking\u00a0information reflects the expectations\u00a0of the Group\u2019s\u00a0senior management and involves\u00a0both macroeconomic \u00a0
scenarios (base\u00a0case, upside and downside scenarios), including\u00a0an assessment of the probability\u00a0for each scenario ,\u00a0and post-model adjustments.\u00a0The \u00a0
purpose of using multiple\u00a0scenarios is\u00a0to model the non-linear impact of assumptions about macroeconomic factors on\u00a0the expected credit losses. Post- \u00a0
model adjustments\u00a0are used to capture specific risks which are not fully covered by the macroeconomic scenarios, as well as the process related risk, \u00a0
which could lead to an underestimation\u00a0of the expected\u00a0credit losses. \u00a0
Given the long-term nature of\u00a0climate scenario analysis, it is not included in the three\u00a0-year macroeconomic scenarios used to calculate expected credit \u00a0
loss. See Sustainability\u00a0risk section of this note for further information. \u00a0
Macroeconomic scenarios \u00a0
The forward-looking information\u00a0is based on a three-year forecast period converging\u00a0to steady state\u00a0in year seven. That is, after the forecast period, the \u00a0
macroeconomic scenarios revert slowly towards a\u00a0steady state. \u00a0
The applied scenarios that drive the expected credit loss calculation\u00a0in 2023 have been updated with the latest macroeconomic\u00a0data. Compared to the \u00a0
end of 2022, the base case and upside scenarios have been revised to reflect expectations\u00a0of higher GDP and\u00a0lower unemployment, but also higher \u00a0
interest rates\u00a0and lower house prices outside Denmark.\u00a0The scenario weighting have been updated to increase the weight on the\u00a0upside scenario to 20% \u00a0
(10% in 2022), by decreasing the weight on the base case scenario to 60% (70% in 2022). The weight on the downside scenario\u00a0remains at\u00a020% (20% \u00a0
in 2022) despite the use of a severe stagflation scenario. \u00a0
The base case is an extension\u00a0of the\u00a0Group\u2019s official\u00a0view of the Nordic economies (the Nordic Outlook report). At 31 Decembe\u00a0r 2023,\u00a0the base case \u00a0
scenario reflects a slowdown in the Nordic economies however, with a soft landing. Inflation is expected to c\u00a0ome down and interest rates will slowly begin \u00a0
to decrease. GDP growth will remain weak across the Nordic economies and labour markets remain tight with only modest increas\u00a0es in unemployment. \u00a0
Interest rates is\u00a0expected to continue to\u00a0weigh on house prices, however,\u00a0the worst\u00a0part is expected to\u00a0be behind us. \u00a0
The upside scenario represents a slightly better outlook than the base case scenario across the macroeconomic parameters. In this\u00a0scenario, sentiment \u00a0
improves, and consumers follow the US in running down a significant proportion of the savings\u00a0accumulated during the\u00a0pandemic .\u00a0The consumer-led \u00a0
recovery causes inflation\u00a0to take longer to return to target, prompting further policy rate hikes and high rates for longer. Higher demand sup\u00a0ports the \u00a0
housing markets, but higher interest rates become an\u00a0increasing headwind. The housing market fares\u00a0somewhat better\u00a0than in the base case. \u00a0
The Group\u2019s downside scenario is the severe recession with high interest rates scenario (reflecting a stagflation scenario) applied in\u00a0the Group\u2019s ICAAP \u00a0
processes, and it is similar\u00a0in nature\u00a0to regulatory\u00a0stress tests.\u00a0The severe recession scenario reflected negative growth, i\u00a0ncreasing interest\u00a0rates, and \u00a0
falling property prices for\u00a0a longer period. A trigger of the economic setback could be continued macroeconomic\u00a0worsening and challenges linked to high \u00a0
business costs while inflation remain elevated. This adversely impacts the labour market, results in higher and more\u00a0persistent unemployment.\u00a0This \u00a0
would lead to a severe slowdown in the economies\u00a0in which the Group is represented. \u00a0
The main macroeconomic parameters in the base case, upside and downside scenarios entering into the ECL calculation for the forecast horizon across \u00a0
the Group\u2019s Nordic markets are included below. \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
Denmark \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
1.0 \u00a0
1.6 \u00a0
1.6 \u00a0
-3.4 \u00a0
-2.0 \u00a0
-
2.5 \u00a0
1.8 \u00a0
0.4 \u00a0
Unemployment \u00a0
3.1 \u00a0
3.3 \u00a0
3.4 \u00a0
6.3 \u00a0
7.5 \u00a0
7.9 \u00a0
2.7 \u00a0
2.6 \u00a0
3.2 \u00a0
Inflation \u00a0
2.0 \u00a0
1.9 \u00a0
1.8 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
2.4 \u00a0
2.5 \u00a0
1.4 \u00a0
Property prices - Residential \u00a0
1.5 \u00a0
2.0 \u00a0
2.1 \u00a0
-19.7 \u00a0
-11.0 \u00a0
-6.0 \u00a0
3.5 \u00a0
3.0 \u00a0
2.1 \u00a0
Interest rate - 3 month \u00a0
3.1 \u00a0
2.3 \u00a0
2.0 \u00a0
5.4 \u00a0
6.4 \u00a0
3.9 \u00a0
4.3 \u00a0
3.5 \u00a0
2.5 \u00a0
Sweden \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
1.2 \u00a0
1.8 \u00a0
2.4 \u00a0
-3.5 \u00a0
-3.4 \u00a0
-1.0 \u00a0
2.6 \u00a0
2.1 \u00a0
1.3 \u00a0
Unemployment \u00a0
8.2 \u00a0
8.0 \u00a0
7.9 \u00a0
9.4 \u00a0
10.3 \u00a0
10.7 \u00a0
7.9 \u00a0
7.5 \u00a0
7.7 \u00a0
Inflation \u00a0
1.9 \u00a0
1.3 \u00a0
1.6 \u00a0
4.9 \u00a0
3.9 \u00a0
2.9 \u00a0
2.0 \u00a0
1.6 \u00a0
1.5 \u00a0
Property prices - Residential \u00a0
-1.0 \u00a0
4.0 \u00a0
5.0 \u00a0
-22.0 \u00a0
-13.0 \u00a0
-7.0 \u00a0
1.0 \u00a0
5.0 \u00a0
5.0 \u00a0
Interest rate - 3 month \u00a0
3.4 \u00a0
2.3 \u00a0
2.0 \u00a0
5.7 \u00a0
5.7 \u00a0
3.7 \u00a0
4.6 \u00a0
3.6 \u00a0
2.6 \u00a0
Norway \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
1.1 \u00a0
2.1 \u00a0
1.5 \u00a0
-2.7 \u00a0
-1.1 \u00a0
0.6 \u00a0
2.5 \u00a0
2.4 \u00a0
0.4 \u00a0
Unemployment \u00a0
2.3 \u00a0
2.5 \u00a0
2.5 \u00a0
5.5 \u00a0
6.4 \u00a0
6.5 \u00a0
2.0 \u00a0
2.0 \u00a0
2.3 \u00a0
Inflation \u00a0
3.0 \u00a0
2.0 \u00a0
2.0 \u00a0
4.5 \u00a0
3.0 \u00a0
2.0 \u00a0
3.2 \u00a0
2.3 \u00a0
1.8 \u00a0
Property prices - Residential \u00a0
-1.0 \u00a0
5.0 \u00a0
4.0 \u00a0
-19.0 \u00a0
-13.0 \u00a0
-7.0 \u00a0
-
6.0 \u00a0
4.0 \u00a0
Interest rate - 3 month \u00a0
3.7 \u00a0
2.9 \u00a0
2.5 \u00a0
6.3 \u00a0
6.3 \u00a0
4.3 \u00a0
5.0 \u00a0
4.0 \u00a0
3.0 \u00a0
Finland \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
31 December 2023 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
2024 \u00a0
2025 \u00a0
2026 \u00a0
GDP \u00a0
0.3 \u00a0
1.9 \u00a0
1.3 \u00a0
-2.4 \u00a0
-2.0 \u00a0
-0.3 \u00a0
1.3 \u00a0
2.2 \u00a0
0.4 \u00a0
Unemployment \u00a0
-0.1 \u00a0
2.0 \u00a0
1.5 \u00a0
9.9 \u00a0
10.9 \u00a0
10.9 \u00a0
7.6 \u00a0
6.9 \u00a0
6.4 \u00a0
Inflation \u00a0
7.8 \u00a0
7.2 \u00a0
6.5 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
2.2 \u00a0
1.8 \u00a0
1.7 \u00a0
Property prices - Residential \u00a0
1.9 \u00a0
1.5 \u00a0
2.0 \u00a0
-14.2 \u00a0
-7.0 \u00a0
-5.0 \u00a0
3.0 \u00a0
4.0 \u00a0
2.0 \u00a0
Interest rate - 3 month \u00a0
0.5 \u00a0
1.2 \u00a0
1.3 \u00a0
5.1 \u00a0
5.1 \u00a0
3.1 \u00a0
4.3 \u00a0
3.5 \u00a0
2.5 \u00a0
Expected credit losses (allowance account) in core\u00a0activities continued \u00a0
At 31 December\u00a02022, the following base case and downside scenarios were used: \u00a0
Denmark \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
-0.6 \u00a0
0.5 \u00a0
1.5 \u00a0
-3.7 \u00a0
-2.1 \u00a0
-
0.4 \u00a0
1.6 \u00a0
1.1 \u00a0
Unemployment \u00a0
3.2 \u00a0
3.8 \u00a0
3.8 \u00a0
6.0 \u00a0
7.0 \u00a0
7.4 \u00a0
3.0 \u00a0
3.3 \u00a0
3.3 \u00a0
Inflation \u00a0
4.9 \u00a0
2.5 \u00a0
1.8 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
4.0 \u00a0
1.9 \u00a0
1.9 \u00a0
Property prices - Residential \u00a0
-5.9 \u00a0
-4.0 \u00a0
1.5 \u00a0
-19.7 \u00a0
-12.7 \u00a0
-8.0 \u00a0
-2.9 \u00a0
-2.0 \u00a0
2.5 \u00a0
Interest rate - 3 month \u00a0
2.8 \u00a0
2.5 \u00a0
2.0 \u00a0
3.3 \u00a0
4.3 \u00a0
3.8 \u00a0
2.3 \u00a0
1.8 \u00a0
1.8 \u00a0
Sweden \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
-1.2 \u00a0
1.1 \u00a0
1.8 \u00a0
-3.8 \u00a0
-3.6 \u00a0
-1.0 \u00a0
-0.6 \u00a0
2.1 \u00a0
1.7 \u00a0
Unemployment \u00a0
8.2 \u00a0
8.0 \u00a0
7.5 \u00a0
8.9 \u00a0
9.9 \u00a0
10.3 \u00a0
8.2 \u00a0
7.8 \u00a0
7.3 \u00a0
Inflation \u00a0
6.2 \u00a0
1.5 \u00a0
1.7 \u00a0
4.9 \u00a0
3.9 \u00a0
2.9 \u00a0
5.4 \u00a0
0.9 \u00a0
1.3 \u00a0
Property prices - Residential \u00a0
-8.0 \u00a0
-
2.0 \u00a0
-23.6 \u00a0
-14.6 \u00a0
-10.0 \u00a0
-5.0 \u00a0
2.0 \u00a0
3.0 \u00a0
Interest rate - 3 month \u00a0
2.8 \u00a0
2.5 \u00a0
2.0 \u00a0
3.8 \u00a0
4.8 \u00a0
4.3 \u00a0
2.3 \u00a0
1.8 \u00a0
1.8 \u00a0
Norway \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
0.9 \u00a0
1.7 \u00a0
1.5 \u00a0
-2.9 \u00a0
-1.2 \u00a0
0.6 \u00a0
1.5 \u00a0
2.5 \u00a0
1.7 \u00a0
Unemployment \u00a0
2.4 \u00a0
2.5 \u00a0
2.2 \u00a0
5.2 \u00a0
6.1 \u00a0
6.2 \u00a0
2.3 \u00a0
2.2 \u00a0
1.9 \u00a0
Inflation \u00a0
3.4 \u00a0
1.8 \u00a0
2.0 \u00a0
4.5 \u00a0
3.0 \u00a0
2.0 \u00a0
2.4 \u00a0
1.3 \u00a0
1.9 \u00a0
Property prices - Residential \u00a0
-2.1 \u00a0
2.0 \u00a0
2.5 \u00a0
-20.5 \u00a0
-14.5 \u00a0
-8.0 \u00a0
0.9 \u00a0
3.0 \u00a0
3.5 \u00a0
Interest rate - 3 month \u00a0
3.1 \u00a0
2.9 \u00a0
2.4 \u00a0
4.4 \u00a0
5.4 \u00a0
4.9 \u00a0
2.6 \u00a0
2.1 \u00a0
2.1 \u00a0
Finland \u00a0
Base-case \u00a0
Downside \u00a0
Upside \u00a0
2022 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
2023 \u00a0
2024 \u00a0
2025 \u00a0
GDP \u00a0
-0.2 \u00a0
1.0 \u00a0
1.3 \u00a0
-2.7 \u00a0
-2.2 \u00a0
-0.3 \u00a0
0.5 \u00a0
2.0 \u00a0
1.3 \u00a0
Unemployment \u00a0
7.3 \u00a0
7.4 \u00a0
7.0 \u00a0
9.4 \u00a0
10.4 \u00a0
10.4 \u00a0
7.3 \u00a0
7.3 \u00a0
6.9 \u00a0
Inflation \u00a0
3.7 \u00a0
2.1 \u00a0
1.8 \u00a0
4.0 \u00a0
3.0 \u00a0
2.0 \u00a0
2.9 \u00a0
1.4 \u00a0
1.6 \u00a0
Property prices - Residential \u00a0
-1.0 \u00a0
1.0 \u00a0
2.0 \u00a0
-14.2 \u00a0
-9.2 \u00a0
-5.0 \u00a0
1.0 \u00a0
2.0 \u00a0
3.0 \u00a0
Interest rate - 3 month \u00a0
2.6 \u00a0
2.3 \u00a0
1.8 \u00a0
3.2 \u00a0
4.2 \u00a0
3.7 \u00a0
2.1 \u00a0
1.6 \u00a0
1.6 \u00a0
At 31 December\u00a02023, the upside scenario represented a slightly better outlook than the base case scenario across the macroecono\u00a0mic parameters. \u00a0
The base case scenario enters with a probability\u00a0of 60% (2022: 70%), the upside scenario with a probability of 20% (2022: 10%\u00a0) and\u00a0the downside \u00a0
scenario with a probability\u00a0of 20% (2022: 20%). On the basis of these assessments,\u00a0the allowance\u00a0account as at 3 1 December 2023 amounted\u00a0to DKK \u00a0
20.1 billion (2022: DKK 19.6 billion).\u00a0If the base case scenario was assigned a probability\u00a0of 100%, the allowance\u00a0account would d\u00a0ecrease DKK\u00a02.0 \u00a0
billion (2022: DKK 2.1 billion). Compared to\u00a0the base\u00a0case scenario, the allow\u00a0ance account\u00a0would increase DKK 10.2 billion (2022: DKK 10.9 billion), if \u00a0
the downside scenario was assigned a probability\u00a0of 100%.\u00a0The increase reflects primarily the transfer of\u00a0exposures from stag\u00a0e 1 to stage 2 and \u00a0
increased expected credit losses within stage 2. If instead the upside scenario was assigned a probability of 100%, the allowance account would decrease \u00a0
by DKK\u00a00.2 billion (2022: DKK 0.4\u00a0billion) compared to the base case\u00a0scenario. It should be noted that the expected credit losses in the\u00a0individu a l \u00a0
scenarios (i.e. without the weighting)\u00a0do not represent forecasts of expected credit losses (ECL). \u00a0
Expected credit losses (allowance account) in core activities continued \u00a0
Post-model adjustments \u00a0
Management applies judgement when determining the need for\u00a0post-model adjustments.\u00a0At 31 December\u00a02023, the post-model adjustments amounte\u00a0d \u00a0
to DKK 6.7 billion (2022: DKK 6.6\u00a0billion). The post-model adjustments\u00a0primarily relate to the following types of risks: \u00a0
\u2022
specific macroeconomic risks on\u00a0certain industries not fully captured by the expected credit loss model, for\u00a0instance the Agr\u00a0iculture industry. For \u00a0
such industries,\u00a0supplementary calculations are\u00a0made to ensure sufficient impairment coverage. This also inc ludes\u00a0post-model adjustments\u00a0relating \u00a0
to secondary effects from the high macroeconomic\u00a0uncertainty. \u00a0
\u2022
non-linear downside risk, for\u00a0instance on\u00a0the property market in Copenhagen and other high growth areas for which the macroeconom\u00a0ic forecasts \u00a0
used in the models are based on the property market as a whole. \u00a0
\u2022
portfolios where\u00a0the credit risk assessment process has identified\u00a0an underestimation\u00a0of the expected credit losses\u00a0. \u00a0
Following the significant impact on the expected credit losses from post-model adjustments,\u00a0the table below provides\u00a0more information about the \u00a0
adjustments. \u00a0
Post-model adjustments\u00a0by type\u00a0and mostly\u00a0impacted industries \u00a0
31 December \u00a0
31 December \u00a0
(DKK billions) \u00a0
2023 \u00a0
2022 \u00a0
Coverage of individual\u00a0industries and types \u00a0
Agriculture \u00a0
0.8 \u00a0
0.8 \u00a0
Commercial Property \u00a0
1.9 \u00a0
1.8 \u00a0
Construction and building materials \u00a0
1.0 \u00a0
0.5 \u00a0
Personal customers (including\u00a0other retail exposures) \u00a0
1.6 \u00a0
1.4 \u00a0
Others* \u00a0
1.4 \u00a0
2.1 \u00a0
Total \u00a0
6.7 \u00a0
6.6 \u00a0
* No individual industry included in Others exceeds DKK 0.2 billion at 31 December 2023 (2022: DKK 0.3 billion). \u00a0
The total balance of post-model adjustments\u00a0displayed a\u00a0very modest increase in\u00a02023 compared to the end\u00a0of 2022. \u00a0
The Group continues to have significant post-model adjustments related to the current macroeconomic uncertainties\u00a0characterised by\u00a0the slowing \u00a0
growth environment,\u00a0labour shortages, interest rate hikes and inflation\u00a0giving rise\u00a0to a new set of challenges that affect ec\u00a0onomic and business activity. \u00a0
The post-model adjustments\u00a0cut across industries\u00a0that are sensitive to price rises on energy, e.g.\u00a0agriculture and\u00a0metals, and industr\u00a0ies vulnerable to \u00a0
business cycles and increasing interest rates including refinancing risks, which have been assessed\u00a0for idiosyncratic\u00a0risks to ensure a prudent coverage \u00a0
of expected\u00a0credit loss in the Group\u2019s\u00a0portfolios. \u00a0
Credit exposure from Non-core lending activities \u00a0
The Non-core business unit includes certain customer segments that are no longer considered part of the core business. The Non\u00a0-core unit is responsible \u00a0
for the controlled winding-up of this part of the loan portfolio. The portfolio consists primarily liquidity facilities for Special Purpose Vehicles (SPVs) and conduit \u00a0
structures. \u00a0
Credit portfolio\u00a0in Non-core activities\u00a0broken down\u00a0by industry\u00a0(NACE) and stages \u00a0
31 December 2023 \u00a0
Gross exposure \u00a0
Expected credit loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK millions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Non-core banking \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
Non-core conduits etc. \u00a0
2,468 \u00a0
-
-
-
-
-
2,468 \u00a0
-
-
-
-
-
Total \u00a0
2,468 \u00a0
-
-
-
-
-
2,468 \u00a0
-
-
-
-
-
31 December 2022 \u00a0
Gross exposure \u00a0
Expected credit loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK millions) \u00a0
Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
Non-core banking \u00a0
1
-
-
-
-
-
1
-
-
-
-
-
Non-core conduits etc. \u00a0
2,444 \u00a0
-
94 \u00a0
-
-
39 \u00a0
2,444 \u00a0
-
55 \u00a0
24 \u00a0
-
15 \u00a0
Total \u00a0
2,445 \u00a0
-
94 \u00a0
-
-
39 \u00a0
2,445 \u00a0
-
55 \u00a0
24 \u00a0
-
15 \u00a0
Credit exposure from Non-core lending activities continued \u00a0
Credit portfolio\u00a0in Non-core activities\u00a0broken down\u00a0by rating\u00a0category and stages \u00a0
31 December 2023 \u00a0
PD level \u00a0
Gross exposure \u00a0
Expected credit loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK millions) \u00a0
Upper Lower\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
1
-
0.01 \u00a0
568 \u00a0
-
-
-
-
-
568 \u00a0
-
-
-
-
-
2
0.01 \u00a0
0.03 \u00a0
908 \u00a0
-
-
-
-
-
908 \u00a0
-
-
-
-
-
3
0.03 \u00a0
0.06 \u00a0
992 \u00a0
-
-
-
-
-
992 \u00a0
-
-
-
-
-
4
0.06 \u00a0
0.14 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
5
0.14 \u00a0
0.31 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
6
0.31 \u00a0
0.63 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
7
0.63 \u00a0
1.90 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
8
1.90 \u00a0
7.98 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
9
7.98 25.70 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
10 \u00a0
25.70 99.99 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
11 (default) \u00a0
100.00 100.00 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
Total \u00a0
2,468 \u00a0
-
-
-
-
-
2,468 \u00a0
-
-
-
-
-
31 December 2022 \u00a0
PD level \u00a0
Gross exposure \u00a0
Expected credit\u00a0loss \u00a0
Net exposure \u00a0
Net exposure, ex collateral \u00a0
(DKK millions) \u00a0
Upper Lower\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3\u00a0Stage 1\u00a0Stage 2\u00a0Stage 3 \u00a0
1
-
0.01 \u00a0
817 \u00a0
-
-
-
-
-
817 \u00a0
-
-
-
-
-
2
0.01 \u00a0
0.03 1,163 \u00a0
-
-
-
-
-
1,163 \u00a0
-
-
24 \u00a0
-
-
3
0.03 \u00a0
0.06 \u00a0
453 \u00a0
-
-
-
-
-
453 \u00a0
-
-
-
-
-
4
0.06 \u00a0
0.14 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
5
0.14 \u00a0
0.31 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
6
0.31 \u00a0
0.63 \u00a0
12 \u00a0
-
-
-
-
-
12 \u00a0
-
-
-
-
-
7
0.63 \u00a0
1.90 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
8
1.90 \u00a0
7.98 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
9
7.98 25.70 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
10 \u00a0
25.70 99.99 \u00a0
-
-
-
-
-
-
-
-
-
-
-
-
11 (default) \u00a0
100.00 100.00 \u00a0
-
-
94 \u00a0
-
-
39 \u00a0
-
-
55 \u00a0
-
-
15 \u00a0
Total \u00a0
2,445 \u00a0
-
94 \u00a0
-
-
39 2,445 \u00a0
-
55 \u00a0
24 \u00a0
-
15 \u00a0
Counterparty credit risk \u00a0
Exposure to counterparty credit risk and\u00a0credit exposure from trading and investment\u00a0securities \u00a0
(DKK billions) \u00a0
2023 \u00a0
2022* \u00a0
Counterparty credit risk \u00a0
Derivatives with\u00a0positive fair value \u00a0
351.7 \u00a0
430.1 \u00a0
Reverse transactions and other loans at fair value1 \u00a0
267.9 \u00a0
246.8 \u00a0
Credit exposure from other trading and investment securities \u00a0
Bonds \u00a0
461.0 \u00a0
486.7 \u00a0
Shares \u00a0
19.4 \u00a0
10.2 \u00a0
Other unutilised commitments2 \u00a0
0.1 \u00a0
0.1 \u00a0
Total \u00a0
1,100.1 \u00a0
1,173.8 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
1 Reverse transactions andother loans at fair value included as counterparty credit risk are loans at the trading units of LargeCorporates& Institutions. Theseloans consist of reverse transactions \u00a0
of DKK 267.4 billion (2022: DKK 246.0billion), of which DKK 92.4 billion relates tocredit institutions and central banks(2022: DKK 37.4 billion), and other primarily short-term loans of DKK 0.6 \u00a0
billion (2022: DKK 0.8 billion), of which DKK 0.6 billion (2022: DKK 0.8 billion) relates to credit institutions and central banks. \u00a0
2 Other unutilised commitments comprise private equity investment commitments and other obligations. \u00a0
Counterparty credit\u00a0risk (derivatives) \u00a0
Counterparty credit\u00a0risk is the risk that the counterparty\u00a0to a transaction\u00a0defaults before the final settlement of the trans\u00a0action\u2019s cash\u00a0flows. It is a \u00a0
combination of\u00a0credit risk (a deterioration\u00a0in the creditworthiness\u00a0of a counterparty)\u00a0and market risk (the potential\u00a0value of derivatives\u00a0contracts). \u00a0
Derivatives are\u00a0subject to credit risk. Positive\u00a0and negative\u00a0fair values of derivatives\u00a0with the same counterparty are offset\u00a0in the balance\u00a0sheet if certain \u00a0
conditions are fulfilled. \u00a0
Danske Bank\u00a0Group takes on counterparty credit risk when it enters into\u00a0over-the-counter (OTC)\u00a0derivatives, securities\u00a0financing transactions (SFTs), \u00a0
and/or exchange-traded derivatives\u00a0(ETDs). \u00a0
The Group mitigates\u00a0counterparty credit\u00a0risk through pre-deal controls, post-deal monitoring,\u00a0clearing, close-out netting agreements and collatera\u00a0l \u00a0
agreements. Those agreements include rights to additional set-off in\u00a0the event of default by a counterparty,\u00a0they reduce\u00a0the exposure further, but they do \u00a0
not qualify for offsetting under IFRSs. The net current exposure to derivatives\u00a0with positive\u00a0market value after\u00a0offsetting under master netting\u00a0agreements \u00a0
amounted to DKK 89.5 billion (2022: DKK 89.1 billion) (see\u00a0note G32). The exposure is broken down by rating category in the table below. \u00a0
NET current exposure broken down by\u00a0category (DKK millions) \u00a0
2023 \u00a0
2022 \u00a0
1
14,293 \u00a0
15,039 \u00a0
2
16,110 \u00a0
14,741 \u00a0
3
43,279 \u00a0
47,198 \u00a0
4
11,946 \u00a0
9,195 \u00a0
5
2,309 \u00a0
2,153 \u00a0
6
921 \u00a0
627 \u00a0
7
463 \u00a0
98 \u00a0
8
86 \u00a0
74 \u00a0
9
1
-
10 \u00a0
24 \u00a0
5
11 \u00a0
18 \u00a0
8
Total \u00a0
89,450 \u00a0
89,139 \u00a0
The Group uses a range of measures to capture counterparty credit risk, including current exposure, potential\u00a0future exposure (PFE) and exposure at default \u00a0
(EAD). Current\u00a0exposure is a simple measure of counterparty credit risk exposure that takes into account only current mark-to-market values and collateral. \u00a0
Customer-level counterparty risk is managed by means of PFE lines on a set of maturity buckets. It is measured at the 97.5% percentile for a set of future \u00a0
time horizons. PFE lines are approved by the relevant credit unit and all transactions are assumed to be held to contractual maturity. The Group carries o\u00a0ut \u00a0
daily counterparty credit risk measurement and monitoring as well as intraday line utilisation\u00a0monitoring. \u00a0
The Danish FSA approved the Group\u2019s simulation model for calculating\u00a0the regulatory capital requirement for counterparty cred it risk in 2015. More advanced \u00a0
measures such as EAD, which is a regulatory measure, express potential future losses and are based o n internal models for future scenarios of market data. \u00a0
EAD figures\u00a0are provided in the Additional\u00a0Pillar III Disclosures\u00a0(accessible at danskebank.com/investor-relations). \u00a0
An overview of counterparty credit risk exposures (at counterparty and portfolio levels) is reported to the Executive\u00a0Leadership Team and other senior \u00a0
management on a monthly basis. The Group uses a simulation-based model to calculate counterparty credit risk exposure for the majority of its portfolio. \u00a0
The Group makes fair value adjustments to cover the counterparty credit risk on derivatives\u00a0with positive\u00a0fair value (CVA) that are recognised in the financial \u00a0
statements. For more information, see note G33. \u00a0
Bond portfolio \u00a0
Central and \u00a0
Quasi- \u00a0
Danish \u00a0
Swedish \u00a0
Other \u00a0
local govern- \u00a0
government \u00a0
mortgage \u00a0
covered \u00a0
covered \u00a0
Corporate \u00a0
(DKK millions) \u00a0
ment bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
Total \u00a0
31 December 2023 \u00a0
Held-for-trading (FVPL) \u00a0
117,986 \u00a0
1,179 \u00a0
29,084 \u00a0
20,862 \u00a0
3,272 \u00a0
5,179 \u00a0
177,563 \u00a0
Managed at\u00a0fair value (FVPL) \u00a0
1,845 \u00a0
291 \u00a0
17,069 \u00a0
1,307 \u00a0
286 \u00a0
-
20,798 \u00a0
Held to collect and sell (FVOCI) \u00a0
23,669 \u00a0
2,905 \u00a0
49,470 \u00a0
4,776 \u00a0
25,077 \u00a0
1,330 \u00a0
107,226 \u00a0
Held to collect (AMC) \u00a0
47,892 \u00a0
8,551 \u00a0
92,699 \u00a0
5,093 \u00a0
1,013 \u00a0
150 \u00a0
155,398 \u00a0
Total \u00a0
191,392 \u00a0
12,926 \u00a0
188,321 \u00a0
32,038 \u00a0
29,648 \u00a0
6,659 \u00a0
460,984 \u00a0
31 December 2022* \u00a0
Held-for-trading (FVPL) \u00a0
149,059 \u00a0
3,452 \u00a0
13,729 \u00a0
19,753 \u00a0
5,543 \u00a0
8,859 \u00a0
200,395 \u00a0
Managed at\u00a0fair value (FVPL) \u00a0
2,339 \u00a0
594 \u00a0
13,577 \u00a0
1,011 \u00a0
409 \u00a0
304 \u00a0
18,233 \u00a0
Held to collect and sell (FVOCI) \u00a0
15,730 \u00a0
4,597 \u00a0
63,108 \u00a0
6,695 \u00a0
25,045 \u00a0
1,253 \u00a0
116,429 \u00a0
Held to collect (AMC) \u00a0
53,681 \u00a0
9,292 \u00a0
81,991 \u00a0
5,599 \u00a0
1,011 \u00a0
-
151,573 \u00a0
Total \u00a0
220,809 \u00a0
17,935 \u00a0
172,405 \u00a0
33,057 \u00a0
32,007 \u00a0
10,417 \u00a0
486,630 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
At 31 December 2023, the Group had an additional bond portfolio, including bond-based unit trust certificates, worth DKK 214,073 million (2022: DKK \u00a0
215,463 million) recognised as assets under insurance contracts and thus not included\u00a0in the table above. The section on life insuran\u00a0ce risk\u00a0provide s \u00a0
more information. \u00a0
Bond portfolio continued \u00a0
Bond portfolio\u00a0broken down by geographical\u00a0area \u00a0
Central and \u00a0
Quasi- \u00a0
Danish \u00a0
Swedish \u00a0
Other \u00a0
local govern- \u00a0
government \u00a0
mortgage \u00a0
covered \u00a0
covered \u00a0
Corporate \u00a0
(DKK millions) \u00a0
ment bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
Total \u00a0
31 December 2023 \u00a0
Denmark \u00a0
28,754 \u00a0
-
188,321 \u00a0
-
-
870 \u00a0
217,945 \u00a0
Sweden \u00a0
61,267 \u00a0
-
-
32,038 \u00a0
-
1,362 \u00a0
94,667 \u00a0
UK \u00a0
11,141 \u00a0
291 \u00a0
-
-
3,518 \u00a0
1,009 \u00a0
15,959 \u00a0
Norway \u00a0
6,049 \u00a0
-
-
-
23,902 \u00a0
1,358 \u00a0
31,309 \u00a0
USA \u00a0
15,529 \u00a0
3,274 \u00a0
-
-
-
7
18,810 \u00a0
Spain \u00a0
1,243 \u00a0
-
-
-
1
-
1,244 \u00a0
France \u00a0
4,703 \u00a0
19 \u00a0
-
-
237 \u00a0
116 \u00a0
5,075 \u00a0
Luxembourg \u00a0
5,205 \u00a0
-
-
-
123 \u00a0
5,328 \u00a0
Finland \u00a0
10,224 \u00a0
2,954 \u00a0
-
-
1,089 \u00a0
909 \u00a0
15,176 \u00a0
Ireland \u00a0
550 \u00a0
-
-
-
-- \u00a0
94 \u00a0
643 \u00a0
Italy \u00a0
1,413 \u00a0
-
-
-
-
5
1,418 \u00a0
Portugal \u00a0
3
-
-
-
-
-
3
Austria \u00a0
4,513 \u00a0
-
-
-
66 \u00a0
113 \u00a0
4,691 \u00a0
Netherlands \u00a0
3,349 \u00a0
1
-
-
17 \u00a0
510 \u00a0
3,877 \u00a0
Germany \u00a0
42,152 \u00a0
-
-
-
216 \u00a0
96 \u00a0
42,465 \u00a0
Belgium \u00a0
503 \u00a0
442 \u00a0
-
-
1
-
946 \u00a0
Other \u00a0
-
740 \u00a0
-
-
602 \u00a0
87 \u00a0
1,429 \u00a0
Total \u00a0
191,392 \u00a0
12,926 \u00a0
188,321 \u00a0
32,038 \u00a0
29,648 \u00a0
6,659 \u00a0
460,984 \u00a0
31 December 2022* \u00a0
Denmark \u00a0
46,390 \u00a0
-
172,405 \u00a0
-
-
4,573 \u00a0
223,369 \u00a0
Sweden \u00a0
77,432 \u00a0
-
-
33,057 \u00a0
-
2,628 \u00a0
113,117 \u00a0
UK \u00a0
6,795 \u00a0
-
-
-
2,680 \u00a0
897 \u00a0
10,371 \u00a0
Norway \u00a0
3,902 \u00a0
-
-
-
28,163 \u00a0
-
32,065 \u00a0
USA \u00a0
16,534 \u00a0
4,361 \u00a0
-
-
-
-
20,895 \u00a0
Spain \u00a0
2,372 \u00a0
-
-
-
1
-
2,372 \u00a0
France \u00a0
11,163 \u00a0
17 \u00a0
-
-
229 \u00a0
96 \u00a0
11,505 \u00a0
Luxembourg \u00a0
-
6,123 \u00a0
-
-
-
82 \u00a0
6,205 \u00a0
Finland \u00a0
8,293 \u00a0
4,637 \u00a0
-
-
362 \u00a0
1,253 \u00a0
14,544 \u00a0
Ireland \u00a0
1,120 \u00a0
-
-
-
-
26 \u00a0
1,145 \u00a0
Italy \u00a0
1,322 \u00a0
-
-
-
-
2
1,324 \u00a0
Portugal \u00a0
14 \u00a0
-
-
-
-
-
14 \u00a0
Austria \u00a0
4,393 \u00a0
-
-
-
13 \u00a0
61 \u00a0
4,467 \u00a0
Netherlands \u00a0
3,261 \u00a0
2
-
-
16 \u00a0
512 \u00a0
3,791 \u00a0
Germany \u00a0
37,142 \u00a0
-
-
-
290 \u00a0
288 \u00a0
37,719 \u00a0
Belgium \u00a0
676 \u00a0
2,195 \u00a0
-
-
1
-
2,872 \u00a0
Other \u00a0
-
600 \u00a0
-
-
253 \u00a0
-
853 \u00a0
Total \u00a0
220,809 \u00a0
17,935 \u00a0
172,405 \u00a0
33,057 \u00a0
32,007 \u00a0
10,417 \u00a0
486,630 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
Risk Management\u00a02023 provides\u00a0additional details about\u00a0the risk on the Group\u2019s bond portfolio. The publication\u00a0is not covered by the statutory audit. \u00a0
Bond portfolio continued \u00a0
Bond portfolio broken\u00a0down by\u00a0external ratings \u00a0
Central and \u00a0
Quasi- \u00a0
Danish \u00a0
Swedish \u00a0
Other \u00a0
local govern- \u00a0
government \u00a0
mortgage \u00a0
covered \u00a0
covered \u00a0
Corporate \u00a0
(DKK millions) \u00a0
ment bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
bonds \u00a0
Total \u00a0
31 December 2023 \u00a0
AAA \u00a0
137,601 \u00a0
12,461 \u00a0
187,903 \u00a0
32,017 \u00a0
28,925 \u00a0
1,623 \u00a0
400,530 \u00a0
AA+ \u00a0
27,061 \u00a0
442 \u00a0
-
-
28 \u00a0
2
27,533 \u00a0
AA \u00a0
8,556 \u00a0
-
-
21 \u00a0
692 \u00a0
965 \u00a0
10,234 \u00a0
AA- \u00a0
15,515 \u00a0
23 \u00a0
-
-
-
117 \u00a0
15,654 \u00a0
A+ \u00a0
-
-
-
-
-
266 \u00a0
266 \u00a0
A
1,132 \u00a0
-
418 \u00a0
-
4
984 \u00a0
2,538 \u00a0
A- \u00a0
3
-
-
-
-
196 \u00a0
199 \u00a0
BBB+ \u00a0
111 \u00a0
-
-
-
-
505 \u00a0
617 \u00a0
BBB \u00a0
377 \u00a0
-
-
-
-
987 \u00a0
1,364 \u00a0
BBB- \u00a0
1,036 \u00a0
-
-
-
-
596 \u00a0
1,632 \u00a0
BB+ \u00a0
-
-
-
-
-
97 \u00a0
97 \u00a0
BB \u00a0
-
-
-
-
-
187 \u00a0
187 \u00a0
BB- \u00a0
-
-
-
-
-
36 \u00a0
36 \u00a0
Sub. \"investment-grade\" or unrated \u00a0
-
-
-
-
-
97 \u00a0
97 \u00a0
Total \u00a0
191,392 \u00a0
12,926 \u00a0
188,321 \u00a0
32,038 \u00a0
29,648 \u00a0
6,659 \u00a0
460,984 \u00a0
31 December 2022* \u00a0
AAA \u00a0
180,479 \u00a0
15,513 \u00a0
172,222 \u00a0
33,048 \u00a0
31,728 \u00a0
1,521 \u00a0
434,510 \u00a0
AA+ \u00a0
9,542 \u00a0
2,207 \u00a0
-
-
64 \u00a0
222 \u00a0
12,035 \u00a0
AA \u00a0
19,234 \u00a0
215 \u00a0
-
10 \u00a0
117 \u00a0
1,292 \u00a0
20,868 \u00a0
AA- \u00a0
6,727 \u00a0
-
-
-
-
27 \u00a0
6,754 \u00a0
A+ \u00a0
1,120 \u00a0
-
-
-
-
267 \u00a0
1,387 \u00a0
A
2,204 \u00a0
-
179 \u00a0
-
98 \u00a0
2,207 \u00a0
4,688 \u00a0
A- \u00a0
-
-
-
-
-
368 \u00a0
368 \u00a0
BBB+ \u00a0
167 \u00a0
-
-
-
-
863 \u00a0
1,030 \u00a0
BBB \u00a0
230 \u00a0
-
5
-
-
2,242 \u00a0
2,477 \u00a0
BBB- \u00a0
1,106 \u00a0
-
-
-
-
336 \u00a0
1,443 \u00a0
BB+ \u00a0
-
-
-
-
-
650 \u00a0
650 \u00a0
BB \u00a0
-
-
-
-
-
247 \u00a0
247 \u00a0
BB- \u00a0
-
-
-
-
-
15 \u00a0
15 \u00a0
Sub. \"investment-grade\" or unrated \u00a0
-
-
-
-
-
161 \u00a0
161 \u00a0
Total \u00a0
220,809 \u00a0
17,935 \u00a0
172,405 \u00a0
33,057 \u00a0
32,007 \u00a0
10,417 \u00a0
486,630 \u00a0
* Comparative information has been restated, as described in note G2(a). \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4613": {
"value": "Collateral \u00a0
The Group uses\u00a0a number\u00a0of measures to mitigate\u00a0credit risk, including\u00a0collateral, guarantees and\u00a0covenants. The main\u00a0method is\u00a0obtaining collateral. \u00a0
The value of collateral is monitored and reassessed by advisers, internal or external assessors, and automatic valuation mode ls to ensure it reflects current \u00a0
market prices. The Groups Collateral System supports this process by only accepting up-to-date values, thus ensuring that the Group complies with regulatory \u00a0
requirements. \u00a0
The validity of the internal and external inputs on which the valuation\u00a0models depend is assessed regularly and the performan ce of the models themselves is \u00a0
validated annually by\u00a0an independent unit, to assess their performance and highlight any deficiencies that need to be addressed. \u00a0
The market value of collateral is subject to a haircut to reflect the fact that the Group may not be able to obtain the estim ated market value upon the sale of \u00a0
the individual\u00a0asset in a distressed situation. Hence, the haircut includes a forced sale reduction, price volatility\u00a0during the sales period, realisation costs and \u00a0
maintenance costs. The haircut applied depends on the type of collateral. For regulatory purposes, the Group also applies mor e conservative haircuts in order \u00a0
to capture the risk of an economic downturn. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForCollateralExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4659": {
"value": "Market risk \u00a0
The Group\u2019s market risk management is intended to ensure proper oversight of all market risks, including both trading\u00a0-related market risk\u00a0and non- \u00a0
trading-related market\u00a0risk as\u00a0well as market\u00a0risk in relation to fair value\u00a0adjustments. The\u00a0market risk fram\u00a0ework is designed to systematically\u00a0identify, \u00a0
assess, monitor,\u00a0control and report market risk. \u00a0
The Market Risk Policy set by the Board of Directors lays out the overall framework for market risk management and identifies\u00a0the boundaries within \u00a0
which the Group\u2019s market risk profile and business as well as Group\u00a0Treasury\u2019s strategy are defined. Further\u00a0more, the policy entails guidelines on trading \u00a0
and risk taking\u00a0in the Group related to the trading\u00a0and non-trading\u00a0portfolio. \u00a0
Market risks\u00a0are managed by Large Corporates & Institutions\u00a0(LC&I), Group Treasury (the first line of\u00a0defence) through implem\u00a0entation of\u00a0the Marke\u00a0t \u00a0
Risk Policy into standard operating procedures and the control environment. \u00a0
LC&I manages\u00a0the market risk (such as interest rate risk, equity\u00a0market risk and foreign exchange risk) associated with its tradin g activities\u00a0in the financia l \u00a0
markets. Market risk\u00a0in relation to the trading portfolio can be defined as the risk of losses caused\u00a0by changes in the market value\u00a0of financial\u00a0assets, \u00a0
liabilities and\u00a0derivatives resulting from\u00a0changes in market prices or rates. In particular,\u00a0LC&I hedges the market risk incurred from market-makin\u00a0g \u00a0
activities and\u00a0client flows by taking\u00a0positions in financial instruments,\u00a0assets and liabilities\u00a0that offset this market risk. In addition,\u00a0LC&I uses financial \u00a0
instruments to\u00a0hedge the fair value adjustments\u00a0(xVA) in relation to derivatives trading. \u00a0
Group Treasury manages the interest rate risk and structural foreign exchange risk associated with the assets and liabilities\u00a0of the non-trading\u00a0portfolio. \u00a0
Interest rate risk\u00a0in the banking\u00a0book refers\u00a0to the current or prospective\u00a0risk to\u00a0the Group\u2019s capital and earnings arising from adverse movements in \u00a0
interest rates that affect the Group\u2019s non-trading portfolio positions. Changes in interest rates also affect\u00a0the Group\u2019s earnings by altering interest rate\u00a0- \u00a0
sensitive income and\u00a0expenses, thus affecting the Group\u2019s net interest income. Group Treasury also monitors\u00a0the risks associated with the Group\u2019s legacy \u00a0
defined benefit pension plans. Equity\u00a0risk in the non-trading\u00a0portfolio is managed by Group Strategic\u00a0Steering. \u00a0
Market, Liquidity &\u00a0Non-Financial Risk\u00a0(the second line of defence) at Group Risk Management owns the market risk framework and is in charge of market \u00a0
risk oversight and control of the first line of defence units.\u00a0The Board of Directors and senior management regularly receive reports that provide an \u00a0
overview of the Group\u2019s portfolios, main risk drivers and stress testing results for decision-making purposes.\u00a0Furthermore, detailed reporting provide\u00a0s \u00a0
granular metrics to\u00a0senior management at LC&I and Group Treasury for day-to-day risk management purposes. \u00a0
The market risk at Danica Pension is managed separately. \u00a0
Trading-related market\u00a0risk at Large Corporates\u00a0& Institutions \u00a0
The trading-related activities\u00a0at LC&I cover trading in fixed income products, derivatives,\u00a0foreign exchange,\u00a0money markets,\u00a0debt capital markets and \u00a0
equities. LC&I\u00a0acts mainly\u00a0as a market maker processing large client flows. \u00a0
The table below shows the Value at Risk (VaR) for the trading-related\u00a0activities at\u00a0LC&I. VaR is a\u00a0quantitative measure\u00a0that shows,\u00a0with a certain \u00a0
probability, the\u00a0maximum potential loss\u00a0that the\u00a0Group may suffer within a specified holding period. In general, a VaR model estimates\u00a0a portfolio\u2019s \u00a0
aggregate market risk by incorporating\u00a0a range of risk factors and assets. All figures are calculated\u00a0on a daily\u00a0basis using\u00a0full revaluations. \u00a0
Value-at-Risk for\u00a0trading-related activities at\u00a0LC&I \u00a0
2023 \u00a0
2022 \u00a0
(DKK millions) \u00a0
Average \u00a0
End of year \u00a0
Average \u00a0
End of year \u00a0
Bond spread risk \u00a0
22 \u00a0
20 \u00a0
26 \u00a0
15 \u00a0
Interest rate risk \u00a0
49 \u00a0
45 \u00a0
46 \u00a0
51 \u00a0
Foreign exchange risk \u00a0
5
8
4
8
Equity risk \u00a0
4
5
3
3
Diversification effects \u00a0
-31 \u00a0
-29 \u00a0
-31 \u00a0
-28 \u00a0
Total VaR \u00a0
49 \u00a0
49 \u00a0
48 \u00a0
49 \u00a0
VaR is calculated\u00a0at a confidence\u00a0level of 95% for a\u00a01-day horizon. \u00a0
The high volatility\u00a0in financial markets\u00a0of 2022 continued\u00a0into 2023 as central banks\u00a0kept tightening\u00a0monetary policy to\u00a0curb inflationary pressures. \u00a0
Volatility spiked\u00a0in March following the collapse of Silicon Valley Bank and Credit Suisse. In general, in\u00a0terest rates increased throughout the year, whereas \u00a0
credit markets remained stable. The stock\u00a0markets remained\u00a0stable during 2023 but ended the year on a high note with the rise of stocks where the \u00a0
artificial intelligence\u00a0theme supports performance. Group Risk\u00a0Management expects the\u00a0high volatility\u00a0in financial market to continue\u00a0as the economic \u00a0
outlook is\u00a0still highly uncertain.\u00a0Trading related market risk measured by average value\u00a0-at-risk (VaR\u00a095% 1 day)\u00a0increased in 2023 to DKK 49 millio\u00a0n \u00a0
compared to DKK 48 million in 2022. \u00a0
Market risk continued \u00a0
Market risk in\u00a0relation to\u00a0fair value adjustments \u00a0
The Group\u2019s fair value accounting includes various valuation adjustments\u00a0(referred to as\u00a0xVA) inherent\u00a0in the Group\u2019s derivatives\u00a0portfolio \u2013\u00a0specifically \u00a0
credit value adjustments\u00a0(CVA), funding value\u00a0adjustments (FVA) and\u00a0collateral value adjustments\u00a0(ColVA). The Group applies a market-implied\u00a0approach \u00a0
that is in line with industry\u00a0best practice.\u00a0Hence, these valuation\u00a0adjustments are\u00a0sensitive to\u00a0market risks that materialise due to changes in interes\u00a0t \u00a0
rates, funding spreads and credit spreads. These market risks can\u00a0give rise\u00a0to volatility\u00a0in the fair value adjustments. \u00a0
Because of the size and nature of the Group\u2019s derivatives\u00a0portfolio, the credit, funding\u00a0, and collateral valuation\u00a0adjustments are substantial, and the \u00a0
associated market risks are similarly of a considerable size. The strategy is therefore to hedge large parts of the market ri\u00a0sks, while the default risks are \u00a0
capitalised in accordance\u00a0with regulation.\u00a0When managing xVA, the Group focuses on managing economic risk rather than regulatory capital. This means \u00a0
that the Group also manages market risks originating\u00a0from counterparties\u00a0outside the scope of the CVA risk charge. \u00a0
The Group manages all xVAs of the derivatives\u00a0trading books centrally according to a\u00a0clearly defined hedging strategy for\u00a0eac h\u00a0risk type associated with \u00a0
the xVA portfolio. The credit spread risk of CVA is significantly\u00a0hedged using\u00a0credit default swaps (CDS) based on liquid indices or selected single-name \u00a0
CDS contracts. Funding spread\u00a0risk is a\u00a0key risk factor for xVA and is managed collectively\u00a0with credit\u00a0spread risk. Overall,\u00a0foreign exchange\u00a0risks and \u00a0
interest rate risks from the xVA positions are almost fully hedged, with a very limited residual P/L effect. \u00a0
Market risk in\u00a0relation to\u00a0the non-trading\u00a0portfolio \u00a0
The Group\u2019s exposure to\u00a0market risk in the non-trading portfolio originates mainly from\u00a0interest rate risk, credit spread risk in the banking\u00a0book (CSRBB) \u00a0
and, to a far lesser extent,\u00a0from the equity risk associated with a small portfolio of equity investments. Furthermore, the G\u00a0roup is\u00a0exposed to\u00a0market risk \u00a0
arising from the hedge of structural foreign exchange risk. \u00a0
Interest rate risk in the banking\u00a0book (IRRBB) \u00a0
Interest rate risk in the banking book (IRRBB) derives from\u00a0providing the\u00a0Group\u2019s core\u00a0banking customers\u00a0with conventional ba\u00a0nking products and\u00a0from \u00a0
the Group\u2019s funding and\u00a0liquidity management activities at\u00a0Group Treasury. IRRBB arises from adverse movements in interest rates, and in turn they \u00a0
change the underlying value of\u00a0the Group\u2019s assets, liabilities, and\u00a0off-balance sheet items and its economic value. \u00a0
The level of IRRBB is monitored\u00a0using a number\u00a0of risk measures, such as prescribed\u00a0regulatory metrics, the risk appetites\u00a0as set by the Board of \u00a0
Directors and\u00a0other risk\u00a0measures that are considered appropriate.\u00a0The table below shows the Group\u2019s total interest rate sensitivity\u00a0in the non-tradin\u00a0g \u00a0
book (economic value-based measure) measured as the change in the net present value\u00a0of assets, liabilities,\u00a0and off\u00a0-balance sheet items in the non- \u00a0
trading book\u00a0subject to\u00a0a parallel interest rate curve shift of +100bp and -100bp. \u00a0
The sensitivity\u00a0to falling interest rates changed from a loss of DKK 0.4 billion at the end of 2022 to a loss of DKK 0.1 bill\u00a0ion in 2023, while the sensitivity \u00a0
to rising interest rates changed from a gain of DKK 0.5 billion at the end of 2022 to a gain of DKK 0.02 billion at the end of 2023. \u00a0
Interest rate risk in the banking book (economic value-based measure) \u00a0
2023 \u00a0
2022 \u00a0
(DKK millions) \u00a0
+100bp \u00a0
-100bp \u00a0
+100bp \u00a0
-100bp \u00a0
Total \u00a0
21 \u00a0
-105 \u00a0
517 \u00a0
-399 \u00a0
The net interest income (NII) risk metric is used for measuring the change in net interest income over a forecast horizon\u00a0of 12 months\u00a0in a\u00a0number of \u00a0
different scenarios. A constant\u00a0balance-sheet approach is used for creating a\u00a0base scenario over the 12-month time horizon. Assuming\u00a0a paralle\u00a0l \u00a0
downward yield curve shift of 1%, the Group\u2019s NII would be DKK 1.8 billion lower than the base scenario calculation\u00a0at the en\u00a0d of December\u00a02023 (end- \u00a0
2022: DKK 1.1\u00a0billion). \u00a0
The change in both the economic value (EV) IRRBB measure and the NII sensitivity\u00a0was affected mainly by rising interest rate volatility\u00a0in the markets. \u00a0
Credit spread risk in the banking\u00a0book \u00a0
CSRBB derives\u00a0from bond positions\u00a0primarily related\u00a0to the Group\u2019s funding and\u00a0liquidity managemen\u00a0t activities\u00a0at Group Treasury. \u00a0
On the basis of a 10-day 99% VaR measure, the Group\u2019s CSRBB was DKK 134 million at the end of December 2023, slightly down from DKK 178 millio\u00a0n \u00a0
at the end of 2022. \u00a0
Market risk continued \u00a0
Structural foreign exchange risk \u00a0
Structural foreign\u00a0exchange risk arises as, the Group\u2019s CET1 capital is denominated in its domestic currency, DKK, while some of its assets and liabilitie\u00a0s \u00a0
are denominated\u00a0in foreign currencies. Although\u00a0a fully matched foreign currency position\u00a0will protect Danske Bank against lo\u00a0sses from movements in \u00a0
exchange rates, the Group\u2019s CET1 capital ratio will fall\u00a0if the domestic\u00a0currency depreciates because of the imbalance\u00a0between the CET1 capital in a \u00a0
particular foreign currency and the CET1 capital required to support the risk exposure amount (REA) denominated\u00a0in that same currency. \u00a0
The Group\u2019s objective is to\u00a0manage structural foreign\u00a0exchange risk\u00a0in order to reduce the potential\u00a0effect of fluctuations\u00a0in exchange rates on the CET1 \u00a0
capital ratio in a manner that avoids income statement volatility,\u00a0while at\u00a0the same time acknowledging\u00a0potential increased volatility\u00a0in other \u00a0
comprehensive income.\u00a0The Group pursues a\u00a0strategy of\u00a0hedging the foreign exchange sensitivity\u00a0of the CET1\u00a0capital ratio stemming from\u00a0the allocate\u00a0d \u00a0
capital that reflects credit and operational risk REAs in the three most significant balance sheet currencies (NOK, SEK and EUR). By nature, structural \u00a0
foreign exchange (hedge) positions\u00a0are long-term and non-trading positions, and they also remain relatively\u00a0stable over time. \u00a0
Regulatory capital for\u00a0market risk \u00a0
The Group mainly uses the internal model approach (IMA) to measure the REA used for determining the minimum capital requirement for market risk in \u00a0
the trading book. The IMA comprises the VaR capital charge, the Stressed Value-at-Risk\u00a0(SVaR) capital\u00a0charge and\u00a0the incremental\u00a0risk charge (IRC). The \u00a0
Group uses the internal VaR model to calculate the VaR and SVaR capital charges, whereas the IRC is calculated\u00a0on the basis of the incremental\u00a0risk \u00a0
model. No diversification\u00a0effects between capital charges are taken into account. \u00a0
The REA for\u00a0the Group\u2019s minor exposures to commodity risk and collective\u00a0investment undertakings is\u00a0calculated according to\u00a0t he standardised\u00a0approach. \u00a0
The REA for\u00a0CVA risk is measured mainly using the internal VaR model based on\u00a0exposure calculations from\u00a0the counterparty\u00a0risk exposure model and \u00a0
allocated CDS spread\u00a0hedges. The risk exposure amount for CVA risk from the Group\u2019s minor exposures to transactions\u00a0not inclu ded in the counterparty \u00a0
credit risk exposure\u00a0model is calculated\u00a0according to\u00a0the standardised\u00a0approach. \u00a0
Pension-related market\u00a0risk \u00a0
Pension-related market risk involves the risk of losses because of changes in the fair value of Danica Pension\u2019s assets and liabilities since assets and liabilities \u00a0
are not fully exposed to the same types of pension-related market risk. Pension-related market risk primarily covers changing market conditions, such as \u00a0
changes in interest rates, equity prices, property values, exchange rates and credit spreads. Pension-related market risk also includes: \u00a0
\u2022
volatility risk, which relates primarily to the value of assets with embedded options, including equity options and swaptions\u00a0, but also assets with build-in \u00a0
options like Danish callable mortgage bonds, \u00a0
\u2022
inflation risk, which relates mainly to the indexation of benefits for part of Danica Pension\u2019s health and accident products , \u00a0
\u2022
liquidity risk,\u00a0which is\u00a0the risk of losses because Danica Pension may be forced to sell investment\u00a0assets to meet liquidity\u00a0needs, \u00a0
\u2022
counterparty credit risk, which is the risk of losses because counterparties default on their obligations , \u00a0
\u2022
concentration risk, which is the risk of losses as a result of high exposure to a few asset classes, industries, issuers, etc . \u00a0
Pension-related market risk may lead to financial losses for Danica Pension, either as losses of investment assets or as the technical provisions increases. \u00a0
Danica Pension has three sources of pension related market risk: \u00a0
\u2022
with-profits products (conventional, average-rate products), \u00a0
\u2022
unit-linked products\u00a0(to which customers may have attached an investment\u00a0guarantee) , \u00a0
\u2022
investments relating to assets allocated to the shareholders\u2019 equity of Danica Pension and other products with direct equity exposure. \u00a0
The amount of pension-related market risk differs for the various products in Danica Pension\u2019s product range, but the most significant pension-related market \u00a0
risk is the market risk relating to its with-profit products. \u00a0
Life insurance risk\u00a0continued \u00a0
The with-profit products offer guaranteed benefits based on a technical rate of interest and are called Danica Traditional.\u00a0The portfo\u00a0lio of with-profit \u00a0
products is closed for new business, which means that it is in run-off. \u00a0
The products offer\u00a0policyholders an\u00a0annuity or a lump sum consisting of a guaranteed minimum amount in nominal terms. Custome\u00a0rs are\u00a0divided into \u00a0
homogeneous interest rate\u00a0groups on\u00a0basis of the technical\u00a0rates, and each group has its own investment\u00a0strateg y\u00a0and asset allocation. In each interes\u00a0t \u00a0
rate group, customers participate in a collective investment\u00a0pool that covers a range of different assets (such as equities,\u00a0property and bonds). \u00a0
The policyholders\u00a0earn interest\u00a0at a rate set at the discretion of Danica\u00a0Pension and subject to change at any time. \u00a0
The difference between the actual (set) interest rate and the return on the policyholders\u2019\u00a0(collective) assets is allocated t\u00a0o collective\u00a0buffer accounts \u00a0
owned by the customers. The balances of these buffer accounts are gradually transferred to the individ\u00a0ual customer accounts\u00a0in subsequent years by \u00a0
means of a bonus allocation\u00a0mechanism. This means that high investment\u00a0returns may lead to higher benefits than those guarant\u00a0eed. \u00a0
The mark-to-market\u00a0value of the guaranteed benefits depends on\u00a0the level of the discount curve, which is defined under Solvency II and ba\u00a0sed primarily \u00a0
on EUR\u00a0swap rates and also takes into account yields\u00a0on Danish\u00a0mortgage, credit and government bonds. The\u00a0level of the long end of the discount curve, \u00a0
for which no reliable\u00a0market data is available,\u00a0is determined by the European Insurance and Occupational\u00a0Pensions Authority\u00a0( EIOPA). \u00a0
For the portfolio of with-profit products Danica Pension will have to cover the shortfall if the value of the assets falls below the value of the liabi\u00a0lities. This will \u00a0
be the case if, for example, investment returns become sufficiently negative (reducing the asset values) or if the level of the discount curve, other things being \u00a0
equal, falls (increasing the value of the liabilities). Hence, the market risk on investments is borne by the customers to the extent that the negative returns can \u00a0
be covered by the collective buffer accounts. Once the buffer accounts have been depleted, negative investment returns on customer savings will force Danica \u00a0
Pension to step in with funds to ensure that it is possible to provide the benefits guaranteed to the policyholders. In that\u00a0case, Danske\u00a0Bank A/S will incur a \u00a0
loss in the form of a decrease in equity holdings in Danica Pension. \u00a0
Furthermore, Danica Pension can book the annual risk allowance fee income for each of the individual interest rate groups only if the collective bonus potential \u00a0
for the interest rate group is sufficient to cover the risk allowance. \u00a0
Managing the with-profits product thus involves\u00a0a combination of managing risks on behalf of the policyholders and managing Danica Pension\u2019s ri\u00a0sk of having \u00a0
to cover losses. For more information about the management of these risks, see Danica Pension\u2019s Annual Report 2023. \u00a0
The pension related market risk associated with unit-linked products is primarily borne by the policyholders, particularly in respect of contracts without an \u00a0
investment guarantee. \u00a0
In unit-linked\u00a0products, policyholders\u00a0receive the actual return on the investments\u00a0rather than a\u00a0fixed interest\u00a0rate return. However\u00a0, some of the unit- \u00a0
linked products give the policyholders the option to have their benefits guaranteed. \u00a0
Danica Pension\u2019s main\u00a0savings product \u2013\u00a0and the product recommended to most customers\u00a0\u2013 is called Danica Balance. Danica Balance is a life-cycle \u00a0
product, meaning that the\u00a0asset allocation\u00a0between different risk categories\u00a0(bonds or equities,\u00a0for example) f or each customer is adjusted\u00a0gradually as \u00a0
the customer gets older and approaches retirement. \u00a0
For unit-linked\u00a0products with financial\u00a0guarantees, Danica\u00a0Pension hedges the risk on the financial guarantees by means of financial d\u00a0erivatives and\u00a0by \u00a0
adjusting the investment allocation during the period leading up to retirement. The investment allocatio\u00a0n is adjusted according to the guarantee amount, the \u00a0
investment horizon etc. However, if a guarantee is attached to the individual\u00a0policy, Danica Pension bears the risk in relation to the guarantee. \u00a0
The pension related market risk associated with assets allocated to shareholders\u2019 equity and other products\u00a0concerns the following: \u00a0
\u2022
Assets in\u00a0which the shareholders\u2019 equity of Danica Pension is invested, i.e. investment returns have a full effect on Danica Pension profits. \u00a0
\u2022
The investment results for Danica Pension\u2019s health and accident products \u00a0
\u2022
Assets for\u00a0some life insurance products with investment\u00a0guarantees. This means, that Danica Pension bears the risk if the changes in the\u00a0value of \u00a0
provisions for these products differ from the changes in the value of the corresponding assets. The provisions are the ne t present value of expected future \u00a0
pay-outs and are exposed to movements in the discount curve, which is defined under Solvency II. The corresponding assets may be exposed to changes \u00a0
in interest rates and also to changes in the values of equities and property. \u00a0
Danica Pension has\u00a0separate investment strategies for\u00a0assets allocated to its equity, to health and accident products, and to\u00a0life insurance products with \u00a0
investment guarantees. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMarketRiskExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4662": {
"value": "Liquidity risk \u00a0
Liquidity risk\u00a0is the risk that funding costs become excessive, lack of funding prevents the Group from maintaining\u00a0its business model, or\u00a0lack of\u00a0funding \u00a0
prevents the Group from fulfilling its payment obligations. \u00a0
Accepting and\u00a0managing liquidity risk is an integral part of the Group\u2019s business strategy. Realkredit Danmark and\u00a0Danica Pension each manage their \u00a0
liquidity separately. At\u00a0Realkredit Danmark,\u00a0the financing\u00a0of mortgage loans through the issuance of listed mortgage bonds with matching conditions\u00a0has \u00a0
eliminated liquidity risk\u00a0in all material\u00a0respects. Danica Pension\u2019s balance sheet contains long-term life insurance liabilities\u00a0and assets, a large part of \u00a0
which are invested in readily marketable\u00a0bonds and shares. Both companies are subject to statutory\u00a0limits on\u00a0their exposures to Danske Bank A/S. For \u00a0
liquidity management\u00a0purposes, the term \u201cGroup\u201d\u00a0(the Danske\u00a0Bank Group) does not include Danica Pension because it is not a c\u00a0redit institutio\u00a0n . \u00a0
Realkredit Danmark is\u00a0included in the prudential\u00a0consolidation of\u00a0the Group and recognised in Group aggregates, unless explicitly\u00a0stated. \u00a0
Liquidity risk\u00a0management \u00a0
The Board of Directors\u00a0sets the overall principles and standards for managing liquidity\u00a0and funding across the Group in\u00a0the Liquidity\u00a0Policy. It defines the \u00a0
overall liquidity risk profile and outlines the supporting\u00a0principles and\u00a0related governance\u00a0. Managing the Group\u2019s liquidity in\u00a0line with\u00a0the set\u00a0risk profile \u00a0
must not compromise the adherence to the Group\u2019s ESG principles, as\u00a0outlined in\u00a0the Code of Conduct Policy and other policies outlining key ESG \u00a0
principles and\u00a0must consider vulnerabilities\u00a0to potential future\u00a0ESG events.\u00a0However, currently the\u00a0Group assesses the overall liquidity\u00a0risk impact of \u00a0
ESG event as low. The Liquidity\u00a0Policy also includes limits and\u00a0guidelines to ensure that liquidity\u00a0and funding\u00a0risks are adequately captured,\u00a0managed, and \u00a0
mitigated. \u00a0
At Group level,\u00a0day-to-day liquidity\u00a0management is\u00a0based on the monitoring\u00a0and management of short- and long-term liquidity\u00a0risks. Liquidity triggers \u00a0
make up a vital part of day-to-day liquidity\u00a0management because they are used\u00a0as early warnings of a potential liquidity\u00a0crisis. The triggers are monitore\u00a0d \u00a0
by various functions across the Group, depending\u00a0on the\u00a0type of trigger. Liquidity\u00a0management is organised to fulfill two pivotal objectives\u00a0\u2013 sufficient \u00a0
distance to\u00a0non-viability and\u00a0limited market\u00a0reliance. The framework applied to achieve these objectives\u00a0is described in the following sections, although it \u00a0
is not limited to\u00a0that framework. \u00a0
Short-term liquidity and\u00a0distance to non-viability \u00a0
The principal aim of the Group\u2019s short-term risk\u00a0management is\u00a0to ensure that the liquidity\u00a0reserve is sufficient to absorb the net effects of known future \u00a0
receipts and payments from current transactions. Cash and bond holdings eligible for\u00a0repo agreements with central banks are considered liquid assets. \u00a0
Potential and expected outflows are monitored on\u00a0an ongoing basis using different tools, notably the liquidity\u00a0coverage ratio (LCR). \u00a0
The LCR requirement stipulates\u00a0that financial institutions\u00a0must have a liquidity\u00a0reserve in excess of projected\u00a0net outflows\u00a0during asevere stress scenario \u00a0
lasting 30 days. By executive\u00a0order, Danish SIFIs are also subject to currency-specific\u00a0liquidity requirements. The requirements apply individually and \u00a0
only for currencies that are significant\u00a0to the individual bank. For Danske\u00a0Bank, these currencies are USD and EUR. Additionally,\u00a0Danske Bank has set \u00a0
internal limits on the\u00a0LCRs for SEK and NOK. \u00a0
The Group maintained\u00a0a prudent liquidity\u00a0position throughout\u00a02023. The LCRs of Danske Bank A/S and the Group increased from 133% and 151% at \u00a0
the end of 2022 to 154%\u00a0and 170% at the end of 2023, respectively.\u00a0The Group\u2019s liquidity surplus\u00a0increased due to mainly lower net lending and higher \u00a0
wholesale funding. The decrease in net lending was the result of lower lending volumes, but the effect\u00a0was partly offset by lower deposit volumes.\u00a0Issued \u00a0
new long-term debt was slightly higher than maturing long-term debt, and short-term funding was higher at the end of 2023 than at the end of 2022. In \u00a0
addition, the liquidity surplus was\u00a0negatively affected\u00a0by a repayment of the Group\u2019s TLTRO loans and positively\u00a0affected by an increase in other inflows. \u00a0
The LCR regulation\u00a0effectively determines the minimum size of\u00a0the liquidity\u00a0reserve and\u00a0imposes requirements on its\u00a0composition. Consequently,\u00a0Danske \u00a0
Bank\u2019s liquidity reserve\u00a0mostly consists of liquid assets available\u00a0in a stressed situation.\u00a0Assets received as\u00a0collateral are included in the reserve, while \u00a0
assets used as collateral \u2013 or otherwise\u00a0encumbered - are excluded. The table below shows the value of the Group\u2019s LCR liquidity\u00a0reserve after\u00a0the \u00a0
application of\u00a0the statutory haircuts which may\u00a0differ from the ones available\u00a0in the market and the ones used for internal\u00a0s tress\u00a0testing. Most of the \u00a0
Group\u2019s bond holdings\u00a0are highly liquid, because they are repo eligible with central banks and in money markets. Central bank eligibility\u00a0is vital\u00a0for intra- \u00a0
day liquidity\u00a0management and overnight liquidity\u00a0facilities as\u00a0a backstop during severe market stress. \u00a0
Liquidity reserve\u00a0(Group) - LCR definition \u00a0
(DKK billions after haircut) \u00a0
2023 \u00a0
2022 \u00a0
Total high-quality liquid assets \u00a0
615 \u00a0
570 \u00a0
Level 1a assets \u00a0
Central bank reserves \u00a0
260 \u00a0
214 \u00a0
Central government debt \u00a0
79 \u00a0
86 \u00a0
Other level 1a assets \u00a0
22 \u00a0
21 \u00a0
Level 1b assets \u00a0
Extremely high-quality\u00a0covered bonds \u00a0
230 \u00a0
229 \u00a0
Level 2a assets \u00a0
High-quality covered\u00a0bonds \u00a0
18 \u00a0
16 \u00a0
Other level 2a assets \u00a0
6
4
Level 2b assets \u00a0
0.1 \u00a0
0.1 \u00a0
Liquidity risk\u00a0continued \u00a0
Funding and\u00a0market reliance \u00a0
The Group monitors its funding mix to ensure that it is well-diversified\u00a0in terms of funding sources, maturities\u00a0and currencies,\u00a0as a diverse range of funding \u00a0
sources provides protection against market disruptions. With its large market share in Denmark,\u00a0the Group has a net deposit surplus in DKK (deposits \u00a0
exceed lending).\u00a0The same is true, though to a lesser degree for USD and GBP, while the opposite is the case for SEK and NOK. The net deposit surplus \u00a0
in Danish kroner is a valuable, stable funding source for the Group. \u00a0
Retail deposits are a very important and stable funding source for\u00a0the Group. Retail customers do not tend to make withdrawals\u00a0based on short-term \u00a0
considerations, and most retail deposits are covered by a deposit guarantee scheme, which eliminates depositors direct credit exposure to the bank. \u00a0
Additionally, managing\u00a0reliance on wholesale deposits and market funding is a key concern for the Group.\u00a0Such funding\u00a0may be\u00a0unstable, especially in\u00a0the \u00a0
event of general market unrest or issues specific to Danske\u00a0Bank. Large funding needs covered by market funding can make the Group vulnerable\u00a0to \u00a0
investor sentiments, market stress and\u00a0market dysfunctionalities.\u00a0The size and maturity profile of wholesale funding must therefore be prudent. \u00a0
Sensitivity analysis is also used to assess the Group\u2019s ability to withstand liquidity\u00a0outflows related to\u00a0changes in different balance sheet items, including \u00a0
when capital markets are inaccessible, i.e. market reliance. \u00a0
The net stable funding ratio (NSFR)\u00a0requires that banks maintain\u00a0a stable funding profile in relation to the composition\u00a0of their\u00a0assets .\u00a0The NSFR\u00a0limits \u00a0
overreliance on\u00a0short-term wholesale funding, promoting funding stability. Stable\u00a0funding sources include, among other things, own capital, debt is\u00a0sues \u00a0
or deposits with a\u00a0maturity of\u00a0over a year. The amount of required stable funding is de\u00a0termined by\u00a0assigning different\u00a0weights to assets based on type \u00a0
and maturity. \u00a0
In 2023, financial markets were generally working well and banks were able to access the funding\u00a0markets, albeit at\u00a0a higher\u00a0cost. The\u00a0NSFRs of Danske \u00a0
Bank A/S and the Group increased from 115% and 123% at the end of 2022 to 118% and 126% at the end of 2023, respectively.\u00a0The increase in NSFR \u00a0
was driven\u00a0mainly by a decrease in lending reducing the requirement\u00a0for stable funding\u00a0and an increase in long\u00a0-term debt issues increasing the amount \u00a0
of available\u00a0stable funding. This was partly offset\u00a0by a decline\u00a0in deposits and by changes in\u00a0the composition\u00a0of the\u00a0liquidity reserve. \u00a0
The following tables break down funding sources by type and currency. It does not include mortgage bonds issued by Realkredit Danmark. \u00a0
Funding sources\u00a0by type of liability\u00a0(%) \u00a0
2023 \u00a0
2022 \u00a0
Central banks/credit institutions \u00a0
14 \u00a0
13 \u00a0
Repo transactions \u00a0
-4 \u00a0
-5 \u00a0
Short-term bonds \u00a0
2
1
Long-term bonds \u00a0
9
9
Other covered bonds \u00a0
9
8
Deposits (business) \u00a0
27 \u00a0
29 \u00a0
Deposits (personal) \u00a0
32 \u00a0
33 \u00a0
Subordinated debt \u00a0
2
2
Shareholders' equity \u00a0
10 \u00a0
9
Total \u00a0
100 \u00a0
100 \u00a0
Funding sources\u00a0by currency (%) \u00a0
2023 \u00a0
2022 \u00a0
DKK \u00a0
33 \u00a0
31 \u00a0
EUR \u00a0
26 \u00a0
26 \u00a0
USD \u00a0
10 \u00a0
12 \u00a0
SEK \u00a0
13 \u00a0
13 \u00a0
NOK \u00a0
9
11 \u00a0
GBP \u00a0
8
7
Other \u00a0
1
1
Total \u00a0
100 \u00a0
100 \u00a0
Stress tests \u00a0
Stress tests are a core element of managing\u00a0liquidity risk.\u00a0Stress tests are carried out monthly\u00a0for the Group\u00a0to measure the\u00a0stressed liquidity surviva\u00a0l \u00a0
horizon and to detect signs of possible vulnerabilities\u00a0to different adverse events. The stressed liquidity\u00a0survival horizon is defined as\u00a0the period during \u00a0
which the\u00a0liquidity reserve remains\u00a0positive in\u00a0a stress scenario. The stress tests estimate liquidity risk in various scenarios, including three standard \u00a0
scenarios: a scenario\u00a0specific to the Group,\u00a0a general market\u00a0crisis scenario and a combination of the two. \u00a0
All stress tests assume that the Group does not reduce its lending activities.\u00a0This means that existing\u00a0lending activities are maintained and require \u00a0
funding. The availability\u00a0of funding varies depending on the scenario and the type of\u00a0funding source. The assessment of funding stability is based on the \u00a0
maturity structure for\u00a0debt and behavioural\u00a0data for\u00a0deposits. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact4676": {
"value": "Earnings per share (DKK) \u00a0
Net profit for the year divided by the average number of shares outstanding during the year. Net profit is stated \u00a0
after the deduction of interest on equity-accounted additional tier 1 capital. \u00a0
Diluted earnings\u00a0per share (DKK) \u00a0
Net profit for the year divided by the average number of shares outstanding during the year, including the dilutive \u00a0
effect of share options and conditional\u00a0shares granted as share-based payments. Net profit is stated after the \u00a0
deduction of interest on equity-accounted additional tier 1 capital. \u00a0
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1090": {
"value": "Denmark",
"dimensions": {
"concept": "ifrs-full:DomicileOfEntity",
"language": "en",
"entity": "scheme:MAES062Z21O4RZ2U7M96",
"period": "2023-01-01T00:00:00/2024-01-01T00:00:00"
}
},
"fact1091": {
"value": "Banking businessG3. Business model and business segmentation \u00a0(a) Business\u00a0model and\u00a0business segmentation \u00a0Danske Bank\u00a0is a Nordic bank with bridges to the rest of the world offering customers a wide range of services in the fields\u00a0of banking,\u00a0mortgage finance, \u00a0insurance, pension, real-estate brokerage, asset management and trading in fixed income products, foreign exchange and equities.\u00a0The Group consists \u00a0of a number\u00a0of business units\u00a0and support functions.\u00a0The business units are\u00a0segmented according\u00a0to customers,\u00a0products and se\u00a0rvices characteristics\u00a0. \u00a0The Group has five business units, a\u00a0Non-core unit and\u00a0a Group Functions unit, which\u00a0constitute the Group\u2019s reportable segments under IFRS\u00a08. \u00a0Personal Customers serves personal customers\u00a0and Private Banking customers in Denmark, Sweden, Norway and Finland. \u00a0Business Customers serves small and medium-sized business customers across all markets, and includes the Group\u2019s Asset Finance operations . \u00a0Large Corporates\u00a0& Institutions\u00a0serves large corporates and institutional\u00a0customers across all Nordic markets. \u00a0Danica Pension\u00a0specialises in\u00a0pension schemes, life insurance policies and health insurance policies in\u00a0Denmark. \u00a0Northern Ireland serves personal, business and corporate in Northern Ireland alongside digital channels. \u00a0Non-core includes certain\u00a0customer segments that are\u00a0no longer considered part of the core business. The Non\u00a0-core unit is responsible for managing \u00a0legacy assets and portfolios by way of divestment,\u00a0refinancing with\u00a0other credit institutions\u00a0or amortisation. \u00a0Group Functions\u00a0encompasses Group Treasury, Group support functions and eliminations,\u00a0including the elimination\u00a0of returns\u00a0on own shares\u00a0(that are \u00a0held for trading) and issues, as well as interest on additional\u00a0tier 1 capital, which is reported as an interest expense in the business units.\u00a0Group Treasury \u00a0is responsible for the Group\u2019s liquidity\u00a0management and funding. \u00a0Accounting policy \u00a0Segment reporting\u00a0complies with the material accounting policies. The \u2018Reclassification\u2019 column shows\u00a0adjustments made\u00a0to the IFRS statements\u00a0in \u00a0the calculation of the financial highlights. \u00a0Internal income and expenses are allocated to the individual\u00a0segments on an arm\u2019s-length basis. Expenses incurred centrally, including\u00a0expenses \u00a0incurred by\u00a0support, administrative\u00a0and back-office functions, are charged to the business units according to consumption\u00a0and activity.\u00a0Funding costs \u00a0for lending\u00a0and deposit activities\u00a0(FTP) are allocated\u00a0on the basis of a maturity\u00a0analysis of\u00a0loans and deposits, interbank\u00a0rates and funding\u00a0spreads, and \u00a0depend on market trends. \u00a0Segment assets and liabilities\u00a0are assets and liabilities\u00a0that are used for maintaining\u00a0the operating activities\u00a0of a segment or have come into existenc\u00a0e \u00a0as a result of such activities\u00a0and which are either directly attributable\u00a0or may be reasonably\u00a0allocated to a segment. A\u00a0calculated share of\u00a0shareholders\u2019 \u00a0equity is\u00a0allocated to each segment. Other assets and liabilities\u00a0are recognised\u00a0under Group Functions. \u00a0Capital (shareholders\u2019 equity) is\u00a0allocated to the business units based on the Group\u2019s capital allocation framework, with\u00a0goodwill allocated directly to \u00a0the relevant business units. The framework is based on a regulatory approach and is calibrated to the Group\u2019s CET1 capital ratio target. Therefore, the \u00a0capital consumption of\u00a0the individual\u00a0business units is closely aligned with the Group\u2019s total capital consumption. However, for\u00a0the Danica Pension and \u00a0Northern Ireland business units, the capital allocated equals the legal entity\u2019s capital. \u00a0A calculated\u00a0interest income equal to the risk-free return on its allocated capital is apportioned\u00a0to each business unit and offset by a corresponding \u00a0interest expense at Group Functions. This income is\u00a0calculated on the basis of the short-term money market rate. \u00a0G3. Business\u00a0model and business\u00a0segmentation continued \u00a0Presentation in\u00a0the financial highlights and\u00a0in the\u00a0segment reporting \u00a0Segment reporting\u00a0and the financial highlights\u00a0are based on the information provided to management. \u00a0An explanation\u00a0of the items making\u00a0up the Reclassification column,\u00a0which reconciles the financial highlights and segment reporting presentation to the \u00a0IFRS financial statements, is\u00a0provided further on in this note. \u00a0Changes in\u00a0financial highlights\u00a0and segment reporting \u00a0On 1 January 2023, the Group implemented IFRS 17, Insurance contracts, resulting in the restatement of 2022. See note G2(a)\u00a0for details of the changes in \u00a0accounting policy. At the same time, the Group simplified its reporting of Danica Pension by stopping the allocation of Danica\u2019s equity to Group Treasury (w ithin \u00a0Group Functions). The table below shows the impact of the restatements on the financial highlights and segment reporting for 2022: \u00a0Changes in financial highlights and segment reporting\u00a0\u2013 2022 restated \u00a0Financial Implement Elimination Elimination \u00a0Adjusted \u00a0Highlights \u00a0ation of \u00a0of own \u00a0of own \u00a0Financial \u00a0(DKK millions) \u00a02022 \u00a0IFRS 17 \u00a0shares \u00a0bonds \u00a0Highlights \u00a0Net interest income \u00a025,188 \u00a0-80 \u00a0--25,108 \u00a0Net fee income \u00a012,590 \u00a0---12,590 \u00a0Net trading\u00a0income \u00a01,426 \u00a0264 \u00a0185 \u00a0-1,875 \u00a0Net income\u00a0from insurance business \u00a063 \u00a0217 \u00a0--280 \u00a0Other income \u00a01,936 \u00a0---1,936 \u00a0Total income \u00a041,203 \u00a0401 \u00a0185 \u00a0-41,789 \u00a0Operating expenses \u00a026,478 \u00a0---26,478 \u00a0of which resolution fund, bank tax etc. \u00a0962 \u00a0---962 \u00a0of which impairment charges, other intangible assets \u00a024 \u00a0---24 \u00a0Provision for Estonia matter \u00a013,800 \u00a0---13,800 \u00a0Goodwill impairment charges \u00a01,627 \u00a0---1,627 \u00a0Profit before loan impairment charges \u00a0-703 \u00a0401 \u00a0185 \u00a0--116 \u00a0Loan impairment charges \u00a01,568 \u00a0---1,568 \u00a0Profit before tax (core) \u00a0-2,271 \u00a0401 \u00a0185 \u00a0--1,684 \u00a0Profit before tax, Non-core \u00a0-13 \u00a0----13 \u00a0Profit before tax \u00a0-2,284 \u00a0401 \u00a0185 \u00a0--1,697 \u00a0Loans, excluding reverse transactions \u00a01,803,955 \u00a0---1,803,955 \u00a0Other assets (including Non-core) \u00a01,959,044 \u00a0-1,022 \u00a026,535 \u00a01,986,601 \u00a0Total assets \u00a03,762,999 \u00a0-1,022 \u00a026,535 \u00a03,790,556 \u00a0Deposits, excluding repo deposits \u00a01,169,879 \u00a0---1,169,879 \u00a0Other liabilities (including Non-core) \u00a02,432,802 \u00a01,062 \u00a0-26,535 \u00a02,460,399 \u00a0Allocated capital \u00a0160,318 \u00a0-1,062 \u00a01,022 \u00a0-160,278 \u00a0Total liabilities\u00a0and equity \u00a03,762,999 \u00a0-1,022 \u00a026,535 \u00a03,790,556 \u00a0Profit before tax as % p.a. of allocated capital (avg.) \u00a0-1.4 \u00a0----1.0 \u00a0Cost/income ratio (%) \u00a0101.7 \u00a0---100.3 \u00a0Adjusted cost/income ratio (%) \u00a0----63.4 \u00a0Full-time-equivalent staff,\u00a0end of period \u00a021,022 \u00a0---21,022 \u00a0G3. Business\u00a0model and business\u00a0segmentation continued \u00a0Business segments 2023 \u00a0Large \u00a0IFRS \u00a0Personal Business\u00a0Corporates \u00a0Northern \u00a0Non- \u00a0Group \u00a0Financial \u00a0financial \u00a0Reclassifica \u00a0(DKK millions) \u00a0Customers Customers &\u00a0Institutions \u00a0Danica \u00a0Ireland \u00a0core Functions\u00a0Eliminations highlights \u00a0tion \u00a0statements \u00a0Net interest income \u00a014,166 \u00a011,684 \u00a06,938 \u00a0-2,549 \u00a0--159 \u00a0-178 \u00a035,000 \u00a0-2,731 \u00a032,269 \u00a0Net fee income \u00a04,043 \u00a01,737 \u00a05,700 \u00a0-319 \u00a0--283 \u00a0191 \u00a011,707 \u00a0-77 \u00a011,630 \u00a0Net trading\u00a0income \u00a0331 \u00a0507 \u00a03,125 \u00a0-288 \u00a0--528 \u00a0-19 \u00a03,704 \u00a02,886 \u00a06,590 \u00a0Net income\u00a0from insurance \u00a0---1,472 \u00a0----1,472 \u00a0-1,472 \u00a0business* \u00a0Other income** \u00a0-608 \u00a01,024 \u00a015 \u00a0-15 \u00a0-2,822 \u00a0-2,705 \u00a0562 \u00a03,329 \u00a03,891 \u00a0Total income \u00a017,932 \u00a014,952 \u00a015,777 \u00a01,472 \u00a03,171 \u00a0-1,852 \u00a0-2,712 \u00a052,445 \u00a03,407 \u00a055,852 \u00a0Operating expenses \u00a09,460 \u00a05,255 \u00a07,397 \u00a0-1,368 \u00a0-4,569 \u00a0-2,634 \u00a025,414 \u00a03,494 \u00a028,908 \u00a0of which resolution fund, \u00a0169 \u00a0255 \u00a0492 \u00a0---72 \u00a0-989 \u00a0-989 \u00a0-bank tax etc. \u00a0Profit before loan \u00a08,473 \u00a09,698 \u00a08,380 \u00a01,472 \u00a01,804 \u00a0--2,717 \u00a0-78 \u00a027,031 \u00a0-87 \u00a026,944 \u00a0impairment charges \u00a0Loan impairment charges \u00a0312 \u00a0431 \u00a0-367 \u00a0--113 \u00a0--1 \u00a0-262 \u00a0-262 \u00a0Profit before tax, core \u00a08,160 \u00a09,267 \u00a08,747 \u00a01,472 \u00a01,917 \u00a0--2,716 \u00a0-78 \u00a026,769 \u00a0-87 \u00a026,682 \u00a0Profit before tax, Non-core \u00a0------87 \u00a0---87 \u00a087 \u00a0-Profit before tax \u00a08,160 \u00a09,267 \u00a08,747 \u00a01,472 \u00a01,917 \u00a0-87 \u00a0-2,716 \u00a0-78 \u00a026,682 \u00a0-26,682 \u00a0Loans, excluding reverse \u00a0770,846 644,735 \u00a0306,952 \u00a0-57,846 \u00a0-26,277 \u00a0-27,632 1,779,024\u00a0-108,882 1,670,142 \u00a0transactions*** \u00a0Other assets (including \u00a0354,776 184,777\u00a03,293,987 541,668 \u00a059,654 1,889\u00a04,481,573 -6,926,366 1,991,957\u00a0108,882 2,100,839 \u00a0Non-core) \u00a0Total assets \u00a01,125,622 829,512\u00a03,600,939 541,668\u00a0117,499 1,889\u00a04,507,850 -6,953,998 3,770,981 \u00a0-3,770,981 \u00a0Deposits, excluding repo \u00a0408,018 257,076\u00a0382,596 97,396\u00a02,864 -10,890\u00a01,137,061 \u00a0---28,163 1,108,898 \u00a0deposits*** \u00a0Other liabilities (including \u00a0688,867 532,121\u00a03,177,621 541,668\u00a014,078 2,878\u00a04,444,056 -6,943,107 2,458,181 \u00a028,163 2,486,344 \u00a0Non-core) \u00a0Allocated capital \u00a028,737 40,315\u00a040,722 6,025\u00a059,941 175,739 \u00a0----175,739 \u00a0Total liabilities\u00a0and equity \u00a01,125,622 829,512\u00a03,600,939 541,668\u00a0117,499 2,878\u00a04,506,861 -6,953,998 3,770,981 \u00a0-3,770,981 \u00a0Profit before tax as % p.a. \u00a0of allocated capital (avg.) \u00a027.8 \u00a023.4 \u00a021.7 \u00a07.5 \u00a028.4 \u00a0--7.1 \u00a0-15.9 \u00a0-15.9 \u00a0Cost/income ratio (%) \u00a052.8 \u00a035.1 \u00a046.9 \u00a0-43.1 \u00a0---48.5 \u00a0-51.8 \u00a0Full-time-equivalent staff, \u00a0end of period \u00a04,064 \u00a01,646 \u00a02,085 \u00a0912 \u00a01,267 \u00a0710,039 \u00a0-20,021 \u00a0-20,021 \u00a0* Net income from insurance business in the financial highlights is equivalent to Net insurance result in the IFRS financial\u00a0statements. \u00a0** Other income in the financial highlights is equivalent to Total other income in the IFRS financial statements. \u00a0*** Loans and deposits that are included inthe sale of the personal customers business inNorway are presented inthe financial highlights within Loans, excluding reverse transactions and Deposits, \u00a0excluding repo deposits respectively. These are presented within Assets held for sale and Liabilities in disposal groups held for sale in the IFRS Balance sheet. \u00a0The \u2018Reclassification\u2019 column shows the\u00a0reconciliation between the\u00a0presentation in the financial highlights and the presentation\u00a0in the IFRS statements. \u00a0The reclassifications\u00a0are explained\u00a0in note G1(d). \u00a0The Group\u2019s internal reporting on\u00a0business segments does not include tax. Tax is therefore not allocated\u00a0to the business units, but solely presented within \u00a0the total amount. \u00a0G3. Business\u00a0model and business\u00a0segmentation continued \u00a0Business segments 2022 \u00a0Large \u00a0IFRS \u00a0Personal \u00a0Business \u00a0Corporates \u00a0Northern \u00a0Non- \u00a0Group Eliminations \u00a0Financial Reclassifi \u00a0financial \u00a0(DKK millions) \u00a0Customers Customers\u00a0& Institutions\u00a0Danica* \u00a0Ireland \u00a0core Functions* \u00a0*highlights* \u00a0cation* statements* \u00a0Net interest income \u00a08,778 \u00a09,175 \u00a05,605 \u00a0-1,900 \u00a0--245 \u00a0-104 \u00a025,108 \u00a0243 \u00a025,351 \u00a0Net fee income \u00a04,730 \u00a01,825 \u00a05,732 \u00a0-335 \u00a0--198 \u00a0165 \u00a012,590 \u00a0-109 \u00a012,481 \u00a0Net trading\u00a0income \u00a0444 \u00a0517 \u00a01,489 \u00a0--342 \u00a0--223 \u00a0-10 \u00a01,875 \u00a0-294 \u00a01,581 \u00a0Net income\u00a0from \u00a0insurance business** \u00a0---280 \u00a0----280 \u00a0-415 \u00a0-135 \u00a0Other income*** \u00a0987 \u00a0847 \u00a02-21 \u00a0-2,581 \u00a0-2,503 \u00a01,936 \u00a04,270 \u00a06,206 \u00a0Total income \u00a014,939 \u00a012,364 \u00a012,828 \u00a0280 \u00a01,914 \u00a0-1,915 \u00a0-2,451 \u00a041,789 \u00a03,695 \u00a045,484 \u00a0Operating expenses \u00a010,104 \u00a05,356 \u00a06,966 \u00a0-1,290 \u00a0-5,313 \u00a0-2,552 \u00a026,478 \u00a03,774 \u00a030,252 \u00a0of which resolution fund, \u00a0bank tax etc. \u00a0161 \u00a0224 \u00a0504 \u00a0---74 \u00a0-962 \u00a0-962 \u00a0-of which impairment \u00a0charges, other intangible \u00a0assets \u00a0------24 \u00a0-24 \u00a0-24 \u00a0-Provision for Estonia \u00a0matter \u00a0------13,800 \u00a0-13,800 \u00a0-13,800 \u00a0Goodwill impairment \u00a0charges \u00a0---1,627 \u00a0----1,627 \u00a0-1,627 \u00a0Profit before loan \u00a0impairment charges \u00a04,836 \u00a07,008 \u00a05,861 \u00a0-1,347 \u00a0623 \u00a0--17,199 \u00a0101 \u00a0-116 \u00a0-78 \u00a0-195 \u00a0Loan impairment charges \u00a0927 \u00a0578 \u00a0-774 \u00a0-168 \u00a0-669 \u00a0-1,568 \u00a0-66 \u00a01,502 \u00a0Profit before tax, core \u00a03,909 \u00a06,430 \u00a06,635 \u00a0-1,347 \u00a0456 \u00a0--17,868 \u00a0101 \u00a0-1,684 \u00a0-13 \u00a0-1,697 \u00a0Profit before tax, Non-core \u00a0------13 \u00a0---13 \u00a013 \u00a0-Profit before tax \u00a03,909 \u00a06,430 \u00a06,635 \u00a0-1,347 \u00a0456 \u00a0-13 \u00a0-17,868 \u00a0101 \u00a0-1,697 \u00a0--1,697 \u00a0Loans, excluding reverse \u00a0transactions \u00a0800,394 \u00a0630,619 \u00a0320,491 \u00a0-52,937 \u00a0-27,274 \u00a0-27,759 1,803,955 \u00a01,168 1,805,123 \u00a0Other assets (including \u00a0Non-core) \u00a0315,679 \u00a0197,541 \u00a03,584,663 548,874\u00a059,680 2,180 4,493,984\u00a0-7,216,000 1,986,601 \u00a0-1,168 1,985,433 \u00a0Total assets \u00a01,116,073 \u00a0828,160 \u00a03,905,154 548,874 112,616\u00a02,180 4,521,258\u00a0-7,243,759 3,790,556 \u00a0-3,790,556 \u00a0Deposits, excluding repo \u00a0deposits \u00a0410,806 \u00a0285,177 \u00a0389,486 \u00a0-94,562 \u00a0-1,431 \u00a0-11,584 1,169,879 \u00a02,112 1,171,990 \u00a0Other liabilities (including \u00a0Non-core) \u00a0674,966 \u00a0503,173 \u00a03,474,451 530,953\u00a012,930 2,467 4,494,656\u00a0-7,233,197 2,460,399 \u00a0-2,112 2,458,288 \u00a0Allocated capital \u00a030,300 \u00a039,810 \u00a041,217 17,921\u00a05,124 24,884\u00a01,022 160,278 \u00a0--160,278 \u00a0Total liabilities\u00a0and equity \u00a01,116,073 \u00a0828,160 \u00a03,905,154 548,874 112,616\u00a02,467 4,520,971\u00a0-7,243,759 3,790,556 \u00a0-3,790,556 \u00a0Profit before tax as % p.a. \u00a0of allocated capital (avg.) \u00a012,7 \u00a016,2 \u00a015,7 \u00a0-6,6 \u00a07,5 \u00a0--51,8 \u00a0--1,0 \u00a0--1,0 \u00a0Cost/income ratio (%) \u00a067,6 \u00a043,3 \u00a054,3 \u00a0-67,4 \u00a0---100,3 \u00a0-100,4 \u00a0Full-time-equivalent staff, \u00a0end of period \u00a04,262 \u00a01,635 \u00a02,054 \u00a0881 \u00a01,288 \u00a025 \u00a010,878 \u00a0-21,022 \u00a0-21,022 \u00a0* Comparative information has been restated, as described in note G2(a) and G 3(a). \u00a0** Net income from insurance business in the financial highlights is equivalent to Net insurance result in the IFRS financial st atements. \u00a0*** Other income in the financial highlights is equivalent to Total other income in the IFRS financial statements. \u00a0G3. Business\u00a0model and business\u00a0segmentation continued \u00a0(b) Reconciliation\u00a0of the financial\u00a0highlights and\u00a0the segment reporting to the IFRS financial\u00a0statements \u00a0The \u2018Reclassification\u2019 column in\u00a0the tables above shows\u00a0the reconciliation\u00a0between the presentation in the financial highlights and the\u00a0segment reporting \u00a0and the presentation in the IFRS financial statements. The reclassifications are explained in note G1(d). \u00a0Reclassifications 2023 \u00a0Markets, \u00a0Investment \u00a0Banking & \u00a0IFRS financial \u00a0Securities and \u00a0Danica \u00a0Total \u00a0Financial \u00a0(DKK millions) \u00a0statements Operating\u00a0leases Group\u00a0Treasury \u00a0Pension \u00a0Non-core reclassification \u00a0highlights \u00a0Net interest income \u00a032,269 \u00a0-2,706 \u00a0-25 \u00a02,731 \u00a035,000 \u00a0Net fee income \u00a011,630 \u00a0-78 \u00a0--77 \u00a011,707 \u00a0Net trading\u00a0income \u00a06,590 \u00a0--2,893 \u00a0-7-2,886 \u00a03,704 \u00a0Net income\u00a0from insurance business* \u00a01,472 \u00a0-----1,472 \u00a0Other income** \u00a03,891 \u00a0-3,431 \u00a0109 \u00a0--8 \u00a0-3,329 \u00a0562 \u00a0Total income \u00a055,852 \u00a0-3,431 \u00a0--24 \u00a0-3,407 \u00a052,445 \u00a0Operating expenses \u00a028,908 \u00a0-3,431 \u00a0---63 \u00a0-3,494 \u00a025,414 \u00a0Profit before loan impairment charges \u00a026,944 \u00a0---87 \u00a087 \u00a027,031 \u00a0Loan impairment charges \u00a0262 \u00a0-----262 \u00a0Profit before tax, core \u00a026,682 \u00a0---87 \u00a087 \u00a026,769 \u00a0Profit before tax, Non-core \u00a0-----87 \u00a0-87 \u00a0-87 \u00a0Profit before tax \u00a026,682 \u00a0-----26,682 \u00a0* Net income from insurance business in the financial highlights is equivalent to Net insurance result in the IFRS financial statements. \u00a0** Other income in the financial highlights is equivalent to Total other income in the IFRS financial statements. \u00a0Reclassifications 2022 \u00a0Markets, \u00a0Investment \u00a0Banking & \u00a0IFRS financial \u00a0Securities and \u00a0Danica \u00a0Total \u00a0Financial \u00a0(DKK millions) \u00a0statements* Operating leases\u00a0Group Treasury \u00a0Pension* \u00a0Non-core reclassification* \u00a0highlights* \u00a0Net interest income \u00a025,351 \u00a0--247 \u00a0-4-243 \u00a025,108 \u00a0Net fee income \u00a012,481 \u00a0-114 \u00a0--5 \u00a0109 \u00a012,590 \u00a0Net trading\u00a0income \u00a01,581 \u00a0-311 \u00a0--17 \u00a0294 \u00a01,875 \u00a0Net income\u00a0from insurance business** \u00a0-135 \u00a0--415 \u00a0-415 \u00a0280 \u00a0Other income*** \u00a06,206 \u00a0-3,671 \u00a0-179 \u00a0-415 \u00a0-5 \u00a0-4,270 \u00a01,936 \u00a0Total income \u00a045,484 \u00a0-3,671 \u00a0---23 \u00a0-3,695 \u00a041,789 \u00a0Operating expenses \u00a030,252 \u00a0-3,671 \u00a0---101 \u00a0-3,774 \u00a026,478 \u00a0Provision for Estonia matter \u00a013,800 \u00a0-----13,800 \u00a0Goodwill impairments charges \u00a01,627 \u00a0-----1,627 \u00a0Profit before loan impairment charges \u00a0-195 \u00a0---78 \u00a078 \u00a0-116 \u00a0Loan impairment charges \u00a01,502 \u00a0---66 \u00a066 \u00a01,568 \u00a0Profit before tax, core \u00a01,697 \u00a0---13 \u00a013 \u00a0-1,684 \u00a0Profit before tax, Non-core \u00a0-----13 \u00a0-13 \u00a0-13 \u00a0Profit before tax \u00a0-1,697 \u00a0------1,697 \u00a0* Comparative information has been restated, as described in note G2(a) and G 3(a). \u00a0** Net income from insurance business in the financial highlights is equivalent to Net insurance result in the IFRS financial statements. \u00a0*** Other income in the financial highlights is equivalent to Total other income in the IFRS financial statements. \u00a0G3. Business\u00a0model and business\u00a0segmentation continued \u00a0(c) Total IFRS income\u00a0broken down\u00a0by type\u00a0of product (DKK millions) \u00a02023 \u00a02022* \u00a0Corporate and commercial banking \u00a017,234 \u00a015,304 \u00a0Home finance and savings \u00a07,854 \u00a09,203 \u00a0Trading \u00a05,951 \u00a04,220 \u00a0Day-to-day banking \u00a014,643 \u00a06,002 \u00a0Asset management \u00a04,404 \u00a04,523 \u00a0Leasing \u00a04,294 \u00a05,617 \u00a0Insurance \u00a01,472 \u00a0614 \u00a0Total \u00a055,852 \u00a045,484 \u00a0* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0Corporate and commercial banking comprises interest and\u00a0fee income from corporate and commercial banking\u00a0products and\u00a0services. Home finance \u00a0and savings comprises interest and fee income from financing\u00a0and savings\u00a0products. Trading comprises income from\u00a0fixed-income and\u00a0foreign exchange \u00a0products, including brokerage. Day-to-day banking comprises interest and\u00a0fee income\u00a0from retail banking products in the form of personal loans, cards \u00a0and deposits. Asset management comprises income from the management of assets. Leasing encompasses income from both finance and operatin\u00a0g \u00a0leases sold by the Group\u2019s leasing operations in\u00a0Denmark, Sweden,\u00a0Norway and Finland. Insurance comprises income at Danica\u00a0Pension from the \u00a0contracts issued\u00a0by Danica Pension. \u00a0Danske Bank Group does not have any single customer that generates 10% or more of the Group\u2019s total\u00a0income. \u00a0(d) Geographical\u00a0segmentation \u00a0The geographical segmentation of income from external customers is shown in compliance with IFRSs and does not reflect the Group\u2019s management \u00a0structure. The geographical segmentation below reflects the customer\u2019s country of residence, except trading income, which is broken down by the countr\u00a0y \u00a0in which the activities\u00a0are carried out. Management believes that the business segmentation provides a\u00a0more informative description of\u00a0the Group\u2019s \u00a0activities. \u00a0Total IFRS income from external\u00a0customers (DKK millions) \u00a02023 \u00a02022* \u00a0Denmark \u00a033,696 \u00a024,723 \u00a0Sweden \u00a07,111 \u00a07,026 \u00a0Norway \u00a04,432 \u00a05,094 \u00a0Finland \u00a05,635 \u00a04,797 \u00a0UK \u00a03,541 \u00a02,186 \u00a0Other \u00a01,437 \u00a01,658 \u00a0Total \u00a055,852 \u00a045,484 \u00a0* Comparative information has been\u00a0restated, as described in note G2(a). \u00a0",
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