EBA欧洲银行-EBA_ST_DK_MAES062Z21O4RZ2U7M96_34页_5mb

2018 EU-wide Stress Test Summary: Danske Bank

Core Information

• Bank Name: Danske Bank
• LEI Code: MAES062Z21O4RZ2U7M96
• Country Code: DK
• Test Period: 2018 EU-wide Stress Test
• Focus Area: Credit Risk IRB (Internal Ratings-Based)

Key Financial Indicators

Credit Risk IRB Overview

Exposure Values (31/12/2017)

Risk Exposure Amounts (31/12/2017)

Additional Key Metrics

Summary of Key Findings

• Net Interest Income: In the baseline scenario, net interest income decreases from 3,467 mln EUR in the actual year to 3,141 mln EUR in 2018, with further reductions in 2019 and 2020.
• Gains/Losses on Financial Assets: The bank experiences gains in the baseline scenario but incurs losses in the adverse scenario.
• Impairment Reversal: There is a significant impairment in the adverse scenario, indicating a potential deterioration in asset quality.
• Profit/Loss for the Year: The profit declines in the baseline scenario and turns negative in the adverse scenario, highlighting the impact of stress conditions.
• Capital Ratios: The CET1 ratio drops from 17.62% to 14.05% in the adverse scenario, while the leverage ratio also declines from 4.41% to 3.87%.
• Credit Risk Exposure: The bank has substantial credit risk exposure, particularly in the retail and corporate sectors. The adverse scenario shows a significant increase in non-performing exposures and a decrease in capital ratios.
• Segment Analysis: The retail segment, especially those secured on real estate, is the largest contributor to credit risk. SMEs and non-SMEs show different levels of exposure, with SMEs generally experiencing lower coverage ratios.
• Stock of Provisions: The stock of provisions increases in the adverse scenario, reflecting a higher risk of defaults and the need for more provisions to cover potential losses.

Conclusion

The 2018 EU-wide Stress Test results for Danske Bank indicate a substantial impact of adverse scenarios on its financial health and capital ratios. The bank's exposure to credit risk is significant, particularly in the retail and corporate sectors. The test highlights the importance of maintaining adequate capital buffers and managing credit risk effectively under stress conditions. The results also emphasize the need for close monitoring of non-performing exposures and provisions to ensure financial stability.