danske bank a/s-unspons adr (DNSKY) Snapshot

The Danish Financial Supervisory Authority has issued orders to Danske Bank concerning its use of the internal ratings-based approach in capital adequacy calculations (the IRB approach) and solvency need calculations. Danske Bank does not agree with the orders and is now considering whether to appeal the decision to the Company Appeals Board. The FSA has given Danske Bank four orders that can be summed up as follows: with effect from 31 December 2013, an order to change some specific elements of the IRB model and thus increase the risk weights for corporate exposures (two orders). In this connection, Danske Bank can reduce Pillar II add-ons. With effect from 30 June 2013, an order to set aside additional capital in its solvency need calculations to cover risks deriving from exposures to other institutions. With effect from 30 June 2013, an order to remove a deduction from the solvency need. Danske Bank is of the opinion that the IRB model it use complies fully with the requirements in the Executive Order on capital adequacy, and in fact the FSA has previously approved its IRB model and all material methodological changes. In addition, Danske Bank is of the opinion that the FSA is not legally justified in ordering a change in the risk-weighted items on the basis of estimates and high-level comparisons with the risk weights of other banks. The IRB approach actually requires an individual assessment based on specific risks. Moreover, Danske Bank finds that the FSA compares measures at banks that are not comparable, among other things because of differences in the methods applied by the banks to calculate risks and differences in the composition of their portfolios. Consequences of the orders: Danske Bank will begin implementing the new requirements immediately. Over time, the net effect of the orders is a rise in risk-weighted assets of around DKK 100 billion relative to the figure for first quarter of 2013 (DKK 797 billion). There will also be a change in Pillar II add-ons, the net amount of which is estimated to fall by around DKK 2 billion. Another consequence of the orders is an increase in Danske Bank's capital requirement (Pillar I requirement) of DKK 8 billion, from DKK 64 billion to DKK 72 billion calculated at 31 March. Calculated at 31 March 2013, the total capital ratio would be around 19.1% (the actual reported figure at 31 March 2013 was 21.6%), and the solvency need ratio under the Basel I transitional rules would be 10.1% (the actual reported figure at 31 March was 11.4%).

Danske Bank A/S - Shareholder/Analyst Call

Danske Bank A/S announced that it named Thomas Mitchell head of its personal banking unit in Denmark. Mitchell is currently CEO of Danske Invest Management A/S. Mitchell replaces Jan Svarre, who left May 1, 2013 to take up a new role at Sydbank A/S.