Danske Bank A/S Q3 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst : Here is Sofie from JPMorgan. So just going back to the net interest income and the new guidance. So could you -- I mean, how should we think about net interest income? Maybe first of all, given that if I look at the divisions in large corporates, interest income was down quarter-on-quarter in business banking, it was down quarter-on-quarter. In Personal Banking, it was up only 2% quarter-on-quarter. And in Northern Ireland, it was up only 2% quarter-on-quarter. And when I look at the slide, it seems that clearly, you had the DKK 300 million benefit, but also everything else basically seems to come from treasury. So could you maybe just talk about how much -- like should we see a reverse of, for example, of some minus 7% quarter-on-quarter decline that we saw in business banking in coming quarters? Or how should we kind of think about the divisional net interest income going forward? And also, with your new guidance on [corrected] DKK 200 million NII benefit in year 3. Could you also maybe just talk about, is there any new hedges that you have put in place? How much is coming from Finland where that the mortgages are kind of longer or 1 year fixed basically, and it takes longer time to reprice? So maybe if you could just talk a little bit about that? And then my second question would be around kind of asset quality. We saw now DKK 300 million of [cost of risk] this quarter. It means that the asset quality or was the deterioration in the credit quality and you guide for -- up to DKK 1 billion for the full year. But does it mean that we should expect cost of risk to double to close to DKK 600 million in the fourth quarter and is kind of what's the run rate cost of risk for '24?

Question: Sofie Caroline Elisabet Peterzens - JPMorgan Chase & Co, Research Division - Analyst : Yes. Sorry, just like on the kind of fixed rate loans in Finland and Sweden and in terms of the hedge, is it fair to assume that roughly half of the DKK 300 million in year 2 comes from the hedge and the other half from the fixed rate loans or has the mix changed?