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The Danske Bank Group’s Interim report for the first quarter of 2008 has been prepared in accordance with IAS 34, Interim Financial Reporting, and additional Danish disclosure requirements for interim financial reports of listed financial institutions.
The Group has not changed its significant accounting policies from those followed in the Annual Report 2007. The Annual Report 2007 provides a full description of the Group’s significant accounting policies.
The interim report has not been reviewed or audited.
Change in financial highlights
The Other Areas business area previously covered capital costs, including costs for subordinated debt and long-term funding. Beginning in the first quarter of 2008, these costs are allocated to the relevant business areas of the Group. Moreover, income and costs relating to CDS transactions hedging the credit risk of a portfolio of mortgage loans are allocated to Danske Markets.
For the first quarter of 2008, this change raises net interest income by DKr58m and net fee income by DKr92m, but lowers net trading income by DKr150m. Comparative figures have been restated, with the following results: an increase in net interest income of DKr131m, an increase in net fee income of DKr378m and a decrease in net trading income of DKr509m for 2007.
Accordingly, Other Areas now comprises income and expenses relating to real property, Group support functions and the elimination of returns on own shares and bonds.
Change in segmentation
On January 1, 2008, the Group merged the presentation of its Mortgage Finance and Banking Activities Denmark business areas. In future, the presentation of the financial results of the Group’s mortgage finance operations in Denmark will correspond to the presentation of results for such activities outside Denmark.
Standards and interpretations not yet in force
The International Accounting Standards Board (IASB) has issued a number of international accounting standards that have not yet come into force. Similarly, the International Financial Reporting Interpretations Committee (IFRIC) has issued a number of interpretations that have not yet come into force.
None of these is expected to materially affect the Group’s future financial reporting. |