AS60 Citi Fun 26

    3rd Quarter Results
             



Sampo Bank Ready for Historic Integration

SAMPO BANK IS A SUBSIDIARY OF DANSKE BANK.

THE FINANCIAL RESULTS RELATE TO THE BANKING ACTIVITIES OF SAMPO BANK,
WHICH SERVES BOTH RETAIL AND CORPORATE CUSTOMERS.  DANSKE BANK
GROUP'S BANKING ACTIVITIES IN FINLAND HAS SIX REGIONS WITH 126
BRANCHES

* Sound performance in the third quarter of 2007 as expected
* Lower pre-tax profit due to integration expenses
* 11% growth in retail lending
* Integration on the track and Sampo Bank well prepared for historic
  IT-project


BANKING ACTIVITIES FINLAND              Q1-Q3  Q1-Q3  Index Full year
(� m)                                   2007   2006   07/06 2006
Net interest income                     293    282    104   396
Net fee income                          118    108    109   153
Net trading income                      2      5      40    4
Other income                            19     20     95    33
Total income                            432    415    104   586
Amortisation of intangible assets       59     -      -     -
Integration expenses                    28     -      -     -
Other operating expenses                235    227    104   332
Operating expenses                      322    227    142   332
Profit before credit loss expenses      110    188    59    254
Credit loss expenses                    14     -3     -     -10
Profit before tax                       96     191    50    264
Loans and advances, end of period       21,429 19,348 111   19,673
Deposits, end of period                 12,570 11,625 108   11,966
Risk-weighted items (avg.)              17,779 17,043 104   17,080
Allocated capital (avg.)                978    1,108  88    1,110
Profit before credit loss expenses as 16.9     25.5   -     25.0
% p.a. of allocated capital
Pre-tax profit as % p.a. of allocated     14.7 25.9   -     25.9
capital (ROE)
Cost/income ratio, %                      74.5 54.7   -     56.7
Cost/income ratio, excl. total         54.4    54.7   -     56.7
integration expenses, %
2007 and 2006 figures includes the Sampo Bank group as of
February.



Persistently strong performance

The performance of the banking activities in Finland from February 1
to September 30, 2007, remained strong. Net interest income rose 4%
to �293m. The upward trend reflects growth in lending and higher
interest rates, which more than compensated for the pressure on
lending margins and the accrual of the fair value adjustment of
loans, advances and deposits in the opening balance sheet as at
February 1, 2007. Excluding the accrual of the adjustment, net
interest income rose 10%.

"Our performance remained strong despite the huge integration
process," says Ilkka Hallavo, CEO of Sampo Bank. "Competition has
become increasingly fierce. For many years, the mortgage lending
market was the most competitive segment of the Finnish banking
market, but during the autumn, competition within deposit products
has picked up. We believe that the fierce competition in the Finnish
banking markets will continue, assuming favourable economic
conditions. In this context, the increased product offering and
efficiency post the IT-migration, will position Sampo Bank excellent
in the future competitive landscape."

Operating expenses rose 42% over the level in the same period a year
ago. The increase was the result mainly of the amortisation of
intangible assets (�59m) and integration expenses (�28m) deriving
from the acquisition of the Sampo Bank group. Excluding total
integration expenses, operating expenses rose 4%. The cost/income
ratio, excluding integration expenses, improved slightly from 54.7 %
to 54.4%.

Lending volume rose 11% and deposits 8%. The market share of Banking
Activities Finland was 15.5% for lending and 13.3% for deposits. The
market share of mortgage loans was 15.6 %.


Sampo Bank awarded

The Banker magazine awarded Sampo Bank the Highly Commanded title in
2007. Sampo Bank shared this award with WM-Data plc. The Business
Networking Service includes comprehensive solutions for consumer and
business invoicing.


Integration on track

Sampo Bank's integration with the Danske Bank Group is on track.
Integration started eight months ago, and the process is progressing
as planned. The Bank is ready for a historic integration during
Easter next year, when Danske Bank and Sampo Bank will migrate Sampo
Bank to Danske Banks IT platform.

"We're in the middle of one of the biggest IT projects in Northern
Europe," says Ilkka Hallavo, CEO of Sampo Bank. "Although more than
2,000 people are involved in this project, we maintain our business
and growth momentum."


Sampo Bank's integration project is remarkable in four ways:


  * It is one of the biggest IT projects ever seen in northern
    Europe. The project is divided into more than 40 development and
    programming sub-projects, which involve more than 2,000 employees
  * The integration project is the first IT integration project
    within the domestic banking industry which will unite a Finnish
    and an international bank on a shared IT platform
  * The integration project means that Sampo Bank will offer a wide
    range of new products and services to both retail and corporate
    customers soon after the migration
  * The migration will bring many of Sampo Bank's products, processes
    and IT solutions onto the shared IT platform to the benefit of
    other units of the Danske Bank Group

After the migration, the Danske Bank Group expects to generate
synergies of around �80m. Integration expenses are expected to total
some �200m.


Outlook 2007

Integration expenses are likely to increase in the fourth quarter of
2007 as the migration process progresses. On the whole, the growth of
Banking Activities Finland is expected to continue throughout 2007,
assuming favourable economic conditions.

"Our goal is to outperform market growth while managing the
integration process," says Hallavo. "We have shown that we can do
both at the same time."

This press release comments on the results of Danske Bank Group's
banking activities in Finland. Sampo Bank became part of Danske Bank
Group on February 1, 2007. Banking Activities Finland's interim
report covers the period from February 1 to September 30, 2007.

Danske Bank Group's quarterly report for the first nine months can be
viewed at www.danskebank.com/reports .

For further information:
Hannu Vuola, Head of Communications, Telephone +358 10 513 0727
Mobile +358 50 42 400 40

Sampo Bank will not hold a press conference on the presentation of
its interim results. However, the CEO of Sampo Bank, Ilkka Hallavo
is, will be available for 1-on-1 interviews at Sampo Bank's head
office at Unioninkatu 22. Please call Hannu Vuola or Timo Anttila to
arrange an interview.

- ---END OF MESSAGE---




http://hugin.info/134977/R/1164142/227135.pdf

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