Birger Krogh Nielsen
Management
Looking at the forward rates, as you can see, during the course of Q3 this year, forward rates have increased by 0.8 percentage points after the 2 rate hikes in June and September and the market also expects a possible hike here in December and possibly also further hikes during the course of '27. Looking at our customers, so far, they have fully risk-wise managed the higher funding costs, which is certainly very positive. The pass-through rate, looking at the deposit margin, has been relatively limited here after the June and September rate hikes, i.e., we see higher margins on deposits, as you can see on the graph. And going forward, it, of course, very much depends on market conditions, but we expect higher pass-through rates in accordance with what we saw back in '23, where at a start was very high market discipline. But later on, of course, there was no expected challenge as rates went higher. And the sensitivity is more or less unchanged, DKK 700 million year 1 with a 100 basis point shift and DKK 900 million from year 2 onwards due to the delayed higher return on our liquidity portfolio. Looking at the top line, our net interest income, we saw an uplift of 4% Q-o-Q. And we started out in Q1 with the lowest level as expected. And since then, we've grown steadily in Q2 and now even more in Q3. And of course, it's a combination of the full effect of the June hike and higher volumes, as I referred to earlier on. The September hikes and potential further hikes will add, of course, to NII in Q4 and going into '27. And it also is dependent naturally upon the volume development in the group. When we look at the fee and commission income line, we've actually grown 12% year-over-year in Q3. And if we take the longer horizon and look at it from 2020 onwards, we've seen an annual growth of 8%, and that also applies after the inclusion of Handelsbanken back in '22. The specifics for Q3 relates to AUM and custody fees up 21% due to higher AUM, as I said before, positive financial markets and net inflow of new customers, but also a much higher mortgage refinancing in Q3, a slight shift in the seasonality between Q3 and Q4. And finally, we've seen fee expenses going up 9% year-over-year, partly due to issuance of bonds, but also positively speaking, due to higher business volumes and business activity in the quarter.