Since August 2022, when we stated that we will set debt to zero for qualifying clients, we have finished 99 percent of the process.

Furthermore, we have compensated over 85% of the consumers in whose circumstances we believe overcollection may have occurred (or attempted to compensate in the event that payment details were unavailable), leaving out the remaining customer categories with exceptionally complex cases, such as estate issues.

The unbiased reviewers' report

The most recent report from the unbiased reviewers assigned by the Danish Financial Supervisory Authority (the Danish FSA) to keep an eye on Danske Bank's efforts to resolve its debt collection issues is now complete.

The unbiased reviewers' conclusion in report no. 5 that "...the bank has identified, with a high degree of probability, the customers who are entitled to compensation due to overcollection" and that "...the compensation model, in by far most cases, will lead to payment of compensation equal to or exceeding the loss incurred by the customers" are two things we are happy to see, among other things.

We will start paying out compensation in the upcoming term. This phase comprises amounts due by small enterprises, complex instances involving consumer loan debt, and clients who may have been subject to overcollection regarding house loans after a forced sale.

With the exception of estate instances and unique circumstances, nearly every client group that would have been the target of overcollection will have received payment by the time this phase is over. This work will continue until 2025 due to the complexity of some smaller customer groupings.

In this context, it is important to note that the unbiased reviewers acknowledge in their report that we can, with a high degree of certainty, identify the customers who may have been subject to overcollection and pay compensation that, with a high or sufficient degree of probability, is equal to or exceeds the potential loss suffered by the customers; furthermore, the bank calculates compensation keeping the customers' best interests in mind.

instances involving estates and especially complicated cases

Closing especially complicated cases—including estate cases—remains a priority. Furthermore, the efforts to resolve the estate matters are still being carried out in collaboration with pertinent outside parties from the industry and the authorities. It is anticipated that this activity will continue throughout 2025, along with remediation pertaining to small groups of very complicated consumer segments.

Several other problems have been found while trying to resolve the ones pertaining to our debt collection. The compensation model addresses most of these concerns. The majority of the outstanding issues are either ones for which the consumers have already received compensation or ones that have no financial impact on them.The bank will start remediation if more problems are found that actually have an impact on the impacted clients.

Other than what has already been disclosed, no further impairment costs or provisions arise from the resolution of additional concerns or the anticipated total amount of compensation.

Restarting debt collection is still a work in progress.
We have partnered with the Lowell debt collection firm to handle debt collection in Denmark, as previously reported. We have resumed our debt collecting process since the last status in July 2023, and we want to gradually expand it to cover an increasing number of case types. We anticipate that the system will be fully implemented by 2025.