Due to challenging financial market conditions, Danske Bank A/S revises 2022 net profit out-look downwards despite a positive development for core banking activities. Now expects a net profit of DKK 10-12 billion

Danske Lender A/S

Enterprise announcement no 10 2022

 

Danske Financial institution A/S
Holmens Kanal 2 – 12
DK – 1092 København K
Tel. +45 45 14 00 00

10 July 2022

Due to difficult monetary sector ailments, Danske Bank A/S revises 2022 net revenue outlook downwards even with a positive growth for main banking actions.
Now expects a web income of DKK 10-12 billion

The outlook for 2022 is revised downwards to a net financial gain in the selection of DKK 10-12 billion. At the release of our 2021 economical benefits on 3 February this year, we at first guided for a total-12 months 2022 net earnings in the assortment of DKK 13-15 billion topic to normalised money sector circumstances.

We have witnessed superior industrial development in our core banking functions in the initially fifty percent of the 12 months pushed by quantity development, strong shopper action and a continued reliable credit history quality. Our main earnings traces plainly benefitted from this development at the identical time as we continue ond to see great traction for our fundamental price tag progress. However, owing to unfavourable economic industry situations, and in unique from an adverse impact from the swiftly increasing desire rates, we revise our internet income steering for the yr centered on significantly reduce expectations for trading revenue and income from our insurance plan business. The Nordic set revenue markets have been characterised by remarkable substantial volatility and decrease liquidity, generating a difficult operating environment for delivering marketplace building products and services. Even with this revision, I continue being self-confident that on the foundation of our sturdy franchise and diversified organization design, we will carry on to support consumers efficiently, even though we carry on to execute on our much better lender agenda,suggests CEO Carsten Egeriis.

With regard to the second quarter of 2022, web income will be all over DKK 1.7 billion. Main banking income will be about DKK 9 billion, though overall money will be all around DKK 8.7 billion. Web buying and selling income and internet money from insurance coverage organization will consequence in a mixed decline of DKK .5 billion, which involves the proceeds similar to the sale of Danica Norway. Costs will be around DKK 6.4 billion, reflecting continued elevated remediation costs and charges linked to the Estonia situation. Credit high-quality continues to be potent, and impairment costs for the next quarter of 2022 will be around DKK .2 billion.

We expect total 12 months money from main banking pursuits to be earlier mentioned the level in 2021 as better net interest money driven by great economic action will more than offset decreased money market and financial investment similar charge cash flow. Net revenue from insurance plan enterprise and buying and selling actions in the 2nd half of 2022 will be down below normalised levels and continue being issue to the monetary market situations.

Primarily based on the sustained elevated prices for remediation of our legacy scenarios, our comprehensive calendar year price tag steerage is revised a little bit to about DKK 25.5 billion, while impairments are however anticipated to be beneath normalised degree.

The remaining figures will be provided in Danske Bank’s interim report for the initially half of 2022, owing for launch on Friday, 22 July 2022, wherever we will be able to comment even further in element.

Danske Financial institution

Contacts:        Stefan Singh Kailay, Head of Media Relations, tel. +45 25 45 60 44
        Claus Ingar Jensen, Head of Investor Relations, tel. +45 25 42 43 70

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