Danske Bank, Denmark’s largest lender, reported better-than-expected first-quarter profits, which boosted its shares. The bank’s net profit for the period between January and March rose by 2%, reaching 5.76 billion Danish crowns ($873 million), surpassing analysts’ expectations of 5.31 billion. This strong performance came amid concerns about the global trade war, especially the economic impact of U.S. President Donald Trump’s tariffs. Despite the uncertainty in global markets, Danske Bank noted that the Nordic region has remained resilient, supported by robust economic data.
The bank highlighted that while there is a potential risk of recession in the U.S., the impact on European growth, including the Nordic countries, is expected to be more moderate. The first-quarter results reflected positive developments across the region, including promising growth prospects, stable inflation, and strong employment figures. Danske Bank’s CEO Carsten Egeriis emphasized that the results were driven by solid core income growth, stable costs, and strong credit quality, leading to low loan impairments.
Shares in Danske Bank have risen 30% since early April, and on the day of the earnings release, the stock rose by 3.6%, outperforming the STOXX Europe 600 index. Despite the positive results, the bank revised its full-year profit forecast slightly downward, expecting a net profit between 21 billion and 23 billion crowns, mainly due to anticipated lower net interest income from reduced market rates.
In terms of specific performance, Danske Bank saw a slight decline in net interest income, which fell by 1% to 9.02 billion crowns but still exceeded analysts’ expectations of 8.86 billion. Net fee income increased by 8% to 3.66 billion crowns, surpassing the forecast of 3.57 billion. Additionally, the bank took an impairment charge of 50 million crowns in the first quarter, significantly lower than the expected 195 million crowns. These results suggest that Danske Bank’s operations remain strong, with a solid financial foundation and low exposure to major risks, even amid global economic challenges.
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