- Danske Bank’s Common Equity Tier 1 ratio for the first quarter surpasses estimates, standing at 18.5% compared to the estimated 18.4%.
- Impairments for the same quarter were significantly lower than expected, at DKK101 million, versus an estimate of DKK189.7 million.
- The bank’s 2024 outlook suggests net profits are projected to stay within the DKK 20-22 billion range.
- The first quarter of 2024 experienced high macroeconomic uncertainty, largely due to the geopolitcal landscape.
- The result of this period is a 4% increase in total income. Furthermore, ongoing transformation and efficiency measures resulted in a 4% decrease in costs from the previous quarter.
- The cost/income ratio improved, dropping to 45% in light of decreased costs and increased total income.
- Overall, the bank’s income rose, due in part to notable customer activity across all its business operations. This, along with their diligent focus on efficiency, allowed costs to be kept minimal.
- Strong credit quality led to a modest level of loan impairments.
- Danske Bank’s performance overview includes 15 buys, 5 holds and 3 sells.
A look at Danske Bank A/S Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Danske Bank A/S is positioned favorably for long-term success. With top scores in Value, Dividend, and Growth factors, the company is seen as strong in terms of its financial health, shareholder returns, and potential for expansion. However, there are some concerns regarding Resilience and Momentum, indicating areas where the company may face challenges or where improvements could be made.
Danske Bank A/S, a Danish banking group consisting of various subsidiaries, offers a range of financial services to private customers, corporations, and institutions globally. With a solid foundation in banking, insurance, mortgage, and asset management, the company is well-positioned to continue its growth and profitability, supported by its high scores in key areas according to the Smartkarma Smart Scores evaluation.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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