- Danske Bank’s pretax profit for Q2 2024 was DKK7.77 billion, meeting the estimate of DKK7.49 billion.
- Large Corporates & Institutions’ pretax profit was DKK2.33 billion, above the estimate of DKK2.23 billion.
- Northern Ireland’s pretax profit came in at DKK481 million, surpassing the estimate of DKK457.8 million.
- Q2 2024 net income was DKK5.84 billion, higher than the estimate of DKK5.63 billion.
- Total income for Q2 2024 was DKK14.06 billion, slightly beating the estimate of DKK13.92 billion.
- Net interest income was DKK9.15 billion, close to the estimate of DKK9.23 billion.
- Net fee & commission income stood at DKK3.70 billion, significantly above the estimate of DKK3.3 billion.
- Net trading income was DKK608 million, falling short of the estimate of DKK800.7 million.
- Other income was DKK147 million, less than the estimate of DKK197.2 million.
- Large Corporates & Institutions’ total income was DKK3.98 billion, in line with the estimate of DKK3.92 billion.
- Northern Ireland’s net income was DKK853 million, exceeding the estimate of DKK834.8 million.
- Danica Pension insurance net income was DKK271 million, below the estimate of DKK427.2 million.
- Large Corporates’ net interest income was DKK1.77 billion, slightly higher than the estimate of DKK1.72 billion.
- Northern Ireland’s net interest income was DKK734 million, surpassing the estimate of DKK698.9 million.
- The Common equity Tier 1 ratio was 18.5%, slightly below the estimate of 18.7%.
- Cost to Income Ratio was 46.1%, better than the estimate of 46.6%.
- Return on equity was 13.3%, exceeding the estimate of 12.8%.
- Total risk exposure was DKK846.18 billion, higher than the estimate of DKK814.75 billion.
- Operating expenses were DKK6.48 billion, in line with the estimate of DKK6.49 billion.
- Earnings Per Share (EPS) was DKK6.80, above the estimate of DKK6.53.
- Danske Bank forecasts impairments up to DKK600 million for the year.
- The bank will pay an interim dividend of DKK7.5 per share for the first half of 2024 and plans to distribute the full remaining FY24 net profit in 2025.
- The guidance for full-year 2024 net profit was revised to DKK21-23 billion, up from DKK20-22 billion.
- Strong core banking income and sustained fee uplift are contributing to higher profitability.
- The financial targets for 2026 include loan impairment charges of approximately 8 basis points.
- Operational efficiency and continued commercial momentum resulted in a cost/income ratio of 45.8 and a return on equity of 13.1%.
A look at Danske Bank A/S Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.8 |
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
Danske Bank A/S, a Danish banking group encompassing various subsidiaries, has received a mixed outlook based on Smartkarma Smart Scores. With high scores in Dividend and Growth indicating a strong performance in these areas, the company seems to be focused on rewarding its investors and expanding its operations. However, lower scores in Resilience and Momentum suggest potential challenges in adapting to changing market conditions and maintaining consistent growth momentum over time.
Overall, Danske Bank A/S stands out for its robust value proposition and attractive dividend payouts, positioning it as an appealing option for investors seeking steady income and long-term growth prospects. While the company’s resilience and momentum scores indicate areas for improvement, its strong focus on value creation and dividend distribution bode well for its future performance in the financial services sector.
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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