Danske Bank Reports 2014 Profits Increase

Danske Bank has reported a net profit of DKK 6.9 billion (EUR 920.0 million) for the first half of 2014.

The bank made the announcement as it released its results for the first half of the year. The net profit represents an increase of 88% from the level in the first half of 2013.

Total income amounted to DKK 21.7 billion (EUR 2,912.1 million), indicating a 9% rise on the first half of 2013. "Income rose because of the positive effect relating to Nets, the repayment of the hybrid capital raised from the Danish state in April, stronger customer activity and higher net income from insurance business," Danske Bank said.

At the end of June 2014, total lending by the bank largely matched the level seen at the end of 2013. Most of Danske Bank’s markets experienced weak growth and suppressed demand for credit. At the end of June 2014, total deposits were 2% below the level at the end of 2013.

"We saw good progress in the first half of 2014," says Thomas F. Borgen, CEO. "We increased net profit 88% from the level in the first half of 2013, and we are moving steadily in the right direction. Expenses are declining as expected, the positive trend in impairments is continuing, and we saw growing customer activity in the second quarter of 2014.

"The products and solutions we have launched have been well received by our customers, and they will continue to further strengthen our market position. Our progress thus far in 2014 shows that we are on track to create a more customer-focused, cost-effective and competitive bank."

The bank has estimated net profit for 2014 to be in the range of DKK 10-13 billion (EUR 1,341-1,744 million). This indicates a stronger outlook than the original estimation, which was DKK 9-12 billion (EUR 1,207-1,610 million).

(IT/CD)