Friday 9 December 2016

€4.5bn wiped from Danske's worth over role in NIB and Northern Bank

Published 20/09/2011 | 05:00

The massive shareholder loss triggered by the NIB and Northern Bank investments was first revealed by Danish financial daily 'Boesen'. Photo: Getty Images
The massive shareholder loss triggered by the NIB and Northern Bank investments was first revealed by Danish financial daily 'Boesen'. Photo: Getty Images

DANSKE Bank's investments in National Irish Bank and Northern Bank have wiped more than €4.5bn off the Danish plc's value, according to analysis from Danske's markets division.

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But Danske's head of international banking Thomas Borgen yesterday insisted the group "remains committed" to NIB, echoing comments made at its half-year results in August.

The massive shareholder loss triggered by the NIB and Northern Bank investments was first revealed by Danish financial daily 'Boesen'.

The article cited research from Danske Markets analyst Per Groenborg, who said that the Danish plc's value would be 58pc, or €4.5bn, higher without the drag of the Irish businesses.

National Irish Bank was snapped up by Danske in 2005.

The bank suffered heavy losses when the economy turned and construction loans turned bad.

In the first half of this year Danske lost €400m -- a significant figure for a bank with a loan book of just €9.1bn.

Announcing the figures back in April, Danske described the loan losses as "frustratingly high", but warned that the bank could see a deterioration in its personal loan book as a result of "tough austerity measures".

The bank has already cut 150 jobs and closed 25 branches to deal with the downturn, but has repeatedly stressed its long-term commitment to the Irish market.

Irish Independent

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