Tuesday 17 July 2018

Danske Bank beats expectations with Q1 pretax profit of €842m

Danske Bank Head Office in Tallaght
Danske Bank Head Office in Tallaght
Michael Cogley

Michael Cogley

Danske Bank has beaten analyst expectations in the first three months of its financial year after posting a pre-tax profit of 6.27bn Danish crowns (€842m)

Net interest income at the bank remained level at 5.3bn Danish crowns while total income at the institution dipped by 9pc.

Danske said the drop in income was largely down to a lower net fee and lower trading income.

Danske Bank chief executive Thomas F. Borgen said the company had a "satisfactory" start to the year despite challenging financial markets.

"The underlying business is robust, and we continued to improve the customer experience by introducing new and innovative solutions. We were able to attract new customers and to increase lending in a market characterised by moderate economic growth and relatively weak credit demand. We reduced costs further, while losses and impairments remained at a low level," Mr Borgen said.

The bank is maintaining its outlook for net profit for this year but said it expects increased pressure on margins in net interest income over the course of the year.

Danske also said it expects to decline expenses from the 2015 levels.

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