'Solid' financial result as profit tops €2bn at Danske Bank
Danske Bank has reported a 'solid' financial result for the nine months to 30 September as net profit topped DKK 15.3bn (€2bn) – a 7pc increase year-on-year.
The result was driven by positive developments in the Nordic economies, high customer activity and impairment levels that continued to be low, according to a statement from the bank.
The return on shareholders’ equity after tax was 13.3pc, against 12.6pc in the first nine months of 2016.
Total income amounted to DKK 35.9bn (€4.8bn), against DKK 35.1bn (€4.7bn) in the same period last year for the Nordic lender.
Net interest income and net fee income continued to increase, leading to an increase in income of 2pc.
Meanwhile operating expenses amounted to DKK 17.0bn (€2.3bn), an increase of 2pc year-on-year. The increase reflected higher costs related to compliance, regulation and digitalisation.
"We maintained a fast pace of innovation, launching several new business initiatives within areas such as mortgage finance, investments and mobile solutions.
The solid financial results enable us to continue the considerable investments in digitalisation that we initiated some years ago and to continuously adapt our business to the major changes facing the financial industry," Thomas F. Borgen, CEO of Danske Bank, said.
At the end of September 2017, total lending at the bank was up 2pc, while total deposits were up 7pc from the levels at the end of 2016.
In Northern Ireland, profit before tax fell 21pc (in local currency) year-on-year. The underlying performance was positive when excluding the impact of lower UK interest rates and the one-off gain on the sale of VISA Europe in 2016.
Last week the bank confirmed the sale of its Irish mortgage loans to Proteus Funding DAC, an entity financed by Goldman Sachs.
The sale price was undisclosed.
"Customer agreements are unaffected by the transfer and individual customers have been advised of the transfer by letter from the Bank this week. The Central Bank of Ireland has been advised of the transaction," a spokesperson for Danske said.