Danske Bank reports net profit of DKK 9.4 billion (EUR 1,263 million)
for the first half of 2015
Net profit guidance revised upwards to above DKK 16 billion (EUR 2,145million)
Danske Bank has announced its financial results for the first half of 2015.
“In the first half of 2015, we benefited from our diversified business model and posted a satisfactory result despite the adverse effect of negative interest rates. The result is driven by high customer activity, improved macroeconomic conditions and lower impairments,” says Thomas F. Borgen, Chief Executive Officer.
“Our underlying business continued its positive development as we are executing our strategy of becoming a more customer-centric, simple and efficient business. We have launched a number of new innovative solutions across our markets, strengthened relationships with our customers and have seen continually positive developments on the customer side.
On the basis of stronger income and lower impairments, we raise our guidance for the year and now expect a net profit of above DKK 16 billion (EUR 2,145 million) for 2015.”
The interim report for the first half of 2015 is available at danskebank.com. Highlights are shown below:
First half 2015 vs first half 2014
Second quarter 2015 vs first quarter 2015
Solid common equity tier 1 capital ratio and total capital ratio
The common equity tier 1 capital ratio and the total capital ratio were 14.3% and 18.7%, respectively, against 15.1% and 19.3% at 31 December 2014. The liquidity coverage ratio (LCR) remained solid at 130% at 30 June 2015.
On 30 March 2015, we initiated our DKK 5.0 billion (EUR 669 million) share buy-back programme, which may run until 31 December 2015. By 30 June 2015, we had bought back shares for a total purchase amount of DKK 1.9 billion (EUR 255 million).
Rating targets for 2015 met
In June, Moody’s raised Danske Bank’s long-term rating to A2 and its short-term rating to P-1. In July, S&P changed its outlook for our long-term A rating to stable. These actions have brought us to our rating targets for 2015.
New operating model for Northern Ireland
Our activities in Northern Ireland will operate as a standalone business unit rather than as part of Personal Banking and Business Banking. We have made a business review that concluded that synergies between the Northern Irish market and the Nordic markets are limited, and we are confident that the change will better enable us to create value for our customers in Northern Ireland, to develop our market position and to improve profitability. Effective from 1 January 2016, Danske Bank in Northern Ireland will be disclosed in financial statements as a separate business unit.
Net profit guidance revised upwards
We now expect a net profit for 2015 of above DKK 16 billion (EUR 2,145 million), an increase from our earlier guidance of a net profit of above DKK 14 billion (EUR 1,877 million). The stronger outlook is owing mainly to positive developments in income supported by high customer activity at all business units and in impairments as macroeconomic conditions continue to improve.
Thomas F. Borgen, Chief Executive Officer, tel. +45 45 14 14 00
Henrik Ramlau-Hansen, CFO, tel. +45 45 14 14 00
More information about Danske Bank’s financial results is available at danskebank.com/reports.
This is a translation of a press release in the Danish language. In case of discrepancies, the Danish version prevails. Danish kroner translated into euros at an exchange rate of 1:746.04.
Danske Bank is a leading Nordic financial services organisation with retail, corporate and institutional customers in 15 countries. In Finland, the bank produces customer-oriented banking solutions for over 1 million customers. Danske Bank has an excellent international network of experts and is at the forefront in the provision of modern mobile and tablet services.
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