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Investing.com -- Danske Bank (CSE:DANSKE) posted second-quarter net profit broadly in line with expectations, supported by healthy customer activity and solid credit quality.
Net profit for the quarter came in at 5.45 billion Danish crowns ($848 million), slightly below the 5.84 billion reported a year earlier and in line with the 5.50 billion average estimate from analysts polled by LSEG.
Pre-provision profit reached DKK 7.61 billion, around 1% above consensus, as both revenue and cost figures came in marginally better than forecast.
Net interest income (NII) stood at 9.06 billion crowns, beating expectations of 8.98 billion. Jefferies analysts said the bank’s NII benefited from "higher volumes (both lending and deposits) and FX/day effects."
"The deposit hedge helped mitigate the impact of lower rates on deposit margins," they added.
Danske’s capital position also improved, with its CET1 ratio rising to 18.7%, about 20 basis points ahead of consensus.
“Despite the challenges posed by geopolitical turbulence and market volatility, the macroeconomic environment in our operating markets remains robust. The Nordic economies continue to exhibit resilience," Danske Bank said in the release.
Looking ahead, the bank maintained its full-year net profit guidance of between 21 billion and 23 billion crowns, compared to the consensus estimate of 22.3 billion crowns.
Nordic lenders continue to face pressure from regional rate cuts and uncertainty linked to global trade tensions, but Danske signaled continued confidence in the stability of its core markets.