Danske Bank Q1 net profit climbs 2% to DKK 5.76 bln on fee, trading gains

Published 02/05/2025, 07:18
© Reuters.

Investing.com -- Danske Bank (CSE:DANSKE) on Friday posted a net profit of DKK 5.76 billion in the first quarter of 2025, a 2% increase from a year earlier, as gains in fee and trading income offset declines in interest and insurance earnings.

Net interest income was DKK 9.02 billion, down from DKK 9.14 billion in Q1 2024, reflecting the sale of the personal customer business in Norway and lower deposit margins. 

Net fee income climbed to DKK 3.66 billion from DKK 3.38 billion, driven by higher everyday banking and investment fees. 

Net trading income rose to DKK 882 million from DKK 769 million, led by strong fixed‐income activity. 

Net income from the insurance business fell to DKK 201 million from DKK 492 million, chiefly due to increased provisions for legacy life products. 

Other income was DKK 170 million. Total (EPA:TTEF) income amounted to DKK 13.93 billion, while operating expenses decreased slightly to DKK 6.29 billion, including DKK 72 million for resolution fund and bank taxes. 

Profit before loan impairments was DKK 7.64 billion; impairment charges were DKK 50 million. 

Profit before tax reached DKK 7.59 billion and, after DKK 1.83 billion in tax, yielded the reported net profit. Earnings per share were DKK 6.9 .

On the balance sheet, total assets stood at DKK 3.76  billion at March 31, up from DKK 3.67 billion a year earlier. Loans amounted to DKK 1.71 billion and deposits to DKK 1.10 billion .

Capital and liquidity buffers remained robust. The common equity Tier 1 ratio was 18.4 % and the total capital ratio 22.9 %. 

The liquidity coverage ratio was 168 percent, with an LCR reserve of DKK 605 billion, and the net stable funding ratio was 125 percent .

Danske Bank continued its share buy‑back programme, acquiring 1.5 million shares for DKK 355 million of the planned DKK 5 billion. 

In March the annual general meeting approved a reduction of share capital by DKK 271.9 million through cancellation of 27.2 million treasury shares .

At the end of the quarter, the bank’s book value per share was DKK 203.8, the share price was DKK 225.1, and full‑time‑equivalent staff numbered 20,046 .

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