Good start to the year driven by robust customer activity across
the business and strong credit quality in uncertain environment.
Net profit of DKK 5.6 billion for the first quarter of 2024
Press release |
|
Bernstorffsgade 40DK - 1577 København VTel. +45 45 14 00 00 3 May
2024 |
Good start to the year driven by robust
customer activity across the business and strong credit quality in
uncertain environmentNet profit of DKK 5.6 billion
for the first quarter of 2024
Carsten Egeriis, Chief Executive Officer, comments on the
financial results:
“In the first three months of the year, we saw macroeconomic
uncertainty remaining high, not least because of the geopolitical
landscape. It is still very much a mixed picture with many
areas of the Nordic economies performing well, but we also see
businesses facing headwinds, for example within construction.
Unemployment remains low, and households are in the process of
regaining their real income.
For Danske Bank, the first quarter of 2024 was a continuation of
our stable and satisfactory performance in 2023. Overall, our
income increased, supported by good customer activity throughout
our business, our sustained focus on efficiency kept costs down,
and strong credit quality resulted in modest loan impairments. All
in all, we continued to improve our profitability. We have also
this year in Denmark seen good interest in our leading savings
products among our personal customers as well as increased demand
for bank lending and investment products. This, combined with the
normalised interest rate environment, led to an increase in net
interest income, and broad-based banking customer activity led to
an increase in net fee income.
The first quarter of 2024 was effectively the first quarter of
our new strategy period. With our Forward ’28 strategy, we have set
clear ambitions for continuing the efforts to strengthen our
position as a leading bank in the Nordic region. In the first
quarter of the year, we continued to progress, among other things,
with partnerships related to both platforms and cloud technology to
provide our customers with the best digital customer experience,
and we introduced a new asset management strategy to ensure broader
distribution and product offering.”
First quarter 2024 vs first quarter 2023Total
income of DKK 14.0 billion (against DKK 13.4 billion in the first
quarter of 2023) Operating expenses of DKK 6.3 billion (against DKK
6.3 billion in the first quarter of 2023)Loan impairments of DKK
101 million (against DKK 147 million in the first quarter of
2023)Net profit of DKK 5.6 billion (against DKK 5.2 billion in the
first quarter of 2023)Return on shareholders’ equity of 12.9%
(against 12.7% in the first quarter of 2023)Strong capital and
liquidity positions, with a total capital ratio of 23.0%, a CET1
capital ratio of 18.5% and a liquidity coverage ratio of 168% (31
December 2023: 170%)
A solid financial partner in an uncertain
environment As a strong financial institution, we continue
to be a solid financial partner for our customers, financing the
green transition and investing to develop our solutions.
The start of 2024 has unfortunately been characterised by
continued geopolitical uncertainty. In spite of the global events,
when we focus on the macroeconomic trends in the regions in which
we operate, we have seen some positive developments lately as many
areas of the Nordic economies are performing well and inflation is
trending down. For the Danish economy specifically, growth has been
supported by a solid activity level in the services sector and a
strong pharmaceutical sector, leading to a continually low
unemployment rate and resilient household finances. Additionally,
the latest macroeconomic outlook for Denmark is now more positive,
supported by expectations for lower policy rates in the course of
2024.
We continue to be able to support our customers through the
continued geopolitical uncertainty on the basis of a strong balance
sheet and our expert advisory services.
Strong financial performanceDespite the
challenging market conditions, we continued our work to deliver on
our strategic ambitions, and we achieved a strong return on equity
of 12.9% in the first quarter of 2024. The improvement was
primarily the result of higher net interest income generated on the
basis of a return to a more normal interest rate environment and
our product development initiatives. The improvement was
underpinned by good customer activity as we saw an increase in
lending to business customers and continually good demand for our
products from personal customers in Denmark, resulting, among other
things, in an increasing market share of bank lending. Overall,
lending remained stable as credit demand was impacted by currency
effects and cautious housing market activity. Total lending also
remained flat when taking into account the fact that the Norwegian
personal customer business’ loan portfolio in 2023 was moved from
‘loans’ to ‘other assets’. We saw a 4% increase in net fee income
as everyday banking fees increased due to higher customer activity
and repricing actions. Furthermore, higher performance fees from
Asset Management – as we continued to see an inflow into our
investment products – and cash management services also contributed
to the increase in net fee income. Net trading income decreased as
the first quarter of 2023 was very strong, meaning both financial
market conditions and trading activity were much different in the
first quarter of 2024.
We maintain our focus on efficiency, and against this
background, operating expenses developed on track to deliver in
line with our full-year guidance. We thus achieved a cost/income
ratio of 45% for the first quarter, which is also in line with our
2026 target. Credit quality remained strong on the back of
resilient portfolios. Consequently, loan impairment charges
remained low despite the economic uncertainty in society.
Sustainability is a core pillar of our Forward ’28 strategy, and
in this regard, 2024 has so far been a busy year. We have launched
a strategy paper detailing our strategic direction and a new
Position Statement on Fossil Fuels that introduces stricter
requirements for our investment activities. We have also published
our Climate Action Plan Progress Report 2023 that provides a status
on the Group’s climate targets presented in our Climate Action Plan
from January 2023.
“We continue to support our customers in navigating these
financially uncertain times on the basis of our strong capital and
liquidity positions. The result of this work is a 4% increase in
total income, and as our transformation and efficiency measures
continue to be on track, costs came down 4% quarter-on-quarter,
resulting in an improved cost/income ratio of 45%. As net profit
rose 9%, we improved the return on equity to 12.9%,” says Stephan
Engels, CFO.
Personal CustomersIn the first quarter of 2024,
Personal Customers saw good customer activity, and we supported
this development by helping our customers manage their finances
through digital solutions, advisory services and competitive
products. Customer activity was good in the investment area, driven
by more benign financial markets, and continued the positive trend
from the second half of 2023 when market shares increased for
Danske Invest retail funds. In the housing market, we saw a
slowdown in customer activity in Denmark from the elevated activity
level in the second half of 2023 that was driven especially by new
property tax regulation. Profit before tax amounted to DKK 2.7
billion in the first quarter of 2024, an increase of 42% from the
year-earlier period. The increase was driven by higher net fee
income, especially everyday banking fees and investment fees,
higher net interest income from deposits and net loan impairment
reversals.
Business CustomersIn the first quarter of 2024,
Business Customers saw an increase in customer activity from the
level in the first quarter of 2023 as a result of the general
economic improvement in the Nordic region. We supported our
customers across segments and markets, with a focus on providing
the best possible advice tailored to our customers’ needs. In the
first quarter of 2024, profit before tax amounted to DKK 1.7
billion, a decrease of 28% from the year-earlier quarter. Net fee
income rose as a result of increased customer activity and
repricing actions but the resulting rise in total income was offset
by an increase in loan impairment charges that was driven by a few
cases in our leasing organisation as well as an allocation of
post-model adjustments.
Large Corporates & InstitutionsIn the first
quarter of 2024, macroeconomic uncertainty persisted, though
sentiment was more positive than expected. We continued to leverage
our strategic commercial strengths, which drove a positive
underlying momentum as reflected in growth in our corporate
customer portfolio outside Denmark, an increased market share of
cash management services and higher fees from our Asset Management
business. Furthermore, we are proud to have maintained our leading
position in sustainable finance. Profit before tax amounted to DKK
2.7 billion, a decrease of 7% from the same period last year,
driven primarily by lower net trading income.
Danica PensionThe stable and positive market
trend from the end of 2023 continued into the first quarter of
2024, supported by strong momentum in the pharmaceutical and tech
sectors. The result shows a strong return on our pension customers’
savings, driven by the strong performance of equities. The
underlying business continued to be solid, and the result for the
first quarter was satisfactory. However, we continued to see an
increase in people suffering from physical or mental problems, and
this had a negative effect on the insurance result for the health
and accident business in the first quarter of 2024. Net income at
Danica Pension amounted to DKK 492 million in the first quarter of
2024, which was at the same level as in the first quarter of
2023.
Northern IrelandThe strong underlying financial
performance in Northern Ireland reflects business growth in an
environment of higher interest rates. Profit before loan
impairments was in line with the first quarter of 2023, while
profit before tax of DKK 457 million was lower, reflecting a small
loan impairment charge.
Outlook for 2024We continue to expect net
profit to be in the range of DKK 20-22 billion. The outlook is
subject to uncertainty and depends on economic conditions.
Danske Bank
Contact: Stefan Singh Kailay, Head of Media Relations, tel. +45
45 14 14 00
More information about Danske Bank’s financial results is
available at www.danskebank.com/reports.
- Danske Bank Interim report - first quarter 2024
- Danske Bank press release 3 May 2024
Danske Bank A S (TG:DSN)
過去 株価チャート
から 10 2024 まで 11 2024
Danske Bank A S (TG:DSN)
過去 株価チャート
から 11 2023 まで 11 2024