Danske Bank raises net profit forecast thanks to strong credit rating By Investing.com

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COPENHAGEN – Danske Bank A/S has updated its net profit forecast for the year, now forecasting a range of DKK 20.5 billion to DKK 21.5 billion due to strong credit quality and lower-than-expected loan impairments in the fourth quarter. The revised outlook highlights the bank’s solid performance amid favorable macroeconomic conditions that have strengthened the financial position of its customers.

The bank’s optimistic revision is consistent with its interim report on October 27. The report shows loan impairment costs amounting to approximately DKK 300 million, reflecting the strong economic environment that has strengthened customer financial stability. This positive trend is expected to continue, and loan impairment costs are expected to remain low.

In addition to its strong credit profile, Danske Bank expects to potentially save DKK 300 million to 400 million in tax costs through year-end tax assessments. Despite these favorable circumstances, the bank maintains its previous forecasts for income and expenses.

Going forward, Danske Bank remains cautious regarding economic volatility and its potential impact on achieving its long-term financial objectives set to be completed within the next six years. The bank plans to provide detailed comments and final figures in its annual report, due to be published on February 2, 2024.

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