Danske Bank Reports Solid Progress in First Half of 2021

Strategic Insights -

Danske Bank A/S has delivered solid financial results for the first half of 2021, with net profit reaching DKK 5.9 billion. The bank's strong capital markets performance, driven by higher customer activity and a recovery in the Nordic economies, contributed to the positive development in income. The bank's cost focus and strong credit quality also played a significant role in the improved profitability.

Key Takeaways:

  • Net profit of DKK 5.9 billion for the first half of 2021, up from DKK 1.0 billion in the same period last year.
  • Total income of DKK 21.3 billion, up 5% compared to the first half of 2020.
  • Operating expenses of DKK 12.8 billion, down 2% compared to the first half of 2020.
  • Return on equity of 7.0%, up from 0.9% in the first half of 2020.
  • Strong capital position, with a total capital ratio of 23.3% and a CET1 capital ratio of 18.0%.
  • Higher customer activity drove income growth, with net interest income positively impacted by deposit repricing initiatives.
  • The bank's capital markets strategy delivered good results, with record-high fee income and Danske Bank ranking as the number one Nordic bank in equity capital markets and debt capital market European issuance.
  • The bank continued to execute on its plan to become a better and more efficient bank, with improvements in customer journeys, compliance, and cost development.
  • The bank's sustainability offerings were expanded, with the introduction of a permanent car loan offer for electric and plug-in hybrid cars in Denmark and a new digital tool for home loan seekers in Finland.
  • Profit before tax was DKK 3.9 billion, up DKK 1 billion from the first half of 2020, driven mainly by lower loan impairment charges and lower operating expenses.
  • The bank's large corporate and institutional customers showed increased activity, with significant support provided through landmark transactions in the capital markets.

Statistics:

  • Total income of DKK 21.3 billion (up 5%).
  • Operating expenses of DKK 12.8 billion (down 2%).
  • Return on equity of 7.0% (up from 0.9%).
  • Total capital ratio of 23.3%.
  • CET1 capital ratio of 18.0%.
  • Assets under management increased by 12% in Danica Pension.
  • Net income from insurance business increased by 9% to DKK 982 million in Danica Pension.

Sources:

  • Danske Bank A/S, News Release, "Solid progress continues, driven by higher customer activity, a strong capital markets performance, cost focus and strong credit quality", 2021.
  • Danske Bank A/S, Report, "First Half 2021 Report", 2021.
  • Danske Bank A/S, Statement, "Carsten Egeriis, Chief Executive Officer", 2021.
  • Danske Bank A/S, Statement, "Stephan Engels, CFO", 2021.
  • Danica Pension, Report, "First Half 2021 Report", 2021.