Danske Bank A/S revises 2023 net profit outlook upwards. Now expects a net profit of DKK 16.5-18.5 billion

13 Apr 2023 21:40 CEST

Company announcement no 3 2023   Danske Bank A/S
Holmens Kanal 2 - 12
DK - 1092 København K
Tel. +45 45 14 00 00





13 April 2023

Danske Bank A/S revises 2023 net profit outlook upwards.
Now expects a net profit of DKK 16.5-18.5 billion

The outlook for 2023 is revised upwards to a net profit in the range of DKK
16.5-18.5 billion. At the release of our 2022 financial results on 2 February
this year, we initially guided for a full-year 2023 net profit in the range of
DKK 15-17 billion.

"Following a turbulent period for banks in general, we are pleased with the
performance that we have seen in the first quarter of 2023. The strong financial
result benefited from the improved interest rate environment and high trading
income driven by good customer activity at Large Corporates & Institutions.
Benign financial market conditions further supported income from insurance
activities, and impairment charges remained at a very low level in the first
quarter. We continue to execute on our strategic priorities, and with our strong
balance sheet and credit quality, we continue to assist our customers through
the current uncertain macro environment," says CEO Carsten Egeriis.

With respect to the first quarter of 2023, based on preliminary and unaudited
figures, net profit will be around DKK 5.1 billion. Net interest income will be
around DKK 8 billion, while fee income will be around DKK 2.9 billion. Net
trading income and net income from insurance business will be around DKK 1.6
billion and DKK 0.5 billion, respectively. Expenses will be around DKK 6.3
billion, including sustained elevated remediation costs. Credit quality remains
strong, and impairment charges for the first quarter of 2023 will be around DKK
0.2 billion.

In respect to our financial outlook for 2023, we continue to expect core income
lines to grow, driven mainly by higher net interest income following further
normalisation of interest rates and our continued efforts to drive commercial
momentum. Fee income is expected to be slightly below the level in 2022.

We expect income from trading and insurance activities to recover towards
normalised levels subject to financial market conditions.

Based on the sustained elevated costs for remediation of our legacy cases, our
full year cost guidance remains in the range of DKK 25-25.5 billion.

We now expect loan impairment charges of up to DKK 2.5 billion due to
continually strong credit quality and the recoveries we have seen in the first
quarter. Loan impairment charges will be driven primarily by a weaker
macroeconomic outlook affecting model-driven impairments.

The final figures will be provided in Danske Bank's interim report for the first
three months of 2023, due for release on Friday, 28 April 2023, where we will be
able to comment further in detail.


Danske Bank

Contacts:        Stefan Singh Kailay, Head of Media Relations, tel.
+45 45 14 14 00
Claus Ingar Jensen, Head of Investor Relations, tel. +45 25 42 43 70

More information:
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587586_Company announcement no 3 2023.pdf