Danske Bank reports net profit of DKK 0.8 billion (EUR 105 million) for the first quarter of 2012

Copenhagen, 2012-05-10 07:45 CEST (GLOBE NEWSWIRE) --  Danske Bank today announced its financial results for the first quarter of 2012. The interim report is available at www.danskebank.com. Highlights are shown below:

  • The Danske Bank Group posted a profit before tax of DKK 1.6 billion (EUR 213 million) for the first quarter of 2012. The net profit was DKK 0.8 billion (EUR 105 million), an 11% rise from the first-quarter 2011 net profit, and was generally in line with expectations.
  • Income totalled DKK 12.4 billion (EUR 1,660 million), up 6% from the level in the first quarter of 2011, mainly because of higher net interest and net trading income.
  • Net trading income was 8% higher than the year-earlier level. The rise was satisfactory and reflected favourable market conditions.
  • Expenses fell 7% from the level in the first quarter of 2011, mainly because of lower expenses for the Danish Guarantee Fund for Depositors and Investors. Expenses in the period included a charge of DKK 0.5 billion (EUR 60 million) related to name rights because of the rebranding of Sampo Bank.
  • The Group’s cost-savings programme adopted last year to reduce costs by about DKK 2 billion (EUR 269 million) and the headcount by about 2,000 from 2012 to 2014 is now expected to be completed by the end of 2013.
  • Loan impairment charges increased significantly from the level in the first quarter of 2011. Compared with the high level in the fourth quarter of 2011, however, charges declined, partly because of lower charges at Retail Banking Denmark and Banking Activities Ireland.
  • At 31 March 2012, the tier 1 capital and total capital ratios were 16.0% and 17.6%, respectively, against 14.6% and 17.4% at 31 March 2011.
  • The Group expects earnings to remain low in 2012.

New organisation

  • The Group is creating a new organisation structured around three business units that will operate across its geographical markets: Personal Banking, Business Banking and Corporates & Institutions. The objectives are to improve the focus on customers and to lay the foundation for efficiency improvements and stronger financial performance. The organisational change will take effect on 1 June 2012, and financial reporting will reflect the new organisation from 1 January 2013.
  • At National Irish Bank, the commercial and investment property loan portfolios will be transferred to a new, separate unit of the Group that will be responsible for the controlled winding-up of this part of the loan portfolio. The rest of the Irish banking activities will continue in their current form.
  • The Group will use the Danske Bank brand name for all its banking operations by the end of 2012.
  • The new organisation is the first step of the Group’s new strategy, which is being prepared and is expected to be completed by the end of the third quarter of 2012.

Tuesday, 9 August 2011, from 11.00am CET:

Eivind Kolding, Chairman of the Executive Board, tel. +45 45 14 60 01

Henrik Ramlau-Hansen, Chief Financial Officer, tel. 45 45 14 06 66

Martin Gottlob, Head of Investor Relations, tel. 45 45 14 07 92

Danske Bank will hold a conference call on 10 May 2012 at 2.30pm CET. The conference call will be webcast live at www.danskebank.com

Danske Bank’s financial statements are available online at www.danskebank.com/reports.

This is a translation of a press release in the Danish language. In case of discrepancies, the Danish version prevails. Danish kroner translated into euros at an exchange rate of 1:7.4399.

Danske Bank i Sverige är en fullservicebank. Vi är en del av Danske Bank-koncernen, en av Nordens största finanskoncerner med verksamhet i flera länder. Våra kunder är ambitiösa företag och privatpersoner, med höga krav på sin bank i form av hög kompetens, snabba besked och ett personligt engagemang utöver det vanliga. I Sverige har vi cirka 1 300 medarbetare och ett 50-tal bankkontor. Danske Bank Sverige har en balansomslutning på ca 550 miljarder kronor.