Danske Bank releases strong 2015 financial figures

Finance | Tue 2 Feb | Author – Business & Finance
Danske Bank

Danske Bank, the Danish financial institution, has performed better than expected after posting 2015 earnings today.

The bank’s net profit for 2015 was €1.75bn.

The return on shareholders’ equity after tax was 8.5%, while the return before goodwill impairments was 11.6%, against 8.6% for 2014.

Total income stands at €5.9bn, which was at the same level as in 2014.

Net interest income was down 4% to €2.88bn. The negative short-term interest rates continued to put pressure on deposit margins and net interest income. Lending volume growth and lower funding costs partly offset this pressure.

Despite the higher customer activity, operating expenses were down 4% €2.95bn.

CEO Thomas F Borgen said: “In 2015, Danske Bank continued to progress and delivered strong results despite a challenging environment. The results are testament to the strength of our diversified business model as a Nordic universal bank and reflect our firm focus on executing our strategy of becoming a more customer-centric, simple and efficient bank.

“We continued to strengthen relations with our customers and launched a number of initiatives aimed at making daily banking and important financial decisions easier for our customers. We have a sound platform and a strong position in the marketplace as well as a clear strategic direction for the next part of our journey towards realising the full potential of Danske Bank.”

Commenting on the announcement, Terry Browne, country manager and head of Corporate and Institutional (C&I) Banking at Danske Bank Ireland, said: “As our financial year ends, I’m delighted to disclose that our C&I division in Danske Bank Ireland continues to demonstrate strong growth. Our existing and recently acquired clients continue to benefit from our financial advisory expertise and high-quality technology based products.”

He continued: :We work hard to develop customised solutions and services for each of our clients, both domestic and international. We enjoy a portfolio of some of the leading corporates and institutions based in Ireland, and I look forward to another great year providing our clients with the support they need for the growth of their business both in Ireland and abroad.”

Photo: Jimmy Baikovicius