Danske Bank raised its full-year 2026 outlook on Friday, citing stronger core banking income.

The Danish lender now expects net profit of 23 billion to 25 billion Danish kroner ($3.5 billion to $3.8 billion), up from its previous forecast of 22 billion to 24 billion kroner. The revised outlook reflects a return on equity target of around 14%.

The bank also raised its forecast for total income to more than 59 billion kroner, driven mainly by higher core banking income. It maintained its full-year cost guidance at 26 billion to 26.5 billion kroner.

Reflecting the stronger income outlook, Danske Bank now expects its full-year cost-to-income ratio to be below 45%.

The bank noted that trading income and insurance income remain subject to financial market conditions.