Investing.com -- Danske Bank A/S (CSE:DANSKE) on Thursday reported third-quarter net profit of DKK 6.39 billion, beating analyst expectations by 7%, as stronger fee income and better-than-expected credit quality offset weaker trading results.
The Danish lender posted net profit of DKK 18.3 billion for the first nine months of 2026, up 9% YoY, driven by solid customer activity and strong credit quality. Net interest income for the nine-month period rose 4% to DKK 28.3 billion, while net fee income jumped 14% to DKK 12.0 billion.
The bank narrowed its full-year 2026 net profit guidance to DKK 24-25 billion from a previous range of DKK 23-25 billion, with the midpoint of DKK 24.5 billion slightly below the analyst consensus of DKK 24.6 billion.
"In the first nine months of 2026, we delivered a strong financial result, with net profit up 9% to DKK 18.3 billion year-on-year," said Chief Executive Officer Carsten Egeriis. "Solid customer activity drove higher net interest income and net fee income, while credit quality remained strong and costs developed as expected."
In the third quarter, commissions and fees came in 6% above expectations and 16% higher YoY, supported by increased investment fee income. However, net trading income of DKK 397 million fell short of the DKK 610 million consensus, impacted by lower fixed income performance amid geopolitical uncertainty and unrealized mark-to-market impacts on currency swaps.
Loan impairments showed a net reversal of DKK 200 million in the third quarter, compared to analyst expectations of a DKK 252 million charge. For the nine-month period, loan impairment charges totaled just DKK 65 million, down from DKK 258 million in the same period last year. The bank lowered its full-year impairment guidance to no more than DKK 0.6 billion from DKK 0.8 billion consensus.
The bank's CET1 capital ratio stood at 17.2%, 10 basis points above expectations and 20 basis points higher sequentially. Operating expenses rose 2% to DKK 19.4 billion for the nine-month period, in line with guidance. Return on equity reached 14.3% for the first nine months.
Original Article
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