Danske Bank, the largest lending institution in Denmark, announced its Q1 net profit which met anticipations, regardless of the ongoing macroeconomic instability. The bank maintained its annual forecast unchanged and underlined its impressive financial results in its Northern Ireland branch, where it expanded its mortgage sector by 5% owing to a “steady demand” for home loans.
The bank’s net profit for Q1 increased to 5.6 billion Danish krone (€750 million), up from 5.2 billion the previous year. This figure matched the average prediction of 5.6 billion krone as forecasted by analysts, according to a survey managed by the bank.
CEO Carsten Egeriis issued a statement detailing that the Nordic economies are doing well in many sectors, despite some businesses experiencing difficulties, particularly in the construction industry. He further stated that due to a constant emphasis on efficiency, the bank’s operational costs remained stable at 6.3 billion krone compared to the previous year.
Despite the “international unpredictability” seen during the year’s initial quarter, Danske observed various encouraging trends, like the excellent performance of many sectors in the Nordic economies and a decrease in inflation. The growth of the Danish economy, in particular, was facilitated by robust service sector activity and a robust pharmaceutical sector. This contributed to a consistently low jobless rate and hardy household finances.
Danske experienced a surge in customer activity in its personal banking section, and its business banking expanded thanks to the performance of the Nordic economies. Pre-tax profit reached 1.7 billion krone, a 28% drop from Q1 of the previous year, despite an increase in net fee income.
Simultaneously, the bank noted a strong financial performance in Northern Ireland, where it runs 24 branches. Danske’s mortgage home loan business experienced growth in Q1 of 2024, which is a marked improvement compared to the previous year, leading to a 5% increase in lending in local currency. Danske predicts that mortgage demand in the North will “stay steady” in the coming year.
Pre-tax profit at Danske Northern Ireland dropped to 457 million krone from last year’s 506 million krone, due to “a minor loan impairment charge”, as reported by the bank.