To the editor
1 May 2014
Danske Bank reports net profit of DKK 2.8 billion (EUR 376.7 million)
for the first quarter of 2014
Danske Bank has announced its financial results for the first quarter of 2014.
“Our financial performance in the first quarter of 2014 is encouraging,” says Thomas F. Borgen, CEO. “Although our income is challenged by the subdued economic activity, our financial results show a number of positives. Our cost programme is driving the fall in expenses, and impairments continue to decline. All in all, net profit increased 91% from the level in the first quarter of 2013.
“A top priority is still our commitment to strengthen our market position and improve customer satisfaction. This is a challenge and achieving our goals will take time. The encouraging trend in customer satisfaction among our largest Nordic corporate and institutional clients is a sign that we can succeed in reaching our ambitious targets also for personal and business customers.”
The report is available at danskebank.com. Highlights are shown below:
First quarter 2014 vs. first quarter 2013
First quarter 2014 vs fourth quarter 2013
Capital ratios still solid
In the first quarter, we raised new capital through an additional tier 1 capital issue of DKK 5.6 billion (EUR 750.1 million), which was well received by investors. In April, we redeemed the DKK 24 billion (EUR 3,224.1 million) hybrid capital raised from the Danish state in 2009. Both initiatives were part of our ongoing capital structure optimisation that will reduce our funding costs going forward.
On 24 March 2014, Danske Bank signed an agreement to sell its equity interest in Nets Holding A/S. The transaction is subject to regulatory approval and, when completed, the sale will have a positive effect of about DKK 1 billion (EUR 133.9 million).
The common equity tier 1 capital ratio and the total capital ratio were solid at 14.0% and 18.1%, against 14.7% and 21.4% at 31 December 2013. The redemption of the hybrid capital raised from the Danish state, which was made in April 2014, reduced the total capital ratio at 31 March 2014 by 2.7 percentage points. With an LCR of 119%, our liquidity position remains strong, however.
On 29 April 2014, Standard & Poor’s (S&P) upgraded Danske Bank’s long- and short-term ratings one notch as a result of a more positive view on Danske Bank’s asset quality. S&P also changed the outlook for the long-term rating to negative.
Profit outlook at the higher end of the range
We expect net profit for 2014 to be at the higher end of our previously communicated range of DKK 9-12 billion (EUR 1,205.5-1,607.3 million).
Thomas F. Borgen, CEO, tel. +45 45 14 60 01
Henrik Ramlau-Hansen, CFO, tel. +45 45 14 06 66
More information about Danske Bank’s financial results is available at danskebank.com/reports.
Danske Bank A/S