Danske Bank has raised its full-year net profit guidance, citing strong credit quality and negligible impairments expected in the fourth quarter. The Copenhagen-based bank revealed that macroeconomic conditions have fared better than initially anticipated, with its customers' robust financial position serving as a foundation for its strong credit quality.
Despite these positive developments, Chief Financial Officer Stephan Engels remains cautious due to the high level of uncertainty still ahead. Danske Bank now projects a net profit range of DKK20.5 billion to DKK21.5 billion ($2.97 billion-$3.11 billion) for 2023, up from the previously estimated range of DKK19.5 billion to DKK20.5 billion.
Furthermore, the bank anticipates loan impairment charges for the year to be around DKK300 million. Additionally, a year-end assessment concerning taxes from previous years is expected to reduce the bank's tax expense by DKK300 million to DKK400 million.
Danske Bank maintains its outlook for continued growth in net interest income. However, it anticipates fee income to be below the level of 2022. The bank also estimates costs ranging from DKK25 billion to DKK25.5 billion.
Final figures will be disclosed in the company's full-year report, scheduled to be released on February 2, 2024.