Danske Andelskassers (DAB) Q1 2025 earnings summary

Executive summary

• Result before tax rose 2.8% to DKK 79.7m in Q1 2025 compared to Q1 2024, driven by strong fee income and positive market activity, despite higher costs from strategic initiatives.

• Equity return before tax was 10.8% p.a., slightly down from 11.2% p.a. in Q1 2024.

• The bank maintains a high capital ratio of 31.6%, the highest ever, supporting its 2030 strategy and upcoming HQ move to Aarhus.

• Customer activity remains robust, especially in the housing market, with optimism despite macroeconomic and geopolitical uncertainties.

• Strategic investments and new advisory centers in key cities are supporting customer growth and business expansion.

Financial highlights

• Net interest and fee income was DKK 194.0m, nearly flat year-over-year.

• Net fee income increased 7.2% to DKK 71.9m, reflecting higher housing transactions and mortgage activity.

• Operating expenses rose 11.9% to DKK 145.0m due to more staff and costs related to the 2030 strategy.

• Loan impairments were a net reversal of DKK 8.3m, compared to a DKK 8.3m charge last year, reflecting improved credit quality.

• Loans grew 1.5% to DKK 7,908m, with private lending up 7.8% and business lending down 4.9%.

• Deposits increased 9.1% to DKK 10,415m.

• Total business volume rose 5.4% to DKK 30,942m.

Outlook and guidance

• 2025 guidance for core earnings raised to DKK 130–190m and pre-tax profit to DKK 170–250m, reflecting better-than-budgeted performance.

• Outlook remains subject to significant uncertainties, including execution of the new strategy, market volatility, and the ongoing trade war.