Danske Andelskassers (DAB) Q2 2024 earnings summary

Executive summary

• Result before tax increased by 11.7% to DKK 160.4 million in H1 2024 compared to H1 2023, driven by higher net interest income and strong private lending growth.

• Basis earnings rose 9.3% year-over-year to DKK 133.7 million, reflecting higher lending, deposit growth, and increased dividend income.

• Net interest income grew 15.2% to DKK 255.9 million, while net fee income declined 8.3% due to lower housing market activity.

• Cost base increased 9.3% to DKK 267.9 million, mainly from staff expansion and compliance investments.

• Credit quality remains strong, with low impairments and robust capital and liquidity positions.

Financial highlights

• Net profit after tax reached DKK 143.1 million, up from DKK 127.7 million in H1 2023.

• Net interest and fee income totaled DKK 406.97 million, up from DKK 372.91 million year-over-year.

• Cost/income ratio improved to 1.58 from 1.54.

• Lending increased 1.1% to DKK 7.8 billion, with private lending up 18.8% and business lending down 13.1%.

• Deposits (excl. pools) rose 6.0% to DKK 10.1 billion.

Outlook and guidance

• 2024 guidance maintained: basis earnings expected at DKK 225–265 million and pre-tax profit at DKK 225–285 million.

• Outlook subject to significant uncertainties, especially from financial markets and macroeconomic trends.