Danske Andelskassers (DAB) Q3 2024 earnings summary

Executive summary

• Result before tax increased by 24.9% to DKK 272.2 million for the first nine months of 2024 compared to the same period last year, marking a record performance.

• Net interest and fee income rose 5.7% year-over-year, with net interest income up 9.0% and fee income down 5.9%.

• Strategic shift underway, focusing on affluent individuals, families, and SME owners, with new wealth and advisory centers opening in major cities and headquarters moving to Aarhus.

• Customer base and satisfaction have grown, supporting organic business expansion.

Financial highlights

• Net profit after tax reached DKK 240.1 million, up from DKK 194.6 million year-over-year.

• Basis earnings increased slightly by 0.7% to DKK 198.1 million.

• Operating expenses rose 8.7% to DKK 386.9 million, mainly due to staff increases and strategic investments.

• Lending fell marginally by 0.1% to DKK 7,921 million, while deposits grew 5.7% to DKK 10,102 million.

• Total business volume increased 6.7% to DKK 30.3 billion.

Outlook and guidance

• 2024 pre-tax profit guidance raised to DKK 290–340 million, with basis earnings expected at DKK 225–265 million.

• Long-term target for return on equity set at 10–12% by 2030, with a 50% increase in business volume aimed for the period.

• Dividend policy maintained at 30–50% of net profit after tax and hybrid capital interest.