Danske Bank (DANSKE) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 rose to DKK 11.5 billion, with ROE at 13.1% for H1 and 13.3% in Q2, reflecting strong progress on strategic priorities and the Forward '28 strategy.

• High customer activity, especially in corporate lending, investment products, and housing market recovery, drove growth in net interest and fee income.

• Interim dividend of DKK 7.5 per share declared, representing 56% of H1 net profit, with plans for extraordinary dividend from the Norway business sale.

• Upward revision of 2024 net profit guidance to DKK 21–23 billion, citing strong credit quality and loan impairment reversals.

• Continued investment in digital and sustainability initiatives, with constructive macro environment supporting performance.

Financial highlights

• Net profit for H1 2024: DKK 11.5 billion, up 13% year-over-year; Q2 net profit DKK 5.8 billion.

• Net interest income up 11% year-over-year to DKK 18,287 million; net fee income up 13% to DKK 7,074 million.

• Cost/income ratio improved to 45.8%–46% from 49%+ a year ago, reflecting efficiency gains.

• CET1 capital ratio stable at 18.5%; leverage ratio at 4.9%.

• Loan impairment charges were a net reversal of DKK 99 million, with strong credit quality and improved macro outlook.

Outlook and guidance

• 2024 net profit guidance raised to DKK 21–23 billion (from DKK 20–22 billion), reflecting strong performance and credit quality.

• Full-year loan impairment charges expected up to DKK 0.6 billion.

• CET1 capital target reaffirmed at above 16% through 2026.

• Annual dividend policy to resume from 2025, with intention to distribute all 2024 net profit and extraordinary dividend from divestment.

• 2026 financial targets unchanged, with loan impairment charges assumed at 8 basis points through the cycle.