29 OCTOBER 2026 – PRESS RELEASE
Solid
customer activity, broad-based growth and strong credit quality
drove
strong results for the first nine months of 2026. Net profit of DKK 18.3 billion
Outlook for the full
year 2026 narrowed to a net profit in the range of DKK 24-25 billion
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Strong financial performance
Danske Bank delivered a net profit
of DKK 18.3 billion for the first nine months of 2026, which corresponded to a
return on equity of 14.3%. The result was supported by income growth,
disciplined cost management and continued strong credit quality, and our
cost/income ratio improved year-on-year from 45.6% to 44.2%.
Net interest income increased 4% to
DKK 28.3 billion, primarily driven by higher deposit and lending volumes,
improved deposit margins and higher income from interest rate risk management.
Net fee income increased 14% to DKK
12.0 billion, mainly due to an increase in investment fee income that was
supported by increased customer activity within daily banking.
Net trading income decreased 37% to
DKK 1.5 billion due to a lower performance in Fixed Income amid geopolitical
uncertainty as well as effects from hedging and liquidity management
activities.
Operating expenses increased 2% to
DKK 19.4 billion, as expected, mainly due to larger digital investments under
the Forward ’28 strategy and higher provisions for performance-based
compensation.
Loan impairment charges remained low
for the first nine months of 2026, amounting to at a net charge of DKK 65
million after a net reversal of DKK 200 million in the third quarter. Credit
quality remained strong across the business, and we continue to apply
significant post-model adjustments related to macroeconomic and geopolitical
uncertainty.
Danske Bank’s capital and liquidity
positions remain robust, with significant buffers above regulatory
requirements. The capital relief related to resolved legacy cases has reduced
our CET1 capital requirement by around 40 basis points, as previously guided,
which is reflected in our third-quarter numbers. We remain well positioned to
support customers and pursue profitable growth while progressing towards our
2028 CET1 capital ratio target.
“Our strong financial performance
allows us to invest for future growth and create more value for our customers.
By investing in technology and AI, we can make banking simpler and increasingly
provide customers with better products and services while improving the
efficiency and profitability of the bank,” says
Cecile Hillary, Chief Financial Officer.
First nine months of 2026 vs first nine months of 2025
Total income of DKK 43.9 billion (DKK 41.6 billion in the first nine months of 2025)
Operating expenses of DKK 19.4 billion (DKK 19.0 billion in the first nine months of 2025)
Loan impairments of DKK 65 million (DKK 258 million in the first nine months of 2025)
Net profit of DKK 18.3 billion (DKK 16.7 billion in the first nine months of 2025)
Return on shareholders’ equity of 14.3% (13.0% in the first nine months of 2025)
Total capital ratio of 21.3% and CET1 capital ratio of 17.2% (total capital ratio of 22.4% and CET1 capital ratio of 18.7% in the first nine months of 2025)
Nordic economies remain resilient amid higher energy prices
The Nordic economies continued to show resilience
in the third quarter, with the outlook for economic activity remaining
generally positive despite higher and fluctuating energy prices.
In Denmark, GDP growth is expected
to be around 4% in 2026, supported by continued momentum in the pharmaceutical
sector, high employment and strong public finances. Even excluding
pharmaceuticals, the economy has shown solid underlying growth.
Rising real wages, increasing
employment and higher social benefits are strengthening household purchasing
power and supporting consumption. However, consumer confidence remains low,
partly reflecting geopolitical uncertainty, while higher interest rates could dampen
activity in the future.
Housing
market activity remains solid overall, although price growth is slowing in the
Copenhagen area. Globally, growth has remained robust despite higher energy
prices and interest rates, but energy prices, bond market volatility and
external disruptions remain key sources of uncertainty.
“The impact of higher energy prices on growth and
inflation has been less than feared and the outlook for the immediate future
seems reasonably good, although there are of course plenty of risks and
problems to contend with,” says Las Olsen, Head
of Macro Research.
Profit
before tax amounted to DKK 7,973 million in the first nine months of 2026 (Q1-Q3
2025: DKK 6,400 million), an increase of 25% from the level in the first nine
months of 2025. The increase was driven primarily by higher interest income
from deposits, higher net fee income and higher other income, with a positive
contribution from the reversal of a provision related to the sale of the
personal customer business in Norway. The increase was further supported by a
net reversal of loan impairments but was partly offset by higher operating
expenses.
In the first nine months of 2026,
profit before tax amounted to DKK 7,777 million, an increase of 5% from the level
in the same period in 2025 (Q1-Q3 2025: DKK 7,399 million). The increase was
driven by higher net interest income and net fee income, supported by growth in
lending and deposit volumes as well as higher daily banking fee income. A
higher net loan impairment reversal than in the same period last year also had
a positive effect.
Profit before tax amounted to DKK
7,095 million, on par with the level in the first nine months of 2025, as
higher net interest income and net fee income were offset by lower net trading
income, higher impairment charges and higher operating expenses.
Net income at Danica amounted to DKK
1,359 million, up by 24% in the first nine months of 2026 from the level in the
first nine months of 2025. The increase in net income was driven by an
improvement in the insurance service result, while the decline in the net
financial result was due to less favourable financial market developments in
the first nine months of 2026 than in the year-earlier period. The insurance
service result benefitted from a positive result in the health and accident
business.
Profit before tax was DKK 1,828
million in the first nine months of 2026 (Q1-Q3 2025: DKK 1,606 million), with
the underlying financial performance reflecting strong income, balance sheet
growth and profitability alongside continued low loan impairments.
Outlook for 2026
We have narrowed the outlook for the full year 2026 as we now expect a net profit in the range of DKK 24-25 billion, reflecting a return on equity of above 14% in 2026.
Contact
Nordic Head of Media Relations
Stefan Kailay Wind