Danske Bank raises profit outlook as costs shrink

Credit: REUTERS/STAFF

Danske Bank raised its full-year profit guidance on Tuesday, citing lower costs and improved market conditions reflected in better than expected preliminary results for the third quarter.

Adds detail, CEO comment

COPENHAGEN, Oct 27 (Reuters) - Danske Bank DANSKE.CO raised its full-year profit guidance on Tuesday, citing lower costs and improved market conditions reflected in better than expected preliminary results for the third quarter.

Denmark's biggest lender now expects net profit of 4 billion to 4.5 billion Danish crowns ($635 million to $715 million), up from a July estimate of at least 3 billion crowns, it said.

"The upward revision is based on generally improved developments in financial markets, continued good progress in the underlying business as well as lower costs," said Chief Executive Chris Vogelzang.

Preliminary third-quarter figures released on Tuesday showed net profit would come in at about 2.1 billion crowns, above an average estimate of 1.7 billion in an analyst poll compiled by the bank.

The bank reported expenses of about 6.7 billion crowns, slightly below the analysts' 7.1 billion crown estimate.

Loan impairment charges, a keenly watched measure during the pandemic, came in at about 1 billion crowns, Danske said, in line with analyst estimates.

($1 = 6.2952 Danish crowns)

(Reporting by Nikolaj Skydsgaard Editing by David Goodman)

((Nikolaj.Skydsgaard@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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