By Dominic Chopping
Danske Bank raised its full-year net profit guidance amid strong credit quality and impairments that it expects to be negligible in the fourth quarter.
The Copenhagen-based bank said Friday that macroeconomic conditions have developed more favorably than it initially expected, with a robust financial position among its customers underpinning its strong credit quality.
"Despite the more favorable development in 2023 and impairments well below a normalized level, we remain cautious as we still see a high level of uncertainty ahead," Chief Financial Officer Stephan Engels said.
The bank now expects 2023 net profit of between 20.5 billion and 21.5 billion Danish kroner ($2.97 billion-$3.11 billion), from DKK19.5 billion to DKK20.5 billion previously.
Loan impairment charges for the year are seen at around DKK300 million, while the year-end assessment related to taxes from previous years will reduce the bank's tax expense by DKK300 million-DKK400 million, it added.
Danske still expects net interest income to continue growing, with fee income below the level of 2022 and costs of between DKK25 billion and DKK25.5 billion.
Final figures will be announced in the company's full-year report due Feb. 2, 2024.
Write to Dominic Chopping at [email protected]
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