Danske Bank Raises 2026 Profit Guidance Floor to 24 Billion Kroner
Key Facts
Danske Bank raised the lower end of its 2026 net profit forecast, setting the range at 24 billion to 25 billion Danish kroner, implying a return on equity of more than 14%, according to its report released on October 29. The update came as the bank reported net profit of 18.3 billion kroner in the first nine months, up 9% year over year. Return on equity for the period was 14.3%. Chief Executive Carsten Egeriis said strong customer activity supported growth in interest and fee income, and credit quality remained strong. The results and annual guidance put earnings in the context of growth in core income sources despite weaker trading income.
Total income reached 43.9 billion kroner in the first nine months, compared with 41.6 billion in the same period of 2025. Net interest income rose 4% to 28.3 billion kroner, driven mainly by higher deposit and lending volumes and improved deposit margins. Net fee income also increased 14% to 12.0 billion kroner, with contributions from higher investment fee income and customer activity in day-to-day banking. Egeriis said strong customer activity supported both income sources. The comparison shows interest and fee income growth accompanying higher profit during the period.
By contrast, net trading income fell 37% to 1.5 billion kroner in the first nine months. The bank attributed the decline to weaker fixed-income performance amid geopolitical uncertainty, as well as the effects of hedging and liquidity management activities. This contrasted with interest and fee income, which both grew over the same period. The bank's net profit had risen 6% to 11.9 billion kroner in the first half, with interest income up 3% to 18.7 billion kroner and fee income up 13% to 8.0 billion. The nine-month results show continued growth in both sources, alongside lower trading income compared with the same period a year earlier.
Operating expenses were 19.4 billion kroner, up 2%, with the bank saying the increase was as expected. It linked higher costs to increased digital investment and higher performance-related compensation provisions. On credit, net loan loss provisions totaled 65 million kroner in the first nine months, after a reversal of net provisions of 200 million kroner in the third quarter. The bank described credit quality as strong. These indicators accompany interest and fee income growth in the bank's account of revenue sources and costs during the period.
Consensus data published ahead of the results showed analysts' average estimate for third-quarter net profit at 5,936 million kroner, based on 16 estimates, while the average estimate for quarterly return on equity was 14.3%. For the full year, average consensus for 2026 net profit was about 24,571 million kroner, with average estimated return on equity at 14.1%. The quarterly return estimate differs from the annual estimate, and both differ from the bank's guidance for a return of more than 14% in 2026. The average profit estimate alone is not enough to determine whether third-quarter results beat analysts' expectations. The annual guidance revision raises the lower end of the profit range to 24 billion kroner, while keeping the upper end at 25 billion.
In the market, the bank's shares, listed under the ticker DNKEY, closed at 26.45 on October 28, compared with a close of 25.75 on October 22, according to EL7 data. Danske Bank is scheduled to publish its 2026 annual report on February 4, 2027, the date the bank listed for publication of the report and the accompanying conference. The date follows the nine-month results and the update to its annual profit range. The calendar provided did not specify the time of the accompanying conference. The annual report date is the next announced milestone in the bank's disclosure schedule.