Danske Bank As Stock Earnings Reports

Danske Bank reported solid results for the first 9 months of 2025 with net profit of DKK 16.7bn (ROE ~12.9% YTD, 12.6% in Q3). Management reiterated full-year net profit guidance of DKK 21–23bn and said they now expect results at the upper end of that range. Net interest income was stable despite rate cuts, supported by lending volume growth and the structural hedge; fee income rose (AUM hit a record ~DKK 954bn driven by strong net sales), while trading and insurance income were weaker quarter-on-quarter. Lending grew (corporate lending +12% YoY; overall lending volumes +4% YoY) and deposits increased (~3% YoY), with retail deposit growth and continued elevated cash savings. Credit quality remained strong (loan loss ratio ~2bps YTD) and management lowered full-year loan impairment guidance from ~DKK 1.0bn to no more than DKK 0.6bn. Costs are being managed (operating expenses guided up to DKK 26bn for full year; cost/income trending toward 2026 targets), with Q3 costs roughly flat YoY. Capital remains robust (CET1 18.7% at end-Q3, ~390bp buffer vs requirements); the share buyback program is ongoing. Management highlighted continued commercial momentum across Personal, Business and Corporate & Institutional segments, ongoing investments in technology and advisory capabilities (including focus on AI), plans to use derivatives in hedge accounting next year to manage structural hedge more efficiently, and no change to the 2026 financial targets.