Danske Bank has announced a new 5.5 billion Danish kroner ($802.1 million) share buyback program following its fourth-quarter earnings report. The bank reported strong credit quality and minimal impairments, resulting in in-line earnings.
In the fourth quarter, Danske Bank posted a net profit of DKK5.77 billion and net interest income of DKK9.13 billion. The consensus among industry experts had projected a similar net profit of DKK5.77 billion but slightly higher net interest income of DKK9.3 billion. Unfortunately, no comparative figures were disclosed.
Furthermore, the bank declared a final dividend of DKK7.5 per share, bringing the total dividend for 2023 to DKK14.50.
Looking ahead, Danske Bank anticipates net profit between DKK20 billion and DKK22 billion for the year 2024, compared to the reported net profit of DKK21.26 billion in 2023. However, the bank acknowledges that loan impairment charges may be influenced by geopolitical and macroeconomic uncertainties.
The bank also expects total income to grow in the upcoming year, driven by higher core income and ongoing efforts to enhance commercial momentum. Income derived from trading and insurance activities will depend on prevailing financial market conditions.
For 2024, operating expenses are projected to range from DKK26 billion to DKK26.5 billion. This includes increased investments aligned with the bank's financial targets for 2026, as well as a continued focus on cost management. Nonrecurring items of approximately DKK600 million are also factored into this outlook.
Danske Bank demonstrated its financial strength by achieving a common equity Tier 1 ratio of 18.8%, up from 17.8% the previous year.
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