© Reuters. FILE PHOTO: A Danske bank sign is seen on a bank’s headquarters in Copenhagen, Denmark October 22, 2019. REUTERS/Jacob Gronholt-Pedersen
COPENHAGEN (Reuters) – Danske Bank on Friday reported worse-than-expected first-quarter profits, hampered by macroeconomic uncertainty and turbulent financial markets, but it maintained its full-year profit guidance.
Danske reported first quarter net profit of 2.8 billion Danish crowns ($396.28 million), below an average of 3.2 billion forecast by analysts in a poll compiled by the company.
“Our core banking income continues to show progress and resilience in a very challenging environment, which of course also affects our other income lines,” Chief Executive Carsten Egeriis said in a statement.
Net interest income and net fee income for the first quarter both came in slightly above analyst estimates, while trading income dropped to 565 million crowns, below an average of 855 expected by analysts.
Denmark’s largest bank has been dogged by a money laundering scandal in its now shuttered Estonia branch since 2018, which has caused its compliance-related costs to skyrocket and trust in the lender to plummet.
On Thursday, it said it faced a potentially “material” fine over its involvement in the Estonia case, and would consequently not pay a dividend for the first quarter.
The firm maintained its full-year net profit guidance of 13-15 billion crowns and costs around 25 billion. It said the outlook did not include any effect from a potential settlement of the Estonia matter this year.
($1 = 7.0658 Danish crowns)
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