Net profit for the fourth quarter of 2022 came in at 4.2 billion crowns, roughly in line with the 4.3 billion expected by analysts in the poll compiled by Danske. Thursday's report by Danske Bank is the first in more than half a decade not to be overshadowed by the threat of a massive fine by U.S. authorities over the lender's involvement in one of the world's largest money-laundering scandals. In December, Danske pleaded guilty to bank fraud conspiracy, forfeiting $2 billion as part of an agreement with the United States to settle the investigation involving billions of dollars in illicit payments through its now-shuttered Estonia branch. Danske expects costs in 2023 to come in between 25 and 25.5 billion crowns, slightly below the 26.5 billion reported in 2022, but at the higher end of an average of 25 billion expected by analysts.
"The costs are still too high and Danske Bank has more loss provisions than others. Danske Bank is heading in the right direction, but it is going slowly," Nordnet analyst Per Hansen said in a note.
Danske expect loan impairment charges of up to 3 billion,
mainly as a result of a weaker macroeconomic outlook.
($1 = 6.7579 Danish crowns)
(Reporting by Nikolaj Skydsgaard; Editing by Terje Solsvik and
Kenneth Maxwell)
