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Net Profit: DKK23 billion for 2025, with a return on equity of 13.3%.
Q4 Net Profit: DKK6.3 billion, up 14% from the preceding quarter.
Dividend Per Share: Total of DKK22.7, including an extraordinary dividend of 20%.
Share Buyback Program: DKK4.5 billion, with a payout ratio for 2025 of 100%.
Net Interest Income (NII): Stable year-on-year, with a 4% increase in Q4.
Fee Income: Over DKK15 billion for 2025, up 3% from 2024, with a 39% increase in Q4.
Assets Under Management: Grew 16% year-on-year, reaching over DKK1 trillion.
Operating Expenses: In line with expectations, around DKK26 billion for 2025.
Loan Impairment Charges: DKK294 million for 2025, with DKK35 million in Q4.
Capital Ratio: Fully phased-in CET1 ratio at 17.6% at the end of Q4.
2026 Financial Outlook: Expected net profit between DKK22 billion to DKK24 billion, with total income around DKK58 billion.
Release Date: February 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Danske Bank AS (DNKEY) reported a net profit of DKK23 billion for 2025, marking a robust return on equity of 13.3%.
The bank maintained net interest income at the same level as in 2024 despite several rate cuts and the sale of its personal customer business in Norway.
Core income improved due to higher net interest income from increased lending and deposits, alongside significantly higher fee income.
The bank announced a 100% payout ratio for 2025, including an ordinary dividend of 60% and an extraordinary dividend of 20%, along with a new share buyback program.
Danske Bank AS (DNKEY) saw strong momentum in its private banking segment, with assets under management reaching record high levels.
The slightly lower net profit in 2025 compared to 2024 was due to a more normalized level of loan impairment charges.
Operating expenses were higher in Q4 due to expected higher seasonal expenses, impacting the cost-income ratio.
Income from insurance activities was negatively impacted by a model recalibration for the health and accident business, leading to a net negative effect of DKK200 million.
Trading income saw a decline in Q4, mainly due to seasonally lower customer activity in fixed income markets.
The bank’s cost outlook for 2026 includes a range of DKK26 billion to DKK26.5 billion, reflecting higher investment spend and cost management challenges.
Q: Could you walk us through the key drivers behind the higher contribution in other income and how should we think about it going forward? Also, how should we think about the main moving parts of NII, including the expected impacts from the structural hedge in 2026? A: Carsten Rasch Egeriis, CEO, explained that they expect higher core income, with an increase in both NII and fees, guiding total income to around DKK58 billion. Cecile Hillary, CFO, added that the structural hedge will continue to provide a lift in 2026, with a positive contribution expected year-on-year. The increase in the structural hedge notion from DKK170 billion to DKK180 billion was noted. Other income included a one-off tax effect of DKK200 million, which should not be assumed going forward.
Q: Can you explain the rationale for increasing the structural hedge to DKK180 billion and if there is a target notional for the structural hedge? A: Cecile Hillary, CFO, stated that the structural hedge is meant to hedge stable deposits and liabilities. The increase in deposits, particularly in the retail sector, allowed for an increase in the structural hedge notion. The current bond portfolio hedge is at DKK180 billion, and while there may be modest increases in 2026, it will depend on deposit trajectory.
Q: Do you see any risk for fee caps to be introduced in Denmark, and what could that mean for Danske Bank? Also, could you discuss the competitive environment and recent price cuts in mortgage products? A: Carsten Rasch Egeriis, CEO, does not expect intervention in terms of fee caps. The focus is on increasing competition and transparency, which Danske Bank supports. Regarding mortgage price competition, the bank is focused on competing in segments where they can differentiate, and recent price cuts are targeted and should not impact overall margins significantly.
Q: Could you discuss your growth opportunities in Sweden and the competitive environment there? Also, how do you view capital return and distribution dynamics? A: Carsten Rasch Egeriis, CEO, highlighted steady market share growth in Sweden, focusing on cash management customers and delivering a comprehensive corporate banking platform. Cecile Hillary, CFO, explained that regular capital distributions follow a 60% ordinary dividend, 20% extraordinary dividend, and 20% share buyback, with no plans to change the annual distribution rhythm.
Q: How should we think about cost inflation and productivity from AI investments? Also, is there anything structurally not working in personal banking? A: Carsten Rasch Egeriis, CEO, noted positive momentum in private banking and personal customers with advisory needs, with market share gains in investments. The focus is on increasing growth in mass retail. Cecile Hillary, CFO, explained that 2026 will see the largest investment year, with productivity gains from AI and tech investments expected to offset inflation headwinds.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.