Danske Bank has today reported fourth-quarter profits that beat expectations, and said it expected consumer sentiment to improve in 2026 as interest rates continue to stabilise across the Nordic region.
Central bank rate cuts across the region have weighed on interest income over the past year, while uncertainty over US tariffs and possible European retaliatory measures have clouded the outlook for lenders and economies.
“With stabilised interest rates, rising real incomes and expected higher investments, the outlook for 2026 has turned more positive, which could lead to more optimism among consumers in the Nordic countries in 2026,” Danske Bank said in a statement.
Denmark’s biggest lender said it expects net profit this year of between 22 billion and 24 billion Danish crowns ($3.47 billion-$3.79 billion), and announced a new share buyback programme of 4.5 billion Danish crowns.
The bank proposed a dividend of 16.94 Danish crowns per share for 2025, as well as an extraordinary dividend of 5.78 crowns per share, leading to a total dividend of 22.72 crowns, exceeding analyst expectations of 20.3 crowns.
Net interest income, a key metric measuring banks’ income from lending and deposits, was 9.45 billion crowns for the fourth quarter, slightly above the 9.24 billion analysts expected.
Danske said net profit for the October to December period came in at 6.3 billion Danish crowns, up from 6 billion a year earlier, and topping the 5.75 billion expected on average by 12 analysts in a poll provided by the bank.
Alistair Welch, Country Manager Ireland and Head of International Units at Danske Bank, said the bank closed out the financial year with a solid performance across its large corporate and institutional business in Ireland, contributing to the strong results of the wider Danske Bank Group.
“We had the privilege of supporting our clients through a number of significant transactions during 2025, reflecting the trust our customers place in Danske Bank Ireland,” he said.
“As we look ahead in 2026, our focus remains on being a trusted partner to our clients and supporting them in achieving their goals in a dynamic and ever-evolving market,” he added.