COPENHAGEN (Reuters) – Danske Bank reported weaker-than-expected first-quarter results on Friday, hampered by macroeconomic uncertainty and financial market turmoil, but stuck to its full-year profit forecast.
Danske reported first-quarter net profit of 2.8 billion Danish kroner ($396.28 million), below an average of 3.2 billion forecast by analysts in a survey compiled by the company.
“Our core banking revenue continues to grow and hold up in a very challenging environment, which of course also affects our other revenue lines,” chief executive Carsten Egeriis said in a statement.
Net interest income and net commission income for the first quarter were both slightly above analysts’ estimates, while trading income fell to 565 million crowns, below the 855 average expected by the analysts.
Denmark’s largest bank has been grappling with a money laundering scandal at its now-closed Estonian branch since 2018, which has sent compliance costs skyrocketing and confidence in the lender plummeting.
On Thursday, he said he faced a potentially “material” fine for his involvement in the Estonia case and would therefore not pay a first-quarter dividend.
The company maintained its net profit forecast for the full year of 13 to 15 billion crowns and costs around 25 billion. He said the outlook did not include any effect of a possible settlement of the Estonian case this year.
($1 = 7.0658 Danish kroner)
(Reporting by Nikolaj Skydsgaard; Editing by Jacqueline Wong and Tomasz Janowski)
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