Danske Bank Surpasses Profit Expectations, Predicts Economic Recovery by 2026

Danske Bank recorded higher-than-expected fourth-quarter profits, attributing future consumer sentiment improvement in 2026 to stabilizing interest rates. Despite recent challenges from central bank rate cuts, the bank anticipates growing consumer confidence. It forecasts net profits between 22-24 billion Danish crowns and proposes generous dividends and a share buyback plan.

Danske Bank has exceeded fourth-quarter profit expectations, with shares rising about 4% in early trading on Thursday. The bank forecasts improved consumer sentiment by 2026 as interest rates stabilize across the Nordic region, countering the downturn caused by recent central bank rate cuts.

According to Danske Bank CEO Carsten Egeriis, real wage increases and anticipated wage growth outpacing inflation this year are expected to boost consumer confidence, following a sluggish year in consumer spending. He remarked that high savings levels could further enhance consumer confidence and spending.

Denmark's largest lender predicts a net profit of 22-24 billion Danish crowns this year. Positive drivers include rising net interest income and fees amid stabilizing inflation and interest rates. Surpassing analyst expectations, Danske Bank proposed a dividend of 22.72 crowns per share and announced a 4.5 billion crown share buyback program.

(With inputs from agencies.)