Shares in multinational lender Danske Bank surged on Friday after the lender beat forecasts with record annual profits.
In its full-year results, Denmark’s biggest bank said it had raked in profits of £2.6bn on the back of a boost in “customer activity” along with low loan losses .
The bank, which has had offices in Belfast since its 2004 acquisition of Northern Bank, increased total income by eight per cent from 2023, reaching £6.3bn, with operating expenses edging up one per cent.
Danske said it was able to avoid a slowdown from central bank rate cuts and “overall muted credit demand” as it posted “strong development” in its net interest income, which topped £4bn, up from £3.9bn in 2023.
“2024 was a year in which we consistently delivered positive results from quarter to quarter, driven by increased customer activity, continually strong credit quality and a sustained dedicated effort from the entire organisation,” said chief executive Carsten Egeriis.
A share buy-back scheme allowed a “significant payout” for shareholders, bosses said, with an estimated 26m shares bought back at the end of the year.
The bank’s Board of Directors also kicked off a new buy-back programme of £559m today, which will begin on February 10.
Its total dividend payout for 2024 amounted to 0.95p per share, with the bank’s 2025 dividend policy targeting a payout of 40-60 per cent of profit.
Danske Bank’s share price rose nearly eight per cent on the news.
‘Better customer experience and improved efficiency’
The results come after Danske marked the first year of its ‘Forward ‘28’ strategy last year, which aims to “unleash [the bank’s] full potential” and strengthen its market position.
It said “substantial progress” had been made on technology transformation, with the launch of DanskeGPT, which is used by 74 per cent of the organisation’s employees.
Danske said it expected net profits for 2025 to be within £2.3bn and £2.6bn, subject to economic conditions.
KBW analysts Hugo Cruz and Ben Maher praised the lender’s “good set of results” and “impressive performance”.
They added guidance for the upcoming year “looks broadly in-line with expectations”.
Egreiis said investments made had enhanced customer experience, reflected in increased “positive customer satisfaction scores”.
“Danske Bank is strongly positioned to create value for customers, shareholders and society,” he added.
“In a time of heightened geopolitical uncertainty, rapid technological shifts and increasing sustainability challenges, we will continue to focus on opportunities and solutions for households and businesses alike.”