Wealth Management Pre-Tax Profit Rises At Danske Bank In H1

Tom Burroughes

20 July 2017

Copenhagen-headquartered today reported its pre-tax profit in wealth management operations stood at DKK2.2 billion (around $340 million) in the first six months of this year, a 10 per cent rise from the first half of 2016.

The financial performance was driven by a net inflow of customers, strong premium growth in its pensions business, Danica Pension, and strong net sales in asset management.

Costs were higher than in the first half of 2016, mainly because of higher activity and restructuring. Assets under management increased 12 per cent from the level in the first half of 2016 to DKK1.493 trillion ($221 billion), it said.

For the banking group as a whole, net profit came in at DKK10.3 billion, up 10 per cent year-on-year, helped by positive macroeconomic developments in the Nordic markets, a continuation of low loan impairment levels, increased lending volumes and high customer activity.

The return on shareholders’ equity after tax was 13.5 per cent, against 12.4 per cent in the first half of 2016.
Total income amounted to DKK 24.4 billion, up 6 per cent from the level in the first half of 2016, with increases in most income lines.