Danish Banking Group Reports Sharp Profit Rise At Personal, Private Banking Segment

Tom Burroughes

3 November 2014

The personal banking arm of Copenhagen-listed , which includes its private banking business, has reported a pre-tax profit of DKK3.719 billion ($627 million) from DKK2.076 billion.

The bank has reported that this segment’s cost/income ratio fell to 62.8 per cent from 71.3 per cent a year earlier. Total headcount has shrunk to 6,796 staff from 7,292 people a year before, it said in a statement.

Total income for the segment was DKK12.4 billion, up from DDK12.218 billion, the Danish bank continued. The statement did not appear to carry details in specifics about its wealth management arm.

In the first nine months of 2014, Danske Bank said it posted a profit before tax from core activities of DDK14.2 billion. The net profit was DDK10.1 billion and represents an increase of 95 per cent from the level in the first nine months of 2013. The increase was driven by growth in most income lines, lower expenses and lower impairments.

Total income amounted to DKK32.6 billion, rising 13 per cent from the first nine months of 2013. Income rose on the strength of growth in all main income lines.

"In the third quarter, we continued to make progress in strengthening our position as a Nordic universal bank by focusing on relations with our customers and improving financial performance," Thomas Borgen, chief executive, said.