Disappointment at Danske Bank as credit looses squeeze earnings
Thursday, 09 February 2012
The Danish financial giant Danske Bank's profit before tax was Dkr615 million in the fourth quarter (against Dkr1,448 in similar period last year). This compares with projected Dkr920 million, according to analysts consensuses.
Loan losses increased to Dkr4.789 million (2982), compared to the expected Dkr3.659 billion.
Net interest income was Dkr6182 million (6069). Here the consensus was a forecast of Dkr6.156 million.
The total revenue summed up to Dkr11.863 million in the quarter (10 887), against the anticipated Dkr10.887 million, and costs amounted to Dkr6.459 million (6457). Expected, the total cost of Dkr6.302 million.
The proposed dividend is halted in 2012, compared with average forecasts of Dkr0.42.
Danske Bank expects a very low growth in Europe in 2012, given the likely continuing uncertain global credit markets and tight state budgets.
Profit before loan losses in its bank units and Danske Capital is expected to likely remain stable in 2012, while gains in other units are dependent on international market trends, especially in Europe.
The Group will focus heavily on cost control and measure to increase profits. Underlying costs are expected to decrease by at least 10 percent from 2012 to 2014. For 2012 is expected to cost the same as in 2011.
See full financial reports for the year here
As a result of this weak performance, Danske Bank is doing what most banks are doing now –cutting workforce. It workforce will be reduced by 2 000 people in three years, according to media reports. Today the bank has more than 21 320 full time employees.
By Scancomark.se Team