Salem Radio Network News Friday, July 30, 2021

Business

Danske Bank hikes 2021 net profit outlook

COPENHAGEN (Reuters) -Danske Bank on Thursday raised its net profit guidance for this year after lower-than-expected loan impairment charges and higher customer activity.

Denmark’s biggest lender now expects a net profit of more than 12 billion Danish crowns ($1.9 billion) in 2021, up from previous guidance of 9 to 11 billion crowns.

Its shares rose 2.6% in early trading.

“We adjust our net profit guidance for the year based on lower-than-expected loan impairment charges – due to a faster than anticipated macroeconomic recovery – as well as higher customer activity,” Chief Executive Officer Carsten Egeriis said in a statement.

Business conditions were expected to improve further later in the year, he added.

Danske Bank said its preliminary second-quarter net profit came in at around 2.8 billion crowns, above the 2.2 billion expected by analysts in a poll compiled by the bank.

Quarterly impairment charges would be around 200 million crowns, it added, below the 989 million crowns seen in the poll.

Impairment charges for the full year are now expected to be no more than 1.5 billion crowns, compared with a previous forecast of no more than 3.5 billion.

Danske Bank will release its final numbers for the first half of the year on July 23.

($1 = 6.3020 Danish crowns)

(Reporting by Stine JacobsenEditing by Mark Potter)

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