Danske Earnings: Good Profit; Lower Remediation Expenses in 2024

Danske reported a good fourth-quarter 2023 and overall, a strong 2023. Profits before tax increased 12% in the fourth quarter on a sequential basis. Higher net fee income and significantly stronger net trading income more than offset slightly lower net interest income. Danske has seen pass-through rates increase, weighing on the deposit margin, while the lending margin continued to be under mild pressure since rates have started to increase in Denmark. Growing assets under management contributed to the positive quarterly development in investment fees. Net trading income benefited from a one-off release from a common equity Tier 1 foreign-exchange hedge.