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Danske Bank A/S DANSKE Stock Quote

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Morningstar‘s Stock Analysis DANSKE

Valuation
Currency in DKK
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Danske Misses Consensus Due to Market Volatility; Maintain Fair Value Estimate

Niklas Kammer, CFA Equity Analyst

Analyst Note

| Niklas Kammer, CFA |

Narrow-moat Danske Bank reported second-quarter profits before tax of DKK 2,164 million, substantially missing consensus estimates of DKK 3,600 million collected by the bank prior to the release. Losses in trading income as well as income from the insurance business were the culprits. Danske was caught out by higher levels of volatility and lower liquidity in fixed income markets hitting its trading operation. The declining market environment also drove negative value adjustments in Danske’s insurance business, which could not be offset by a DKK 415 million gain on the sale of Danica Norway. We maintain our DKK 170 per-share fair value estimate despite this performance. Outside the very volatile line items, which have caused the substantial miss relative to expectations this quarter, results looked decent. We anticipate the trading and insurance businesses to recover for the rest of the year.

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Key Statistics DANSKE

Company Profile DANSKE

Business Description

Founded in 1871, Danske Bank's headquarters are in Copenhagen, Denmark. It is the largest Danish bank with a dominant market share of 27% in lending and 29% in deposits. It operates through 270 branches in Denmark, Finland, Sweden, Norway, Ireland, and the United Kingdom. With the establishment of its wealth management segment in April 2016, the bank now operates via five segments. The others are banking Denmark, banking Nordics, corporates and institutions, and Northern Ireland.

Contact
Holmens Kanal 2-12
Copenhagen, DK-1092, Denmark
T +45 33440000
Industry Banks - Regional
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Stock Type
Employees 21,663