Skip to Content

Danske Bank A/S DANSKE

Rating as of

Morningstar’s Analysis

Currency in DKK
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Danske Makes a Good Start Into the Year; Fair Value Estimate Maintained

Niklas Kammer, CFA Equity Analyst

Analyst Note

| Niklas Kammer, CFA |

We maintain our DKK 170 per share fair value estimate for Danske after it reported decent first-quarter results. Comparing performance with the last quarter of 2020, which we believe paints a clearer picture, Danske did well. Total income increased 2% to DKK 10.6 billion carried by higher trading income and income from its insurance business. Net interest income was flat as deposit repricing tailwinds were offset by product mix effects and margin effects in the large corporates segment. More importantly, however, operating expenses have declined materially after the group has been investing and spending heavily over the last couple of years to restructure its business and clean its closet. Operating expenses came in at DKK 6.3 billion and are expected to fall below DKK 24.5 billion for the full year versus DKK 28.1 billion in 2020. Loan loss impairments of DKK 497 or 10 basis points were a positive as well compared with last quarter, but we would highlight that Danske’s current guidance of below DKK 3.5 billion implies higher impairments for the remainder of the year. Net income for the quarter came in at DKK 3.1 billion, which corresponds to a decent 7.5% return on equity.

Read Full Analysis

Company Profile

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.

Holmens Kanal 2-12
Copenhagen, DK-1092, Denmark
T +45 33440000
Sector Financial Services
Industry Banks - Regional
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type
Employees 21,978

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.