By Dominic Chopping
Danske Bank launched a new 5.5 billion Danish kroner ($802.1 million) share buyback after reporting in-line fourth-quarter earnings amid strong credit quality and negligible impairments.
The Copenhagen-based bank posted on Friday a net profit of DKK5.77 billion and net interest income of DKK9.13 billion. A company-compiled consensus had seen net profit at DKK5.77 billion with net interest income of DKK9.3 billion.
Comparative figures weren't disclosed.
The bank declared a final dividend of DKK7.5, bringing the total 2023 dividend to DKK14.50.
The bank said it expects 2024 net profit of between DKK20 billion and DKK22 billion, versus the DKK21.26 billion reported for 2023, while loan impairment charges are subject to an elevated level of geopolitical and macroeconomic uncertainty.
Total income is expected to grow this year, driven by higher core income and continued efforts to drive commercial momentum, and income from trading and insurance activities will be subject to financial market conditions, it added.
Operating expenses in 2024 are seen at DKK26 billion to DKK26.5 billion, reflecting increased investments in line with its financial targets for 2026 and continued focus on cost management. The outlook includes nonrecurring items of around DKK600 million, it said.
Danske Bank's common equity Tier 1 ratio--a key measure of financial strength--rose to 18.8% from 17.8% a year earlier.
Write to Dominic Chopping at dominic.chopping@wsj.com
