Danske Bank Q1 in line, announces extraordinary dividend (updated)

Danske Bank A/S

30/04/2026 06:42

Sets new financial and cost-saving goals

Sees dividend potential above 55 billion crowns between 2026-2028

First-quarter net profit down 1% at 5.69 billion Danish crowns

Maintains full-year profit outlook between 22-24 billion crowns

Adds detail on dividend, investments in paragraphs 3 and 6, CEO comment in paragraph 8, share move in paragraph 9

By Louise Rasmussen

COPENHAGEN, April 30 (Reuters) - Danske Bank DANSKE.CO, Denmark's biggest lender, announced an extraordinary dividend on Thursday and set more aggressive financial and cost-saving goals, saying that progress on targets thus far had allowed it to be more ambitious.

That came in tandem with a 1% decline in net profit for the first quarter to 5.69 billion Danish crowns ($888 million), which was in line with expectations.

Danske said it would pay an extra dividend of 6.14 Danish crowns per share and pay out between 60% and 70% of its net profit by 2028, up from a previous target of 40% to 60%. For 2026 to 2028, the bank forecast a dividend potential above 55 billion Danish crowns.

Other 2028 goals include lifting return on equity to above 14.5% compared with more than 13% in 2026 and targeting a ratio of spending 43% of income, down from around 45% this year.

Danske said it expects overall income in 2028 of 63 billion crowns, slightly above the 62.5 billion predicted on average by analysts in a poll compiled by the bank.

The bank said it will increase annual investments in core technology, including AI to around 4.5 billion crowns from 4 billion, expecting annual productivity benefits of around 2 billion by 2028.

Net interest income, which measures income from lending and deposits, rose 3.5% to 9.34 billion crowns, broadly in line with the 9.22 billion forecast by analysts.

The bank maintained its full-year net profit forecast of between 22 billion and 24 billion crowns, but warned of increasing uncertainty due to the conflict in the Middle East.

"But by and large, I would say when I speak with clients across the Nordics, they're still constructive about investing," CEO Carsten Egeriis told Reuters.

Shares in Danske Bank were down 1% at 0948 GMT.

     ($1 = 6.4062 Danish crowns)

 (Reporting by Louise Rasmussen; Editing by Terje Solsvik, Edwina Gibbs, Elaine Hardcastle)

 ((Louisebreusch.rasmussen@tr.com; +45 21 27 97 79;))