Danske Bank Q4 net profit beats forecast (updated)

Danske Bank A/S

05/02/2026 06:40

Danske Bank proposes total dividend of DKK 22.72 per share

Q4 net profit at DKK 6.3 bln vs 5.75 bln seen in poll

Interest rates expected to remain stable in the Nordics

Adds CEO quotes, share move; paragraphs 3-5,9

By Louise Rasmussen

COPENHAGEN, Feb 5 (Reuters) - Danske Bank DANSKE.CO reported on Thursday fourth-quarter profits that exceeded estimates, and said it expected consumer sentiment to improve in 2026 as interest rates stabilise in the Nordic region, sending its shares up about 4% in early trade.

Central bank rate cuts across the region have weighed on interest income over the past year, while uncertainty over U.S. tariffs and possible European retaliatory measures have clouded the outlook for lenders and economies.

Danske Bank CEO Carsten Egeriis told Reuters that real wage increases and an expectation that wages will grow faster than inflation this year would boost consumer confidence, following a year in which spending has been subdued.

"And all those things, including that you already have very high saving levels, should support more consumer confidence and therefore also more consumer spending," Egeriis added.

Denmark's biggest lender said it expects net profit this year of between 22 billion and 24 billion Danish crowns ($3.47 billion and $3.79 billion), with core income driven by an increase in net interest income and fees, supported by stabilising inflation and interest rates.

Danske Bank proposed a total dividend of 22.72 crowns a share, including an extraordinary dividend of 5.78 crowns a share, exceeding analyst expectations of 20.3 crowns. It also announced a new share buyback programme of 4.5 billion crowns.

Net interest income, a key metric of banks' income from lending and deposits, was 9.45 billion crowns for the fourth quarter, slightly above the 9.24 billion analysts expected.

Danske said net profit for the October to December period came in at 6.3 billion Danish crowns, up from 6.0 billion a year earlier, topping the 5.75 billion expected on average by 12 analysts in a poll provided by the bank.

The bank's shares were up 1.78% at 0943 GMT, after jumping about 4% in morning trade.

($1=6.3356 Danish crowns)

 (Reporting by Louise Rasmussen; Editing by Terje Solsvik and Bernadette Baum)

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