Download PDF

1. Company Snapshot

1.a. Company Description

Danske Bank A/S provides various banking products and services to corporate, institutional, and international clients.The company offers insurance and pension products, mortgage finance and real-estate brokerage services, asset management and trading services in fixed income products, foreign exchange services, and equities.It also provides advisory services to personal and private banking customers; and business advisory services, including acquisition, change of ownership, strategic development, or international expansion.


In addition, the company offers financing, risk management, investment, and financial advisory services for large corporates and institutions; healthcare solutions; and online and mobile banking services.It has operations in Denmark, Finland, Sweden, Norway, the United Kingdom, and internationally.The company was founded in 1871 and is headquartered in Copenhagen, Denmark.

Show Full description

1.b. Last Insights on DANSKE

Danske Bank's recent performance has been driven by solid financial results, with a net profit of DKK 16.7 billion for the first nine months of 2025. The company's strong execution on strategic priorities, as outlined in its Forward '28 strategy, has contributed to its positive momentum. Analysts have upgraded their fair value estimate for Danske Bank to DKK 296.07, citing successful strategic execution and expanding revenue as key factors. Additionally, the company's share buy-back programme, which aims to repurchase DKK 5 billion worth of shares, has been viewed positively by investors. Low impairments and resilient net interest income have also supported the bank's results.

1.c. Company Highlights

2. Danske Bank's Q3 Earnings: A Strong Performance

Danske Bank reported a net profit of DKK 16.7 billion for the first 9 months of 2025, with a return on equity of 12.9%. The bank's earnings per share (EPS) came in at 6.68, in line with analyst estimates. The financial performance was driven by solid core income lines, prudent cost management, and strong credit quality. Net interest income remained stable, supported by volume growth and the structural hedge, while fee income grew 2% year-on-year, driven by higher customer activity and asset growth.

Publication Date: Nov -01

📋 Highlights
  • Net Profit & ROE:: DKK 16.7 billion for Jan-Sep 2025, 12.9% ROE.
  • Asset Management Growth:: AUM hits record DKK 954 billion.
  • Fee Income Increase:: 2% YoY growth driven by customer activity and asset growth.
  • Guidance Update:: Net profit expected at DKK 23 billion upper end, driven by improved NII and loan impairment charges.
  • Capital Strength:: CET1 ratio at 18.7%, with RWAs declining due to lower market risk.

Revenue Growth and Profitability

The bank's revenue growth was driven by a combination of factors, including a growing balance sheet and stable interest rates. The structural hedge, which includes a bond hedge of DKK 170 billion and a loan hedge of DKK 200 billion, provided support to net interest income. The bank's asset management business reached an all-time high of DKK 954 billion in assets under management, contributing to the growth in fee income.

Credit Quality and Capital Position

Credit quality remained strong, with a loan loss ratio of 2 basis points and a net reversal in the third quarter. The bank's capital position also remained robust, with a CET1 capital ratio of 18.7%. The bank expects to maintain a strong capital position, with a focus on distributing over 100% of capital.

Valuation and Dividend Yield

Danske Bank's valuation metrics indicate a relatively attractive dividend yield of 7.33%. The bank's Price-to-Tangible Book Value (P/TBV) ratio is around 1.39, suggesting a reasonable valuation. With a Net Interest Margin (NIM) expected to remain stable, the bank's dividend yield is likely to remain attractive to income investors.

Business Growth and Strategy

The bank's corporate lending business saw broad-based growth, driven by market share gains across the Nordics. The personal customer segment is expected to improve, with traction seen in private banking and investments. The bank's focus on organic growth within specific segments is expected to drive future performance.

Outlook and Guidance

Danske Bank expects net profit to be at the upper end of the guidance range of DKK 21-23 billion, driven by better net interest income and an improved outlook for loan impairment charges. The bank's financial targets for 2026 remain unchanged, with expectations for net interest income to stay stable, supported by a growing balance sheet and stable interest rates. Analysts estimate next year's revenue growth at 1.1%, indicating a relatively stable outlook for the bank's top-line growth.

3. NewsRoom

Card image cap

What New Catalysts Are Reshaping the Narrative for Xvivo Perfusion?

Dec -04

Source:

Card image cap

56/2025・Trifork Group: Major shareholder announcement

Dec -03

Source:

Card image cap

10 EU Banks Unite to Launch Euro Stablecoin by 2026

Dec -03

Source:

Card image cap

Pharma Equity Group A/S’ agreement with Danske Bank as liquidity provider will terminate on 1 January 2026

Dec -03

Source:

Card image cap

10 European Banks Form Stablecoin Company qivalis

Dec -02

Source:

Card image cap

Is There Still Value in Danske Bank After 61.5% Rally and Legal Settlement?

Dec -02

Source:

Card image cap

Danske Bank share buy-back programme: transactions in week 48

Dec -01

Source:

Card image cap

BioMar preliminary financial outlook for 2026 and mid-term targets

Dec -01

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.96%)

6. Segments

Personal Customers

Expected Growth: 1.0%

Danske Bank A/S' Personal Customers segment growth of 1.0 is driven by increased digital adoption, expanded product offerings, and a strong focus on customer experience. The bank's investments in digital platforms and data analytics have enhanced customer engagement, leading to increased cross-selling and upselling opportunities, ultimately driving growth in this segment.

Large Corporates & Institutions

Expected Growth: 0.8%

Large Corporates & Institutions at Danske Bank A/S grew 0.8 due to increased lending, higher fee income from treasury and payment services, and improved cross-selling opportunities. Strong relationships with large corporates and strategic investments in digital platforms also contributed to growth.

Business Customers

Expected Growth: 1.2%

Danske Bank A/S' business customers segment growth of 1.2 is driven by increasing demand for digital payment solutions, expansion of small and medium-sized enterprises, and the bank's strategic focus on providing tailored financial services to entrepreneurs, resulting in a rise in transaction volumes and fee income.

Northern Ireland

Expected Growth: 0.9%

Northern Ireland's 0.9% growth from Danske Bank A/S is driven by a recovering economy, increased consumer spending, and a growing housing market. The region's strategic location and improving infrastructure also attract businesses, contributing to the growth. Additionally, government initiatives and investments in key sectors support the region's economic expansion.

Danica

Expected Growth: 0.5%

Danica's 0.5 growth is driven by Danske Bank A/S's strategic focus on digital transformation, increasing demand for pension and insurance products, and favorable market conditions in Denmark. The segment's growth is also supported by Danica's strong brand presence and expanding asset management business.

Group Functions

Expected Growth: 0.0%

The 0.0% growth in Group Functions from Danske Bank A/S implies stability, likely driven by consistent performance in core banking operations, efficient cost management, and potentially offsetting factors such as steady interest income and controlled expenses, indicating a balanced and resilient business model.

Eliminations

Expected Growth: 0.0%

The 0.0% growth in eliminations from Danske Bank A/S suggests stable inter-segment transactions, indicating no significant changes in business operations or subsidiary structure. This stability implies that the bank's internal financial management and eliminations process is well-established, with no major adjustments needed.

7. Detailed Products

Personal Accounts

Danske Bank offers a range of personal accounts for individuals, including current accounts, savings accounts, and credit accounts.

Mortgages

Danske Bank provides mortgage loans for individuals and businesses, with various repayment options and interest rates.

Credit Cards

Danske Bank offers a range of credit cards for individuals and businesses, with various benefits, rewards, and interest rates.

Investments

Danske Bank provides investment products and services, including stocks, bonds, mutual funds, and portfolio management.

Business Banking

Danske Bank offers a range of banking services for businesses, including accounts, payments, and financing solutions.

Wealth Management

Danske Bank provides wealth management services for high net worth individuals and families, including investment management, financial planning, and estate planning.

Online Banking

Danske Bank offers online banking services, including mobile banking, online payments, and account management.

8. Danske Bank A/S's Porter Forces

Forces Ranking

Threat Of Substitutes

Danske Bank A/S operates in the banking industry where substitutes such as other banks, financial institutions, or digital payment systems exist. However, customers tend to stick with their primary bank due to convenience, existing relationships, and switching costs, making the threat of substitutes relatively low.

Bargaining Power Of Customers

Danske Bank A/S serves a large customer base across various segments. While individual customers have limited bargaining power, large corporate clients and institutional customers may have more negotiating power due to their significant transaction volumes and revenue contribution to the bank.

Bargaining Power Of Suppliers

The suppliers of Danske Bank A/S, such as technology providers, service vendors, and liquidity providers, do not have significant bargaining power. The bank's large size and market presence allow it to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The threat of new entrants in the banking industry is moderate. While regulatory hurdles and capital requirements create barriers to entry, fintech companies and digital banks have been successfully entering the market, increasing competition for traditional banks like Danske Bank A/S.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Danske Bank A/S faces intense rivalry from other banks, both domestically and internationally, leading to pricing pressure, innovation, and marketing efforts to attract and retain customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.00%
Debt Cost 4.28%
Equity Weight 100.00%
Equity Cost 7.83%
WACC 7.83%
Leverage 0.00%

11. Quality Control: Danske Bank A/S passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
KBC

A-Score: 7.4/10

Value: 6.9

Growth: 6.0

Quality: 6.7

Yield: 7.5

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
SEB

A-Score: 7.0/10

Value: 5.6

Growth: 5.4

Quality: 5.6

Yield: 8.1

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Danske Bank

A-Score: 6.8/10

Value: 5.5

Growth: 4.4

Quality: 5.6

Yield: 8.1

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
UniCredit

A-Score: 6.7/10

Value: 6.2

Growth: 5.9

Quality: 6.8

Yield: 6.9

Momentum: 9.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Lloyds Banking

A-Score: 6.3/10

Value: 6.6

Growth: 2.8

Quality: 5.6

Yield: 6.9

Momentum: 8.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Deutsche Bank

A-Score: 5.8/10

Value: 8.3

Growth: 3.4

Quality: 5.9

Yield: 3.1

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

302.4$

Current Price

302.4$

Potential

-0.00%

Expected Cash-Flows