Danske Bank (DANSKE) Q1 2026 earnings summary

Executive summary

• Net profit for Q1 2026 was DKK 5.7 billion, with a cost/income ratio of 45.8% and return on equity of 13.1%.

• Strong commercial momentum and customer activity in private and corporate banking, supported by a resilient Nordic macro environment despite market volatility.

• Credit quality remained robust, with a net loan impairment reversal of DKK 26 million.

• Revised capital target and accelerated payout of legacy excess capital via extraordinary dividend.

• Macroeconomic outlook is clouded by rising geopolitical uncertainty and energy prices.

Financial highlights

• Q1 2026 net profit: DKK 5.7 bn; ROE: 13.1%; cost/income ratio: 45.8%.

• Total income Q1 2026: DKK 13,974 mn, up from Q1 2025 and stable sequentially.

• Net interest income rose 4% year-over-year to DKK 9,340 million, driven by lending growth and interest rate risk management.

• Net fee income increased 7% to DKK 3,918 million, while trading and insurance income declined due to market volatility.

• Operating expenses rose 2% to DKK 6,405 million, reflecting digital investments and wage inflation.

Outlook and guidance

• 2026 guidance: ROE >13%, cost/income ratio ~45%, CET1 ratio ~17%, total income expected around DKK 58 billion, and operating expenses of DKK 26-26.5 billion.

• Loan impairment charges forecast at DKK 1 billion; net profit expected in the DKK 22-24 billion range.

• New 2028 targets: ROE >14.5%, total income ~DKK 63 bn, cost/income ratio ≤43%, CET1 ratio ~16%.

• Dividend policy revised to 60-70% payout, with potential for >DKK 55 bn in dividends 2026-28.

• Full-year impairment guidance maintained at ~DKK 1 bn (~6 bps CoR).