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 ROE of 13.1%, supported by strong commercial momentum and a constructive Nordic environment.

• Lending grew 4% year-on-year, with market share gains across the Nordics and DKK 6 billion net inflows in asset management.

• Revised Forward 2028 strategy targets ROE above 14.5%, income around DKK 63 billion, cost-to-income ratio ≤43%, and CET1 target of ~16%.

• Extraordinary dividend of DKK 5 billion (DKK 6.14/share) announced, with a revised ordinary dividend policy of 60%-70% of net profit.

• Beneficial Nordic macro environment supported growth despite market volatility and geopolitical uncertainty.

Financial highlights

• Net profit for Q1 2026 was DKK 5.7 billion; cost-to-income ratio at 45.8%, in line with 2026 target.

• Total income Q1 2026: DKK 13,974 million, with net interest income up 4% year-on-year and fee income up 7%.

• Operating expenses increased 2% year-on-year to DKK 6,405 million, reflecting digital investments and wage inflation.

• Net reversals of impairment charges of DKK 26 million, reflecting strong credit quality.

• CET1 capital ratio at 17.7% pre-dividend, pro forma 17.1% after extraordinary dividend.

Outlook and guidance

• 2026 guidance reaffirmed: cost-to-income ratio around 45%, cost outlook DKK 26-26.5 billion, impairment guidance ~DKK 1 billion.

• 2028 targets: ROE above 14.5%, cost-to-income ratio ≤43%, CET1 ~16%, total income ~DKK 63 billion.

• Dividend potential above DKK 55 billion for 2026-2028, with further distributions subject to capital and market conditions.

• Assumes 3%-4% annual lending growth, 1%-2% deposit growth, and short-term rates around 2% by 2028.

• Loan impairment charges forecast at DKK 1 billion, with net profit guidance of DKK 22-24 billion and ROE above 13%.