Danske Bank (DANSKE) Q2 2026 earnings summary

Executive summary

• Q2 2026 net profit was DKK 6.2 billion with ROE of 14.8%, the highest in 20 years, and H1 2026 net profit reached DKK 11.9 billion, up 6% year-over-year.

• Strong commercial momentum, disciplined cost management, and robust credit quality drove results, with broad-based growth across all business units.

• Execution of Forward 2028 strategy continues, with ongoing investments in technology, AI, and digital platforms.

• Extraordinary dividend of DKK 5 billion paid in May 2026; new dividend policy of 60-70% payout and share buy-back program ongoing.

• Credit ratings upgraded by Moody’s, Fitch, and Scope, reflecting strong capital and resolution buffers.

Financial highlights

• Core income up 7% year-over-year; net interest income up 3% year-over-year; net fee income up 13% year-over-year and 4% quarter-over-quarter.

• Q2 2026 net profit: DKK 6.2 billion, up 9% year-over-year; H1 2026 net profit: DKK 11.9 billion, up 6% year-over-year.

• Trading income down 38% year-over-year but up 78% sequentially; other income includes a DKK 231 million one-off gain in Q2.

• Cost/income ratio at 43% in Q2 and 44.4% for H1, trending below the 45% target.

• CET1 ratio at 17% at Q2 2026, with total capital ratio at 20.5% and LCR at 159%.

Outlook and guidance

• 2026 net profit outlook raised to DKK 23-25 billion, with ROE expected around 14%.

• Total income expected to exceed DKK 59 billion, driven by higher core banking income and customer activity.

• NII for 2026 guided to slightly above DKK 38 billion, supported by volume growth and current market rates.

• Operating expenses forecasted at DKK 26-26.5 billion; cost/income ratio expected below 45%.

• Loan impairment charges expected around DKK 1 billion, reflecting strong credit quality.