Danske Bank raises profit outlook on Nordic-wide growth
Danske Bank's Financial Performance and Market Impact
By Louise Rasmussen
Profit Outlook and Share Price Movement
COPENHAGEN, July 17 (Reuters) - Danske Bank raised its full-year outlook on Friday, citing high customer activity, but its share price declined from record levels touched earlier this week as it only just topped quarterly profit expectations.
CEO's Statement on Growth
CEO Carsten Egeriis said the Nordic region's second biggest bank by market value had seen broad-based income growth from higher lending volumes and was gaining market share against rivals.
Corporate Lending and Market Share
"Corporate lending grew 6% year on year, which is especially encouraging because it is translating into market share gains across the Nordics," Egeriis said, adding that the Nordic economies were performing well despite the current geopolitical uncertainty.
Share Performance and Analyst Commentary
Shares in Danske Bank traded down 1.2% at 1118 GMT, but are still up around 15% year-to-date.
"You have to view the share move in the context of Danske Bank performing well lately, so expectations are high," AL Sydbank analyst Mikkel Emil Jensen said, adding that some shareholders might see a chance to take some profits.
Shares of most Nordic rivals, such as Nordea and Handelsbanken, were broadly unchanged on Friday.
Financial Results and Forecasts
Danske Bank now expects a full-year profit of between 23 billion and 25 billion crowns, up from its previous forecast of 22 billion to 24 billion crowns. It projected total annual revenue to be somewhat above 59 billion.
Quarterly Net Profit
The bank's net profit for April-June rose to 6.02 billion crowns ($921.21 million) from 5.45 billion a year earlier, just topping the 5.92 billion expected on average by 15 analysts in a poll provided by the bank.
Net Interest Income
Net interest income, which includes mortgage revenue, rose to 9.33 billion crowns from 9.06 billion a year earlier, but lagged analysts' average forecast of 9.47 billion.
Full-Year Interest Income Prediction
The bank predicted net interest income for the full year of slightly above 38 billion, up from 36.6 billion last year and in line with analyst forecasts.
($1 = 6.5349 Danish crowns)
(Reporting by Louise Rasmussen; Editing by Sherry Jacob-Phillips, Kirsten Donovan)
