Higher interest income boosts Danske Bank profit

Danske Bank reported a significant profit for the first half of the year, bolstered by high interest rates and robust customer finances. The net profit after tax was DKK 11.5 billion, up by DKK 1.3 billion from the previous year. The increase was primarily due to net interest income rising by DKK 1.75 billion. Fee income also contributed, totaling DKK 7.1 billion compared to DKK 6.3 billion the year before. CFO Stephan Engels credited higher net interest and fee income, along with controlled costs, for improved profitability. The bank also reversed DKK 200 million in provisions for expected losses, after reassessing several customers’ creditworthiness positively. Recently, Danske Bank raised its annual forecast, expecting a net profit of DKK 21-23 billion. Shareholders are set to receive dividends of DKK 7.5 per share, with additional returns expected later in the year following the sale of its Norwegian retail business to Nordea.