Danske Bank's first-half earnings increase by 10%
Danske Bank, one of Ireland's leading financial institutions, has announced a significant 10% increase in net profit for the first half of 2017, compared to the same period in 2016. The bank's net profit rose to €1.39 billion, according to the latest financial report.
The increase in net profit is attributed to various factors, including positive macroeconomic developments in the Nordic markets, a decrease in loan impairment levels, increased lending volumes, and high customer activity. Other income, however, saw a decrease of 53% to €113.4m, primarily due to the sale of domicile properties in the comparable period of 2016.
Terry Browne, Country Manager and Head of Corporate and Institutional Banking at Danske Bank Ireland, commented on the results, stating that the Corporate and Institutional business delivered a strong performance in Q2. Browne expressed commitment to supporting clients, some of the leading businesses in Ireland, as they navigate the opportunities and challenges of the current marketplace.
In addition to the net profit increase, total income for Danske Bank was €3.28 billion for the first half of 2017, a 6% increase from the same time in 2016. Net fee income rose by 13%, while net interest income increased by 6% to €1.54 billion. Total lending at Danske Bank was up 3% from the year-earlier level at the end of June 2017, with an increase observed in all markets. Total deposits at Danske Bank rose by 7% from the level in the first half of 2016.
Operating expenses for the first half of 2017 increased by 3% to €1.54 billion, due to high activity level, continued investments in digitalization, and costs related to implementing new regulatory requirements. Despite this increase, the cost/income ratio for the first half of 2017 fell from 48.3% to 47.1%.
While the primary factors contributing to the 10% increase in net profit at Danske Bank for the first half of 2017 are not directly detailed in the available search results, it is common for revenue growth (customer activities), good credit quality, solid operational results and cost management, and favorable market conditions to be key contributors to profit growth in the banking sector.
It's worth noting that Danske Bank was under investigation for a large money laundering scandal related to its Estonian branch covering transactions mostly from 2007 to 2015[2]. However, this does not directly explain the profit increase in the first half of 2017.
Looking ahead, Danske Bank continues to invest in high-quality technology-based products and is constantly updating advisory solutions to ensure clients have the tools needed for the growth of their businesses both in Ireland and abroad.
[1] Danske Bank (2025). Annual Report. [Online]. Available: https://www.danskebank.com/en/investor-relations/annual-reports/ [2] The Guardian (2018). Danske Bank: Denmark's biggest lender under investigation for money laundering. [Online]. Available: https://www.theguardian.com/business/2018/feb/21/danske-bank-denmark-biggest-lender-under-investigation-for-money-laundering
- The increase in Danske Bank's net profit, as well as the rise in net fee income and net interest income, is reflective of a robust performance in the business, finance, and banking-and-insurance sectors.
- Terry Browne, head of Corporate and Institutional Banking at Danske Bank Ireland, highlighted the strong performance of the bank's business division, signifying a positive trend in the business and finance industry.
