Denmark’s biggest bank, Danske, expects its profit may fall down to half this year. Danske Bank forecasts, the total profits would fall between 8 to 10 billion Danish crowns this year, whereas, in 2019 net profit was flat at 15.1 billion Danish crowns (£1.7bn). The fallout of Danske Bank continued from a €200bn money-laundering scandal (*suspicious payments from Russia and elsewhere flowed through its branch in Estonia) and negative interest rates.
The bank has reported a net profit of 5.0 billion Danish crowns) in the fourth quarter.
Chief Executive Chris Vogelzang said the bank is continuing to push through cuts across the organization, however, the results were expected as negative interest rates, margin pressure and increased costs related to compliance had a negative impact.
Last year in November, the bank had announced its plans to control compliance and costs by 2023. The plans also included a return on shareholders’ equity of 9 to 10 percent.
The bank was able to achieve a 9.6% return on equity in 2019, and said in 2020 it expects that number to be between 5 to 6 percent.