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Danske Bank A/S (DNKEY)
OTHER OTC:DNKEY
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Danske Bank
(OTC:DNKEY)
77Outperform
Danske Bank (DNKEY) vs. S&P 500 (SPY)
Market Cap
$27.87B
Dividend Yield6.79%
Average Volume (3M)13.46K
Price to Earnings (P/E)8.2
Beta (1Y)0.57
Revenue Growth-4.46%
EPS Growth12.79%
CountryUS
Employees19,916
SectorFinancial
Sector Strength81
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.02
Shares Outstanding1,724,370,000
10 Day Avg. Volume0
30 Day Avg. Volume13,462
Financial Highlights & Ratios
PEG Ratio0.64
Price to Book (P/B)N/A
Price to Sales (P/S)2.87
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Danske Bank Business Overview & Revenue Model
Company DescriptionDanske Bank A/S is a leading Nordic financial services group headquartered in Copenhagen, Denmark. It operates across Northern Europe, providing banking services to retail, commercial, and institutional customers. The bank offers a range of products and services including personal banking, business banking, asset management, investment banking, and insurance solutions. With a strong emphasis on digital innovation, Danske Bank aims to deliver seamless, customer-centric financial experiences.
How the Company Makes MoneyDanske Bank generates revenue through a diversified set of financial services. The primary revenue streams include net interest income from lending activities, where the bank earns interest on loans provided to individuals and businesses, and net fee and commission income from services like asset management, brokerage, and payment processing. Additionally, Danske Bank earns income from trading activities in capital markets and by providing advisory and investment banking services. The bank also benefits from insurance premiums and wealth management services. Strategic partnerships and collaborations with fintech companies further enhance its service offerings and contribute to its revenue growth. Moreover, the bank focuses on cost efficiency and digital transformation to maintain profitability in a competitive market.
Danske Bank Financial Statement Overview
Summary
Danske Bank shows strong revenue growth and profitability with a solid net profit margin, supported by a stable balance sheet. However, cash flow challenges with negative operating and free cash flows are areas for improvement.Income Statement
Danske Bank's income statement shows a strong net profit margin of 41.9% with significant revenue growth of 1.48% from the previous year. However, the absence of EBIT and EBITDA margins in the latest year limits a comprehensive profitability analysis. The bank has demonstrated solid revenue growth over the years, indicating a positive trajectory.75
Positive
Balance Sheet
The balance sheet reflects a robust equity base with an equity ratio of 4.73%. The debt-to-equity ratio is favorable at 0, indicating no reliance on debt financing in the latest year. The return on equity stands at a strong 13.45%, highlighting efficient use of equity. Overall, the bank maintains a stable financial position, though the relatively low equity ratio may signal higher leverage risks typical for the banking industry.68
Positive
Cash Flow
The cash flow statement indicates a challenging year with negative operating cash flow and free cash flow in 2024. Despite this, the bank has managed free cash flow growth of -167.58% from the previous year, driven by previous positive cash flow performance. The operating cash flow to net income ratio is negative, suggesting potential liquidity management issues.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 56.41B | 55.59B | 44.41B | 47.43B | 39.14B | Gross Profit |
| 56.41B | 56.52B | 44.41B | 47.43B | 39.14B | EBIT |
| 30.96B | 26.71B | 13.22B | 16.64B | 6.70B | EBITDA |
| 0.00 | 31.82B | 0.00 | 21.45B | 12.70B | Net Income Common Stockholders |
| 23.63B | 21.26B | -5.15B | 12.92B | 4.59B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 189.02B | 277.85B | 198.48B | 326.81B | 352.16B | Total Assets |
| 3.72T | 3.77T | 3.76T | 3.94T | 4.11T | Total Debt |
| 0.00 | 1.10T | 910.82B | 1.05T | 1.04T | Net Debt |
| -189.02B | -277.85B | 712.34B | 725.27B | 690.11B | Total Liabilities |
| 3.54T | 3.60T | 3.60T | 3.76T | 3.94T | Stockholders Equity |
| 175.69B | 175.74B | 160.32B | 176.70B | 168.68B |
| Cash Flow | Free Cash Flow | |||
| -94.73B | 140.12B | -110.74B | -39.13B | 185.23B | Operating Cash Flow |
| -92.47B | 141.50B | -109.36B | -37.56B | 186.51B | Investing Cash Flow |
| -2.23B | -1.33B | 650.00M | -1.56B | -1.26B | Financing Cash Flow |
| -30.68B | -7.89B | -18.44B | -1.40B | 18.27B |
Danske Bank Technical Analysis
Positive
16.87
Price Trends
16.17
Positive
15.01
Positive
14.42
Positive
Market Momentum
0.12
Negative
55.42
Neutral
93.20
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNKEY, the sentiment is Positive. The current price of 16.87 is above the 20-day moving average (MA) of 15.96, above the 50-day MA of 16.17, and above the 200-day MA of 14.42, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 55.42 is Neutral, neither overbought nor oversold. The STOCH value of 93.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DNKEY.
Danske Bank Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $27.87B | 8.22 | 13.59% | 6.79% | -4.46% | 12.79% | |
77 Outperform | $24.06B | 9.46 | 11.46% | 0.40% | 18.05% | -75.88% | |
73 Outperform | $23.91B | 11.37 | 11.71% | 4.08% | 6.12% | 0.68% | |
73 Outperform | $21.25B | 11.19 | 10.30% | 4.26% | 7.89% | 17.47% | |
72 Outperform | $18.60B | 9.92 | 11.33% | 4.82% | 1.23% | 12.14% | |
63 Neutral | $12.33B | 9.59 | 8.02% | 79.26% | 12.87% | -4.61% | |
63 Neutral | $25.95B | 10.79 | 9.39% | 3.26% | 1.41% | 1.12% |
* Financial Sector Average
Performance Comparison
DNKEY
Danske Bank
16.87
3.67
27.80%
FITB
Fifth Third Bancorp
35.28
-0.29
-0.82%
FCNCA
First Citizens BancShares
1,779.26
31.03
1.77%
HBAN
Huntington Bancshares
14.40
1.42
10.94%
MTB
M&T Bank
167.39
25.34
17.84%
RF
Regions Financial
20.28
1.49
7.93%
Danske Bank Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: 16.43% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
Danske Bank reported strong financial performance and strategic progress, with notable achievements in cost efficiency, capital management, and technology transformation. However, challenges such as muted lending demand and lower income from leasing businesses were highlighted, along with a slightly lower profit outlook for 2025.Highlights
Strong Financial Performance
Danske Bank reported a net profit of DKK 23.6 billion for 2024, slightly exceeding guidance. Core banking income increased by 8%, with total income surpassing DKK 56 billion, hitting the 2026 target ahead of schedule.
Cost Efficiency Improvements
The cost-income ratio improved to 46% from 49% in 2023, maintaining stable operating expenses and enabling strategic investments. The bank kept operating expenses stable, which facilitated strategic investments.
Robust Capital and Liquidity Position
The CET1 capital ratio stood at 17.8% at the end of Q4, including the impact from dividends and the new share buyback program. Danske Bank also announced a new share buyback program of DKK 5 billion.
Technology and Strategy Execution
Progress on the technology transformation, with a Cloud migration program ahead of schedule and investments in GenAI capabilities. Strategic KPIs related to customer satisfaction and Danske Bank's image improved.
Dividend and Shareholder Returns
Danske Bank announced a total dividend of DKK 22.2 per share, a payout ratio of approximately 80%, and an extraordinary dividend of DKK 5.35 per share, with a new share buyback program starting next week.
Lowlights
Muted Lending Demand
The overall lending demand was muted, particularly within the retail business, despite strong corporate demand primarily in Denmark. Housing market activity remained subdued.
Lower Income from Leasing Businesses
Total income from the business customers segment declined due to lower income from leasing activities, despite a solid financial performance overall.
Challenges in Northern Ireland
Trading income in Northern Ireland was affected by less positive mark-to-market movements on the hedging portfolio compared to the previous year.
Slightly Lower Outlook for 2025
The financial outlook for 2025 anticipates a net profit of between DKK 21 billion to DKK 23 billion, driven by slightly lower total income and a loan impairment charge of around DKK 1 billion.
Company Guidance
During the Danske Bank Q4 2024 conference call, the bank reported a net profit of DKK 23.6 billion, exceeding their guidance of DKK 22.5 billion to DKK 23.5 billion. The bank's core banking income increased by 8% from 2023, reaching over DKK 56 billion, which aligns with their 2026 target. The cost-income ratio improved to 46% from 49% in 2023, and the return on equity was 13.4%, the highest since 2018. Danske Bank announced a capital distribution which includes total dividends of DKK 22.2 per share and a new DKK 5 billion share buyback program. The CET1 capital ratio stood at 17.8% at the end of Q4. For 2025, Danske Bank expects a net profit of DKK 21 billion to DKK 23 billion, with slightly lower total income, stable operating expenses, and a loan impairment charge of around DKK 1 billion.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.