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.