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Danske Bank A/S (DNKEY)
OTHER OTC:DNKEY
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Danske Bank
(OTC:DNKEY)
Select Model
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Rating:74Outperform
Price Target:―
Danske Bank's stock score reflects strong financial performance and positive technical indicators. The bank's stable balance sheet and attractive valuation, characterized by a low P/E ratio and high dividend yield, are strengths. Challenges include cash flow issues and uncertainties in specific segments and geopolitical factors.
Positive Factors
Strong Capital Position
A strong CET1 ratio indicates robust capital adequacy, enhancing the bank's ability to withstand economic downturns and regulatory changes.
Growth in Lending and Fee Income
Growth in lending and fee income reflects effective business expansion and customer engagement, supporting long-term revenue stability.
Strong Credit Quality
Low loan impairment charges suggest effective risk management and strong credit quality, which are crucial for sustained profitability.
Negative Factors
Cash Flow Challenges
Negative cash flows can limit operational flexibility and investment capacity, posing risks to long-term financial health and growth.
Decline in Personal Customers Segment
A decline in the Personal Customers segment may indicate challenges in retaining market share and customer loyalty, impacting future growth.
Geopolitical Uncertainty Impact
Geopolitical uncertainties can disrupt market conditions and consumer behavior, potentially affecting the bank's operations and profitability.
Danske Bank (DNKEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$37.38B
Dividend Yield8.76%
Average Volume (3M)568.00
Price to Earnings (P/E)11.3
Beta (1Y)0.60
Revenue Growth-13.47%
EPS Growth1.47%
CountryUS
Employees20,046
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.52
Shares Outstanding1,669,990,200
10 Day Avg. Volume0
30 Day Avg. Volume568
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)0.99
Price to Sales (P/S)3.09
P/FCF Ratio-1.84
Enterprise Value/Market Cap5.86
Enterprise Value/Revenue2.19
Enterprise Value/Gross Profit3.89
Enterprise Value/Ebitda7.09
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Danske Bank Business Overview & Revenue Model
Company DescriptionDanske Bank A/S provides various banking products and services to corporate, institutional, and international clients. The company offers corporate finance services, investment and debt capital markets products, merger and acquisition advisory services, equity and loan capital markets services, international payments, cash management, credit transfer, and supply chain and trade finance services. It also provides solutions for sustainable finance, derivatives, fixed income, foreign exchange, equities trading, cash flow forecast, collection services, financial platform, export finance, letter of credit, liquidity management, factoring, working capital management, guarantees, and in-house bank. In addition, it offers custody, depositary, data management, post-trade, bank and middle office, collateral management, and derivatives clearing services. The company has operations in Denmark, Finland, Sweden, Norway, the United Kingdom, and internationally. Danske Bank A/S was founded in 1871 and is headquartered in Copenhagen, Denmark.
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 Earnings Call Summary
Earnings Call Date:Oct 31, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a solid financial performance with notable growth in lending, deposits, and assets under management. However, there are challenges with lower net profit year-on-year, declines in trading and insurance income, and the impact of lower interest rates.Q3-2025 Updates
Positive Updates
Solid Financial Performance
Net profit for the first 9 months of 2025 was DKK 16.7 billion, with a return on equity of 12.9% for the first 9 months and 12.6% for the third quarter.
Growth in Lending and Deposits
Lending and deposit volumes increased by 4% and 3%, respectively, driven by higher customer activity in the corporate segment and increased deposits in the retail segment.
Record Assets Under Management
Asset management business reached an all-time high of more than DKK 950 billion in assets under management, with a 6% increase in assets under management in the third quarter.
Positive Fee Income Growth
Fee income increased by 8% in Q3, reflecting a positive uplift across all fee categories.
Strong Corporate and Institutional Performance
Corporate and Institutional franchise saw total income up 8% year-on-year, with strong customer demand for investment solutions.
Stable Operating Expenses
Operating expenses were almost unchanged relative to the same period last year, with a focus on cost management and efficiency.
Negative Updates
Decline in Net Profit Year-on-Year
Net profit for the group was down 5% year-on-year due to loan impairments and lower insurance income.
Lower Income from Trading and Insurance Activities
Total income was slightly down due to decreased income from trading and insurance activities in Q3.
Challenges in Health and Accident Insurance
Income from insurance activities was lower due to increased provisions and challenges in the health and accident business.
Impact of Lower Interest Rates
Net interest income remained stable despite the impact of lower rates on deposit margins.
Company Guidance
In the recent conference call discussing Danske Bank's financial results for the first nine months of 2025, the bank provided a comprehensive guidance on their financial outlook. Danske Bank reported a net profit of DKK 16.7 billion, corresponding to a return on equity of 12.9% for the nine months and 12.6% for the third quarter. The bank highlighted growth in lending and deposit volumes by 4% and 3%, respectively, with corporate segment activity driving lending growth. Assets under management reached over DKK 950 billion, marking an all-time high, supported by strong net sales in private banking and institutional segments. The loan loss ratio remained low at 2 basis points, and the PMA buffer was largely unchanged. The bank maintained its net profit guidance range of DKK 21-23 billion but now anticipates this to be at the upper end, driven by improved net interest income (NII) and better loan impairment charges expectations. Operating expenses were projected to be up to DKK 26 billion, maintaining a focus on prudent cost management. Additionally, the bank noted strong credit quality, with a net reversal in Q3 and a stable CET1 capital ratio of 18.7%. The strategic focus remains on expanding their digital offerings and enhancing advisory services, aiming to leverage market opportunities across the Nordic region.Danske Bank Financial Statement Overview
Summary
Danske Bank shows strong revenue growth and profitability with a solid net profit margin. The balance sheet is stable with a strong equity base, though typical industry leverage risks exist. Cash flow challenges are evident, with negative operating and free cash flows in the latest year.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 100.05B | 56.41B | 94.17B | 68.69B | 78.26B | 82.70B |
| Gross Profit | 56.34B | 56.41B | 53.09B | 44.05B | 47.36B | 46.46B |
| EBITDA | 30.90B | 0.00 | 30.93B | 3.01B | 21.45B | 12.61B |
| Net Income | 23.37B | 23.63B | 21.26B | -4.58B | 12.92B | 4.59B |
Balance Sheet | ||||||
| Total Assets | 3.74T | 3.72T | 3.73T | 3.79T | 3.94T | 4.11T |
| Cash, Cash Equivalents and Short-Term Investments | 219.55B | 189.02B | 277.85B | 198.46B | 326.81B | 352.16B |
| Total Debt | 1.12T | 1.13T | 1.10T | 1.05T | 1.17T | 1.18T |
| Total Liabilities | 3.57T | 3.54T | 3.55T | 3.63T | 3.76T | 3.94T |
| Stockholders Equity | 172.77B | 175.69B | 175.74B | 160.28B | 176.70B | 168.68B |
Cash Flow | ||||||
| Free Cash Flow | -96.93B | -94.73B | 140.12B | -110.74B | -39.13B | 185.23B |
| Operating Cash Flow | -94.41B | -92.47B | 141.50B | -109.36B | -37.56B | 186.51B |
| Investing Cash Flow | -2.54B | -2.23B | -1.33B | 650.00M | -1.56B | -1.26B |
| Financing Cash Flow | -37.53B | -30.68B | -7.89B | -18.44B | -1.40B | 18.27B |
Danske Bank Technical Analysis
Positive
23.40
Price Trends
21.94
Positive
21.29
Positive
19.61
Positive
Market Momentum
0.35
Negative
64.76
Neutral
97.64
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 23.4 is above the 20-day moving average (MA) of 22.76, above the 50-day MA of 21.94, and above the 200-day MA of 19.61, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 64.76 is Neutral, neither overbought nor oversold. The STOCH value of 97.64 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $26.00B | 11.62 | 10.37% | 3.91% | 5.73% | 38.39% | |
74 Outperform | $37.38B | 11.31 | 12.37% | 8.76% | -13.47% | 1.47% | |
74 Outperform | $29.35B | 11.77 | 9.60% | 2.98% | -0.81% | 20.34% | |
73 Outperform | $28.91B | 13.08 | 11.52% | 3.45% | 0.15% | 11.62% | |
72 Outperform | $35.45B | 10.22 | 11.78% | 2.27% | 5.89% | 34.68% | |
70 Outperform | $32.69B | 8.35 | 9.99% | 2.79% | -4.64% | 24.98% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
DNKEY
Danske Bank
23.41
9.84
72.55%
BBD
Banco Bradesco SA
3.58
1.64
84.73%
FITB
Fifth Third Bancorp
44.93
-0.27
-0.60%
HBAN
Huntington Bancshares
17.04
0.10
0.59%
KB
Kb Financial Group
89.41
22.13
32.89%
MTB
M&T Bank
195.63
-10.01
-4.87%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.