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Danske Bank A/S (DNKEY)
OTHER OTC:DNKEY
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Danske Bank
(OTC:DNKEY)
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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.
Danske Bank (DNKEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.13B
Dividend Yield9.56%
Average Volume (3M)783.00
Price to Earnings (P/E)10.6
Beta (1Y)0.65
Revenue Growth-9.51%
EPS Growth6.81%
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. Volume783
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap6.31
Enterprise Value/Revenue2.87
Enterprise Value/Gross Profit3.93
Enterprise Value/Ebitda7.17
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 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:Jul 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed view with strong financial performance and capital position but faced challenges in fee and insurance income. Continued growth and strategic execution were highlighted, alongside concerns about market volatility and income pressures.Q2-2025 Updates
Positive Updates
Solid Net Profit and Return on Equity
Danske Bank reported a net profit of DKK 11.2 billion and a return on shareholders' equity of 13% for the first half of 2025.
Increased Lending and Deposit Growth
Lending increased by 5% year-on-year, and deposits grew by 3%, primarily in the large corporate and retail business segments.
Market Share Gains in Corporate Lending
Improved market share for corporate lending across all Nordic countries was achieved, reflecting the success of the bank's Nordic growth strategy.
Stable Operating Expenses
Operating expenses were stable due to prudent cost management, contributing to a cost/income ratio in line with the target level of 45%.
Strong Capital Position
CET1 ratio increased to 18.7%, supported by solid capital generation, and the bank plans to maintain a CET1 ratio above 16%.
Negative Updates
Lower Net Profit Compared to Previous Year
Net profit decreased by 2% year-on-year, impacted by lower net income from the insurance business and higher loan impairment charges.
Soft Fee Income
Fee income was down 7% in Q2 compared to Q1, attributed to volatile financial markets and reduced investment activity.
Impact of Rate Cuts
The bank faced challenges in net interest income due to the impact of rate cuts on deposit margins, although this was partially mitigated by volume growth.
Insurance Business Challenges
Income from insurance activities was lower than the previous year, mainly due to increased provisions in Q1.
Company Guidance
During the call, Danske Bank's management provided guidance on several key metrics, reflecting their financial performance and strategic direction. For the first half of 2025, the bank achieved a net profit of DKK 11.2 billion, with a return on shareholders' equity of 13%. Lending increased by 5% year-on-year, while deposits grew by 3%. The cost-to-income ratio was maintained at approximately 45%, aligning with the bank's 2026 financial targets. Despite a slightly lower net income from the insurance business and increased loan impairment charges, the bank reiterated its net profit outlook for the full year to be between DKK 21 billion and DKK 23 billion. Operating expenses are expected to remain within the DKK 26 billion target, and loan impairment charges are projected to be around DKK 1 billion. The bank's CET1 ratio improved to 18.7%, with a target of maintaining above 16%. Danske Bank continues to focus on its growth strategy across Nordic markets, leveraging investments in technology and advisory services to enhance customer engagement and market share.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 | 77.34B | 56.41B | 55.59B | 44.41B | 47.43B | 39.14B |
| Gross Profit | 56.34B | 56.41B | 56.52B | 44.41B | 47.43B | 39.14B |
| EBITDA | 30.90B | 0.00 | 31.82B | 0.00 | 21.45B | 12.70B |
| Net Income | 23.37B | 23.63B | 21.26B | -5.15B | 12.92B | 4.59B |
Balance Sheet | ||||||
| Total Assets | 3.74T | 3.72T | 3.77T | 3.76T | 3.94T | 4.11T |
| Cash, Cash Equivalents and Short-Term Investments | 219.55B | 189.02B | 277.85B | 198.48B | 326.81B | 352.16B |
| Total Debt | 1.12T | 936.26B | 1.10T | 910.82B | 1.05T | 1.04T |
| Total Liabilities | 3.57T | 3.54T | 3.60T | 3.60T | 3.76T | 3.94T |
| Stockholders Equity | 172.77B | 175.69B | 175.74B | 160.32B | 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
21.57
Price Trends
20.73
Positive
20.18
Positive
17.74
Positive
Market Momentum
0.19
Negative
60.32
Neutral
46.72
Neutral
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 21.57 is above the 20-day moving average (MA) of 20.86, above the 50-day MA of 20.73, and above the 200-day MA of 17.74, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 60.32 is Neutral, neither overbought nor oversold. The STOCH value of 46.72 is Neutral, 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $25.54B | 12.97 | 10.08% | 3.56% | 6.06% | 28.03% | |
77 Outperform | $23.76B | 12.41 | 11.13% | 3.81% | 2.94% | 20.85% | |
76 Outperform | $30.07B | 14.14 | 11.06% | 3.26% | 1.90% | 2.87% | |
76 Outperform | $31.28B | 12.96 | 9.47% | 2.77% | 0.69% | 14.79% | |
74 Outperform | $35.13B | 10.58 | 12.91% | 9.56% | -9.51% | 6.81% | |
72 Outperform | $23.72B | 10.92 | 10.75% | 0.42% | -2.09% | -6.84% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
DNKEY
Danske Bank
21.57
7.50
53.30%
BBD
Banco Bradesco SA
3.30
0.81
32.53%
FITB
Fifth Third Bancorp
45.43
3.74
8.97%
HBAN
Huntington Bancshares
17.42
3.28
23.20%
KB
Kb Financial Group
80.84
19.09
30.91%
MTB
M&T Bank
200.14
26.96
15.57%
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.