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Danske Bank A/S (Adr) (DNKEY)
:DNKEY
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Danske Bank
(OTC:DNKEY)
Rating:74Outperform
Price Target:―
Danske Bank (DNKEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.20B
Dividend Yield9.4%
Average Volume (3M)1.57K
Price to Earnings (P/E)10.0
Beta (1Y)0.58
Revenue Growth-4.46%
EPS Growth12.79%
CountryUS
Employees20,046
SectorFinancial
Sector Strength67
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.52
Shares Outstanding1,669,990,200
10 Day Avg. Volume2,231
30 Day Avg. Volume1,571
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 Cap6.68
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 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 Earnings Call Summary
Earnings Call Date:Jul 18, 2025
(Q2-2025)
| % Change Since: 4.00%|
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Neutral
Danske Bank reported solid financial performance with strong growth in lending and deposits, stable operating expenses, and a robust capital position. However, challenges included a slight decrease in net profit year-on-year, softer fee income impacted by market volatility, and increased loan impairment charges.Q2-2025 Updates
Positive Updates
Robust Net Profit
Danske Bank reported a net profit of DKK 11.2 billion for the first half of 2025, with a return on shareholders' equity of 13%.
Growth in Lending and Deposits
Lending increased by 5% year-on-year and deposits grew by 3%, demonstrating strong corporate and retail business activity.
Expansion in Nordic Market
Danske Bank increased its market share in corporate lending across all Nordic countries and expanded its cash management business.
Stable Operating Expenses
Operating expenses remained stable, and the cost/income ratio aligned with the target level of 45%.
Strong Capital Position
The CET1 ratio increased to 18.7%, showing a strong capital generation and a buffer above the regulatory requirements.
Negative Updates
Decrease in Net Profit Year-on-Year
Net profit decreased by 2% compared to the previous year, primarily due to lower net income from the insurance business and higher loan impairment charges.
Soft Fee Income
Fee income was slightly softer than expected, impacted by volatile financial markets and lower refinancing activity.
Increased Loan Impairment Charges
Loan impairment charges moved from net reversals to small charges, affecting the financial results compared to the preceding quarter.
Company Guidance
During the conference call, Danske Bank provided guidance based on several key financial metrics. The bank reported a net profit of DKK 11.2 billion for the first half of 2025, translating to a 13% return on shareholders' equity. This performance was supported by a 5% increase in lending and a 3% rise in deposits compared to the previous year. The bank maintained a stable operating expense level, achieving a cost/income ratio in line with the target of 45%. Notably, loan impairment charges were low, at DKK 0.3 billion for the first six months, reinforcing the bank's guidance for full-year charges of around DKK 1 billion. Despite a slight decline in fee income due to reduced refinancing activity and investment sentiment, net interest income remained stable, supported by strong volume growth and a structural hedge. The bank reiterated its net profit outlook for 2025, projecting a range between DKK 21 billion and DKK 23 billion, and confirmed its financial targets for 2026. Additionally, the bank's CET1 ratio improved to 18.7%, reflecting strong capital generation and a healthy buffer above regulatory requirements.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
20.52
Price Trends
20.02
Positive
18.61
Positive
16.44
Positive
Market Momentum
0.07
Negative
58.08
Neutral
72.73
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 20.52 is above the 20-day moving average (MA) of 20.12, above the 50-day MA of 20.02, and above the 200-day MA of 16.44, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 58.08 is Neutral, neither overbought nor oversold. The STOCH value of 72.73 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $27.59B | 12.87 | 11.58% | 3.59% | 2.08% | 2.87% | |
77 Outperform | $22.25B | 11.62 | 11.59% | 4.06% | 2.83% | 20.85% | |
77 Outperform | $28.99B | 12.02 | 9.47% | 2.94% | 0.62% | 14.75% | |
75 Outperform | $24.50B | 10.99 | 10.70% | 0.41% | -2.10% | -6.84% | |
74 Outperform | $33.20B | 9.98 | 12.91% | 9.40% | -4.46% | 12.79% | |
73 Outperform | $23.51B | 11.94 | 10.43% | 3.91% | 5.28% | 28.03% | |
67 Neutral | $17.03B | 11.50 | 9.79% | 3.95% | 10.63% | 1.98% |
* Financial Sector Average
Performance Comparison
DNKEY
Danske Bank
20.52
6.99
51.66%
FITB
Fifth Third Bancorp
41.17
2.92
7.63%
FCNCA
First Citizens BancShares
1,820.85
-146.04
-7.42%
HBAN
Huntington Bancshares
15.87
2.80
21.42%
MTB
M&T Bank
183.74
26.07
16.53%
RF
Regions Financial
24.64
4.77
24.01%
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.