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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
$31.83B
Dividend Yield5.85%
Average Volume (3M)1.57K
Price to Earnings (P/E)9.6
Beta (1Y)0.57
Revenue Growth-4.46%
EPS Growth12.79%
CountryUS
Employees20,046
SectorFinancial
Sector Strength83
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.53
Shares Outstanding1,669,990,200
10 Day Avg. Volume0
30 Day Avg. Volume1,567
Financial Highlights & Ratios
PEG Ratio15.27
Price to Book (P/B)1.24
Price to Sales (P/S)0.00
P/FCF Ratio-5.88
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 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:May 02, 2025
(Q1-2025)
| % Change Since: 13.54%|
Next Earnings Date:Jul 18, 2025
Earnings Call Sentiment Neutral
Danske Bank's first quarter of 2025 showed strong financial performance and credit quality with notable increases in net profit, lending, and fee income. However, challenges remain in the Personal Customers segment and mortgage market share, alongside geopolitical uncertainties impacting sentiment.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Danske Bank reported a net profit of DKK 5.8 billion for the first quarter of 2025, with a return on shareholders' equity of 13.3%. This represents a 2% increase compared to the first quarter of 2024.
Growth in Lending and Fee Income
Total income increased by 1% year-over-year and 7% quarter-over-quarter in the Business Customers segment, with a 3% year-over-year increase in net interest income driven by growth in lending.
Strong Credit Quality and Low Loan Impairment Charges
Credit quality remained strong with loan impairment charges maintained at a low level of DKK 50 million in the first quarter, below the bank's outlook for the full year.
Capital Position and CET1 Ratio
The CET1 ratio increased to 18.4% at the end of Q1 2025, up from 17.8% in Q4 2024, with a strong capital and liquidity position.
Negative Updates
Decline in Personal Customers Segment
Total income for Personal Customers declined 6% from the same period last year, partly due to the divestment of PC Norway.
Impact of Geopolitical Uncertainty
Increased geopolitical tensions and tariffs have affected consumer and business sentiment, with potential impacts on the Danish and Nordic economies.
Seasonal Decrease in Total Income
Total income decreased by 4% relative to the preceding quarter due to seasonality effects impacting fee income, primarily from investments and capital markets activities.
Challenges in Mortgage Market Share
Continued challenges in increasing market share in the traditional mortgage product area, despite initiatives to improve competitiveness.
Company Guidance
In the recent call discussing Danske Bank's Q1 2025 financial results, several key metrics and financial guidance were highlighted. The bank reported a net profit of DKK 5.8 billion, a 2% increase compared to the same quarter last year, translating to a return on shareholders' equity of 13.3%. Total income for the quarter was DKK 13.9 billion, with a cost-income ratio aligning with the target of 45%. Operating expenses decreased by 1% year-over-year to DKK 6.3 billion, and loan impairment charges were minimal at DKK 50 million, below the full-year outlook. The bank's CET1 capital ratio increased to 18.4% from 17.8% in Q4 2024. For 2025, Danske Bank expects net profits in the range of DKK 21 billion to DKK 23 billion and reiterates its ambition for a net interest income exceeding DKK 35 billion, based on current rate environments and balance sheet developments.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 | ||||
| 75.33B | 56.41B | 55.59B | 44.41B | 47.43B | 39.14B | Gross Profit |
| 100.88B | 56.41B | 56.52B | 44.41B | 47.43B | 39.14B | EBIT |
| 31.53B | 30.96B | 26.71B | 13.22B | 16.64B | 6.70B | EBITDA |
| 7.93B | 0.00 | 31.82B | 0.00 | 21.45B | 12.70B | Net Income Common Stockholders |
| 23.76B | 23.63B | 21.26B | -5.15B | 12.92B | 4.59B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 284.75B | 189.02B | 277.85B | 198.48B | 326.81B | 352.16B | Total Assets |
| 3.76T | 3.72T | 3.77T | 3.76T | 3.94T | 4.11T | Total Debt |
| 0.00 | 0.00 | 1.10T | 910.82B | 1.05T | 1.04T | Net Debt |
| -284.75B | -189.02B | -277.85B | 712.34B | 725.27B | 690.11B | Total Liabilities |
| 3.59T | 3.54T | 3.60T | 3.60T | 3.76T | 3.94T | Stockholders Equity |
| 169.43B | 175.69B | 175.74B | 160.32B | 176.70B | 168.68B |
| Cash Flow | Free Cash Flow | ||||
| -33.54B | -94.73B | 140.12B | -110.74B | -39.13B | 185.23B | Operating Cash Flow |
| -31.35B | -92.47B | 141.50B | -109.36B | -37.56B | 186.51B | Investing Cash Flow |
| -41.51B | -2.23B | -1.33B | 650.00M | -1.56B | -1.26B | Financing Cash Flow |
| -1.93B | -30.68B | -7.89B | -18.44B | -1.40B | 18.27B |
Danske Bank Technical Analysis
Positive
19.70
Price Trends
17.53
Positive
16.48
Positive
15.11
Positive
Market Momentum
0.57
Positive
66.22
Neutral
78.29
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 19.7 is above the 20-day moving average (MA) of 19.07, above the 50-day MA of 17.53, and above the 200-day MA of 15.11, indicating a bullish trend. The MACD of 0.57 indicates Positive momentum. The RSI at 66.22 is Neutral, neither overbought nor oversold. The STOCH value of 78.29 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $22.70B | 12.01 | 10.30% | 3.90% | 7.55% | 17.46% | |
76 Outperform | $23.72B | 10.31 | 11.46% | 0.41% | 0.33% | -3.13% | |
74 Outperform | $31.83B | 9.59 | 13.78% | 5.85% | -4.46% | 12.79% | |
74 Outperform | $18.98B | 10.19 | 11.33% | 4.60% | 1.05% | 12.14% | |
74 Outperform | $29.31B | 12.23 | 9.39% | 2.96% | 1.20% | 1.12% | |
73 Outperform | $25.42B | 12.10 | 11.71% | 3.83% | 5.75% | 0.68% | |
64 Neutral | $12.80B | 9.71 | 7.59% | 16985.66% | 12.07% | -7.53% |
* Financial Sector Average
Performance Comparison
DNKEY
Danske Bank
19.70
5.80
41.73%
FITB
Fifth Third Bancorp
38.45
3.64
10.46%
FCNCA
First Citizens BancShares
1,828.49
139.10
8.23%
HBAN
Huntington Bancshares
15.74
2.92
22.78%
MTB
M&T Bank
179.87
38.65
27.37%
RF
Regions Financial
21.30
3.43
19.19%
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.