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Danske Bank A/S (DNKEY)
OTHER OTC:DNKEY
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Danske Bank (DNKEY) AI Stock Analysis

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DNKEY

Danske Bank

(OTC:DNKEY)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
$31.00
â–²(11.67% Upside)
Action:Upgraded
Date:07/18/26
The score is driven primarily by solid current profitability and a positive outlook from the latest earnings call (raised profit guidance and strong capital position). Technicals also support the view with a clear uptrend and positive momentum. These positives are moderated by elevated leverage typical of banks and historically volatile revenue/cash-flow patterns, which increase risk despite the attractive valuation and high dividend yield.
Positive Factors
Upgraded guidance & strong ROE
Management's upgrade to DKK 23–25bn and reported quarterly ROE near 14–15% reflect durable operating profitability and execution. Sustained higher ROE increases retained earnings and supports reinvestment, dividends, and resilience through cycles if loan and fee trends persist.
Negative Factors
High leverage on the balance sheet
Elevated debt-to-equity (~6.8x) and large absolute debt increase sensitivity to credit shocks and market stress. High leverage reduces flexibility for aggressive capital return programs and amplifies earnings volatility from credit or interest-rate swings, constraining long-term risk appetite.
Read all positive and negative factors
Positive Factors
Negative Factors
Upgraded guidance & strong ROE
Management's upgrade to DKK 23–25bn and reported quarterly ROE near 14–15% reflect durable operating profitability and execution. Sustained higher ROE increases retained earnings and supports reinvestment, dividends, and resilience through cycles if loan and fee trends persist.
Read all positive factors

Danske Bank (DNKEY) vs. SPDR S&P 500 ETF (SPY)

Danske Bank Business Overview & Revenue Model

Company Description
Danske Bank A/S delivers an extensive range of banking products and services, serving a diverse clientele including corporate entities, institutional organizations, and international customers. Its comprehensive offerings span various financial so...
How the Company Makes Money
Danske Bank primarily earns money through a mix of net interest income, fee and commission income, and trading/other income typical of a universal bank. (1) Net interest income: The bank takes deposits and other funding and uses that funding to ma...

Danske Bank Earnings Call Summary

Earnings Call Date:Jul 17, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed a clearly positive operational and financial momentum: management upgraded full-year profit guidance, delivered a strong quarter with high ROE, robust fee income, significant AUM inflows, continued commercial lending growth, disciplined cost control, and a strong CET1 ratio. Headwinds flagged were mainly execution and market-volatility related (trading income volatility, hedge and funding dynamics, higher staff and resolution fees, and sizable prudential overlays), but these were presented as manageable and covered by capital and earnings strength. Overall, the highlights substantially outweigh the lowlights, with remaining risks framed as monitored and mitigated.
Positive Updates
Upgraded Full-Year Profit Guidance
Net profit guidance raised from DKK 22–24bn to DKK 23–25bn for 2026, implying an expected return on equity of around 14% and reflecting stronger income outlook.
Negative Updates
Trading Income Volatility and Below Historical Run-Rate
Trading income remains volatile and impacted by lower customer activity in secondary markets; recent annualized run-rate closer to DKK ~2bn versus the previously discussed normalized DKK 3bn target, with Q1 being particularly soft.
Read all updates
Q2-2026 Updates
Negative
Upgraded Full-Year Profit Guidance
Net profit guidance raised from DKK 22–24bn to DKK 23–25bn for 2026, implying an expected return on equity of around 14% and reflecting stronger income outlook.
Read all positive updates
Company Guidance
Danske Bank raised its 2026 net profit guidance to DKK 23–25 billion (implying roughly 14% ROE) and now expects total income to be somewhat above DKK 59 billion and net interest income to be slightly above DKK 38 billion; operating expenses are guided at DKK 26–26.5 billion with a cost‑to‑income ratio expected below 45% (Q2 C/I 43%, H1 44.4%). Loan impairment charges are guided around DKK 1 billion (~5 bps cost of risk), structural hedge notional is ~DKK 190 billion (loan hedge ~DKK 200 billion) with NII sensitivity of about +DKK 450m per 25 bps in year one (+DKK 300m year two, +DKK 100m year three), capital remains strong with CET1 at 17% (target ~17% end‑2026 and ~16% by 2028), ~240 bps CET1 headroom, expected DKK 3.5 billion (~40 bps) Pillar‑2 relief in 2026, and post‑model adjustments of DKK 5.2 billion (≈30 bps overlay).

Danske Bank Financial Statement Overview

Summary
Profitability is strong in the TTM (EBIT margin ~28.6%, net margin ~21.4%) with a solid ROE (~13.2%), but the balance sheet carries high leverage for equity holders (debt-to-equity ~6.84x) and both revenue and cash flows have shown pronounced year-to-year volatility, including sharply negative TTM free cash flow growth.
Income Statement
78
Positive
Balance Sheet
60
Neutral
Cash Flow
55
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue96.11B95.17B100.25B94.17B68.69B78.26B
Gross Profit58.12B56.84B56.41B53.09B44.05B47.36B
EBITDA31.66B31.69B32.02B30.93B3.01B21.45B
Net Income23.71B23.04B23.63B21.26B-4.58B12.92B
Balance Sheet
Total Assets3.87T3.75T3.72T3.73T3.79T3.94T
Cash, Cash Equivalents and Short-Term Investments750.17B225.46B189.02B277.85B198.46B326.81B
Total Debt1.15T1.14T1.13T1.10T1.05T1.17T
Total Liabilities3.70T3.57T3.54T3.55T3.63T3.76T
Stockholders Equity167.15B181.16B175.69B175.74B160.28B176.70B
Cash Flow
Free Cash Flow51.94B22.23B-94.73B140.12B-110.74B-39.13B
Operating Cash Flow54.25B22.55B-92.47B141.50B-109.36B-37.56B
Investing Cash Flow-2.31B-2.02B-2.23B-1.33B650.00M-1.56B
Financing Cash Flow-16.75B-13.10B-30.68B-7.89B-18.44B-1.40B

Danske Bank Technical Analysis

Technical Analysis Sentiment
Positive
Last Price27.76
Price Trends
50DMA
26.89
Positive
100DMA
25.67
Positive
200DMA
24.13
Positive
Market Momentum
MACD
0.30
Positive
RSI
47.21
Neutral
STOCH
5.12
Positive
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 27.76 is below the 20-day moving average (MA) of 27.97, above the 50-day MA of 26.89, and above the 200-day MA of 24.13, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 47.21 is Neutral, neither overbought nor oversold. The STOCH value of 5.12 is Positive, 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
$35.70B13.2610.66%2.40%0.50%22.74%
74
Outperform
$34.43B12.538.58%3.57%18.13%-3.57%
73
Outperform
$45.73B12.8413.69%8.00%21.70%11.56%
71
Outperform
$51.21B19.098.43%2.79%17.75%-8.65%
68
Neutral
$39.40B9.8710.83%2.67%34.27%11.29%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
53
Neutral
$35.78B9.1113.55%7.75%28.16%28.12%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DNKEY
Danske Bank
28.72
9.90
52.61%
BBD
Banco Bradesco SA
3.61
0.95
35.71%
FITB
Fifth Third Bancorp
56.50
16.43
41.00%
HBAN
Huntington Bancshares
17.04
1.36
8.67%
KB
Kb Financial Group
117.82
39.04
49.56%
MTB
M&T Bank
246.29
63.44
34.69%
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.Date of analysis: Jul 18, 2026