Danske Bank plans signficant investment in digital platforms

Rick Steves

“We have decided to significantly increase our investments in our digital platforms, expert advisory services and sustainability, focusing on the areas where we see the best opportunities for profitable growth.”

Danske Bank has set new financial targets for 2026, reflecting its ambition to deliver a solid return on equity and reduce the cost to income. Denmark, Finland, Sweden, and Norway are the bank’s key markets.

The capital distribution policy remains unchanged, with a dividend pay-out of 40-60% of net profit. From 2023-2026, Danske Bank sees a total dividend potential of at least DKK 50 billion.

The bank highlighted two key targets for 2026:

  • Return on equity: 13% with a CET1 ratio of above 16%
  • Cost/income ratio: around 45%

Changing gears and increasing strategic and financial ambitions

To support the execution of the strategy, Danske Bank is significantly increasing its annual investments in its core capabilities within digital platforms, expert advisory services, and sustainability from DKK 3 billion to DKK 4 billion.

Combined with the reprioritization of other investments, this means that we more than double our investments in the strategic development of the bank.

Carsten Egeriis, CEO of Danske Bank, commented: “Danske Bank has during recent years made fundamental changes to refocus the bank, reduce our risk exposure, develop our organisation and accelerate our commercial momentum. We can see that the changes work and we are on a clear trajectory to exceed the original financial targets we set for 2023.

“We are changing gears and substantially increasing our strategic and financial ambitions. We continue to accelerate our commercial momentum in all parts of the business, underpinned by clear growth and profitability targets. At the same time, we have decided to significantly increase our investments in our digital platforms, expert advisory services and sustainability, focusing on the areas where we see the best opportunities for profitable growth.”

“With our new strategy, we set clear ambitions for Danske Bank to be a leading bank in a digital age. Serving a quarter of the personal customers in our home market, we will work hard to continue to earn their trust and to affirm our position as the bank of choice in Denmark.”

Stephan Engels, CFO of Danske Bank, said: “Danske Bank is determined to deliver shareholder value and with the good momentum we have in our business, we expect to have substantial future distribution potential for dividends. We intend to restart dividend payments when we announce our results for the first half of 2023, and from 2023 to 2026, we see a potential for a total dividend equivalent to the upper level of our dividend policy range, which remains unchanged at 40-60%.”

Read this next

Digital Assets

Bybit exits UK market ahead of regulatory changes

Bybit is suspending its cryptocurrency services for users in the United Kingdom due to impending regulations from the country’s Financial Conduct Authority (FCA).

Digital Assets

Binance argues SEC trampled authority set by Congress

Binance, Binance.US, and Changpeng Zhao have jointly filed to dismiss a lawsuit brought by the Securities and Exchange Commission (SEC) in June.


Oscar Asly replaces Rasha Gad as CEO of M4Markets Dubai

Seychelles-regulated brokerage firm M4Markets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

Retail FX

Capital Index UK reports mitigated loss despite revenue drop

FCA-regulated brokerage firm Capital Index (UK) Limited has released its annual financial report for the year 2022.

Digital Assets

Mike Novogratz’s Galaxy Digital expands in Europe

Galaxy Digital, the New York-based cryptocurrency financial services company founded by Mike Novogratz, is expanding its presence in Europe by appointing Leon Marshall as its first European CEO.

Metaverse Gaming NFT

Turingum Partners with MarketAcross to Drive Web3 Adoption in Global and Japanese Markets

Global blockchain PR leader MarketAcross joins forces with Japanese Web3 specialist Turingum to mutually expand its market reach, aiming to fortify Turingum’s worldwide footprint and MarketAcross’s presence in the lucrative Japanese blockchain landscape.

Digital Assets

Binance to delist all stablecoins in Europe next year

During a public hearing with the European Banking Authority (EBA), an executive from Binance said that the exchange could ultimately delist stablecoins from its European platforms by June 30, 2024.

Industry News

“Unconscionable conduct”: ASIC fines National Australia Bank $2.1m for overcharging customers

NAB faces a $2.1 million penalty for unconscionable conduct, as the Federal Court rules the bank knowingly overcharged customers, and took over two years to rectify the situation.