Irish deals push Danske Bank's profits higher
Tuesday, 3 May 2005Danske Bank, Denmark's biggest financial group, has reported a better than expected 33% increase in first quarter pre-tax profits, boosted by divestments and consolidation of its Irish acquisitions.
Danske bought National Irish Bank and Northern Bank last December from National Australia Bank for €1.4 billion - its first major push outside its home market.
Today Danske said its first quarter pre-tax profit rose to 4.2 billion crowns, above average forecasts of 3.5 billion crowns.
'The result is better than expected primarily as a result of one-off revenues from the reduction of international wholesale banking activities and the consolidation of banking activities in Northern Ireland and Ireland one month earlier than expected,' the bank said in a statement.
Danske said lending in its Nordic markets grew at double digit percentage rates and demand for new mortgage lending products in Denmark was considerable.
Net interest income rose by 10% to 4 billion crowns and fee and commission income increased by 6% to 1.6 billion. The bank repeated that it expects full year 2005 pre-tax profit to be level with last year's 13 billion crowns.
