Danske Bank's CEO Kolding to step down

Monday 16 September 2013 14.38
Danske Bank Group's chief executive to step down
Danske Bank Group's chief executive to step down

Denmark's biggest bank Danske Bank today ousted its chief executive Eivind Kolding after one and a half years in the job and said it needed a CEO with stronger banking qualifications.

Kolding will step down immediately and be replaced by head of corporate & institutional banking, Thomas F Borgen, who has been with the bank since 1997.

"It is, in this phase, necessary to have a chief executive officer with stronger qualifications within banking," Danske Bank said in the statement.

Eivind Kolding took up the position as chief executive in February 2012 following a long career at Danish oil and shipping group AP Moller-Maersk.

"Thomas F. Borgen is an experienced and customer-oriented banker, who knows how to run a modern bank," chairman Ole Andersen said.

Danske has not paid a dividend in five years and its return on equity is far lower than that of its Nordic peers. Danske Bank's profitability in the second quarter of the year was 6.2%, compared with Nordea's 11.5%.

In June, the bank suffered a blow after Danish regulators demanded it set aside more cash to cover risk.