COPENHAGEN - Danske Bank A/S has updated its net profit forecast for the current year, now expecting a range of DKK 20.5-21.5 billion, thanks to robust credit quality and lower than anticipated loan impairments for the fourth quarter. This revised outlook underscores the bank's solid performance amidst favorable macroeconomic conditions that have fortified customer financial positions.
The bank's upbeat revision aligns with an interim report from October 27, which showed loan impairment charges hovering around DKK 0.3 billion, reflecting a strong economic environment that has bolstered customer financial stability. This positive trend is expected to continue, with loan impairment charges projected to remain low.
In addition to the strong credit quality, Danske Bank anticipates a year-end tax assessment that could potentially reduce tax expenses by DKK 0.3-0.4 billion. Despite these favorable developments, the bank maintains its previous projections for income and expenses.
Looking ahead, Danske Bank remains cautious about economic volatility and its potential impact on achieving long-term financial targets set for completion within the next six years. The bank plans to provide detailed comments and final figures in its Annual Report, scheduled for release on February 2, 2024.
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