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Danske cuts profit outlook due to challenging financial market conditions

Published 07/10/2022, 04:32 PM
Updated 07/10/2022, 04:35 PM
© Reuters. FILE PHOTO: Danske Bank signs are seen on the bank's headquarters in Copenhagen, Denmark October 22, 2019. REUTERS/Jacob Gronholt-Pedersen

(Reuters) - Danske Bank on Sunday reduced its full-year net profit outlook, hurt by rapidly rising interest rates and unfavorable financial market conditions.

Danske revised net profit to 10 billion to 12 billion Danish crowns ($1.64 billion) from the previous guidance of 13-15 billion crowns.

"... we revise our net profit guidance for the year based on significantly lower expectations for trading income and income from our insurance business," Chief Executive Officer Carsten Egeriis said in a press release.

The company also slightly revised its cost guidance to around 25.5 billion crowns.

© Reuters. FILE PHOTO: Danske Bank signs are seen on the bank's headquarters in Copenhagen, Denmark October 22, 2019. REUTERS/Jacob Gronholt-Pedersen

In April, the bank reported a lower-than-expected first-quarter profit, citing higher costs and turbulent financial markets.

($1 = 7.3037 Danish crowns)

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