|Bid||107.05 x 0|
|Ask||107.10 x 0|
|Day's Range||106.55 - 108.50|
|52 Week Range||85.90 - 135.65|
|Beta (5Y Monthly)||0.53|
|PE Ratio (TTM)||7.28|
|Earnings Date||Feb 05, 2020|
|Forward Dividend & Yield||8.50 (7.81%)|
|Ex-Dividend Date||Mar 19, 2019|
|1y Target Est||183.95|
(Bloomberg) -- Danske Bank A/S is offering 2,000 of its employees in Denmark a sweetened package to step down as the cost of adapting to a world with stricter regulations and negative interest rates just keeps growing.Staff have until the end of January to decide, according to an emailed comment sent by the bank on Monday. Denmark’s bankers’ union said Danske is offering employees who accept the deal better terms than they’d get if they resigned under normal circumstances, but didn’t elaborate.Shares in the Copenhagen-based lender fell as much as 2%, roughly double the decline in the Bloomberg index of European financial stocks.Danske has acknowledged its costs are still rising, following a vast Estonian dirty-money scandal. In an interview in Stockholm, the chief executive of Danske in Sweden, Johanna Norberg, said “the peak” level of investment to meet anti-money laundering requirements has “not yet been reached.”A Baltic TaleNorberg, 48, has been running Danske’s operations in the biggest Nordic nation since September, after years spent overseeing the bank’s markets units. Her headquarters overlook the Baltic Sea, beyond which lies the region that dragged Danske into its worst existential crisis in living memory.A month after Norberg took on the job of Swedish CEO, Danske announced an organization-wide hiring freeze to help cope with growing compliance costs. That’s as the European Union makes ever greater demands forcing banks to take adequate steps to ensure they don’t touch suspicious transactions. Danske says it’s now reviewing “all costs across the group.”Since admitting it failed to properly screen 200 billion euros ($222 billion) in non-resident flows through Estonia, Danske has become the target of multiple criminal investigations. Investors are now bracing for hefty fines.But Norberg says there’s plenty of capital to deal with any challenge.The bank can “manage whatever might happen,” she said. “We are one of the best capitalized banks in Northern Europe.” Danske’s headcount had actually grown as it brought in more people focused on compliance following its laundering scandal. Staff numbers rose to 21,960 full-time equivalents at the end of the third quarter.Danske is being investigated in Denmark, Estonia and France, as well as by the U.S. Department of Justice and the U.S. Securities and Exchange Commission. It also faces a number of class-action lawsuits.The bank’s market value has plunged by almost 40%, or over $9 billion, since late September 2018, when it revealed the scale of its Estonian scandal. The bank’s capital adequacy, however, remains better than most.Philip Richards, a senior banks analyst at Bloomberg Intelligence in London, says Danske’s “strong” capital ratio provides a capital buffer of about $3.3 billion, compared with his estimate for a total fine of no more than $2.5 billion. Still, equity analysts at Citigroup recently advised clients to brace for a fine of about $3.2 billion.“I don’t feel worried,” Norberg said.What Bloomberg Intelligence Says:The EU’s fifth anti-money laundering rule (AMLD5) went live on Jan. 10, “raising banks’ costs, as well as compliance and franchise risk. Stricter client checks will also see investment in compliance staff and systems upgrades mount, opening doors for regulatory-compliance software.”\---Sarah Jane Mahmud, Senior Analyst.Danske is just one of a number of Nordic banks being investigated for potential money laundering. In Sweden, Swedbank AB and SEB AB -- which dominate in the Baltic region -- have also been tainted by scandals.Earlier this month, analysts at JPMorgan Cazenove warned clients of the risk of “significant cost pressure given ongoing scrutiny of systems and controls.”Norberg says that at Danske, a lot of the costs of protecting the bank from money laundering “are focused on getting automated processes and a new platform in place.” She says that “once that’s done the investment levels will decrease.”Swedish AmbitionsDanske is trying to step up its presence in Sweden, where it’s faced tough competition in the mortgage market. The bank’s share of new business fell in the third quarter, and it has now decided to join a local price war by not raising mortgage rates.“One reason is of course that our brand got affected due to Estonia and the money laundering events,” Norberg says. “It’s been a hard nut to crack. We got hit pretty hard being the first bank in the Nordics.”A survey published in the Borsen newspaper on Monday gives Danske the lowest customer satisfaction ranking for the industry in Denmark, the bank’s home market.Of her first few months as Swedish CEO, Norberg says the learning curve has been “steep.” She also acknowledges that “the honeymoon is over.”So in Sweden, the plan is “to continue to grow quite substantially.”(Adds total staff numbers in eighth paragraph)To contact the reporters on this story: Hanna Hoikkala in Stockholm at email@example.com;Rafaela Lindeberg in Stockholm at firstname.lastname@example.org;Frances Schwartzkopff in Copenhagen at email@example.comTo contact the editors responsible for this story: Tasneem Hanfi Brögger at firstname.lastname@example.org, Charles DalyFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Europe’s reputation on financial crime took another battering in 2019. Several of the region’s biggest lenders, including ABN Amro Bank NV and Swedbank AB, were tarred by allegations that they let criminals move around their cash unhindered, a reminder that Danske Bank A/S’s mammoth money-laundering failings weren’t isolated.At least the scale of the problem isn’t going unnoticed. Politicians and bank executives have been spurred to action finally. But, as the Dutch finance minister Wopke Hoekstra said recently, anyone who thinks lenders and regulators are gaining the upper hand is in for a “rude awakening.”A dangerous mix of fragmented supervision and weak oversight from watchdogs and bank boards has made Europe extremely vulnerable to dirty cash. Banks have focused too often on profit at the expense of vetting customers and transactions properly. Fixing these lapses will take a long time.The European Union is responding at last, but its effectiveness in this fight remains questionable. Last month the bloc’s finance ministers endorsed a plan to create a regional agency to fight money laundering and terror financing. There are 58 authorities responsible currently for supervising this stuff in the EU and European Economic Area. No wonder bad practices have flourished in the cracks.Much like the Single Supervisory Mechanism — the European Central Bank’s regulatory arm — the new EU watchdog will have direct authority over the continent’s lenders. As the Brussels think tank Bruegel points out, it won’t just police the biggest banks. It will look at smaller lenders too, which are more vulnerable to money launderers.Yet Europe will still be hamstrung by a multitude of national laws and data requirements that will take years to harmonize. It won’t be easy to create a framework for the new EU agency to work with national prosecutors, police and financial intelligence units. And unless the new body is funded adequately it may be another blunt instrument. The best talent doesn’t tend to gravitate toward lower-paying regulatory roles and if the European Banking Authority’s experiences are instructive — that regulatory agency got an additional headcount of 10 to tackle money-laundering — the new supervisor will struggle to make much difference.In the meantime, criminals are free to exploit all those gaps in regulatory oversight and banks’ internal controls. “We have only started to see the beginning” of the problem, Hoekstra said last month. It’s not a phenomenon linked to just a few banks in certain jurisdictions, he noted.Blind spots clearly persist at the state level. For example, the Financial Action Task Force — a global intergovernmental body set up to fight money laundering and terror financing — found Denmark (though improving) to be fully compliant on just six of its 40 recommendations, and either largely or partially compliant on the remaining 34. Both Latvia and Estonia, the Baltic nations used as gateways for suspect funds from the former Soviet Union into Europe, are awaiting new evaluations of their anti-money laundering efforts.As fintech companies multiply rapidly, providing another route for dirty cash, fixing these national failings is critical. As EU regulators noted in a joint report in October, some of these firms are seeking to set up in member states where local regulation is more lax. And while banks — at least the bigger ones — have the resources to tackle crime, they don’t always do it well. Breaches in identifying customers and beneficial owners of corporate entities soared between 2016 and 2017, according to EU regulators. It’s not as if the criminals are standing still. Brexit will separate Britain’s powerful financial hub from the EU, posing a significant challenge to the bloc’s supervisors. National authorities may not be equipped to monitor the growing number of finance firms that will be created to manage the split between the City of London and the rest of Europe.The spread of virtual currencies will also test financial institutions. The FTAF if due to report to G20 finance ministers and central bank governors this year on how to apply its standards to digital currencies. This guidance is needed desperately: Germany, Europe’s biggest economy, has recently passed a bill enabling banks to hold cryptocurrencies on behalf of their customers — just as money laundering is growing among crypto assets. Elsewhere, Switzerland’s financial regulator FINMA has warned that the world’s leading private banking hub is “particularly exposed” to money laundering, with new threats emerging from blockchain and crypto technology.Europe has for too long failed to plug the holes that make it a popular target for financial crime. It needs to up its game urgently.To contact the author of this story: Elisa Martinuzzi at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2020 Bloomberg L.P.
About 60 investors have sued Danske Bank for 1.5 billion crowns ($224 million) over alleged money laundering, their lawyers said on Friday, the third such case to hit Denmark's biggest lender. Danske Bank said it would defend itself against the lawsuit and that it had no information about the timing of the case. Danske Bank is under investigation in several countries including the United States over 200 billion euros ($220 billion) of payments through its branch in Estonia between 2007 and 2015, many of which the bank has said were suspicious.
(Bloomberg) -- Bang & Olufsen A/S laid bare the full extent of the crisis engulfing the Danish maker of high-end televisions and music systems with its fourth earnings revision in a year, raising the pressure on its new leader to accelerate a turnaround or find a partner.Sales last month were considerably lower than expected, B&O said in a statement, prompting the shares to plunge 25% in Copenhagen. The decline takes this year’s stock loss to almost 63%, the second-worst return on the 132-member OMX Copenhagen Index.“All alarm bells are ringing, and who can have the confidence that there won’t be a fifth, or maybe even a sixth profit warning,” said Per Hansen, an investment economist at Nordnet in Copenhagen. “It ought to be clear that B&O’s future is not as an independent company.”The company’s troubles highlight the changing tastes of consumers who prefer listening to music on mobile devices or choose unobtrusive speakers over extravagant sound systems. It’s also a study in a brand struggling to cater to two extremes: the sound aficionado worshiping music at an elaborate speaker shrine like the Beolab 90 that cost more than $80,000 and weigh 300 pounds (136 kilograms) each; and the young user on the go and on a budget who switches devices every other year to enjoy the latest tech gadgetry.Sales this year will be down as much as 18%, compared with a previous forecast for an expansion. Operating profit and cash flow will also be worse than predicted earlier. Investors won’t get the full details until Jan. 14, when B&O is due to publish its fiscal second-quarter results, though a new three-year plan won’t be presented until April.The latest revision heaps more pressure on Kristian Tear, a former Blackberry Ltd. manager who joined as chief executive officer in October. Tear said the strategic direction of the company remains unchanged, but that “fundamental change of the sales and marketing efforts is required.”Among the problems ailing B&O are increased competition, slower sales execution, and excess inventory levels at partners that led to sales through “unauthorized channels,” the company said. Combined, the issues create “an increased degree of uncertainty” related to a business transition, it said.The company, which traces its roots back almost a century when two Danish engineers began making radios, has attracted suitors in the past. In 2016, Sparkle Roll -- a company controlled by Chinese billionaire Qi Jianhong -- indicated it was interested in B&O, buying a major stake that it holds to this day.But B&O Chairman Ole Andersen rebuffed the overture, citing uncertainty surrounding a potential bid. Since then, Andersen -- best known for once leading Danske Bank A/S’s board, a role from which he was ousted last year as the lender is investigated across the globe for money laundering -- has presided over a steady stream of profit warnings, management changes and a sliding stock price.\--With assistance from Sally Bakewell, Lisa Wolfson and Catherine Larkin.To contact the reporters on this story: Christian Wienberg in Copenhagen at email@example.com;Ryan Vlastelica in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Tasneem Hanfi Brögger at email@example.com, Benedikt KammelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody's Investors Service (Moody's) has downgraded all long-term debt ratings of Danske Bank A/S (Danske), including the senior unsecured debt ratings to A3 from A2, junior senior (commonly referred to as senior non-preferred by the market) unsecured debt ratings to Baa3 from Baa2, and the baseline credit assessment (BCA) to baa2 from baa1. The senior unsecured debt ratings now carry a stable outlook.
Company announcement no. 20 2019 Holmens Kanal 2 – 12DK-1092 København KTel. +45 45 14 14 00 5 December 2019 Danske Bank A/S revises 2019 net profit outlook upwards.
As announced on 11 April 2019, Danske Bank and the other owner banks of Danish mortgage credit institution LR Realkredit A/S have entered into an agreement to sell LR Realkredit A/S to Nykredit Realkredit A/S. Today, the sale was approved by the Danish Competition and Consumer Authority, and Danske Bank expects the transaction to be completed before the end of 2019. This means that Danske Bank will book a one-off gain of approximately DKK 0.7-0.8 billion, which is not included in our current outlook of a net profit at the lower end of the DKK 13-15 billion range.
FRANKFURT/NEW YORK (Reuters) - The U.S. Department of Justice has in recent weeks stepped up its investigation into Deutsche Bank's role in the 200 billion euro ($220 billion) Danske Bank money laundering scandal, four people familiar with the inquiry told Reuters. One source said the DoJ's new line of inquiry is whetherDeutsche helped move tainted money from Danske , Denmark's largest lender, into the United States. Officials from the DoJ, who have been working closely withEstonian prosecutors for around a year, have also beguncooperating with Frankfurt state prosecutors, the sources said.
Company announcement no. 18 2019 Holmens Kanal 2 – 12DK-1092 København KTel. +45 45 14 14 00 28 November 2019 Danske Bank appoints new Group COO Danske Bank A/S has.
Company announcement Holmens Kanal 2-12 DK-1092 København K Tel. +45 45 14 14 00 26 November 2019 Structured notes linked to the STOXX Europe 600 Insurance Price EUR and.
14 November 2019 Report no. 18/2019 Transactions made by persons obliged to report transactions to the Danish FSA and Nasdaq Copenhagen, cf. the EU Market Abuse Regulation..
Danske Bank said it's been preliminarily charged by the Danish State Prosecutor for Serious Economic and International Crime with misselling about 8.8 billion Danish kroner ($1.3 billion) of investment advisory services. A criminal complaint had been filed in August. Danske Bank said it found that customers who invested in a product during a certain period between 2017 and 2018 paid fees that were too high as a result of misguided management decision. "We agree that this is a serious matter and that we have not lived up to what our customers should rightfully expect of us. We are compensating all affected customers, just as we are taking the steps necessary to ensure that something like this will not happen again," said CEO Chris Vogelzang.
Danske Bank A/S has today been preliminarily charged by the Danish State Prosecutor for Serious Economic and International Crime (SØIK) with violating the Danish Executive Order on Investor Protection. The preliminary charge follows a criminal complaint that was filed by the Danish Financial Supervisory Authority (the FSA) in connection with their decision of 30 August 2019 in the Flexinvest Fri case.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Danske Bank A/S and other ratings that are associated with the same analytical unit. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.