|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||7.66 - 7.71|
|52 Week Range||7.52 - 15.16|
|Beta (3Y Monthly)||0.59|
|PE Ratio (TTM)||5.41|
|Forward Dividend & Yield||0.65 (8.21%)|
|1y Target Est||2.50|
European shares fell on Tuesday as a profit warning from chemicals giant BASF led to a slide in German shares, which were on course to post their biggest drop in two months. The pan-European STOXX 600 index fell 0.7% by 0815 GMT, in line with its Asian peers and Wall Street overnight amid dimming hopes of a sharp interest rate cut by the U.S. Federal Reserve later this month.
(Bloomberg) -- Danske Bank A/S has been dealing with negative interest rates longer than any other major lender. That’s why its latest crisis, which cost a top executive his job, carries an important warning for peers in Europe.The biggest bank in Denmark, where benchmark rates have been negative since July 2012, is best known for its role at the center of a vast money-laundering scandal. Last month, it was hit by another embarrassment after overcharging retail clients for investment products. Danske should have followed rules that require investors to be offered the best deal, even if that hurts the bank -- in this case, regular deposits, where returns are around zero.The problem for Danske and others coping with negative rates is that the more money they hold in deposits, the greater the cost. Banks have balked at passing on the burden of negative rates to retail savers for fear of losing business. Instead, they’ve looked for ways to mitigate the pain, such as focusing on services that carry fees.Jesper Berg, the director general of the Financial Supervisory Authority in Copenhagen, says that the Danske case now “shows that the fee channel is also threatened” for banks dealing with negative rates.The Last Bright SpotFee income was one of the last bright spots for an industry in which key business areas have been hampered by negative rates.In the past, banks would “make money from getting cheaper [deposit] funding than market funding," Berg said. "That channel throughout Europe is dead.” They would also profit from taking short-term duration risks, “but the yield curve is flat right now, or in that neighborhood, so they don’t get that 1% or 2% which they historically got on doing that sort of business.” And now, negative rates are eating into fee income, he said.Go back a few years, and the narrative was that Danske had successfully adapted its business model to cope with negative rates. It delivered record profits in 2017, after half a decade of Danish benchmark rates below zero. That was also the year that Danske raised fees for customers who put money into an investment platform called Flexinvest Fri.But the returns on some of those products were low. By the time the higher fees were included, clients were losing money. The bank nevertheless recommended the product and collected the fees.The kind of fees Danske was charging constitute “a significant part of fee income in many banks across Europe,” Berg said. “If that is threatened, there is a more generic issue across Europe.”As the prospect of returning to positive interest rates in Europe seems more remote, the impact of the policy on the region’s banks warrants attention. In Denmark, finance industry profits were down 25% in 2018, according to FSA data. Berg says his agency is now starting to worry about profitability among banks.“Typically the issue has been, we lean against the wind because of bubbles,” he said. “But now it is an issue of the earnings power of banks.”In Denmark, part of the effect is mitigated by the funding model behind the country’s huge mortgage industry, which relies on the world’s biggest covered-bond market.“We are in a fortunate position in this country where banks make a decent amount of money. They’re very capitalized. They can rely to a large extent on covered bonds for funding,” Berg said.Meanwhile, Danske continues to face fines potentially in billions of dollars over the Estonian money-laundering scandal. On Thursday, the Berlingske newspaper reported that an existing investigation into the bank has been expanded to include its decision in 2014 to fire a company it had hired to examine warnings by a whistle-blower.Since the beginning of last year, Danske Bank shares have plunged by about 57% as shareholders fled the scandals.(Adds comment on Danish funding model.)To contact the reporter on this story: Frances Schwartzkopff in Copenhagen at firstname.lastname@example.orgTo contact the editors responsible for this story: Tasneem Hanfi Brögger at email@example.com, Paul SillitoeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
— a Danske executive who first sounded the alarm over vast sums of money being funnelled out of Russia and former Soviet states through the Danish bank’s tiny Estonian branch — wrote to Danish prosecutors on Wednesday calling on them to launch a criminal investigation into the matter. “Any such investigation constituted an invasion of Mr Wilkinson’s privacy and was initiated in direct retaliation for his lawful disclosures of illegal activity,” Stephen Kohn, Mr Wilkinson’s lawyer, wrote to prosecutors in a letter seen by the Financial Times. The allegations could open a new flank in an existing criminal investigation by Danish authorities into the biggest money-laundering scheme yet uncovered.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Danske Bank A/S didn’t just suffer a fresh hit to its reputation with its latest scandal, it also lost its most experienced and loyal executive.Jesper Nielsen, who was fired on Monday in a scandal involving overcharging customers, was the longest serving of the 10 people at the top of Denmark’s biggest bank. The 50-year-old joined fresh out of the university in 1996 and was one of only two executives to have worked at the Copenhagen-based lender for more than a decade.The bank has now all-but cleaned house in its upper levels in a bid to restore trust after a $230 billion money laundering scandal exploded at its Estonian unit. The unexpected dismissal of Nielsen shows its commitment to not accepting any more missteps, but it now also faces an uphill battle because its chairman, CEO and CFO are all less than a year into their jobs.The loss of institutional memory adds pressure on new CEO Chris Vogelzang, a Dutch national who’s only been with the bank since June 1 and who will now have to steer the 147-year-old Danish institution out of more than one crisis.“Danske is losing an important executive profile at a fairly critical time,” Simon Hagbart Madsen, an analyst at Jyske Bank, said by phone. “The stock market is getting a bit nervous over the number of experienced leaders who have left the bank at a time when it needs to get through the money laundering crisis and emerge on the other side.”Share DropShares in Danske fell as much as 3.1% on Tuesday, to the lowest in almost six years. The decline extended losses on Monday and sent the stock down by 60% since the start of last year, when revelations about the laundering scandal began to pick up.The now nine members on the executive board have a total of about 44 years of experience at Danske between them. One of them, Glenn Soderholm who’s head of Nordic banking, has about half of those years, according to resumes on the bank’s website. The second-longest serving executive is Jacob Aarup-Andersen, head of wealth management. The 41-year-old was last year prevented by the Financial Supervisory Authority from taking over as CEO, with the regulator arguing he wasn’t experienced enough.Jesper Berg, the head of the FSA, declined to comment on Nielsen’s dismissal.“The bank fortunately also has a lot of good employees below the executive level, employees who have long experience at the bank,’’ Berg said in the phone interview. “But I would say that this underlines the need for Danske Bank to have succession plans for its managers and I’m sure that the CEO and the chairman have that up high on their agendas.”Nielsen was named interim CEO in October, when the bank ousted Thomas Borgen; days later, Danske confirmed market fears, announcing that U.S. authorities were investigating the bank for laundering. In the months that followed, Nielsen drew praise for his handling of the crisis, including efforts to reach out to both corporate and retail customers.But on Monday Nielsen was fired after it emerged that 87,000 domestic customers were improperly charged for investments in a savings product. Danske expects it will have to repay about $60 million in compensation. The news risk denting further its reputation among customers, many of whom have already left in protest over the Baltic laundering scandal.Danske Chairman Karsten Dybvad praised Nielsen for his “significant contributions” but said that as the executive board member responsible for the investment product in question (called Flexinvest Fri), he couldn’t continue in his position, according to a statement.Vogelzang said that Danske Bank must put customers “at the heart of everything” and that the company had failed to do so in this case because of “misguided management decisions.”(Updates with share price, additional comment from Danske.)To contact the reporters on this story: Christian Wienberg in Copenhagen at firstname.lastname@example.org;Frances Schwartzkopff in Copenhagen at email@example.comTo contact the editors responsible for this story: Jonas Bergman at firstname.lastname@example.org, Nick RigilloFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Danske Bank has dismissed its former interim chief executive Jesper Nielsen after thousands of Danish customers were overcharged for an investment product, a first step by its new boss to restore trust in the troubled lender. The case, which the Danish financial services authority called "very serious", is another blow to the reputation of Denmark's biggest bank which is trying to limit the fallout from its involvement in a major money laundering scandal. Both the FSA and the public prosecutors "are pursuing the possibility of penalising the bank," the country's acting business minister Rasmus Jarlov said on Facebook.
(Bloomberg) -- Denmark’s biggest bank, already struggling to recover from a money-laundering scandal, fired the man who until last month was interim CEO because some clients paid too much for an investment product.Danske Bank A/S said Monday that it had dismissed Jesper Nielsen, head of banking in Denmark, after it emerged that tens of thousands of domestic customers were improperly charged. The lender now owes them a total of 400 million kroner ($61 million) in compensation.Nielsen, 50, ran the bank as interim CEO following the $230 billion dirty-money debacle and was tipped as a potential permanent leader before Danske picked Chris Vogelzang, a former ABN Amro banker, for the top job. The bank’s shares have plunged 60% since early 2018, as the laundering affair unfolded, and fell as much as 2.7% after Monday’s announcement.Nielsen “did not to a sufficient degree ensure that the Flexinvest Fri product was suitable for the bank’s customers,” Chairman Karsten Dybvad said in a statement. “Therefore, we find that Jesper cannot continue in his position.”Danske fired CEO Thomas Borgen in October over the laundering scandal and Nielsen had acted as interim CEO until June. Nielsen, a Danish national, had been with Danske since 1996.Vogelzang apologized to clients in a statement. “Misguided management decisions” meant that Danske didn’t give customers “proper advice,” he said. “We will take all the steps necessary to prevent something similar from happening again in future.”Danske said that 87,000 customers were overcharged during the implementation of new MiFID II regulation in 2017. The bank said the fees were too high compared with expected returns in a low-interest environment, making the product “unsuitable for some customers.”While Danske searches for a replacement for Nielsen, Glenn Soederholm, who’s head of banking in the other four Nordic countries, will take over the Danish banking division.Danske said it had informed the Danish Financial Supervisory Authority, which is looking into the matter. “We expect to receive justified and severe criticism from the FSA,” Danske said.Danske said it was made aware of the issue through an employee’s report in September. The lender was criticized for not taking internal whistle-blower reports seriously during the nine years through 2015, when its Baltic operations were allegedly used to launder Russian money.(Adds details on Nielsen’s background.)To contact the reporter on this story: Christian Wienberg in Copenhagen at email@example.comTo contact the editors responsible for this story: Tasneem Hanfi Brögger at firstname.lastname@example.org, Nick RigilloFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Danske Bank, which is trying to recover from a major money laundering scandal, has agreed to sell its portfolio of Estonian private loans to LHV Pank in a deal worth 410 million euros ($458.3 million), Estonia's LHV said on Monday. Danske Bank has already said it will pull out of the Baltic states and Russia after Estonia earlier this year ordered it to close the branch at the center of one of the largest ever money laundering scandals.
Danske Bank hired former ABN AMRO banker Chris Vogelzang as its new chief executive on Friday as it wrestles to limit the fallout from its involvement in one of the biggest money laundering scandals. Denmark's biggest lender is being investigated in Denmark, the United States, Britain and the Baltics after revealing that 200 billion euros ($224 billion) in suspicious transactions passed through its Estonian branch between 2007 and 2015. Among the challenges facing Vogelzang, who was on the management board of Dutch bank ABN AMRO until 2017, are rebuilding investor and customer trust and keeping Danske Bank focused during the myriad inquiries into its conduct.
Danske Bank, entangled in one of the world's biggest money laundering scandals, said on Wednesday it had appointed Satnam Lehal from Morgan Stanley to head its financial crime unit. As head of the unit Lehal will be responsible for "preventing money laundering, terrorist financing, fraud, bribery and corruption and ensuring strict adherence to sanctions and embargoes requirements," Danske Bank said in a statement.
Danish prosecutors have charged Thomas Borgen, former chief executive of Danske Bank, over his involvement in one of the world's biggest money laundering scandals, newspaper Borsen reported on Tuesday, citing his lawyer. Borgen is the first person to be charged in a case that involves suspicious transactions of some 200 billion euros (171.08 billion pounds) that passed through Danske Bank's Estonian branch between 2007 and 2015. Shares in Danske Bank have more than halved since March last year, and on Tuesday fell to their lowest since August 2013 following the Borsen report, which did not specify the nature of the charges against the bank's former CEO.
Danish prosecutors have charged Thomas Borgen, former chief executive of Danske Bank , over his involvement in one of the world's biggest money laundering scandals, newspaper Borsen reported on Tuesday, citing his lawyer. Borgen is the first person to be charged in a case that involves suspicious transactions of some 200 billion euros ($224 billion) that passed through Danske Bank's Estonian branch between 2007 and 2015. Shares in Danske Bank have more than halved since March last year, and on Tuesday fell to their lowest since August 2013 following the Borsen report, which did not specify the nature of the charges against the bank's former CEO.
Russia's Central Bank sent warnings in 2007 and 2013 to Estonian and Danish financial supervisors over suspect transactions worth billion of dollars at the Estonian branch of Danske Bank but they were largely ignored, a confidential EU document shows. The EU paper, seen by Reuters, is the outcome of an investigation by the European Banking Authority (EBA) and details for the first time the extent of supervisory shortcomings in the two countries over the Danske case. The EBA investigation followed the disclosure last year of a money-laundering scandal at Danske Bank, Denmark's largest bank, which has admitted that 200 billion euros (£172 billion) of suspicious transactions flowed through its Estonian branch between 2007 and 2015.
Russia's Central Bank sent warnings in 2007 and 2013 to Estonian and Danish financial supervisors over suspect transactions worth billion of dollars at the Estonian branch of Danske Bank but they were largely ignored, a confidential EU document shows. The EU paper, seen by Reuters, is the outcome of an investigation by the European Banking Authority (EBA) and details for the first time the extent of supervisory shortcomings in the two countries over the Danske case. The EBA investigation followed the disclosure last year of a money-laundering scandal at Danske Bank, Denmark's largest bank, which has admitted that 200 billion euros of suspicious transactions flowed through its Estonian branch between 2007 and 2015.
April 29 (Reuters) - The following are the top stories in the Financial Times. Reuters has not verified these stories and does not vouch for their accuracy. Headlines CVC and HPEF plan to offload stakes ...