|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||8.85 - 8.92|
|52 Week Range||6.38 - 10.30|
|Beta (5Y Monthly)||0.50|
|PE Ratio (TTM)||6.27|
|Forward Dividend & Yield||0.63 (7.07%)|
|Ex-Dividend Date||Mar 17, 2020|
|1y Target Est||2.50|
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Danske Bank A/S is reviewing a stated goal of protecting retail clients from negative interest rates.Chief Executive Officer Chris Vogelzang told investors he’s now “looking at” the bank’s current stance and isn’t “ruling out” passing on the cost of subzero rates to wealthier clients.Denmark has had negative rates longer than any other country, and Danske is the last big Danish bank to have shielded average depositors from the policy. But after eight years, and a recent go-ahead from the regulator on legal concerns, Danske is now adjusting its stance.Vogelzang said any decision will be based on “commercial considerations,” suggesting the bank will tread carefully to avoid customer flight. He declined to give any indication of the threshold at which Danske might impose negative rates.A number of Denmark’s biggest banks last year bit the bullet and are charging negative rates on deposits above 750,000 kroner ($110,000), though some are going even lower than that.The development is expected to push depositors toward investment products instead, and may even make monetary policy more effective.To contact the reporter on this story: Frances Schwartzkopff in Copenhagen at email@example.comTo contact the editors responsible for this story: Tasneem Hanfi Brögger at firstname.lastname@example.org, Christian WienbergFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Danske Bank A/S expects its profits to plunge this year as Denmark’s biggest lender continues to grapple with the consequences of its money-laundering scandal.Net profit for 2020 will be between 8 billion kroner ($1.18 billion) and 10 billion kroner, compared with 15.1 billion kroner in 2019, the Copenhagen-based bank said on Wednesday. Danske’s shares fell as much as 3.5%.Chief Executive Officer Chris Vogelzang said it’s still too early to estimate how large a penalty Danske may be facing for suspicious transactions at the heart of a vast Estonian laundering case. He also said the bank is continuing to push through cuts across the organization as it adapts to leaner times.Vogelzang pointed to “low interest rates, margin pressure, higher impairments and increased costs due mainly to investments in compliance and AML-related activities,” in Wednesday’s statement. All in all, these factors “had a negative effect on the result,” he said. “A number of extraordinary items also had an impact, positive as well as negative, on the results, but all in all, our financial performance remains under pressure.”What Bloomberg Intelligence Says:Danske’s reiteration of its 2023 goals (9-10% ROE, low-50% cost-income ratio) and strengthened capital position (17.1% CET1) offsets fine risk and suggests to us that the bank is finally on the road to recovery. Yet new cautious 2020 guidance of lower net interest income, declining fees, rising impairments (vs. consensus’ 4% drop) and a 2-5% cost hike means earnings remain under intense pressure. Click here to read more. \-- Philip Richards, BI banking analystInvestors are waiting to learn how much Danske might be facing in fines as investigators across Europe and in the U.S. look into allegations of money laundering. Danske failed to properly screen about $220 billion in non-resident funds that flowed through its Estonian operations, and the bank has admitted that many of those transactions were suspicious.The scandal has battered Danske’s reputation and its business. The bank discontinued share buybacks and has forecast a return on equity for 2020 of 5-6%, down more than half from a five-year high.Vogelzang plans to spend as much as 2 billion kroner this year on investments he says are critical to improving profitability. He’s targeting an ROE target of 9-10% by 2023.Because of the laundering affair, banks in Denmark now face tougher regulation and higher compliance costs. Danske acknowledged late last year it had to impose a hiring freeze to adapt to the tougher environment, and also resorted to job cuts.Danske reported a 10% increase in expenses, amid higher costs related to the Estonian case, improving compliance procedures and compensation to retail investment clients whom it overcharged.At the same time, Danske has lived with negative interest rates longer than any other big European bank. Denmark first introduced the regime in 2012 to defend the krone’s peg to the euro, and the financial regulator recently warned that banks have yet to feel the full force of the policy.On Wednesday, Vogelzang said the bank has no plans to follow its competitors in Denmark and pass negative rates on to average retail depositors.(Adds BI comment. A previous version of this story corrected non-core pretax profit.)To contact the reporter on this story: Frances Schwartzkopff in Copenhagen at email@example.comTo contact the editor responsible for this story: Tasneem Hanfi Brögger at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Danske Bank beat fourth-quarter net profit forecasts on Wednesday and said it expects to earn a net profit between 8 to 10 billion Danish crowns ($1.18-1.48 billion) in 2020. Chief Executive Chris Vogelzang said results were as expected, but negative interest rates, margin pressure and increased costs related to compliance had a "negative effect". "All in all, our financial performance remains under pressure," Vogelzang said in a statement.
U.S. authorities could face difficulties fining Danske Bank over its involvement in suspected money-laundering in Estonia, according to a report by S&P Global Market Intelligence. The report, quoting anonymous sources, including a former U.S. Justice Department attorney, said the fine could be significantly lower than expected because Danske does not have a banking license in the United States. Danske Bank declined to comment, but said it was cooperating with all relevant authorities.
(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.
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.
Danske Bank shares fell more than 4% on Friday after the troubled lender said its annual profit would come in at the low end of forecasts, and unveiled plans to get costs and compliance under control by 2023. "We need to be a substantially more effective bank," chief financial officer Jacob Aarup-Andersen told Reuters.