Danske Bank (Buy, TP: DKK235.00) - Distributions slow, but approaching
Helped by low loan losses and modest cost inflation, Danske Bank reported a Q1 ROE of 12.9%. Noting one less interest day, NII fell 0.7% QOQ adjusted for reported one-offs. While down ~30bp QOQ following the buyback programme announced in February, the bank’s CET1 ratio remains strong at 18.5% versus its >16% target. We have trimmed our target price to DKK235 (237), but with the stock trading at a 2025e P/E of ~6.9x, we find the valuation attractive and reiterate our BUY.Danske Bank is a diversified financial services firm. Through its subsidiaries, Co.'s activities include the provision of banking, mortgage finance, insurance, real estate brokerage, asset masnagement and trading in fixed income products, foreign exchange and equities. Co. operates international retail bank operations in 15 countries, with an emphasis in the Nordic region. Co. divides its operations into five segments: Banking Activities, Danske Markets, Danske Capital, Danica Pension and Other Activities. As of Dec 31 2011, Co. had total assets of DKK3,424,403,000,000 and total deposits of DKK848,994,000,000.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.