Danske Bank eyes $1.9bn 2021 net profit on pandemic recovery

Photo: EPA

The biggest Danish bank Danske announced surging net profits with 2021 annual result seen at nearly two billion dollars. Danske posted the encouraging results on the back of pandemic economic recovery which improved the prospects of the whole financial sector, Reuters elaborated. Danske said it benefited from an increase in customer activity and a restart in active lending.

"We adjust our net profit guidance for the year based on lower than expected loan impairment charges – due to a faster than anticipated macroeconomic recovery – as well as higher customer activity," Chief Executive Carsten Egeriis said.

Banks worldwide had to make large impairment charges in the face of the Covid-19 pandemic's effects on the global economy, but however Danske managed to offset the effects of the downturn. Impairment charges, which reflect a bank's estimation of the macroeconomic situation and how many of its loans could turn bad, are now expected to be fall to a minimum level. With waiving travel and transport restrictions in major industrial countries big clients rushed to take credits to fuel recovery in industrial and service sectors. The bank eyed a further gain from the merger of its MobilePay service with two other mobile payment platforms - announced late in June - was not included in the revised outlook, the bank said.

Similar articles

  • Airbnb looses 80% of its business due to Covid-19

    Airbnb looses 80% of its business due to Covid-19

    The way people used to travel has been dramatically changed forever by the Covid-19 pandemic, the boss of lodging platform Airbnb said. Brian Chesky told the BBC the lines between business and leisure travel are waning because of remote working patterns. And he noted that people are opting for longer periods with family and friends as they seek more "human connection".

    20
  • Facebook stops the deal with Australian publishers

    Facebook stops the deal with Australian publishers

    The social media conglomerate Facebook announced it had told Australian publishers it had stopped talks over licensing deals. The move which comes just six months after the passing of legislation aimed to make tech giants pay for news content. While Facebook has announced agreements with most of the country's largest news outlets, some companies including TV broadcaster SBS and smaller publishers have been left out, Reuters elaborated.

    31
  • J&J booster jab raises effectiveness to 94%

    J&J booster jab raises effectiveness to 94%

    The pharmaceutical conglomerate Johnson and Johnson announced that a second shot of its Covid-19 vaccine given about two months after the first shot increased its effectiveness to 94% in the US against moderate to severe forms of the disease. That compares to only about 70% protection with a single dose, Reuters reported.

    35