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

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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.

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