- Net profit declined 33% to DKr2,567m from the level in the first quarter of 2007 and was lower than expected
- The substantial turbulence in the global financial markets adversely affected the profit for the first quarter of 2008, particularly at the Group’s market-related business areas: Danske Markets, Danske Capital and Danica Pension, which saw a decline in total pre-tax profit of DKr1.6bn
- The Group is lowering its earnings guidance for 2008 and now expects a decline in net profit of 6-13% relative to 2007, against the previously estimated increase of 0-7%. The outlook for 2008 is subject to greater uncertainty than usual, owing to uncertainty about the duration and extent of the financial turbulence
- The Group’s main source of income – its banking activities – showed robust earnings
- Expenses rose 8%, slightly less than expected
- Credit loss expenses amounted to DKr542m, against a net positive entry of DKr178m in the first quarter of 2007. At the end of March 2008, credit quality was still good
- The Group’s exposure to international investment companies in the form of backup liquidity facilities was reduced further during the first quarter of 2008
- Liquidity is strong and was further strengthened in the quarter, partly through the issuance of covered bonds
- At Easter 2008, Sampo Bank in Finland migrated to the Danske Bank Group’s shared IT platform. After a number of initial difficulties, the stabilisation of the IT systems is now in progress. This will create the foundation for the realisation of planned synergies
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