The history of Danske Bank in Denmark is the history of three of the first large banks that came to be known as Den Danske Bank, then Danske Bank. For many years Danske Bank has been a key business area in the Group.
Nineteenth century – three large banks
Founded in 1857, Privatbanken was the first large private bank in Denmark. Den Danske Landmandsbank was established on October 5, 1871, by Gottlieb Hartvig Abrahamsson Gedalia. In 1873, Denmark saw the launch of another large bank, Handelsbanken.
While the founders of Privatbanken had their roots in Copenhagen's business establishment, the key figure behind the launch of Den Danske Landmandsbank was originally a saddle-maker who first traded in shares and bonds as a sideline, later becoming a talented broker.
However, it was the Glückstadt family who played a significant role in the development of this large new bank. Isak Glückstadt became its managing director in 1872 and steered the bank for 38 successful years until his son took over in 1910.
1920-1950 – farmers’ bank to Denmark’s bank
In 1910, Den Danske Landmandsbank was the largest bank in Scandinavia. In 1922, however, during the post-war crisis, the bank got into such difficulties that it had to be bailed out by the Danish government. after a re-organisation, the bank quickly regained its former strength.
Den Danske Landmandsbank remained Denmark's largest bank, and between 1920 and 1950, the bank grew and extended its branch network. As a result of this growth and the changing nature of its customer base, the bank altered its name to Den Danske Bank in 1976. In 2000 it was renamed Danske Bank.
1960-1990 – liberalisation and mergersThe period 1960-90 was marked by a rationalisation of the banking sector. The key to Den Danske Bank’s development was also the gradual liberalisation of the banking laws in the run-up to open-market competition.
Liberalisation gave rise to fewer restrictions on marketing, product development and continual technological innovation. However, there was also competition from abroad and banks had to operate on strictly commercial lines. Mergers were in the air.
1990 – merger between the first three large banksThe indirect result of this development was that on April 6, 1990, Den Danske Bank, Handelsbanken and Provinsbanken merged into one bank called Den Danske Bank.
2007 – Assimilation of BG Bank in Danske Bank DenmarkIn 2007 BG Bank, which had joined the Danske Bank Group in 2001, amalgamated with Danske Bank to form one bank. The two banks had become increasingly similar since the merger in 2001. The combination of the two brands gave the new Danske Bank a stronger position in the market, with more branches and greater accessibility for customers.