Outlook 2007Outlook 2007

The year 2007 is expected to be another satisfactory year for the Danske Bank Group.

The Group’s outlook is based on the pro forma financial highlights for 2006 presented in the financial report for the first quarter of 2007.

The Group raises its profit guidance for 2007 on the basis of the financial results for the first half of 2007 and the positive effect of amendments to Danish tax regulations.

The Group now expects its profit before credit loss expenses to be slightly higher than the profit reported for 2006. Net profit for the year is now expected to match the pro forma figure for 2006.

In 2007, Europe is likely to see a persistent rise in average interest rates and moderate economic growth. Economic growth in Denmark may be slightly lower than the EU average, whereas growth rates in the Group’s other markets are expected to be higher.

Income
Net interest income is expected to rise by 8-10%, primarily as a result of double-digit lending growth in the markets on which the Group operates and the probable rise in average interest rates.

Net fee income is likely to grow by 1-3%, due mainly to an increase in trading volume on the securities markets and despite expenses for the credit default swaps entered into in connection with the financing of the acquisition of the Sampo Bank group. Mortgage finance activities are likely to slow down a little.

Net trading income is expected to increase by 3-7% on the high level recorded in 2006. The Group expects to maintain its market position, but income will continue to depend greatly on trends in the financial markets, including the level of securities prices at the end of the year.

Other income is likely to fall by 5-7% as the Group does not expect to realise income from the sale of property on the scale recorded in 2006.

The Group does not expect the investment return on its insurance business in the second half of 2007 to match the high return generated in the first half of the year. Overall, net income from insurance business in 2007 is expected to fall by 2-5% on the income received in 2006. This decline must be seen in the light of the reduction in capital allocated to the insurance business in 2007. The result will, however, also depend greatly on trends in the financial markets.

Expenses
The Group expects operating expenses to rise by 8-9%, with an underlying increase of 0-1%

Profit before credit loss expenses
Profit before credit loss expenses is expected to be slightly higher than the profit reported for 2006.

Credit loss expenses
The Group does not expect to realise a net positive entry for credit loss expenses for the whole of 2007 as was the case in 2006. Assuming favourable economic trends and satisfactory loan portfolio quality, the Group expects to record modest credit loss expenses in 2007.

Profit before tax
Profit before tax for 2007 is therefore expected to be slightly lower than the profit generated in 2006.

Tax
The positive effect of amendments to Danish tax regulations is expected to reduce the tax charge for the year by DKK 0.5 billion. As a result of the amendments, the Group’s effective tax rate is expected to fall from 27% to 25%.

Net profit for the year
Net profit for the year is expected to match the pro forma figure for 2006.


Updated overview of outlook for 2007

Danske Bank incl. Sampo Bank 2006 (pro forma) (DKK millions)
    Outlook 2007 (%)
Net interest income
22,610
8 - 10
Net fee income
8,877
1 - 3
Net trading income
7,280
3 - 7
Other income
2,952
(5) - (7)
Net income from insurance business

1,355

(2) - (5)
Total income
43,074
Slightly higher
Total operating expenses
22,640
8 - 9
Profit before credit loss expenses
20,434
0 - 2


 Previous overview of outlook for 2007
Danske Bank inkl. Sampo Bank 2006 (proforma) (DKK millions)

Outlook 2007 (%)
Net interest income
22,610
8 - 10
Net fee income
8,877
0 - 2
Net trading income
7,280
(7) - (9)
Other income
2,952
(7) - (9)
Net income from insurance business

1,355

(13) - (15)
Total income
43,074
1 - 3
Total operating expenses
22,640
5 - 7
Profit before credit loss expenses
20,434
(2) - 0


Archive 
Date
May 1, 2007
January 31, 2007
October 31, 2006
August 10, 2006
May 2, 2006
February 9, 2006
November 1, 2005
August 11, 2005
May 3, 2005

Senest opdateret/revideret: 9 August 2007

Learn moreLearn more

Events
The Events section contains our financial calendar, presentations, webcasts and information about roadshows.

Read about events
Contact

Head office


Danske Bank Group
Holmens Kanal 2-12 1092 Copenhagen K

Find us on a map

Call us at any time


33 44 00 00

Send us a mail More contact info

Direct contacts for


Investors Job seekers Journalists Shareholders Suppliers Corporate Governance Corporate Responsibility