Outlook for 2007

The Group's outlook for 2007 is based on the pro forma financial highlights for 2006.

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

At the outset of 2007, the Danske Bank Group had further strengthened its market position through the acquisition of the Sampo Bank group and its continued focusing and streamlining of the Group organisation.

In 2007, Europe is likely to see a rise in average interest rates and moderate economic growth. The Group expects growth in its principal markets to continue to outperform average euro-zone growth, although at a lower level than in 2006.

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 likely rise in average interest rates.

Net fee income is expected to be slightly higher than in 2006, 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 Sampo Bank. Mortgage finance activities are expected to remain unchanged.

Net trading income is expected to be 7-9% lower than the high level recorded in 2006. The Group expects to maintain its market position, but trading 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 12-17% 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 to achieve an investment return from its insurance business similar to the high return generated in 2006. Overall, net income from insurance business is expected to fall by 13-15%. This result will, however, also depend greatly on trends in the financial markets.

The Group expects operating expenses to rise by 4-6%. The increase is attributable primarily to integration costs, the amortisation of intangible assets associated with the acquisition of Sampo Bank, and the general increase in salaries and inflation. Excluding integration costs and amortisation of intangible assets associated with Sampo Bank, operating expenses are expected to increase by 1-3%.

Profit before credit loss expenses
Profit before credit loss expenses is expected to roughly match the level recorded in 2006.

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

Profit before tax
Profit before tax for 2007 is therefore expected to be somewhat lower than the level in 2006.

The Group expects its tax rate to be 27%.

Overview of outlook for 2007
Danske Bank, incl. Sampo Bank 2006 (pro forma) (DKK millions)

Outlook 2007 (%)
Net interest income
8 - 10
Net fee income
0 - 2
Net trading income
(7) - (9)
Other income
(12) - (17)
Net income from insurance business


(13) - (15)
Total income
0 - 2
Total operating expenses
4 - 6
Profit before credit loss expenses


(2) - 0

October 31, 2006
August 10, 2006
May 2, 2006
February 9, 2006
November 1, 2005
August 11, 2005
May 3, 2005

Last updated/revised on 31 January 2007

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