We reaffirm our guidance for 2015 of a net profit of above DKK 14 billion. We maintain this outlook, even though the first-quarter financial results exceeded our expectations. We base this on a combination of factors: Danish central bank rates remain very uncertain, economic growth, though improving, remains slow and fragile, and the future levels of customer activity, particularly in the financial markets, are uncertain.
We expect total income at around the same level as in 2014. Income will benefit from the high net trading income in the first quarter and from lower funding costs. On the other hand, negative interest rates will put pressure on net interest income. In 2014, income benefited from the sale of our shares in Nets and the booking of part of the shadow account balance at Danica Pension.
Expenses are expected to be below DKK 22 billion.
Impairment charges in our core activities are expected to remain at a low level.
For our Non-core business, we expect profit before tax at around DKK 0 million.
Given its dependence on economic conditions, including developments in central bank monetary policies, this guidance is generally subject to uncertainty. Trading income and insurance business income are particularly uncertain. The 2015 trading and insurance results will depend greatly on developments in the financial markets and the possibility for Danica Pension to book the risk allowance and part of the balance on the shadow account to income.