Danske Bank Raises 2026 Net Profit Guidance as Q2 Profit Beats Expectations, Shares Slip 3.5% on NII Miss

Danske Bank, Denmark’s largest bank by assets, reported second‑quarter 2026 net profit of DKK 6.20 billion, surpassing the company consensus average of DKK 5.92 billion and sitting near the top of the analyst forecast range. Revenue for the quarter increased to DKK 15.16 billion, topping the consensus estimate of DKK 14.63 billion and representing a 4% beat. Fee income rose to DKK 4.06 billion, 10% above the consensus of DKK 3.72 billion, while net insurance income climbed to DKK 689 million, well ahead of the consensus average of DKK 409.7 million due to pricing adjustments and a rebound in financial‑market‑linked returns.

Operating expenses were DKK 6.52 billion, slightly below expectations, and pre‑provision operating profit was 7% ahead of consensus. However, net interest income (NII) fell short of forecasts at DKK 9.33 billion versus the consensus DKK 9.47 billion, and loan‑impairment charges rose to DKK 291 million, above the consensus DKK 194.6 million, reflecting higher provisions for single‑name exposures in the Large Corporates and Institutions business. Morgan Stanley noted that “provisions remain a weak point on the print.”

In response to the results, the bank upgraded its full‑year net‑profit guidance to a range of DKK 23 billion to DKK 25 billion, up from the prior DKK 22 billion‑DKK 24 billion range. The midpoint of the new guidance (DKK 24 billion) is marginally below the full‑year consensus average of DKK 24.17 billion. For 2026, Danske now expects total income to be somewhat above DKK 59 billion, operating expenses of DKK 26 billion‑DKK 26.5 billion, loan‑impairment charges around DKK 1 billion, and a cost‑to‑income ratio below 45%.

Chief Executive Carsten Egeriis said the bank is seeing “clear momentum” halfway through its Forward ’28 strategy, citing strong customer activity, growing volumes and broad‑based income growth. Despite the earnings beat, the market reacted negatively; Danske Bank shares fell as much as 3.5% on Friday as investors focused on the NII miss and higher provisions.