Danske Bank’s shipping credit exposure decreased by 3% in the second quarter.
The Copenhagen-based lender’s gross credit exposure to the sector was DKK 22.3bn ($3.25bn) at the end of June, compared with DKK 23bn at the end of the first quarter.
Total income in the first half of the year was DKK 28bn compared with DKK 25.6bn in the same period last year, according to the report.
Chief executive Carsten Egeriis said: “The financial result for the second quarter continued the very positive development we saw in the first quarter.”
Net profit was DKK 11.5bn in the first half, against DKK 10.2bn last year.
“Combined with continually strong credit quality with a net impairment reversal in the second quarter, this led to an increase in net profit, which reflects robust customer activity across the business,” Egeriis said.
Danske Bank will pay a dividend of DKK 7.5 per share for the first half.
It also intends to distribute the released capital from its exit from the Norwegian personal customer business.
An extraordinary dividend payment will be made after the sale to Nordea has closed.
The released capital is expected to amount to approximately DKK 5.5bn.
During the first half, the bank took several steps to advance its sustainability agenda, including the publication of its Climate Action Plan Progress Report and making sustainability one of the strategic themes in its Forward 28 strategy.
In 2023, Danske Bank introduced targets for engagement with customers in high-impact sectors.
By the end of 2024, the bank aims to engage with more than 300 business customers in the agriculture sector and more than 50 large corporates across the agriculture sector, the forestry, pulp and paper sector, and the shipping sector.
“We continue to make progress on our strategy as we strive to improve the bank to the benefit of all stakeholders,” Egeriis said.
