Danske Bank’s shipping credit exposure increased by 2% in the first quarter.
Its gross credit exposure to the sector was DKK 23bn ($3.31bn) at the end of March, compared with DKK 22.5bn at the end of 2023, according to its quarterly report.
Chief executive Carsten Egeriis said: “In the first three months of the year, we saw macroeconomic uncertainty remaining high, not least because of the geopolitical landscape.
“It is still very much a mixed picture, with many areas of the Nordic economies performing well, but we also see businesses facing headwinds, for example within construction.”
The Copenhagen-based bank’s total income was DKK 14bn compared with DKK 13.4bn in the first quarter of 2023.
“For Danske Bank, the first quarter of 2024 was a continuation of our stable and satisfactory performance in 2023,” Egeriis said.
“Overall, our income increased, supported by good customer activity throughout our business, our sustained focus on efficiency kept costs down, and strong credit quality resulted in modest loan impairments. All in all, we continued to improve our profitability.”
Net profit was DKK 5.6bn in the first quarter, against DKK 5.2bn in the same period last year.
“The first quarter of 2024 was effectively the first quarter of our new strategy period. With our Forward ’28 strategy, we have set clear ambitions for continuing the efforts to strengthen our position as a leading bank in the Nordic region,” Egeriis said.
Sustainability is a core pillar of Danske’s Forward ’28 strategy.
In the quarter, it launched a strategy paper detailing its strategic direction and a new position statement on fossil fuels introducing stricter requirements for its investment activities.
Danske forecast net profit of DKK 20bn to DKK 22bn in 2024.
According to the bank’s outlook, loan impairment charges are subject to an elevated level of geopolitical and macroeconomic uncertainty and are expected to reflect its assumptions in its financial targets for 2026 of about eight basis points per year.
