Danske Bank has presented its best interim result since the European finance crisis hit in 2008, returning a pre-tax profit of DKK4.1billion in the first six months of 2012 and profit after tax of DKK2.3billion.

“These are our best results for a half year since the financial crisis hit in 2008,” says Chairman Eivind Kolding of the result, which is 20 per cent higher than the same period last year.

Although the bank says there are still challenges, management says developments are positive.

“Even though we are still far from reaching our goals and challenges lie ahead, the trend is positive. Net profit is up 20%, net interest income is rising despite low interest rate levels, and our new organisation, implemented 1 June this year, has got off to a good start. We have taken one more step in the right direction,” Kolding says.

The bank says expenses in the first six months of 2012 were down 4 per cent from the level in the first half of 2011, with the cost/income ratio dropping from 60.5 per cent to 54.8 per cent.

While impairment charges were higher in the first half 2012 compared with 2011, they have declined over the past two quarters.

“The charges related mainly to commercial property in Ireland and Northern Ireland, personal customers in Ireland and Denmark, and the shipping industry,” the bank says in a statement.

The bank says that the outlook remains uncertain as a result of the general economic climate, but that it expects earnings to remain low in 2012 and total impairment charges are likely to remain at the same high level as in 2011.

FACEBOOK – Follow Politiken’s News in English