News in English

Danske Bank fee earnings up, customers leaving

Some 40,000 smaller customers have turned their backs on Danske Bank.

News in English

Some 40,000 customers have left Danske Bank Danmark since it introduced its new strategy of thinning out its portfolio of smaller customers, according to its interim accounts for the first six months of 2013.

“Customers with a very small business volume tend to gather their business with their primary bank and may thus decide to leave Danske Bank. In the first six months of 2013, some 40,000 customers left Danske Bank in Denmark,” the report says.

“This outflow is as expected in view of the fact that we have launched an entirely new way of being a customer with Danske Bank,” it adds.

Nonetheless, the bank’s new customer programme, under which smaller customers pay a fee to have an account with the bank, has attracted customers.

The second quarter of 2013 saw 306,000 customers sign up for the new Personal Banking programme, which now has 773,665 subscribers.

Net fee income for the first six months of 2013 has boosted revenues to just over DKK 4.4 billion, compared with DKK 4.06 billion in the first half of 2012.

Danske Bank’s new customer programme was presented in January and involves smaller customers without major loans, insurances or pension policies having to pay a subscription to be a customer with the bank.

While banking with Danske Bank will be more expensive for some, it will be cheaper for others and free for major customers.

There are six customer groups and two subscription models, with fees ranging from 0 kroner to 120 kroner per quarter.

Several other Danish banks have chosen to follow Danske Bank’s example and have introduced fees for accounts.

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Edited by Julian Isherwood

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