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Danske Bank profit beats forecasts; ups guidance

Denmark's biggest lender, Danske Bank A/S (DANSKE.KO), on Thursday upgraded its full-year profit guidance for the second quarter in a row on the back of positive macroeconomic developments, high customer activity and increasing business volumes.

The Copenhagen-based bank posted net profit of 4.73 billion Danish kroner ($739.1 million) for the three months to Sept. 30, compared with DKK4.74 billion a year earlier, beating the DKK4.54 billion analysts expected in a FactSet poll.

The bank now expects full-year net profit of between DKK19 billion and DKK21 billion, up from a previous estimate of DKK18 billion to DKK20 billion, after seeing higher-than-expected income on all major income lines and lower loan impairment charges so far this year. Net interest income is still expected to rise compared with 2016, as the bank benefits from volume growth and lower funding costs, it said.

Net fee income is seen higher than in 2016 and expenses are expected to be around the 2016 level.