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(Sharecast News) - Danske Bank reported a strong set of results for 2025 on Thursday, combining robust performance in its Northern Ireland franchise with solid group earnings, low impairments and increased shareholder returns, as the lender said it ended the year at the upper end of its financial guidance.
At group level, Danske reported net profit of about DKK 23bn (2.67bn) for 2025, exceeding the top end of its guidance, supported by resilient net interest income, record core banking income and tight cost control.
Fourth-quarter net profit rose to DKK 6.31bn, beating market expectations, while loan impairments remained exceptionally low.
Chief executive Carsten Egeriis said the result was "driven by resilient net interest income and effective cost management, supported by low loan impairments on the back of the continued strength of our credit portfolio."
In Northern Ireland, the region's largest lender posted pre-tax profits of 250.4m, up almost 15% year-on-year, on total income of 433.3m, a rise of nearly 12%.
Total lending increased 10% to just under 7bn, while customer deposits rose 9% to a record 12.4bn.
The bank reported no impairment charge for the first time since the financial crisis, reflecting what it described as the continued strength of its loan portfolio.
Mortgage lending in Northern Ireland reached a record 790m, up around 7%, while Danske also approved more than 1bn of new lending for local business customers, an increase of roughly 35%.
Northern Ireland chief executive Vicky Davies said the bank "supported the local business community with over 1bn in new lending approvals," adding that more than 1,700 new small business customers were attracted during the year.
She said the bank expected "a healthy level of mortgage lending to continue locally," supported by easing interest rates, sustained housing demand and low unemployment.
The bank announced a further DKK 4.5bn share buyback and proposed a higher total dividend for the year, citing strong capital generation and a solid balance sheet.
For 2026, Danske said it expected net profit in the range of DKK 22bn to DKK 24bn, with performance driven primarily by core banking activities.
Danske also highlighted growing corporate activity in markets such as Norway, where it had repositioned as a pure commercial bank and was seeing increased demand for financing in defence and maritime sectors, even as overall shipping credit exposure declined.
The bank said progress on decarbonisation in shipping remained slower than anticipated, though it reiterated its ambition to facilitate DKK 100bn of transition financing by 2028.
At 1224 CET (1124 GMT), shares in Danske Bank were up 2.38% in Copenhagen at DKK 340.20.
Reporting by Josh White for Sharecast.com.