Continued solid earnings in the financial sector
Continued solid earnings in the financiaPresident of Finansforbundet, Kent Petersen, is pleased to note that earnings in the financial sector continue to be solid. Amongst other things, the banks have gotten better at avoiding risky lending.
“When you look at the financial sector in 2022, it is characterised by sound earnings. One financial company after another is adjusting their expectations upward”.
President of Finansforbundet, Kent Petersen, is pleased with the excellent accounting figures in the sector.
Finans has recently reviewed the banks’ accounts and investor presentations and found that the large banks in Denmark are going into the expected economic downturn with a first-class lending book, nearly free of bad debts.
President of Finansforbundet Kent Petersen is pleased with the sound lending books in the sector.
The five largest purely Danish banks have thus reduced their ‘credit-impaired loans’ from DKK 18.62 billion to DKK 13.68 billion since the start of the year.
Danske Bank in particular is the one who has done something about it. Admittedly, the bank was criticised for its housing loans and was ordered by FSA to ensure that its customers have sufficient robustness for homes in growth areas. Despite this, the bank has made a big dent in risky exposure with a decrease from DKK 13.22 billion to DKK 8.75 billion.
While 2022 will go down in history as a year riddled with crises and conflict, this is not readily apparent from the financial sector’s earnings.
“Even in a very volatile stock market - and a complex economic situation in general - it shows that there is a robustness and confidence in the financial sector. This is very important in terms of job security for our members. Even if not everything is perfect, it’s still a good basis for future collective bargaining that the sector is in good shape”.