Interim financial statements: Strong results lead to earnings upgrades
Reasonable interest income and increasing fee income appear to be making 2024 another good year. According to a review of the interim financial statements based on BankResearch data, 25 of 40 banks have adjusted upwards their expectations for the year.
25 of 40 have adjusted expectations upwards
In the period, net interest income increased by 19 per cent compared to the first six months of 2023. In the first half of 2024, interest income constituted DKK 29.8 billion, which is a considerable increase from the DKK 25.1 billion generated in the same period last year. Interest income is, nonetheless, slightly below the record-high DKK 30.2 billion achieved in the second half of 2023.
Time will tell whether the 2023 record will be broken, but 25 out of 40 banks have adjusted their expectations upwards since the end of the year.
"Banks in Denmark continue to deliver strong results, with the earnings upgrades inherently reflecting optimism for the financial statements. They’re driven by relatively high interest income, increasing fee income and excellent credit quality with no write-downs. Therefore, 2024 appears to become yet another good year,” says Klaus Mosekjær Madsen, Senior Economist at Finansforbundet.
Selected accounting items
| DKK billion | 2023 | 2023H1 | 2023H2 | 2024H1 |
|
Net interest income |
55,2 | 25,1 | 30,2 | 29,8 |
| Net fee and commission income | 26,2 | 13,0 | 13,2 | 14,0 |
| Net interest and fee income | 82,3 | 38,9 | 43,6 | 45,2 |
| Total staff and administrative expenses | 46,9 | 23,3 | 23,7 | 24,3 |
| Total market value adjustments | 11,0 | 6,2 | 4,8 | 2,9 |
| Impairment losses on loans and receivables, etc. | 1,0 | 0,2 | 0,7 | -0,3 |
| Profit/loss before tax | 56,2 | 26,5 | 29,7 | 30,1 |