By Dominic Chopping
Danske Bank said Wednesday that it intends to restart dividend payments from the first half of 2023 as it launched a new strategy and financial targets.
The Copenhagen-based bank said that, as part of the new strategy, it will exit the market for personal customers in Norway to focus efforts, investments and capital on the business, large corporate and institutional segments in the country.
It is targeting a return on equity of 13% with a common equity tier 1 ratio of above 16% and a cost/income ratio of around 45% in 2026, while its capital distribution policy of a dividend payout of 40%-60% of net profit remains unchanged.
For 2023-26 the bank sees a total dividend potential of at least 50 billion Danish kroner ($7.18 billion), based on the upper end of the range.
It intends to restart dividend payments at its interim report for the first half of 2023, with the payment based on first-half net profit, and is targeting the upper end of the 40%-60% range.
Danske Bank said it is significantly increasing annual investments in core capabilities within digital platforms, expert advisory services and sustainability to DKK4 billion from DKK3 billion.
Write to Dominic Chopping at dominic.chopping@wsj.com
Read the full article here
