Bloomberg News

Danske Bank Gains as JPMorgan Says Time to Buy: Copenhagen Mover

April 03, 2013

April 3 (Bloomberg) -- Danske Bank A/S rose the most in almost two months after JPMorgan Securities Plc advised clients to buy shares in Denmark’s biggest lender on the likelihood the bank will resume dividend payments as asset quality improves.

Danske rose as much as 3.3 percent, the most since Feb. 7. The stock added 3.1 percent to 107.30 kroner at 12:25 p.m. in Copenhagen, with trading volume at 56 percent of the three-month daily average.

The bank, which is cutting 3,000 jobs and raising prices to compensate for loan losses caused by burst housing bubbles in Ireland and Denmark, said in February that 2013 profits may double as impairments drop slightly.

“With non-performing loans trending down, Danske’s asset quality misery is almost over,” Sofie Peterzens, an analyst at JPMorgan, wrote in a note to clients today. “We believe Danske will have too much capital unless a dividend is paid in 2013- 2015.”

Danske said on Feb. 7 that profit after tax will be as high as 10 billion kroner ($1.72 billion) this year, compared with a reported 2012 profit by the same measure of 4.7 billion kroner.

To contact the reporter on this story: Gelu Sulugiuc in Copenhagen at gsulugiuc@bloomberg.net

To contact the editor responsible for this story: James Ludden at jludden@bloomberg.net


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