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Danske Bank (DNKEY) AI Stock Analysis
Danske Bank
(Other OTC:DNKEY)
The score is driven primarily by solid underlying financial performance and a very supportive valuation (moderate P/E with a high dividend yield), reinforced by a positive earnings outlook and strong capital/credit quality commentary on the latest call. Offsetting these positives are elevated balance-sheet leverage typical of banks, volatile cash-flow history, and currently soft technical momentum (negative MACD and price below key moving averages).
Danske Bank (DNKEY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $43.30B
- Dividend Yield
- 8.31%
- Average Volume (3M)
- 44.63K
- Price to Earnings (P/E)
- 11.8
- Beta (1Y)
- 0.85
- Revenue Growth
- 13.46%
- EPS Growth
- 16.40%
- Country
- US
- Employees
- 20,026
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Banks - Regional
Danske Bank Business Overview & Revenue Model
Company Description
Danske Bank A/S delivers an extensive range of banking products and services, serving a diverse clientele including corporate entities, institutional organizations, and international customers. Its comprehensive offerings span various financial solut...
How the Company Makes Money
Danske Bank primarily earns revenue through (1) net interest income, (2) net fee and commission income, and (3) other income items such as trading/market-related income. 1) Net interest income (core banking spread): The bank takes customer deposits a...
Danske Bank Earnings Call Summary
The call was strongly positive overall. Management reported broad-based income growth, record-high Q3 return on equity, strong credit quality, lower impairment guidance, a robust capital position and continued customer and fee-income momentum. The main challenges were lower trading income, expected below-average Q4 performance fees, intense competition, personal mortgage growth below the market and a structural hedge contribution expected to be negative in 2027 and 2028. These lowlights were outweighed by the reported achievements and reaffirmed financial outlook.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For full year 2026, Danske Bank narrowed net profit guidance to a range between DKK 24 billion and DKK 25 billion, corresponding to a return on equity above 14%, with loan impairment charges no higher than DKK 600 million, total income somewhat above DKK 59 billion, operating expenses in the range of DKK 26 billion to DKK 26.5 billion and a cost-to-income ratio below 45%; NII is expected to be slightly above DKK 38 billion, while in Q4 fee income from all 4 categories should be higher than Q3, performance fees are expected to be well below the historical average of around DKK 400 million, and trading income is expected to be in line with Q3, all things equal, if current market conditions persist, with seasonal effects leading to lower customer activity. The bank continues to target 3% to 4% lending growth, a 60% to 70% dividend payout plus extra capital distribution, and a CET1 ratio of around 16% in 2028; the 2028 cost-to-income ratio is expected to be up to and no greater than 43%, with AI investment benefits reaching a DKK 2 billion run rate by 2028, while the structural hedge is expected to be a negative contribution next year and the year after.
Danske Bank Financial Statement Overview
Summary
Income statement strength (score 78) reflects solid recent profitability and positive TTM revenue growth, but multi-year revenue choppiness reduces confidence in consistency. Balance sheet risk is elevated (score 62) due to high leverage (debt-to-equity ~6–7x) despite respectable ROE. Cash flow quality is the weakest pillar (score 55) with large period-to-period swings, lowering reliability.
Income Statement
78PositiveBalance Sheet
62PositiveCash Flow
55Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 98.99B | 95.17B | 100.25B | 94.17B | 68.69B | 78.26B |
| Gross Profit | 59.15B | 56.84B | 56.41B | 53.09B | 44.05B | 47.36B |
| EBITDA | 32.75B | 31.69B | 32.02B | 30.93B | 3.01B | 21.45B |
| Net Income | 24.58B | 23.04B | 23.63B | 21.26B | -4.58B | 12.92B |
Balance Sheet | ||||||
| Total Assets | 3.94T | 3.75T | 3.72T | 3.73T | 3.79T | 3.94T |
| Cash, Cash Equivalents and Short-Term Investments | 784.51B | 225.46B | 189.02B | 277.85B | 198.46B | 326.81B |
| Total Debt | 1.15T | 1.14T | 1.13T | 1.10T | 1.05T | 1.17T |
| Total Liabilities | 3.77T | 3.57T | 3.54T | 3.55T | 3.63T | 3.76T |
| Stockholders Equity | 171.38B | 181.16B | 175.69B | 175.74B | 160.28B | 176.70B |
Cash Flow | ||||||
| Free Cash Flow | 66.89B | 22.23B | -94.73B | 140.12B | -110.74B | -39.13B |
| Operating Cash Flow | 69.03B | 22.55B | -92.47B | 141.50B | -109.36B | -37.56B |
| Investing Cash Flow | -2.14B | -2.02B | -2.23B | -1.33B | 650.00M | -1.56B |
| Financing Cash Flow | -4.07B | -13.10B | -30.68B | -7.89B | -18.44B | -1.40B |
Danske Bank Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNKEY, the sentiment is Positive. The current price of 26.71 is above the 20-day moving average (MA) of 26.27, below the 50-day MA of 27.68, and above the 200-day MA of 26.21, indicating a neutral trend. The MACD of -0.41 indicates Negative momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 60.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DNKEY.
Danske Bank Peers Comparison
Overall Rating
KB70Outperform
NWG70Outperform
WF69Neutral- DNKEY68Neutral
LYG65Neutral
SHG63Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| KB | 70Outperform | $38.04B | 8.72 | 11.06% | 2.88% | 27.58% | 13.76% |
| NWG | 70Outperform | $61.72B | 8.26 | 15.79% | 5.70% | 6.17% | 16.21% |
| WF | 69Neutral | $16.54B | 7.86 | 8.82% | 4.17% | 32.89% | -9.62% |
| DNKEY | 68Neutral | $41.44B | 11.76 | 14.31% | 8.31% | 13.46% | 16.40% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| LYG | 65Neutral | $72.26B | 9.96 | 13.09% | 4.08% | 1.06% | 75.52% |
| SHG | 63Neutral | $29.19B | 7.66 | 9.51% | 3.07% | 27.85% | 15.08% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| DNKEY | Danske Bank A/S (Adr) | 26.71 | 5.58 | 26.39% | |
| KB | Kb Financial Group Inc. | 114.98 | 28.63 | 33.16% | |
| LYG | Lloyds Banking Group | 5.27 | 0.63 | 13.63% | |
| NWG | Natwest Group Plc | 16.55 | 1.59 | 10.59% | |
| SHG | Shinhan Financial | 65.06 | 10.00 | 18.16% | |
| WF | Woori Finance | 68.83 | 12.94 | 23.15% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 30, 2026