Banks

Danske Bank beats Q2 forecast, sees challenging markets after Brexit

Denmark's Danske Bank reported second-quarter pretax profit above forecasts on Thursday thanks to higher trading income but said market conditions have become more challenging owing the UK's vote to leave the EU.

Denmark's largest lender by market capitalisation said pretax profit fell eight percent to 5.78 billion Danish crowns ($857.2 million) in April-June, beating a forecast of 5.57 billion crowns.

"Even though the market conditions have become more challenging owing to the UK's vote to leave the EU, we maintain our outlook for 2016," Chief Executive Thomas Borgen said in the statement.

The group kept its full-year outlook of a net profit before goodwill impairments in line with last year's 17.7 billion crowns.

"The period has been characterised by low activity, except within financial markets," Borgen said.

The bank's loan losses showed a net charge of 22 million crowns after four consecutive quarters with net reversals.

Chris Ratcliffe | Bloomberg | Getty Images

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