Following Danske Bank's Q2 2026 interim report, we have updated our investment case on the company. Our updated investment case covers the key investment reasons, risks, and valuation perspective relative to peers across Nordic large-cap banking.

Danske Bank delivered a strong second quarter of 2026 with net profit of DKK 6.2bn, total income of DKK 15.2bn, a return on equity of 14.8% and a cost/income ratio of 43.0%, with net loan impairments of only DKK 291m underscoring robust credit quality across the Nordic franchise. NII held at DKK 9.3bn as growing lending and deposit volumes and improved deposit margins offset a lower equity base, while fee income rose to DKK 4.1bn on stronger investment and capital markets activity. Management raised the 2026 outlook, with net profit guidance lifted to DKK 23–25bn, total income now seen somewhat above DKK 59bn and the cost/income ratio below 45%, ahead of the original target. At the midpoint of Forward '28, the quarter already tracks the new 2028 ambitions of RoE above 14.5% and cost/income no greater than 43%, alongside CET1 around 16% and total income of approximately DKK 63bn. Growth is broad-based, with total customer assets passing DKK 1,000bn and Large Corporates & Institutions lifting assets under management to a record DKK 1,117bn on strong net inflows. On capital, the DKK 5bn extraordinary dividend (DKK 6.14/share, paid 5 May 2026), the revised 60–70% payout policy now applied at a 70% accrual and a DKK 4.5bn share buy-back are normalising CET1 of 17.0% towards the ~16% target, supporting 2026–28 dividend potential above DKK 55bn. H1 2026 EPS reached DKK 14.6 and book value per share DKK 206.8, with close to DKK 70bn distributed over the past three years. On valuation, the P/B discount to the Nordic large-cap peer group has narrowed from -10% on 2025A to -5% on 2026E and -4% on 2027E, while P/E has swung from a +2% premium on 2025A to -5% on 2026E and -7% on 2027E, leaving room for continued re-rating from ~12x 2026E P/E and 1.7x P/B as the 2028 targets deliver.

Disclaimer: HC Andersen Capital receives payment from Danske Bank for a Digital IR subscription agreement. /Rasmus Køjborg, CFA & William Jørck 16:00 11/08-2026