Danske Bank A/S fell the most in more than two weeks in Copenhagen trading after Deutsche Bank AG said Denmark’s biggest lender has delivered the cost cuts within its reach, limiting scope to further boost profitability.
Danske lost as much as 3.3 percent, the most since Jan. 23. The stock fell 3 percent to 106.90 kroner at 1:27 p.m. in the Danish capital with trading volume at 75 percent of the three-month daily average.
Danske, which has cut jobs and raised prices to compensate for loan losses caused by burst housing bubbles in Ireland and Denmark, said last week that 2013 profits may double as impairments drop “slightly.” Deutsche analyst Jan Wolter today lowered his recommendation on Danske to hold from buy, saying the 2013 forecast is “soft” and that he estimates the Copenhagen-based lender has now completed about 70 percent of its planned cost cuts.
“The issue is that management indicates most of the re-pricing is behind us,” Wolter, who’s based in Stockholm, said in a note. “The normalization trade is behind us.”
Danske said on Feb. 7 that profit after tax will be as high as 10 billion kroner this year, compared with a reported 2012 profit by the same measure of 4.7 billion kroner.