Danske Tops Gainers as Dividend Outlook Kept: Copenhagen Mover
Danske Bank A/S (DANSKE) gained the most among Copenhagen’s benchmark stocks as Denmark’s biggest lender maintained a plan to pay its first dividend since 2007, even as the country’s regulators challenge the bank’s capital levels.
Danske Bank rose as much as 1.8 percent to 102.80 kroner in the Danish capital, making it the best performing stock on the Nasdaq OMX Copenhagen 20 Index. The shares gained 1.1 percent to 102.1 kroner as of 12:11 p.m., with trading volumes at 19 percent of the daily average in the past three months.
Danske Bank is appealing an order to increase its risk weighted assets after regulators last month said the Copenhagen-based lender hadn’t correctly accounted for possible losses. The change reduces the ratio of capital to assets, which the bank in past years has sought to increase in part by retaining profits and not distributing capital to shareholders.
The appeal will take as long as a year to resolve and the bank intends in the meantime to stick to the plan to pay a dividend, Chief Financial Officer Henrik Ramlau-Hansen said.
“That’s a decision for the board of directors, but we still expect to pay a dividend if our results materialize as expected,” Ramlau-Hansen said in an interview on July 12. The appeal “has nothing to do with the capital adequacy of the bank as such,” he said.
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