Danske Says Risk Chief to Quit in Latest Management Upheaval

Danske Bank A/S’s chief risk officer will quit by the end of the year, marking the latest in a string of management changes at Denmark’s biggest lender.

Danske doesn’t yet have a candidate to replace Robert Endersby, who has been head of group risk management and a member of the bank’s executive board since 2012, according to a statement published today out of Copenhagen.

At least seven top managers, including Danske’s chief executive officer, have either stepped down or been fired since the beginning of 2012 after the bank failed to match investor returns at its biggest Swedish competitors. Danske has also battled a client exodus, losing more than 100,000 customers last year. The bank ousted Eivind Kolding as CEO in September, replacing him with Thomas F. Borgen. A month later, Danske fired Steen Blaafalk as head of treasury.

“Robert Endersby has made a great effort in building up Group Risk Management,” Borgen said in today’s statement. “Robert now wants to return to England. We have been happy to benefit from his vast experience.”

Other departures at the bank in the past two years include the head of Danske Markets, Henrik Normann, Chief Operating Officer Georg Schubiger, Head of Group Credit Per Skovhus and Head of Corporate Finance Anders Boending.

Price Rigging

Endersby left of his own free will, Kenni Leth, a spokesman for Danske, said by phone. He hasn’t told the bank what he intends to do in England, Leth said.

“His replacement will focus on the same tasks,” Leth said. “Given the heightened regulatory environment, there’ll be a lot of focus on finding a candidate who can help us navigate through this.”

Since September, when Danske fired Kolding, the bank’s shares have gained 23 percent, beating an increase of about 8 percent in the 43-member Bloomberg index of European financial stocks. Danske advanced 3 percent as of 3:10 p.m. local time, its biggest jump since Feb. 7.

Police last month accused Danske, its mortgage arm Realkredit Danmark A/S and six employees of manipulating mortgage bond prices in 2009. Public prosecutor Hans Fogtdal has said his investigation will include a review of the lender’s bonus practices to find out whether the prospect of bigger pay checks motivated bankers to bend the rules.

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