Danske Bank Writes Down $650 Million in Finnish, Irish Assetsby
Denmark’s biggest bank is writing down the value of goodwill and other intangible assets related to its Finnish and Northern Irish units, due in part to lower interest rates and more onerous capital requirements.
Danske Bank said on Friday the result of impairment testing means it will write down 4.5 billion kroner ($653 million) before tax in its 2015 annual report. The decision means shareholders’ equity will be cut by about 4.4 billion kroner, with the tax effect amounting to 100 million kroner.
“The goodwill impairments are based on long-term assessments and do not relate to expected short-term developments at the units operating in Finland and Northern Ireland,” said Henrik Ramlau-Hansen, the bank’s chief financial officer. “Further, the impairments are of a technical nature and will not affect our regulatory capital or liquidity.”