Like many Scandinavian lenders, Danske Bank pretty much sat tight in the second quarter with a good quality loanbook and cost cutting offsetting the absence of economic growth and effect of persistently low interest rates on Denmark’s biggest bank.

Net income for the three months to June was DKr4.4bn, roughly flat year-on-year, as was the case for net interest income of DKr5.4bn.

Chief executive Thomas Borgen said the first half had been “satisfactory,” although marred by difficult market conditions which included a now-familiar roster of negative interest rates, low economic growth and sluggish demand. The Danish central bank was the first to implement negative interest rates, back in 2012, and the benchmark lending rate is now minus 0.65 per cent.

Still, Danske remains in sound health, with a common equity tier one ratio of 15.8 per cent. Although market conditions were more challenging due to the UK’s Brexit vote, the bank said it was maintaining its full-year outlook. Danske runs a banking unit in Northern Ireland, but it said this only accounts for 3 per cent of its loanbook.

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