Updated July 29, 2023
Overview of Banks In Denmark
The banking sector in Denmark plays a significant role in the Danish economy. A few international groups and many small institutions characterize it. Banks and mortgage banks in Denmark are grouped into systematically important financial institutions (SIFI) and non-systematically financial institutions. Denmark National Bank is the Central Bank of Denmark, and its objective is to maintain the country’s safe and secure currency system, stable prices, and stable financial systems. Denmark National Bank is an independent, self-governing institution established by law.
The Denmark banking sector is among the best capitalized in Europe, including commercial banks, retail banks, Credit Cooperative Bank, and saving banks. There are currently around 108 banks operating in Denmark. The banking sector in Denmark is almost 3 times bigger than the national economy. A domestic bank holds a significant part of the industry’s total assets, while foreign banks have a small portion. In Feb 2018, the Danish banking system outlook was stable because robust growth bolsters asset quality. The Danish financial supervisory authority monitored the financial undertakings of banks, mortgages, insurance companies, etc. Danish FSA also monitors the security market in Denmark. Systematic banks in Denmark take activities that are important for the Denmark economy.
Top 10 Banks In Denmark
Here is a list of the top 10 Banks in Denmark, which are as follows:
1. Danske Bank A/S
It is a Danish bank started in 1871 and serves 3.5 million customers in 4 business units, personal banking, Business banking, corporate and institutions, and wealth management. Bank also provides advisory services to personal customers and small and medium-sized businesses in Denmark. The bank operates through 237 branches and 2.2 million e-banking, mobile, and tablet banking customers. In 2018 Bank provided a return on equity at a rate of 9.8% after tax, and the Net profit was 15.0 billion DKK. In 2019, the bank expected profit in the DKK 14-16 billion range.
Nykredit was founded in 1985 through the merger of United Credit Unions and Jyllands Kreditforening. It is one of the largest banks in Denmark, with a market share of 5.6%, and the largest mortgage bank in Denmark. It offers services like mortgage credit, financial institutions, banks, insurance, real estate agent, association owners, etc. In 2018 the bank created one of the best results in bank history. Net profit for 2018 was 5.7 DKK billion, and the return on equity was 7.5% after tax. Bank has 43 centers across the country. Banks also provide services in the administration and management of investment funds.
3. Jyske Bank
The bank was founded in 1967 after merging 4 banks, and the Denmark office was initially opened by Finansbanken in 1966, and later, it was overtaken by Jyske Bank in 1981. Jyske Bank provides financial solutions for individuals and companies. It is the third-largest bank in the Danish market and has 98 branches across Denmark. Bank generated a pre-tax profit of 2951 DKK Million during Q3 2018, which is a corresponding return of 12% per annum on average equity.
Sydbank is the fourth largest bank in Denmark, and it was first established in 1970 through the merger of four banks. In 1981 bank established its branch in Denmark. The bank generated a profit of 963DKK Million, and the return on shareholder’s equity was 11.2% Per annum after tax in Q3 2018. The bank mainly focuses on SMEs, Retail Clients, and Private Banking. Bank operates through 62 branches in Denmark with a 6 to 13% market share. It is an independent bank and provides an excellent return to its shareholders.
5. Arbejdernes Landsbank
It is a Danish full-service retail bank established in 1919; it is one of the 10 largest banks in Denmark, with 70 branches across the country. The bank provides services to private customers and small and medium-sized enterprises. The bank generated a profit of 339 DKK Million before Tax in 2018 and expected a profit of DKK 275 to 325 Million in 2019. Arbejdernes Landsbank received the Award of Danes’ preferred bank for the 10th consecutive year by Voxmete. The bank added 18,000 new customers in 2018.
6. Nordea Kredit Realkreditaktieselskab
It is a mortgage credit institution bank that of a mortgage loan to the customer. It is a universal bank that offers customers a complete range of services. Total operating income of DKK 9 billion euros and total assets of 551.4 billion euros. The bank has a domestic market share of 6.01%. The credit rating agency Fitch rates the bank as AA-indicating high credit quality.
7. Saxo Bank A/S
It is a leading multi-asset trading and investment specialist with a fully licensed bank monitored by the Danish FSA. 1992 the bank established itself, and in 1998, it launched its first online trading platform. Bank reported a profit of DKK 150 million in the first Six months of 2018; Operating income reached DKK 1.5 billion, a slight decrease of 0.3 % compared to the first half of 2017.
8. Alm. Brand Bank
It is a Danish financial group founded in 1792 and runs its business through banking, insurance, and pension; it covers all customers’ financial needs. Alm brand bank provides services to private customers and small and medium-sized enterprises. It also offers services like car leasing, asset management, trading, and analysis of bonds and shares. Alm brand bank generated a profit of DKK 640 Million in the first six months of 2018. The bank generated an overall pre-tax profit of DKK 6 Million in Q3 2018. The Alm brand group expects profit in the 500-600 DKK Million range during 2019.
9. DLR Kredit A/S
It is the 6th largest mortgage bank in Denmark, established in 1960. Bank provides the loan to agriculture Industry, Commercial real estate, Office and business properties, etc. DLR distributes the loan through its main branch, which has no additional branch offices. DLR’s net profit after paying interest was DKK 707 Million in 2018, and its pre-tax profit was DKK 905 Million, slightly better than the bank expected in 2018.
10. Spar Nord Bank A/S
It is a local Danish bank that provides service in retail banking to individuals and SMEs, and it also offers deposits, loans, advances and guarantees, and mortgage credit and custodianship accounts. It is the 10th largest bank in Denmark in terms of total assets, and bank history was started in 1824. Bank generated a profit of DKK 920 Million after-tax in 2018, and the return on Equity share is 10.8% per annum after tax. Since 2 Jan 2019, the bank has been appointed as a systematically important financial institution called SIFI by Danish FSA. The bank operates through a network of 49 branches.
This has been a guide to Banks In Denmark. Here we have discussed the top 10 banks in Denmark with their financial structure. You may also look at the following articles to learn more –