Important drop in income for Denmark-based banks in 2020

The corona disaster led to a pointy drop in financial institution income in 2020, in response to finansdanmark.dk.

The decline is because of write-downs on loans, whereas curiosity revenue continues to be depressed by low rates of interest. However banks are nonetheless properly geared up to assist prospects and assist the Danish financial system. That is proven by Finans Danmark’s overview of the accounts of the 17 largest banks and mortgage banks for 2020. The income of the 17 largest banking and mortgage teams fell in 2020 by simply over 11.9 billion. of Danish crowns. In comparison with 2019, it is a lower of virtually 33%. One essential motive is a marked enhance in impairment losses on loans to DKK 12.2 billion in 2020, which displays provisions for future losses on loans to prospects affected by the corona disaster. As well as, the prices of combating financial crime, equivalent to cash laundering and the implementation and enforcement of rules, referred to as compliance, proceed to rise. As well as, banks’ web curiosity revenue is broadly on the identical degree because the final two years.

Though a number of banks lowered the restrict to which non-public shoppers should pay detrimental curiosity on deposit accounts in 2020, this curiosity revenue has been removed from having the ability to offset the decline in curiosity revenue on deposit accounts. prepared. Nevertheless, the autumn in curiosity revenue is offset by the autumn in curiosity expenses for financial institution financing. The business continued to construct up capital in 2020 and by the top of 2020 the full capital stood at virtually DKK 430 billion.


Supply hyperlink

About Wanda Dufresne

Check Also

Fintech market to see huge growth with Stripe, Yapstone and PayPal Holdings

In-depth study of FinTech by type (peer-to-peer money transfers, lending services, online payments, mobile payments, …

Leave a Reply

Your email address will not be published. Required fields are marked *