Large Danish banks withstand severe economic downturn

The EU-wide stress test shows that the four Danish banks will maintain excess capital relative to capital requirements even in the event of a severe economic downturn. Danske Bank, Nykredit, Jyske Bank and Sydbank will maintain Common Equity Tier 1 capital ratios be-tween 11.7 and 15.6 per cent by the end of 2020. Going forward, the results will feed into the supervisory dialogue with the banks on their capital targets and distribution policies.

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Director, Communications

Søren Møller Christensen
+45 33 55 82 99
smc@ftnet.dk

 "The results show that the largest Danish banks are robust even in the event of a severe economic downturn. The assumed economic downturn is significantly more severe than in previous stress tests, and more severe than what we see for Europe overall. Therefore, the capital effect is substantial and higher than in previous stress tests. Results are reassuring from a Danish point of view. Having said that, this conclusion is largely based on a favourable capital position at the starting point and the largest Danish banks should safeguard this going forward by retaining some of their earnings," says Director General, Jesper Berg.

Read the full press release: Large Danish banks withstand severe economic downturn

See all the Danish results here.