Citi says Danske Bank offers best Nordic return

Sat, Mar 2, 2013, 00:00

Danske Bank rose the most in three weeks in Copenhagen trading after Citigroup said Denmark’s largest lender would offer investors the best return among Nordic banks. Danske rose 1.8 per cent, the most since February 8th.

Danske, which is cutting 3,000 jobs and raising prices to compensate for loan losses caused by burst housing bubbles in Ireland and Denmark, said last month 2013 profits may double as impairments drop “slightly”.

Citi yesterday raised its recommendation to buy from hold and said the stock could double in value by 2015 if the Copenhagen-based bank succeeds in reaching its return on equity target of more than 12 per cent.

“Of the Nordic banks we believe Danske offers the most upside from current levels,” Citi analysts said in a note. – (Bloomberg)