Return on equity (ROE) at Denmark’s leading banks continued its general downward trajectory last year, as Covid-19 took its toll on the country’s economy, despite generous government support. The country’s banks have had to contend with negative interest rates for almost a decade, as well as various compliance requirements that have had an impact on lenders’ operations.
Danske Bank, the country’s largest lender by assets and Tier 1 capital, saw ROE drop to 2.7% in 2020 from 8.8% in 2019 (and down from 12.4% in 2017). Danske Bank has been embroiled in a money laundering scandal over the past few years, which in 2018 led to the departure of its then CEO, Thomas Borgen.
