COPENHAGEN: Denmark's Danske Bank A/S on Tuesday reported a steep drop in third-quarter profits below all forecasts, hurt by falling trading income, and said it would cut 2,000 jobs and start searching for a new chief executive.
The bank said third-quarter results had suffered from the financial crisis, new regulation and high funding costs and that a cost-savings programme would reduce expenses by 10 percent or about 2 billion crowns ($375 million) in 2012-14.
"Our third-quarter results suffered from the intensified financial turmoil," Chief Executive Peter Straarup said in the statement. "To improve earnings, we (will) focus on our expenses."
The bank said Straarup, who reached 60 this summer, wished to retire in accordance with the terms of his employment contract.
"Consequently, the board of directors is initiating the process of finding a new chief executive officer," the bank said in the statement. Straarup would continue as CEO until his successor takes over, it said.
Pretax profit dropped to 10 million Danish crowns in the July-to-September quarter from 1.87 billion in the corresponding quarter last year, missing an average 1.28 billion crowns average estimate in a Reuters poll of analysts.
Net trading income sank to 267 million from 1.93 billion, against an average 1.4 billion forecast, and loan impairments fell to 2.80 billion from 3.08 billion, roughly in line with forecasts.
Analysts had on average forecast loan impairments of 2.73 billion in the Reuters poll.
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