DANSKE Bank is to cut costs by 10 per cent, axing 2,000 jobs in the process, after quarterly profit was wiped out by a drop in trading income, becoming the latest Nordic lender to combat slowing revenue growth and higher funding costs.
The Danish bank, which wants to cut expenses by about 2bn Danish crowns (£231m) from 2012-14, also said yesterday it had started looking for a replacement for chief executive Peter Straarup ahead of his retirement.
July-September pre-tax profit fell to 10m crowns from 1.87bn a year ago, missing forecasts for 1.28bn.
Net trading income collapsed to 267m crowns from 1.93bn, against a forecast for 1.4bn, while loan impairments fell to 2.80bn from 3.08bn.
“This is not a result we will gladly remember,” Straarup said.