March 16, 2020 / 5:07 PM / 24 days ago

Danske Bank sees lower net income this year due to coronavirus, suspends outlook

FILE PHOTO: A Danske bank sign is seen on a bank's headquarters in Copenhagen, Denmark October 22, 2019. REUTERS/Nikolaj Skydsgaard/File Photo

COPENHAGEN (Reuters) - Denmark’s biggest lender Danske Bank (DANSKE.CO) expects lower net income this year and has suspended its 2020 outlook due to uncertainty in the macroeconomic outlook linked to coronavirus, it said on Monday.

“Due to a significant worsening of the macroeconomic outlook as a result of the Covid-19 situation, Danske Bank expects a negative impact on its financial results for 2020,” it said in a statement.

Loan impairment charges were likely to increase due to “more severe scenarios”, while the turmoil on financial markets would probably have a negative impact on trading income, it added.

Danske Bank, currently reeling from a money laundering scandal, said it had also decided to suspend its 2020 outlook for net profit of 8-10 billion Danish crowns ($1.2-1.5 billion) as it was hard to predict the economic impact of the pandemic.

It expects to provide a new outlook in connection with its first-quarter earnings on April 30, it said.

Danske Bank said in a separate statement it had decided to postpone its annual general meeting on Tuesday due to health and safety concerns and upon the recommendation of the Danish Financial Supervisory Authority.

Reporting by Stine Jacobsen; Editing by Jan Harvey

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