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MarketScreener Homepage  >  Equities  >  NASDAQ OMX COPENHAGEN  >  Danske Bank A/S    DANSKE   DK0010274414

DANSKE BANK A/S

(DANSKE)
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Danske Bank A/S : Fires Danish Banking Chief After Customers Overcharged

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06/24/2019 | 03:18am EDT

By Dominic Chopping

Danske Bank AS (DANSKE.KO) on Monday dismissed executive board member and Head of Danish Banking Jesper Nielsen for his part in the mismanagement of a financial product that overcharged its customers.

Fees for Danske Bank's Flexinvest Fri product were raised in July 2017. In a statement Monday the bank said that interest rates at that time were low and expected returns were similarly low.

"In this perspective, the management decisions caused the fees to be set at too high a level in relation to the expected returns, Danske said. This meant that fees were too high for all customers, and it made the product unsuitable for some customers.

Fees weren't lowered again until November 2018.

The matter affects about 87,000 customers in Denmark, and Danske expects to pay out a total of around 400 million Danish kroner ($61 million) in compensation.

Danske is currently being investigated by Estonia, Denmark, France and the U.S. about allegations that around $230 billion in suspicious funds from Russia and other former Soviet states entered Europe through its tiny branch in Estonia.

As a result, then-CEO Thomas Borgen resigned amid the scandal and Mr. Nielsen filled in as interim CEO until a few weeks ago when former ABN AMRO Bank NV executive Chris Vogelzang took over.

"Jesper Nielsen has made significant contributions to the bank throughout many years, most recently as Interim CEO, for which we thank him," said Chairman Karsten Dybvad.

"But, in the specific matter, he was at the time one of the responsible executive board members who did not to a sufficient degree ensure that the Flexinvest Fri product was suitable for the bank's customers. Therefore, we find that Jesper cannot continue in his position."

Until a replacement has been found, Glenn Soderholm, head of banking activities in Norway, Sweden and Finland, will also take responsibility for banking activities in Denmark.

The Danish Financial Supervisory Authority has been informed and is currently looking into the matter. "In this connection, we expect to receive justified and severe criticism from the FSA," Danske concluded.

Write to Dominic Chopping at dominic.chopping@wsj.com; @domchopping @WSJNordics

Stocks mentioned in the article
ChangeLast1st jan.
DANSKE BANK A/S -0.87% 102.95 Delayed Quote.-19.47%
DANSKE BANK AS (ADR) 0.52% 7.66 Delayed Quote.-23.32%
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Financials (DKK)
Sales 2019 43 600 M
EBIT 2019 17 993 M
Net income 2019 12 826 M
Debt 2019 -
Yield 2019 7,98%
P/E ratio 2019 6,98x
P/E ratio 2020 6,58x
Capi. / Sales2019 2,03x
Capi. / Sales2020 1,96x
Capitalization 88 650 M
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Technical analysis trends DANSKE BANK A/S
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TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 21
Average target price 137,33  DKK
Last Close Price 103,80  DKK
Spread / Highest target 92,7%
Spread / Average Target 32,3%
Spread / Lowest Target -15,7%
EPS Revisions
Managers
NameTitle
Jesper Nielsen Chief Executive Officer & Head-Banking
Karsten Dybvad Dalsjö Chairman
James Martin Ditmore COO, Group Head-Services & IT
Christian Baltzer Chief Financial Officer
Charlotte Hoffmann Director
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