Danish bank posts loss after US money laundering fine

AFP - [email protected]
Danish bank posts loss after US money laundering fine
Danske Bank signs at the bank's headquarters in Copenhagen. The bank has posted a heavy loss after being fined in the United States for money laundering. File photo: Jacob Gronholt-Pedersen/Reuters/Ritzau Scanpix

Danske Bank reported heavy losses for 2022 on Thursday as Denmark's biggest lender was hit by huge fines in the United States and at home over money laundering.


The bank posted a loss of 5.1 billion Danish kroner ($753 billion) last year.

But it expects to bounce back into the green in 2023 as it forecast a net profit in the range of 15-17 billion kroner for the year.


The bank said 2022 was "an unusual year" with market volatility, soaring inflation following Russia's invasion of Ukraine and a "deteriorating macroeconomic outlook".

Danske Bank also set aside nearly 1.8 billion euros in provisions for legal cases related to a money laundering scandal involving its branch in Estonia.

In December, the bank pleaded guilty to defrauding American banks via its Estonian branch in order to sneak money from criminals in Russia and elsewhere into the US financial system.

Danske Bank forfeited $2 billion as part of the plea agreement.

The next day, it was fined 3.5 billion kroner by the Danish financial watchdog.

Danish authorities also seized 1.25 billion kroner in profits from transactions in the Estonian branch, which has since shut down.


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