6 Feb 2009

Denmark bank seeks government support

8:13 am on 6 February 2009

The biggest bank in Denmark is seeking government support after a slump in profits for 2008.

Danske Bank said net profit fell 93% to 1 billion crowns ($US174.9 million) in the past year.

It will apply for 26 billion crowns in subordinated loan capital from a government banking support package.

Chief executive Peter Straarup said the bank had made provisions for potential losses of a magnitude it had not anticipated.

Danske also wrote off outstanding goodwill on National Irish Bank in full, taking a charge of 2.9 billion crowns.

Danske bought National Irish in 2005 together with Northern Bank in Northern Ireland for about $US1.9 billion.