Danske Bank sees Q3 profits rise, announces job cut

Danske Bank posted a rise in profits for the third quarter 2012 on Tuesday, while announcing a major share issue, and a job-cut round affecting 2,000 employees. The bank, which is Denmark's biggest by market capitalization, said it made net profit of 1.3 billion kroner (225.6 million U.S. dollars) in the months July-September 2012, as compared to 384 million kroner (66.6 million dollars) loss for the same period last year. Net profit rose to 3.6 billion kroner (624.9 million dollars) in the first nine months in 2012, up from 1.5 billion kroner (260.4 million dollars) for the same period in 2011, it added in its quarterly financial statement. Third quarter 2012 loan impairments were higher compared to the same period last year, but lower than in the three quarters immediately preceding Q3, 2012. "We are satisfied with the trend in our financial results compared with the same period last year. Our initiatives to strengthen earnings are starting to produce results," said Danske Bank Chairman Eivind Kolding in the statement. The statement added that the bank's "expectation of a better result in 2012, than in 2011, is maintained." As part of a new strategy, announced Tuesday, Danske Bank said it would issue new shares worth 7 billion kroner (1.2 billion dollars), in a bid to boost its credit rating, which it would like to improve by at least one notch. The bank also said it would shed 2,000 employees between 2013 and 2015, which is 1,000 more than previously announced. It said the reduction in employees occurs as the bank optimizes its processes, closes over 130 branches and automates many customer services.