(Bloomberg) -- Danske Bank A/S cut its profit forecast for this year by 1 billion kroner ($150 million), citing weak revenue momentum and higher compliance costs in the second half of 2019.
The Danish lender now expects profit of 13 billion to 15 billion kroner, from a previous range of 14 billion to 16 billion kroner, it said in a statement Monday. The company said second-quarter net income will probably be around 4 billion kroner. That’s below the 4.36 billion kroner that analysts had projected, according to the average of 13 estimates compiled last week.
“We now expect the generally weak momentum in income to continue,” Chief Financial Officer Christian Baltzer said in the statement. “This development is driven mainly by margin pressure and conditions in the financial markets, as evidenced by the weak trading income in the second quarter.”
Danske Bank also changed its outlook for 2019 costs to 25.5 billion to 26 billion kroner, citing “higher costs for compliance and anti-money laundering activities.”