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Denmark's Danske Bank lowers cap for negative rates on retail deposits
[COPENHAGEN] Danske Bank will lower the cap for applying negative interest rates to retail deposits to cope with an increase in deposits, it said on Wednesday after posting third quarter results in line with last week's preliminary figures.
Denmark's biggest lender posted a net profit of 2.1 billion Danish crowns (S$450 million) in the third quarter, above an average estimate of 1.7 billion crowns in an analyst poll compiled by the Danske Bank.
"We continue to be in the extraordinary situation that negative interest rates have almost become the norm or at least will continue for a prolonged period of time," chief financial officer Stephan Engels said in a statement.
"It would not be viable for this situation not to be reflected in our interest terms." Last week, Danske Bank raised its full-year profit guidance, citing lower costs and improved market conditions. It hiked its full-year net profit expectations to between four billion and 4.5 billion crowns, up from a July estimate of at least three billion crowns.