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Estonia scandal hits Danske Bank hard on the bottom line

Loïc Padovani
February 6th, 2023


This article is more than 1 year old.

Some 15 billion kroner spent in US settlement deal didn’t do the bank any favours in 2022 … though 2023 looks promising

Dansk Bank is hoping for more cause to celebrate in 2023 (photo: News Øresund, Johan Wessman)

Danske Bank’s reputation took a significant hit a few years ago following revelations that around 1.5 trillion kroner passed through its now-closed Estonian branch to line the pockets of criminals, rogue governments and crooked politicians.

But the scandal has affected the bank financially as well. Its financial results for 2022 has revealed yet another expense related to the case – a 15 billion kroner settlement that has contributed to the bank posting a deficit of 5.1 billion kroner for the year.

“The result for the year is obviously not satisfactory. However, this is a consequence of the closure of the Estonia case, which marks an important turning point for Danske Bank,” said Carsten Egeriis, Danske Bank’s CEO.

READ ALSO: Danske Bank to divest in companies searching for fossil fuels

Riding out the storm in 2023
With the Estonia scandal out of the way, Danske Bank expects 2023 to reflect more positively on its finances.

On the back of increased interest income, which the bank believes will continue for the foreseeable future, the financial result for 2023 is predicted to land at around 15-17 billion kroner to the good.

“We expect core income lines to grow in 2023, driven by higher net interest income and our continued efforts to drive commercial momentum,” wrote Danske Bank in its annual report.


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Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”