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Flawed estimates for profit and loss figures

Up to 27,000 customers may have seen an incorrect profit and loss estimates for some of their shares in Danske eBanking or Mobile Banking for example, due to data shortcomings in an underlying IT system. However, customers have always seen the correct share price and received the correct amounts when selling. In addition to the data issues, the bank has not been consistently clear in guiding texts on the limitations of how the profit and loss figures can be used by our customers. Customers may therefore have used flawed profit and loss figures for tax reporting or for purposes other than guidance, when making investment decision.

The data issues concern a limited number of the shares that have been available on our trading platforms during the past 10 years and has primarily been an issue when a share’s acquisition value changed due to, for example, the share being split into two.  Furthermore, Danske Bank has incorrectly reported to the Swedish Tax Authorities on behalf of around 60 Swedish customers.

We corrected our reporting to the Swedish Tax Agency and stopped displaying profit and loss figures for the total of 5,000 potentially affected unique shares, until we had quality assured and updated the data. Since then, we have re-opened the profit and loss figures for a substantial amount of these shares again, as we have ensured the quality of the data.

In September 2021, a closing memo has been sent to the DFSA and we consider the case as closed.

Potentially affected customers and information to them

Around 27,000 of our customers across the Nordic countries and Luxembourg have potentially seen flawed profit and loss figures in the past 10 years. We have informed all of our potentially affected customers of the issue along with guidance on how they should act accordingly, if they, for example, have used the figures for their own tax reporting. We will compensate customers who have suffered direct losses.

Numbers below updated 1 February 2021

Up to 27,000 customers estimated to be potentially affected

All customers informed about potentially being affected

Timeline

  • From October to December 2020, we inform all potentially affected customers. We inform them that they may have seen figures for profit and loss that may not be correct. We guide them to call us, if they have used the figures for profit and loss for purposes other than guidance, for example when making an investment decision or for their own tax reporting.

  • In December 2020, we correct a number of corporate actions that Danske Bank had incorrectly reported to the Swedish Tax Agency on behalf of around 60 Swedish customers.

  • During October 2020, an overview of the shares for which there is a risk of incorrect figures is finalised. Pending further investigation, we stop displaying profit and loss figures for 5,000 unique shares, for which – within the past 10 years – there had been a change to the acquisition value.

  • We update the description of the limitations to all the profit and loss figures on all of our customer-facing platforms during summer 2020 to ensure that all customers are aware that the figures are indicative and should not be used for tax purposes.

  • In January 2020, we identify that an IT constraints may affect our profit and loss reporting. To assess the cause, scope and significance of the problem, we initiate an internal review to understand the problem. This includes to investigate 68,000 unique shares that we have offered on our platform in the past 10 years and that were at risk of being impacted by the IT constraints.

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