Outlook for 2023
We expect net interest income to continue to grow on the basis of the announced central bank rate hikes and our commercial momentum, while fee income is expected to be below the level in 2022.
Trading income is expected to be impacted by the release of a loss of DKK 0.8 billion from other comprehensive income on the CET1 FX hedge related to the sale of our personal customer business in Norway, which is subject to regulatory approval.
Income from insurance is expected to be lower than the normalised level due to negative valuation effects and higher claims.
We expect costs in 2023 to be in the range of DKK 25-25.5 billion, reflecting our focus on cost management and despite the inflationary pressure. The outlook includes continually elevated remediation costs for approximately DKK 1.1 billion.
We expect loan impairment charges of up to DKK 1.5 billion (8 bp) due to continually strong credit quality, recoveries in the first half of the year and lower-than-expected impact in the first half from model-driven charges related to weaker macroeconomic outlook.
Net profit is expected to be in the range of DKK 18.5-20.5 billion, including the impact of the new Danish bank tax and further positive tax-related one-offs.
The outlook is subject to uncertainty and depends on economic conditions.