The outlook for 2023 is narrowed as we now expect net profit for 2023 to be in the range of DKK 19.5-20.5 billion, including different one-off items recognised during the first nine months of 2023 and the impact of the new Danish bank tax.
We expect net interest income to continue to grow on the basis of the announced central bank rate hikes and our continued efforts to drive commercial momentum.
Net fee income is expected to be below the level in 2022.
Net trading income is expected to be at a normalised level including the release of a loss from Other comprehensive income on the CET1 FX hedge attributable related to the sale of our personal customer business in Norway.
Income from insurance business is expected to be lower than the normalised level due to negative valuation effects, higher claims and a provision for potential customer compensation.
We maintain our outlook for operating expenses in 2023 to be in the range of DKK 25-25.5 billion, reflecting the effect of our continued 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 billion due to continually strong credit quality, recoveries in the first half of the year, a few single-names and a lower-than-expected impact in the first nine months of the year from modeldriven charges related to the weaker macroeconomic outlook.
The outlook is subject to uncertainty and depends on economic conditions.