1222 GMT - Following Danske Bank's settlement of anti-money laundering probes it is well placed to rebuild market confidence and reduce its discount to Nordic peers, Citi analysts Maria Semikhatova and Guru Prasad Chowdhary say in a note. Danske is set to present a new strategy and Citi expects a long-term return on equity target of at least 10%, which it says arguably deserves a stock re-rating. Remediation and compliance costs continue to weigh on efficiency and Citi anticipates management to provide guidance on trajectory of these as well as underlying expenses. "We also expect management to commit to distributing excess capital with buybacks envisaged from next year." Citi rates Danske Bank at buy with a DKK190 target price. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
June 02, 2023 08:22 ET (12:22 GMT)
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