Danske Bank

Danske Bank group operates a number of local banks around the Nordic region (Denmark, Norway, Sweden, and Finland) as well as in Northern Ireland. In Denmark, the major expansion occurred in 1990 after the merger with Kjøbenhavns Handelsbank and Provinsbanken. Most of the international operations were established by a series of acquisitions: of Östgöta Enskilda Bank in Sweden in 1997, of Fokus Bank in Norway in 1999, of Northern Bank in Northern Ireland in 2004, and of Sampo Bank in Finland, the Baltic countries, and Russia in 2007.{{Cite web|url=http://www.danskebank.com/en-uk/ir/the-group/mergers-and-acquisitions/Sampo-Bank-acquisition/Pages/IRSampoCombinedentity.aspx|title=Danske Bank presentation of Sampo acquisition|access-date=25 September 2019}}{{Dead link|date=November 2023 |bot=InternetArchiveBot |fix-attempted=yes }}

In February 2019, following the money laundering scandal at its Estonian branch, Danske Bank announced that it will cease all its banking activities in the Baltic countries and Russia.

{{cite news

| work = ERR

| title = Financial authority: Danske has eight months to shut up shop in Estonia

| url = https://news.err.ee/912124/financial-authority-danske-has-eight-months-to-shut-up-shop-in-estonia

| date = 2019-02-19

| access-date = 2019-05-12}}

Between 2007–2012, Sampo Bank was responsible for Danske Bank's operations in Finland after Danske Bank acquired Sampo Group's banking business while it retained its insurance business. Sampo Bank traced its origins back to 1887, to Postisäästöpankki (translated Postal Savings Bank), a bank associated with the national post office, which accepted deposits from the public at post offices. In 1970, the company was renamed Postipankki (Post Bank). In 1988, the bank became a full-service bank. It was organized as a state-owned limited company. In 1997, the company merged with Suomen Vientiluotto (Finnish Export Credit) to form Leonia Pankki. Leonia Pankki was merged with Sampo Group in 2000, and in 2001 was renamed Sampo Pankki. At the same year, Mandatum Bank merged with Sampo Group. Mandatum was created in 1998 by a merger of Interbank Osakepankki, established in 1988, and Mandatum & Co., established in 1992. On 15 November 2012, Sampo Bank was renamed Danske Bank after banking operations were uniformed under one brand.{{cite web

| publisher = Danske Bank

| title = From Postal Savings Bank to today

| url = https://danskebank.fi/en-fi/About/Bankinbrief/History/Pages/History.aspx

| access-date = 2019-05-12

| archive-date = 12 May 2019

| archive-url = https://web.archive.org/web/20190512080237/https://danskebank.fi/en-fi/About/Bankinbrief/History/Pages/History.aspx

| url-status = dead

}} The purchase of Sampo Pankki by Danske Bank with just over €4 billion was the largest purchase in cash to date in Finland.{{Cite web|url=https://suomenkuvalehti.fi/digilehti/46-2006-pdf/22-616|title=22 - 46/2006 PDF - Suomenkuvalehti.fi|website=suomenkuvalehti.fi|access-date=25 September 2019}}

Danske Bank set up its own captive technology centre in Bangalore called Danske IT Services India Pvt Ltd.{{cite web|url=http://www.danskeit.co.in/en-in/Pages/default.aspx|title=Danske IT and Support Services India pvt ltd|website=danskeit.co.in|access-date=14 June 2016|archive-url=https://web.archive.org/web/20180131191113/http://danskeit.co.in/en-in/Pages/default.aspx|archive-date=31 January 2018|url-status=dead|df=dmy-all}} The centre was sold off to Infosys in 2023.{{cite web|url=https://danskebank.com/news-and-insights/news-archive/press-releases/2023/pr26062023|title= Danske Bank enters strategic partnership with Infosys |website=danskebank.com|access-date=17 May 2024}}

{{Main|Danske Bank (Ireland)}}

Danske Bank's Irish subsidiary was formerly known as the National Irish Bank, and was originally the Republic of Ireland branch network of Northern Bank, the oldest 'joint stock' bank in Ireland (dating back to 1824). National Irish Bank was created as a separate entity in 1986, at first under the name Northern Bank (Ireland) Limited, when its then owners, UK-based Midland Bank, separated Northern Bank's operations in the Republic of Ireland from its Northern Ireland business.

In 1987, both banks were acquired by National Australia Bank (along with Midland Bank's Scottish subsidiary, Clydesdale Bank). In 1988 the Republic of Ireland operation was renamed National Irish Bank Limited whilst Northern Bank Limited remained the name of the Northern Ireland operation. Nonetheless, a single management team continued to run both banks, which shared many services and back office functions. During this era, the logo of the National Irish Bank was that of the National Australia Bank (at the time), except that the red star had been recoloured green, and "Irish Bank" was added alongside the word "National". The original Northern Bank logo had been the Midland Bank griffin.{{Citation needed|date=February 2023}}

On 10 May 2012, Danske Bank announced that Northern Bank and National Irish Bank would be merged on 1 June 2012, under the Northern Bank management team and the Danske Bank name, effectively reversing the separation between the two. The rebrand was completed on 18 November 2012.{{cite news|url=http://www.irishtimes.com/newspaper/finance/2012/1119/1224326786596.html |title=Switch from National Irish Bank to Danske is completed |newspaper=The Irish Times |date=19 November 2012 |access-date=28 April 2013}} At the time the bank closed its 27 branches to focus on corporate and private clients.

On 31 October 2013 Danske Bank announced it would be withdrawing all personal banking services in the Republic of Ireland on a phased basis in the first half of 2014.{{cite web|url=http://www.rte.ie/news/2013/1031/483729-danske-bank-to-close-with-loss-of-150-jobs/|title=Danske Bank Ireland to cut 150 jobs|work=RTÉ|date=31 October 2013}}

File:Saltoniskes_by_Augustas_Didzgalvis.jpg, Lithuania]]

Origins of Danske Bank in Lithuania traces back to 1994 when Lietuvos Vystymo bankas (Lithuanian Development Bank) was established. Lietuvos Vystymo bankas was acquired by Sampo in 2000, and after acquisition of Sampa Bank by Danske, Sampo bankas became a branch of Danske Bank.

In 2015 Danske Bank established an IT service centre for its group of companies, Danske Group IT Lietuva (DGITL), in Vilnius.{{cite web |title=Danske Bank to Establish IT Service Centre in Vilnius |url=https://investlithuania.com/news/danske-bank-to-establish-it-service-centre-in-vilnius/ |access-date=25 November 2018}} During the past years, Danske Bank has employed more than 4,000 employees in Lithuania.{{cite web |title=Danske Bank in the Baltics to focus on subsidiaries of Nordic customers and global corporates |url=https://danskebank.lt/en/about-the-bank/news/2018/danske-bank-in-the-baltics-to-focus-on-subsidiaries-of-nordic-customers-and-global-corporates |website=/danskebank.lt |access-date=25 November 2018}} In 2019, Danske Bank announced its intentions of ceasing all banking operations in Lithuania, but keeping the local back-office active for internal activities.{{cite web|url=https://www.berlingske.dk/content/item/1345914|title=Danske Bank siger farvel til Baltikum og Rusland|date=19 February 2019|website=Berlingske.dk}}

{{main|Danske Bank (Norway)}}

{{main|Danske Bank (Sweden)}}Like the other Scandinavian countries, Sweden is one of Danske Bank's largest markets.

{{main|Danske Bank (Northern Ireland)}}

Danske Bank's Northern Irish subsidiary Danske Bank UK was founded as the Northern Banking Partnership in Belfast in 1809. It became a public company in 1824 taking the name Northern Banking Company Limited. It became Northern Bank in 1970, after merging with the Belfast Banking Company. Northern Bank was one of the Big Four banks in Northern Ireland.{{cite web|url=http://www.ecbs.org/banks/united-kingdom/ |title=Banks in United Kingdom (UK or Britain) |publisher=ecbs.org |access-date=28 April 2013}} Danske Bank bought the bank from National Australia Bank in December 2004, and Northern Bank continued to operate under its own name until it took on the name of its parent company as its trading name in November 2012.{{cite press release | author = | title = Hello Danske as a new era begins for Northern Bank | url = http://www.danskebank.co.uk/en-gb/About-the-bank/Media-and-Press/Press-releases/2012/Pages/hello-danske-bank.aspx | location = Belfast | publisher = Danske Bank | date = 19 November 2012 | access-date = 29 November 2013 | archive-date = 1 August 2020 | archive-url = https://web.archive.org/web/20200801124204/https://www.danskebank.co.uk/en-gb/About-the-bank/Media-and-Press/Press-releases/2012/Pages/hello-danske-bank.aspx | url-status = dead }} The bank is considered one of the leading retail banks in Northern Ireland with 44 branches and three business centres.{{cite web|url=http://www.northernirelandchamber.com/Content.aspx?nSectionId=15&nSubSectionId=16&nContentId=48 |title=Patronage – Danske Bank |publisher=Northern Ireland Chamber of Commerce |access-date=28 April 2013 |url-status=dead |archive-url=https://web.archive.org/web/20130314083625/http://www.northernirelandchamber.com/Content.aspx?nSectionId=15&nSubSectionId=16&nContentId=48 |archive-date=14 March 2013 }} Northern Bank trading as Danske Bank is one of the three commercial banks in Northern Ireland which are permitted to issue their own banknotes.{{Cite web |url=http://www.acbi.org.uk/faq.php |title=Frequently asked questions :: ACBI |access-date=17 December 2015 |archive-url=https://web.archive.org/web/20160210153659/http://www.acbi.org.uk/faq.php |archive-date=10 February 2016 |url-status=dead |df=dmy-all }}

Danske Bank in Estonia traces back to 1992 when Eesti Forekspank was established. In 1995, Raepank merged with. In 1998, Eesti Forekspank merged with Eesti Investeerimispank (EstIB) to create Optiva Bank. In 2000, Optiva was acquired by Finnish Sampo Bank and Optiva was accordingly renamed Sampo Pank.

{{cite web

| publisher = Nasdaq Baltic

| title = Aktsiate registreerimisprospekt AS Sampo Pank

| trans-title = Share Registration Prospectus AS Sampo Pank

| url = https://www.nasdaqbaltic.com/files/tallinn/bors/prospekt/sampo/sampo08052001.pdf

| pages = 18–19

| access-date = 2019-05-12

| language = et}}

In 2007, when Danske Bank acquired Sampo's banking business, Sampo Pank became a branch of Danske Bank.

In 2014, The Estonian Financial Supervision Authority found "large-scale, long-lasting systemic violations of anti-money laundering rules" in the Estonian branch of Danske Bank and notified the Danish authorities on the findings. According to the Estonian Financial Supervision Authority, the activities decreased after they requested the bank to target the violations.{{Cite web |url=https://www.fi.ee/index.php?id=22493 |title=Statement by Finantsinspektsioon, an Estonian financial supervision and resolution authority, on information published in the media about the Estonian branch of Danske Bank |access-date=2018-10-14 |archive-url=https://web.archive.org/web/20180301025851/http://www.fi.ee/index.php?id=22493 |archive-date=2018-03-01 |url-status=live }} In October 2017, Danske Bank confirmed that French authorities were investigating the bank's involvement in money laundering.{{cite news |url= https://www.business.dk/global/english-links-to-dead-russian-lawyer-behind-french-money-laundering-probe |title= Links to dead Russian lawyer behind French money laundering probe against Danske Bank |first1= Eva |last1= Jung |first2= Michael |last2= Lund |first3= Simon |last3= Bendtsen |work= Berlingske |date= 13 October 2017 }} On 31 July 2018, Estonia's prosecutor general, Lavly Perling, opened a criminal investigation following allegations that the bank had facilitated large-scale money laundering through its Estonian branch.{{cite news |url=https://www.reuters.com/article/us-danske-bank-moneylaundering/estonia-to-investigate-danske-bank-over-money-laundering-allegations-idUSKBN1KL176 |title=Estonia to investigate Danske Bank over money laundering allegations |work= Reuters |first=Teis |last= Jensen |date= 31 July 2018 }}{{cite web|url=https://news.err.ee/846300/bill-browder-files-criminal-complaint-against-danske-bank|title=Bill Browder files criminal complaint against Danske Bank|publisher=ERR |date=13 July 2018 |access-date=14 July 2018}} On 19 September 2018, Danske Bank confirmed that Thomas Borgen, CEO of the bank, would resign due to the money laundering scandal.{{cite news|url=https://www.reuters.com/article/us-danske-bank-moneylaundering/danske-bank-ceo-resigns-over-money-laundering-scandal-idUSKCN1LZ0QX?il=0|title=Danske Bank CEO resigns over money laundering scandal|work=Reuters|access-date=19 September 2018}} In September, Denmark's Financial Supervisory Authority reopened its investigation of the bank,{{cite news |url= https://www.theguardian.com/business/2018/sep/20/danske-bank-money-laundering-is-biggest-scandal-in-europe-european-commission |title= Danske Bank money laundering 'is biggest scandal in Europe' |first1= Rupert |last1= Neate |first2= Jennifer |last2= Rankin |work= The Guardian |date= 20 September 2018 }} and the United Kingdom's National Crime Agency announced that it was investigating the use of UK-registered companies.{{cite news |url= https://www.reuters.com/article/us-danske-bank-moneylaundering/british-links-to-danske-money-laundering-under-investigation-idUSKCN1M10PW |title=British inquiry widens Danske Bank money laundering scandal |first1= Teis |last1= Jensen |first2= Pamela |last2= Barbaglia |work= Reuters |date= 21 September 2018 }} In October, the bank confirmed that the United States Department of Justice had also launched a criminal investigation.{{cite news |url= https://www.reuters.com/article/us-danske-bank-moneylaundering/danske-bank-faces-u-s-criminal-inquiry-over-suspicious-estonian-accounts-idUSKCN1ME0OK |title= Danske Bank faces U.S criminal inquiry over suspicious Estonian accounts |first= Teis |last= Jensen |work= Reuters |date= 4 October 2018 }}

In November, Danish prosecutors filed four preliminary charges against the bank.{{cite news |url= https://www.ft.com/content/6ae5f7f6-f324-11e8-ae55-df4bf40f9d0d |title= Danske Bank charged over €200bn money-laundering scandal |work= Financial Times |first= Richard |last= Milne |date= 28 November 2018 }} In February 2019, the Estonian Financial Supervisory Authority ordered the bank to cease its operations in the country within 8 months.{{cite web|url=http://finans.borsen.dk/artikel/1/377123/det_estiske_finanstilsyn_bekraefter_danske_bank_skal_vaere_ude_af_estland_om_otte_maaneder.html|title=Det estiske finanstilsyn bekræfter: Danske Bank skal være ude af Estland om otte måneder|first=Tor|last=Johannesson|date=19 February 2019|website=finans.borsen.dk}} In February 2019 Danske announced that it will cease its banking operations in Estonia. In October 2019, the bank closed down all its banking activities in Estonia.{{Cite news|url=https://www.reuters.com/article/us-danske-bank-moneylaundering-idUSKBN1WG32G|title=Danske Bank closes down its banking activities in Estonia|date=2019-10-01|work=Reuters|access-date=2019-10-01|language=en}}

Origins of Danske Bank in Latvia traces back to 1996 when Maras banka was established. Maras was acquired by Sampo in 2004, and after acquisition of Sampo Bank by Danske, Sampo banka became a branch of Danske Bank. In February 2019 Danske announced that it will cease its banking operations in Latvia.

Origins of Danske Bank in Russia traces back to Industry and Finance Bank (Profibank) was acquired by Sampo in 2006. after acquisition of Sampo Bank by Danske, it became a branch of Danske Bank. In February 2019 Danske announced that it will cease its banking operations in Russia.

{{Main|Danske Bank money laundering scandal}}

Authorities in Denmark, Estonia, France, and the United Kingdom have launched investigations related to large-scale money laundering through Danske Bank. In 2018, the bank also faced a criminal investigation from the United States Department of Justice into the affair that saw €200bn of non-resident money flow through its branch in Estonia, which was under the supervision of the Financial Supervisory Authority of Denmark (due to location of headquarter) and the Financial Supervisory Authority of Estonia (due to location of branch).{{cite news | date=17 April 2019 | title=Statement on supervision of Danske Bank as regards the Estonia case | url=https://www.dfsa.dk/en/News/Press-releases/2019/Report-on-the-Danish-FSAs-supervision-of-Danske-Bank-as-regards-the-Estonia-case | publisher=dfsa.dk | access-date=22 November 2019 }}{{cite web|url=https://www.fi.ee/index.php?id=22493|title=Finantsinspektsioon - Statement by Finantsinspektsioon, an Estonian financial supervision and resolution authority, on information published in the media about the Estonian branch of Danske Bank|website=fi.ee}}{{cite web|url=https://www.ft.com/content/519ad6ae-bcd8-11e8-94b2-17176fbf93f5|title=Danske: anatomy of a money laundering scandal|website=Financial Times|date=19 December 2018|url-access=subscription}} Danish prosecutors filed four preliminary charges in November 2018. As a consequence of the money laundering scandal Danske Bank was named as 2018's most corrupted actor by the Organized Crime and Corruption Reporting Project.{{Cite web|url=https://www.occrp.org/en/poy/2018/|title=DANSKE BANK|last=Staff|first=OCCRP|website=OCCRP|access-date=5 January 2019}} A Danish woman was remanded in custody in relation to the scandal in December 2021.{{Cite news|date=2021-12-22|title=Danish woman remanded over laundering of $4.5 bln in Danske Bank scandal|language=en|work=Reuters|url=https://www.reuters.com/business/danish-woman-charged-over-laundering-45-bln-via-danske-banks-estonian-branch-2021-12-22/|access-date=2021-12-23}} In December 2022, Danske Bank pled guilty and agreed to a $2 billion fine in a case from the United States Department of Justice.{{Cite web |date=2022-12-13 |title=Danske Bank Pleads Guilty to Fraud on U.S. Banks in Multi-Billion Dollar Scheme to Access the U.S. Financial System |url=https://www.justice.gov/opa/pr/danske-bank-pleads-guilty-fraud-us-banks-multi-billion-dollar-scheme-access-us-financial |website=www.justice.gov |language=en}}{{cite web|url=https://www.usnews.com/news/us/articles/2022-12-13/danske-bank-pleads-guilty-to-resolve-long-running-estonia-money-laundering-probe |title=Danske Bank Pleads Guilty to Resolve Long-Running Estonia Money-Laundering Probe |date=2022-12-13 |website=USNews.com |last=Lynch |first=Sarah N.}}

On 30 August 2020, TV 2 and Berlingske released a report detailing how Danske Bank lost track of over 100,000 customers' accounts, which resulted in customers overpaying their debts. The issue was caused by a 2004 IT system migration, as well as several other database and accounting errors that have existed since 1979.{{Cite web|date=2020-08-30|title=Danske Bank har i årevis inddrevet for meget gæld fra bankens mest sårbare kunder - TV 2|url=https://nyheder.tv2.dk/samfund/2020-08-30-danske-bank-har-i-aarevis-inddrevet-for-meget-gaeld-fra-bankens-mest-saarbare|access-date=2020-09-02|website=nyheder.tv2.dk|language=da-DK}}{{Cite web|date=2020-08-30|title=Danske Bank har mistet overblikket over titusindvis af deres kunders gæld - Karen Villadsen er én af dem - TV 2|url=https://nyheder.tv2.dk/samfund/2020-08-30-danske-bank-har-mistet-overblikket-over-titusindvis-af-deres-kunders-gaeld-karen|access-date=2020-09-02|website=nyheder.tv2.dk|language=da-DK}} Danske Bank issued an apology, calling the case "deeply regrettable," and offered compensation for account holders that the bank confirmed were affected by the issue.{{Cite news|date=2020-08-31|title=Danske Bank wrongly collects debt from customers due to IT errors|language=en|work=Reuters|url=https://www.reuters.com/article/us-danske-bk-accounts-idUSKBN25R12M|access-date=2020-09-02}} In a press release, the bank estimated that the total compensation for customers would be 80-100 million DKK (approximately US$13–16 million).{{Cite web|title=Around 900 customers to receive compensation as part of the Flexinvest Fri case|url=https://danskebank.com/news-and-insights/news-archive/press-releases/2020/pr04092020|access-date=2020-09-06|website=danskebank.com|language=en}} The incident also raised questions on if the bank misled the Financial Supervisory Authority, which may result in fines or disciplinary actions.{{Cite web|title=Danske Debt Scandal Triggers FSA Probe and Police Scrutiny|url=https://www.bloombergquint.com/onweb/danske-bank-probed-by-danish-watchdog-over-debt-system-mistakes|access-date=2020-09-06|website=BloombergQuint|language=en}}

The Danske Bank share price dropped more than 70% following the disclosure of the Estonian money laundering scandal and the company was subsequently targeted by activist shareholders. Michael Strabo of Strabo Investments Limited publicly argued the Board of Directors should consider selling the company and implement a share buyback program in order to create shareholder value.{{Cite web |last=Danske Bank A/S |date=15 February 2023 |title=Annual General Meeting of Danske Bank A/S 2023 |url=https://danskebank.com/-/media/danske-bank-com/file-cloud/2023/2/agenda---annual-general-meeting-of-danske-bank-as-2023.pdf?rev=389b5f48d5f64eb889fa2b26b2f92126 }} In February 2024 Danske Bank announced a share buyback worth DKK 5.5 billion, representing 60bp of CET1 and management expressed the intention to increase the size of the buyback going forward.{{Cite web |title=Danske Bank A/S initiates share buy-back programme |url=https://danskebank.com/news-and-insights/news-archive/company-announcements/2024/ca02022024a |access-date=2024-02-02 |website=danskebank.com |language=en}}

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