Danske Bank is holding initial discussions with the US and Danish authorities to resolve the ongoing money laundering case.
The Danish bank expects the fines to be “material” therefore it will not pay out dividends for the first quarter of 2022.
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Authorities in the US, France, Denmark and Estonia are probing the bank over suspicious transfers of around $210bn from its Estonian branch between 2007 and 2015.
In 2018, the bank’s involvement in the suspicious activity came to light that led to police cases and ousting of the then Danske CEO Thomas Borgen.
Danske Bank CEO Carsten Egeriis said: “We have now begun initial discussions with the US and Danish authorities in relation to the Estonia matter. We cannot share any more details about the discussions with the authorities, which are confidential.
“And we cannot say anything about the timing, outcome or the size of a potential settlement or fine, which is likely to be material. Consequently, the Board has decided that Danske Bank will not to pay out dividends for the first quarter in order to ensure prudent capital management.”
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By GlobalDataIn the first quarter of 2022, Danske Bank posted a net profit of DKK 2.8bn ($396.28m), which is way below analysts’ estimates.
The bank said that the results were “driven primarily by lower financial markets-related income.”
