Major Banks of Denmark

24 October 2016, updated 7 October 2017

Danish banking sector is characterized by large size in terms of total assets, high degree of concentration while having a significant number of small banks, and prevailing share of domestic banks over foreign-controlled banks which are represented in Denmark by a few large international groups. The characteristics of the banking sector as a whole are applied to major banks in Denmark as well. Three largest banks comprise about 50 % of total banking assets; 4 banks are considered as systemically important for Danish ecomony. Among 20 largest banks there are 18 banks with domestic capital and only 2 are foreign-controlled (Swedish) banks. Mortgage banks, specialized in real-estate financing, are also an important player in Danish banking sector.

Structure of Danish Banking Sector

Consisting of 108 banks operating in Denmark in 2017, Danish banking sector is relatively large in size: the ratio of consolidated banking assets to gross domestic product, for Denmark shows that the Danish banking sector is about 3 times bigger than the national economy (the ratio is 328.52 %).

The Danish banking sector is dominanted by domestic banks: the total assets of the domestic banks makes up 87.72 % of consolidated total assets of all banks operating in Denmark, leaving 12.28 % to foreign-controlled banks. Out of 108 banks in Denmark, there are 79 domestic banks and 29 foreign-controlled banks (including 15 branches and subsidiaries of Swedish banks).

The banking sector of Denmark is also characterized by a very high degree of concentration: 3 largest banks (Danske Bank, Nykredit Realkredit, Realkredit Danmark) comprise more than 50% of total banking assets.

Systemic Banks

Systemically important banks (systemic banks) are characterised by undertaking activities that are of significance to the overall Danish economy. In Denmark, systemically important banks are identified at group level every year. A bank is considered as a systemically important if at least one of the following criteria is met for two consecutive years:

Currently there are 4 systemic banks in Denmark: Danske Bank, Jyske Bank, Nykredit Bank, Sydbank.

Total Assets of Systemic Banks in Denmark Net Income of Systemic Banks in Denmark Return on Assets of Systemic Banks in Denmark

Mortgage Banks

Along with the systemic banks, mortgage banks are an important player of Danish banking sector. Mortgage banks are specialized banks, which only provide loans, secured by real estate properties. Mortgage banks do not accept deposits from public, the loans are financed by issuing mortgage-backed securities. At the moment there are 7, operating in Denmark: DLR KREDIT A/S, Jyske Realkredit A/S, LR REALKREDIT A/S, NORDEA KREDIT REALKREDITAKTIESELSKAB, NYKREDIT REALKREDIT A/S, REALKREDIT DANMARK A/S, TOTALKREDIT A/S. Total assets of these mortgage banks are approximately equal to the total assets of systemic banks.

Total Assets of Mortgage Banks in Denmark Net Income of Mortgage Banks in Denmark Return on Assets of Mortgage Banks in Denmark

Largest Banks in Denmark by Total Assets

20 largest banks in Denmark in terms of total assets are shown in the table below.

RankNameCategoryCountry of OriginTotal AssetsMarket ShareNet Income
1DANSKE BANK A/SCommercial banksDK Denmark2168239.00 28.67 %19580.53
2NYKREDIT REALKREDIT A/SMortgage banksDK Denmark1305554.19 17.26 %5660.40
3REALKREDIT DANMARK A/SMortgage banksDK Denmark862705.08 11.41 %4180.67
4TOTALKREDIT A/SMortgage banksDK Denmark690526.97 9.13 %2048.50
5Nordea Bank Danmark A/SCommercial banksFI Finland478815.11 6.33 %4341.42
6NORDEA KREDIT REALKREDITA/SMortgage banksFI Finland437012.07 5.78 %1678.78
7JYSKE BANK A/SCommercial banksDK Denmark318451.86 4.21 %3116.15
8Jyske Realkredit A/SMortgage banksDK Denmark307027.22 4.06 %1015.46
9NYKREDIT BANK A/SCommercial banksDK Denmark193977.53 2.57 %626.49
10DLR KREDIT A/SMortgage banksDK Denmark155737.27 2.06 %810.84
11SYDBANK A/SCommercial banksDK Denmark148949.44 1.97 %1471.62
12SPAR NORD BANK A/SCommercial banksDK Denmark79757.63 1.05 %839.01
13A/S ARBEJDERNES LANDSBANKCommercial banksDK Denmark44340.27 0.59 %419.42
14SAXO BANK A/SCommercial banksDK Denmark37372.29 0.49 %328.05
15RINGKJØBING LANDBOBANK. A/SCommercial banksDK Denmark24258.14 0.32 %539.50
16LR REALKREDIT A/SMortgage banksDK Denmark22518.60 0.30 %99.33
17SPAREKASSEN KRONJYLLANDSavings banksDK Denmark21823.10 0.29 %221.83
18VESTJYSK BANK A/SCommercial banksDK Denmark19894.64 0.26 %79.85
19Sparekassen Sjælland-Fyn A/SSavings banksDK Denmark19844.72 0.26 %215.72
20NORDJYSKE BANK A/SCommercial banksDK Denmark19443.61 0.26 %184.88

All the data are for 2016. Total assets and net income are provided in million DKK.

See Also