Major Banks of Denmark

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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; 5 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 110 banks operating in Denmark in 2016, 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 327.31 %).

The Danish banking sector is dominanted by domestic banks: the total assets of the domestic banks makes up 87.52 % of consolidated total assets of all banks operating in Denmark, leaving 12.48 % to foreign-controlled banks. Out of 110 banks in Denmark, there are 81 domestic banks and 29 foreign-controlled banks (including 16 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 5 systemic banks in Denmark: Danske Bank, Nordea Bank Denmark, Jyske Bank, Nykredit Bank, Sydbank.

Total Assets of Systemic Banks in DenmarkNet Income of Systemic Banks in DenmarkReturn 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: BRFKredit A/S, DLR Kredit 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 DenmarkNet Income of Mortgage Banks in DenmarkReturn 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
1 Danske BankCommercial banks Denmark2037188 ↓28.18 %12932 ↑
2 Nykredit Realkredit A/SMortgage banks Denmark1282458 ↓17.74 %3198 ↑
3 Realkredit Danmark A/SMortgage banks Denmark836593 ↑11.57 %3883 ↑
4 TOTALKREDIT A/SMortgage banks Denmark651517 ↓9.01 %1500 ↑
5 Nordea Bank Danmark A/SCommercial banks Sweden478490 ↓6.62 %3793 ↓
6 Nordea Kredit RealkreditaktieselskabMortgage banks Sweden437867 ↓6.06 %1464 ↑
7 Jyske BankCommercial banks Denmark309928 ↓4.29 %2475 ↓
8 BRFKredit A/SMortgage banks Denmark269975 ↑3.73 %685 ↑
9 Nykredit BankCommercial banks Denmark173532 ↓2.40 %1542 ↑
10 DLR Kredit A/SMortgage banks Denmark148442 ↓2.05 %670 ↑
11 SydbankCommercial banks Denmark144880 ↓2.00 %1148 ↑
12 Spar Nord Bank A/SCommercial banks Denmark77498 ↓1.07 %897 ↑
13 Aktieselskabet Arbejdernes LandsbankCommercial banks Denmark41978 ↑0.58 %284 ↑
14 Saxo Bank A/SCommercial banks Denmark27965 ↓0.39 %-623 ↓
15 Ringkjøbing Landbobank, AktieselskabCommercial banks Denmark22317 ↑0.31 %459 ↑
16 Vestjysk Bank A/SCommercial banks Denmark21114 ↓0.29 %49 ↑
17 LR Realkredit A/SMortgage banks Denmark20318 ↓0.28 %94 ↓
18 Sparekassen KronjyllandSavings banks Denmark19417 ↑0.27 %199 ↑
19 Nordjyske Bank A/SCommercial banks Denmark18660 ↑0.26 %54 ↓
20 Lån & Spar Bank A/SCommercial banks Denmark15511 ↑0.21 %101 ↓

All the data are for 2015. Total assets and net income are provided in million DKK.

See Also

Economy and Banking Sector of Denmark

List of Banks in Denmark

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