Danske Bank to forgo Estonia profit amid money-laundering probe
Copenhagen — Danske Bank says it will forgo profits made from transactions in Estonia that are subject to a money-laundering probe and that its 2018 net profit will be at the low end of its target range. Shares in Denmark’s biggest lender have fallen 25% since March as allegations its Estonia branch was involved in money laundering from 2007 to 2015 intensified. Its shares took another hit on Wednesday, plunging as much as 10% to a two-year low after it reported disappointing second-quarter earnings and was more precise about its full-year outlook. On top of weak earnings, the stock was hit by investor concerns over 2019’s buybacks, as it was "hopeless" to reach the 9.4-billion Danish kroner forecast by consensus, said ABG Sundal Collier analyst Mads Thinggaard. Flawed controls The bank has admitted to flaws in its antimoney-laundering controls in Estonia and has launched its own investigation into the allegations. A newspaper report in July said Danske laundered up to $8.3bn in Est...
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