Rising customer activity and low loan losses helped Denmark’s largest lender achieve an annual net profit of kr23.63 billion (US$3.29 billion), up 11% from kr21.26 billion in 2023.

Danske’s net profit for October-December rose to kr6.0 billion from a year-ago kr5.77 billion, beating the kr5.05 billion predicted by analysts in a poll provided by the bank.

It proposed a total dividend of kr28.7 per share for 2024, beating analyst expectations of kr23.5 thanks to an extraordinary payout of kr5.35 announced today.

Danske’s share price soared to kr234.8, its highest level since the first half of 2018. The stock is up 15% year-to-date.

Analysts at JP Morgan pointed to the Q4 beat and what they called a generous dividend payout as drivers for the share price rise and said the bank’s outlook guidance for 2025 was positive.

The bank forecast its total income for 2025 to be slightly lower than in 2024, primarily due to lower net interest income from lower market rates, predicting a net profit for the year of between kr21 billion and kr23 billion.

CEO Carsten Egeriis said he was cautiously optimistic about the outlook for 2025.

“We believe that as inflation and interest rates come down, that will support consumer demand and consumer spending, which should in turn also flow through into the real economy and business activity,” he told Reuters.

Danske Bank said economic conditions were better than the market had expected, adding that the outlook for inflation and growth had improved during the year, especially in Denmark.

In addition to its dividend, the bank also announced share buybacks of kr5 billion.