The only thing going up for Danske Bank is CEO's paycheck
9. februar 2012, 12:46 – opdateret 9. februar 2012, 12:57
Danske Bank has published disappointing 2011 year-end accounts just days before CEO Peter Straarup retires after 43 years at Denmark’s biggest bank.
After-tax profit was just DKK1.7bn, less than half of 2010 and 'far lower than expected' due to 'significant financial turbulence and severe economic repercussions during the second half of 2011', in addition to large loan impairments on its units in Ireland and Northern Ireland.
The bank continues to suffer from bad debt write offs in both the Danish and Irish markets - DKK13.2bn last year, albeit 5 per cent less than the previous year. Mr Straarup said the Bank expects earnings to remain low in 2012 in the face of continued uncertainty in financial markets and very low growth rates in Europe in 2012.
Despite falling profit, turnover, and the prospect of 2,000 more employees losing their jobs before 2014, in addition to the 2,300 who've been fired since the crisis hit in 2008, Mr Straarup enjoyed a 30% wage increase last year, bringing his annual salary up to DKK12.4m. The Bank's accounts also show that DKK67m has been set aside to provide Mr Straarup with a life-long pension of DKK3.1m a year.
