Bank aims for 13 ROE, costincome ratio of 45
Exits Norwegian retail business
Dividend payout to resume at H1 results
50 bln DKK dividend payout expected from 2023 to 2026

COPENHAGEN, June 7 Reuters Danske Bank on Wednesday raised its longterm earnings target and said it plans to divest its Norwegian retail business as part of a strategy to catch up with more profitable Nordic rivals.

Denmark39;s largest lender now aims for a return on equity ROE by 2026 of 13, up from a previous goal of between 8.5 to 9, and a costincome ratio of around 45, down from a mid50s percentage goal earlier.

Shares in Danske were up 4.5 in early trade and are up nearly 13 this year.

Danske Bank has during recent years made fundamental changes to refocus the bank, reduce our risk exposure, develop our organisation and accelerate our commercial momentum, said CEO Carsten Egeriis.

Over the last few years, Danske has poured money into antimoney laundering measures and digital systems, investments which left the lender lagging behind its Nordic competitors on earnings.

Rival Nordic banks Nordea and DNB both have longterm ROE targets of more than 13, while Swedbank has a goal of at least 15.

As part of its new strategy, Danske announced it would exit the Norwegian retail customer market to focus on large businesses in the Nordic country instead. The process of finding a new owner was wellprogressed, it said.

Danske Bank is Norway39;s thirdbiggest bank after DNB and Nordea with a market…