Banks In Denmark

Publication Date :

20 Jul, 2023

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Table Of Contents

What Are Banks In Denmark?

As per the last report in 2017, it was found that there are a total of 108 banks in Denmark. Denmark’s banking system is quite large. Can you imagine that the banking sector is almost three times bigger than the national economy? If you pay heed to the ratio, you would see that the ratio between Denmark’s banking sector and the national economy is 3.2852:1

Out of these 108, most are domestic banks, around 79. But there are also a few foreign banks, i.e., 29. These 29 foreign banks also include 15 subsidiaries and branches of Swedish banks. Demark is home to many major and important banks worldwide. There are domestic and international banks, which are famous for their excellent customer service and the huge level of funds they manage.

What Are Banks In Denmark?

Banks In Denmark Explained

Banks in Denmark gives us valuable information about the various domestic and international banks that are operating in Denmark. It is a country which has some of the most important and well known banks that has been operating for many years in the industry without any setbacks.

These largest banks in Denmark have a rich history of providing the best level of service related to different aspects of banking like deposits, withdrawals, currency exchange, wealth management, etc. The best banks in Denmark manage a huge corpus of funds which come from a wide customer base, who have the maximum satisfaction level from the services given by these banks.

However, as is always the case with any other industry, there has always been a continuous change in the banking landscape. Many new banks have come up, and the older ones have undergone some restructuring. Many institutions that have not been operating in Denmark previously have later opened branches in the country to become a part of the economy. This has expanded the banking options further within the country.

Structure

It is essential to note the basic structure of the banking system that exists within the country. This will help us identify the best banks in Denmark and understand why they have achieved that status.

If we look at the concentration of market share, we would see that the three largest banks acquired more than 50% of total banking assets, which are –

Danske Bank
Nykredit Realkredit
Realkredit Danmark

In Denmark, there is a system of banking called "systematic banks." Important banks are systematically identified as the largest banks in Denmark each year based on a few criteria –

The bank's lending has to be more than 5% of the total sector lending.
The bank's balance sheet should be more than 6.5% of the total GDP.
The bank deposits should be more than 5% of the total sector deposits

To be called a systematic, every bank should adhere to one of the above criteria for two consecutive years. Currently, there are four systematic banks –

Danske Bank
Nykredit Bank
Jyske Bank
Sydbank

Digital Banking In Denmark

Denmark's digital banking landscape is characterized by a strong focus on innovation, user-friendly interfaces, and efficient mobile banking solutions. It is characterized by its advanced and tech-forward approach. Established banks provide extensive online banking services and user-friendly mobile apps, catering to the digitally savvy population. The Danish fintech sector is also flourishing, with startups introducing innovative financial solutions. The country's supportive regulatory environment and high level of digital literacy contribute to the dynamic and progressive digital banking landscape in Denmark.

List Of Top Banks In Denmark

Now let us look at some top banks in Denmark that are considered the backbone of the country’s financial system. The banks in Denmark list are as follows:

Revolut
Danske Bank A/S
Nykredit Realkredit A/S
Realkredit Danmark A/S
Totalkredit A/S
Nordea Bank Danmark A/S
Nordea Kredit Realkreditaktieselskab
Jyske Bank
BRFKredit A/S
Nykredit Bank
DLR Kredit A/S
Sydbank

Let’s look at the banks in Denmark list and learn about each one of these in detail per the total assets acquired in DKK millions –

#1. Revolut:

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#2. Danske Bank A/S:

It is the largest commercial bank. Danske Bank A/S has secured the topmost position by total assets acquired.
As per the last report in 2021, the total assets acquired by this bank were DKK 4.07 trillion. The head-quarter is in Kobenhavn K.
It has a market share of 28.67%, which is the largest in Denmark.
The last reported net income of Danske Bank was DKK 4.59 billion.

#3. Nykredit Realkredit A/S:

It is the second-largest bank in terms of total assets acquired.
This bank is the largest mortgage bank in Denmark.
The head-quarter is in Kobenhavn V.
As per the last report in 2021, the total assets acquired by this bank were DKK 1.66 trillion.
The last reported net income of Nykredit Realkredit was DKK 5.64 billion

#4. Realkredit Danmark A/S:

It is the third-largest bank in terms of total assets acquired.
This bank is the second-largest mortgage bank in Denmark as well.
As per the last report of 2021, Realkredit Danmark A/S has acquired the total assets of DKK 884.0 billion.
Its head-quarter is in Kobenhavn O. The market share is also quite high (only lower than the Danske Bank & Nykredit Realkredit), around 11.41%.
The net income of Realkredit Danmark in 2020 was DKK 3.88 billion.

#5. Totalkredit A/S:

It is the fourth largest bank in terms of total assets acquired.
It is also the third-largest mortgage bank in Denmark. The head-quarter of TOTALKREDIT A/S is situated in Taastrup.
It has acquired total assets of DKK 690526.97 million. Again, this bank has secured a market share of just under 10, i.e. 9.13%.
The net income of this bank in the year 2016 was DKK 2048.50 million.

#6. Nordea Bank Danmark A/S:

Even if this bank is the fifth-largest bank in terms of total assets acquired, it has closed down already.
It was the second-largest commercial bank in Denmark.
And it had total assets of DKK 478815.11 million. Its country of origin is Sweden. It secured a market share of 6.33% and its net income in 2016 was DKK 4341.42 million.

#7. Nordea Kredit Realkreditaktieselskab:

It is the sixth-largest bank in terms of total assets acquired.
This bank is also one of the biggest mortgage banks in Denmark. Its country of origin is Sweden.
The total assets acquired by this bank in the year 2016 were DKK 437012.07 million.
It has secured a market share of 5.78%. The net income of Nordea Kredit Realkreditaktieselskab was DKK 1678.78 million.

#8. Jyske Bank:

It is the seventh (or sixth if we remove the recently closed bank) largest bank in terms of total assets acquired.
Since Nordea Bank Danmark A/S has closed down, this bank is the second-largest commercial bank in Denmark as of now.
The head-quarter of Jyske Bank is situated in Silkeborg. The total assets acquired by Jyske Bank in 2016 were DKK 318451.86 million. The market share of this bank is 4.21%.
The net income of Jyske Bank in the year 2016 was DKK 3116.15 million.

#9. BRFKredit A/S:

BRFKredit A/S has taken the eighth spot (or seventh if we remove the recently closed bank) in terms of total assets acquired.
The total assets acquired by this bank in the year 2016 were DKK 307027.22 million. It is also one of the largest mortgage banks in Denmark.
It is headquartered in Kongens Lyngby. The net income of this bank in the year 2016 was DKK 1015.46 million. BRFKredit A/S has secured a market share of 4.06%

#10. Nykredit Bank:

It is one of the largest commercial banks in Denmark and in terms of total assets acquired, it ranks ninth (or eighth, if we would remove the close bank).
The head-quarter of Nykredit Bank is in Kobenhavn V. The total assets acquired by this bank in 2016 were DKK 193977.53 million.
The net income of this bank in 2016 was DKK 626.49 million. It has secured a market share of 2.57%.

#11. DLR Kredit A/S:

It is the tenth (or ninth if we remove the recently closed bank) largest bank in terms of total assets acquired.
It is also one of the biggest mortgage banks. DLR Kredit A/S is headquartered in Kobenhavn V. The total assets acquired by DLR Kredit A/S in the year 2016 were DKK 155737.27 million.
The net income of this bank in the year 2016 was DKK 810.84 million. The market share of DLR Kredit A/S is 2.06%.

#12. Sydbank:

It is the eleventh bank in terms of total assets acquired, but it stands on tenth if we remove the Nordea Bank Danmark A/S.
It is also one of the largest commercial and current systematic banks in Denmark.
The total assets acquired by this bank in 2016 were DKK 148949.44 million.
The head-quarter of Sydbank is situated in Aabenraa. The market share of Sydbank is 1.97%. And the net income of Sydbank is DKK 1471.62 million in the year 2016.

Thus, the above details give us an overview of some of Denmark's top banks that have been operating for a long time. We can gain knowledge about their history, current status, total assets managed to date, growth levels, and market share.