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Danske Bank Cuts Jobs For Adapting With Post Crisis Landscape

Mar 01, 2016 08:57 AM EST

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Danske Bank A/S, the Netherland based banking services enterprise, is going to cut 46 positions, most of them in IT portfolio. The biggest lender in Denmark is believed to adjust operations to cope with the post crisis landscape.

The retail banking service provider operates in around 15 countries but mainly in the Nordic region. It offers services in the fields of banking, mortgage finance, insurance, real state brokerage, asset management while trading in fixed income products, foreign exchange and equities.

The Dutch bank continuously focuses on adaption for the organization. It always tries to ensure having the right mix of skills across countries and business area. Meanwhile, it also acknowledges the IT portfolio since IT development remains as the key areas for Danske Bank, reports Bloomberg quoting Kenni Leth, a spokesman for the bank through e-mail on Monday.

Danske has been reported to employ around 19,000 people at the end of last year compared with 24,000 in 2008. The Copenhagen-based bank has spent 43% more, equivalent to $60 million, compared with one year ago, according to data extracted from its website.

Earlier, the banking giant has received a consensus rating of 'buy' from six rating firms under the banner of Analyst Ratings Network.com, currently covering the company. However, one research analysts has rated the stock with a 'sell' rating and four have pasted a 'buy' rating to the company.

Several equities analysts have recently been reported commenting on Danske shares. Jefferies Group has started coverage on Danske Bank A/S through a research note on Tuesday, December 8, putting a 'buy' rating on the stock.

RBC Capital has upgraded Danske to an 'outperform' rating through another research note published on November 2. Most recently, Macquarie has lowered the bank company from a 'neutral' rating to an 'underperform' rating through another research note on Wednesday, according to a report published in Financial Market News.

Share of the bank has opened at 13.58 on Wednesday. It has recorded a 52-week low of $12.01 and a 52-week high of $16.32. 50-Day moving average of the stock is $13.32 and 200-day moving average is $14.41. The stock has maintained a market cap of $13.25 billion and price-to-earnings ration of 7.20, according to a report published in The Hilltop News.

Danske bank is going to cut jobs in 46 positions mostly in the IT portfolio. The job cut has been disclosed just after achieving an average 'buy' rating from most of the rating firms. Adoption of cost cutting measures probably aims adapting with the post crisis landscape for eventual further upgrading in rating status.

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