Danske CEO Points to Risks Still Facing Bank; Shares Fall

The chief executive of Danske Bank A/S said the lender still faces a number of hurdles, including a sluggish retail business, raising questions about management’s ability to live up to long-term profitability targets.

Carsten Egeriis, who became CEO in April after his predecessor stepped down due to a money laundering probe, said Danske is still suffering from “reputational issues,” which are weighing on retail customer sentiment. On a conference call that followed quarterly results containing few surprises, Egeriis also signaled that any payout of excess capital would probably have to wait until after Danske knows the full cost of its Estonian dirty-money scandal.