Danske Bank’s profits drop as the lender deals with fallout from a massive money-laundering scandal

The Danish lender Danske Bank saw its shares plummet by 4.1% as it revealed that it is expecting net profits to be on the low end of its previous estimates.

It had said in the past that it expected net profits to come in at the low end of its previously estimated $1.9bn to $2.2bn range.

The news comes as the bank is still dealing with the fallout from a money-laundering scandal. Danske Bank was revealed to be involved in the scandal in 2017. Since then, the scandal has spiralled to involve Deutsche Bank and Swedbank, both of which were linked to the suspicious transactions.

Since the story broke, Danske Bank has lost thousands of customers, roughly 18,900 of which abandoned the bank in the past nine months.

The news about its falling profits came after the bank initiated a hiring freeze to cope with the rising compliance costs.

During the first three quarters of 2019, Danske Bank experiences a 2% increase in its expenses as it was dealing with compliance costs and anti-money laundering activities.

The bank’s shares have lost roughly two-thirds of their value since the scandal broke, according to Reuters.

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