DNKEY Danske Bank AVS (PK)

By Dominic Chopping

Danske Bank AS said Thursday that it has decided to stop the dividend payment due to be distributed in connection with the first-quarter report, aiming to retain capital as money-laundering investigations approach their conclusion.

The Danish bank came under investigation regarding money laundering after admitting that it failed to appropriately vet about $230 billion in transfers by non-Estonians through its branch in Tallinn, Estonia, primarily by Russians, between 2007 and 2015.

Danske Bank remains under investigation by the U.S. Justice Department, U.S. Securities and Exchange Commission and by criminal law-enforcement and regulatory agencies in Estonia, Denmark and France.

In a statement Thursday, Danske said it is now in initial discussions with U.S. and Danish authorities on the resolution of the Estonia matter, although it is not yet able to reliably estimate the timing, form of resolution or amount of a potential settlement or fines, which is likely to be material.

"Consequently, the board of directors has decided that Danske Bank will not pay out dividends in connection with the announcement of the interim report for the first quarter of 2022," it said.

The bank had previously said it would pay a dividend totaling 5.5 Danish kroner ($0.78) a share in three tranches following the publication of interim reports in 2022.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

April 28, 2022 08:03 ET (12:03 GMT)

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