COPENHAGEN (Reuters), -Danske Bank, which reported slightly more than anticipated fourth quarter net profits, on Thursday reiterated its target for 2023 profitability and indicated that they expect to improve their profit margins this year.

Denmark’s largest lender is expecting net profits of between 13 billion and 15 billion Danish crowns (between $1.97 and $2.28 billion). This is based on stable costs, lower loan impairments, and higher incomes from core activities.

“Our business continued its positive development with total income rising 4%. Our initiatives to be a better bank resulted cost reductions of 4%,” Carsten, chief executive officer, stated in a statement.

The scandal surrounding money laundering in Denmark has plagued Denmark’s largest bank since 2018. This has led to a rise in compliance-related costs and more cases involving negative clients.

The lender decreased its profitability targets in November due to increased competition and increasing margin pressure.

Danske reiterated its goal of achieving a return of equity between 8.5% to 9% by 2023. This was a goal that it set in November after it reduced its previous target range.

In 2021, costs decreased by 4% while loan impairment fees, which indicate a bank’s assessment of macroeconomic conditions as well as the likelihood that any loans will fail, fell 95% in comparison to last year.

Per Hansen, Nordnet analyst, stated that Danske Bank had “cement itself as the least profitable Scandinavian bank major” and added that the results were consistent with what he expected.

Danske reports a net profit of 3.65 Billion Danish crowns in the fourth quarter, which is slightly higher than analysts’ average estimate of 3.4 Billion.

Danske Bank suggested that 2021’s total dividend be paid at 7.5 Crowns per share.

($1 = 6.5859 Danish crowns)