Jacob Gronholt Pedersen and Stine Jacobsen

COPENHAGEN (Reuters), Danske Bank has announced that Martin Blessing, a former German banker and chairman of its board of directors, will replace Martin Blessing. Blessing is charged with increasing the profitability of Danish lenders while also guiding them through the largest money laundering scandals.

The largest lender in Denmark has announced that the current chairman, Karsten Dybvad (a former head of Confederation of Danish Industry, and a top civil servant) will not be standing for re-election at a general meeting on March 17.

Blessing will be recommended by the bank as his replacement. He is a former chief executive of Commerzbank (DE) and co-president for UBS’ Global Wealth Management.

Danske Bank still struggles to get its footing back after being implicated in a money laundering scheme in Estonia’s former branch in 2018.

Authorities from the United States of America, Denmark, Estonia, France, and France are still investigating the bank. They could also be imposing major fines.

Two major managerial changes have been made by Dybvad since Dybvad was elected in 2018. Following the resignation of Chris Vogelzang, who was named as a suspect by Dutch authorities for violating money-laundering regulations at ABN Amro in April 2018, Dybvad took control as CEO.

Danske also struggles to reduce costs and increase top-line growth, particularly in compliance. After the scandal involving money laundering, which cost around $15billion in market value, investors are initiating legal proceedings against Danske.

The shares were 1.4% more than at 0806 GMT, but are still around 50% below levels four years ago.

Per Hansen, Nordnet analyst said that Dybvad was chairman in a tough time but hasn’t made a difference. Danske Bank has much work to do.

Blessing joined Danske’s board of directors in 2020. He was also part of a group that launched European Fintech IPO Company BV last year. This blank-cheque firm raises money solely for acquisitions.

Blessing stated in a statement that “If elected I will, along with the board and in close collaboration with the bank’s executive leadership team ensure Danske Bank continues its positive development.”