DENMARK - Danske Bank's asset management business, Danske Capital, saw its assets under management decline by 11% to DKr572bn (€76.67bn) at the end of the first half of this year.

Presenting its interim report for the first half of 2008, Danske said the turbulence in the financial markets adversely affected profits particularly in the group's market-related units -Danske Markets, Danske Capital and Danica Pension - who together saw a decline in pre-tax profit of DKr2.3bn.

The group said the asset management's division's profit before tax was down 21%, declining from DKR533bn at the end of the first half last year to DKr422bn in the same period this year.

The company has seen a gradual decline in assets under management since the second quarter of last year, when it still management DKr640bn.

In addition, it said income as a percentage of assets under management fell because the proportion of equities decreased, while lower trading volume also reduced income from trading activities.

"Danske Capital's net sales were adversely affected by the considerable turbulence in the international capital markets that reduced both the value of assets under management and customers' risk appetite," said the group.

Net outflows totalled DKr2.1bn, while outflows from institutional clients reached DKr4.9bn (€650m).

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