Danske Bank A/S, Denmark’s largest lender, posted second-quarter net interest income which beat analyst estimates, supported by both the bank’s lending and trading activities.

Danske, which also raised its 2023 financial forecasts, said net interest income rose 47% from a year ago, to 8.52 billion Danish kroner ($1.27 billion), according to a statement. Analysts had projected 8.47 billion kroner. Net income also improved from a year earlier, to 5.01 billion kroner, versus an analyst estimate of 4.54 billion kroner.

Danske Bank is joining Nordic peers such as DNB Bank ASA, Nordea Bank Abp and Swedbank AB, which also reported better-than forecast second-quarter earnings. The region’s lenders are supported by corporate sectors that are holding up better than expected as well as rising interest rates.

The Danish bank raised its projection for this year’s annual net income to as much as 20.5 billion kroner, against previously as much as 18.5 billion kroner. It also decided to distribute a dividend of 7 kroner a share — at the upper end of the 40-60% target payout range.

“Costs remained stable and loan impairments remained at a very low level on the back of continually strong credit quality,” Chief Executive Officer Carsten Egeriis said in a statement.

Last month, the Copenhagen-based bank raised its key target for 2026 profitability and pledged more than 50 billion Danish kroner in dividends by that year. The lender is putting an end to a turbulent period defined by money laundering and debt collection scandals that has cost it more than 16 billion kroner in settlements with US authorities and clients.

As part of a strategy revamp, Danske Bank earlier this week agreed to sell its personal customer business in Norway, with about 285,000 customers, to Nordea. The price will be determined at closing, expected late this year.