Danske Bank shares climbed in Copenhagen trading as tensions within the Nordic banking sector eased.
The movement followed reports that the chief executives of major lenders, including Danske Bank, have reached an understanding after a heated public dispute over the stability of the financial industry.
The subsequent media exchange between industry leaders created uncertainty, but the reported agreement suggests a return to normalcy in inter-bank relations.
The reconciliation marks a de-escalation of a conflict that had drawn significant market attention.
Danske Bank CEO Carsten Egeriis had previously dismissed warnings from competitors regarding sector risks as a "fear campaign," a stance taken in the wake of the bank's robust second-quarter performance.
The subsequent media exchange between industry leaders created uncertainty, but the reported agreement suggests a return to normalcy in inter-bank relations.
Investors appear to be rewarding the resolution of this reputational risk.