EBA stress test shows a robust capital position

The DNB Bank Group has participated in the EBA (European Banking Authority) stress test, based on numbers as at year-end 2017, and with a stress period from 2018 to 2020. The common equity Tier 1 (CET1) capital ratio for the DNB Bank Group has a moderate fall from 16.2 per cent by the end of 2017 to 15.0 per cent by the end of 2020.

In the stress scenario, the common equity Tier 1 (CET1) capital ratio for the DNB Bank Group drops to 13.5 per cent at the end of 2018. Loan losses are, according to the new IFRS 9 principles, particularly concentrated in 2018, which combined with losses related to market risk and reduced net interest income, causes a negative profit after tax of EUR 928 million (NOK 9 136 million). The increase in risk-weighted assets also contributes to the decline in the capital adequacy. Positive results in 2019 and 2020, which among other things can be ascribed to the decline in loan losses, cause the capital adequacy to rise to 15.0 per cent by the end of 2020. DNB is satisfied with the results of the stress test, which show that the bank has a robust earning capacity and capital position.

Links: EBA stress test results

Contact persons:

Rune Helland, head of Investor Relations, tel: +47 977 13 250
Thomas Midteide, group executive vice president, Media & Marketing, tel.: + 47 962 32 017

This information is subject to the disclosure requirements according to Section 5-12 of the Norwegian Securities Trading Act. 

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DNB is Norway's largest financial services group and offers financial products and services, including loans and deposits, mutual funds and asset management, life insurance and pension savings, payment and financing services, real estate broking and services related to the money and capital markets.