Ripple effects strengthen DNB’s performance

DNB recorded profits of NOK 5 653 million in the first quarter of 2018, up NOK 1 109 million from the first quarter of 2017. The bank’s strong performance can be ascribed to the bright prospects for Norwegian companies and private individuals. 

The Norwegian welfare state is dependent on an increasing number of startups, which is why
DNB is cheering on Norwegian entrepreneurs. The ripple effects of Norwegian companies' operations are boosting DNB’s financial performance. Many companies in Norway are currently on the offensive.

"We aspire to be a good adviser for those who want to start their own business and thus contribute to creating new jobs. Over the past year, loans to small and medium-sized enterprises have grown by more than 8 per cent. This demonstrates strong optimism and a willingness to invest in the Norwegian business community," says Rune Bjerke, group chief executive in DNB.

In comparison, home mortgages and other loans to private individuals increased by 5.4 per cent during the past year. There is fierce competition in this market, but the rate of growth is in line with DNB’s ambitions.

Reduction in losses 

A lower level of impairment is another positive consequence of the healthy state of the Norwegian economy. During the first quarter of 2017, impairment losses on loans came to NOK 562 million, while impairment totalled NOK 2.4 billion for the full year 2017.

The level of impairment was low in the first quarter. In addition, some of the impairment losses recorded previously were reversed. These stemmed primarily from oil-related operations, where a number of companies have been through successful restructurings. Net reversals of NOK 330 million were thus recorded in the first quarter. 

“Optimism is back in the oil sector, and losses have been strongly reduced. Consequently, Large Corporates and International shows the highest increase in profits among our business areas," says Bjerke.


Net interest income was up NOK 486 million from the first quarter of 2017. As in the previous quarters, this reflected higher lending volumes. In addition, lower funding costs had a positive effect on the lending spread. Other income was down NOK 532 million, mainly due to exchange rate effects from the bank’s additional Tier 1 capital. There was a small increase in commissions and fees compared with the first quarter of 2017.

Operating expenses were NOK 285 million lower than in the first quarter of 2017. Compared with the fourth quarter of 2017, operating expenses were down NOK 863 million, though this was mainly due to certain non-recurring effects towards the end of the year.

"We are very pleased with the results and especially with the fact that we are approaching our return on equity target. We will continue to develop the best customer experiences for Norwegian consumers. To be able to deliver on this, it is also important that DNB is an attractive option for investors,” concludes group chief executive Rune Bjerke. 

Financial key figures for the first quarter of 2018

  • Pre-tax operating profit before impairment was NOK 6.7 billion (6.5)
  • Profit for the period was NOK 5.7 billion (4.5)
  • The common equity Tier 1 capital ratio (transitional rules) was 16.6 per cent (15.8)
  • Earnings per share were NOK 3.36 (2.64)
  • Return on equity was 11.0 per cent (9.1)
  • The cost/income ratio was 43.4 per cent (45.6)

Comparable figures for the first quarter of 2017 in parentheses.

For further information, please contact:

Investor contacts:
Rune Helland, head of Investor Relations, tel. ( 47) 23 26 84 00 / ( 47) 977 13 250
Amra Koluder, SVP Investor Relations, tel. ( 47) 23 26 84 08 / ( 47) 977 35 378
Thor Tellefsen, head of Long-term Funding, tel. ( 47) 24 16 91 22 / ( 47) 915 44 385

Media contacts:
Thomas Midteide, head of 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. 

About Us

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.