Change to risk weight floors for loans secured by Norwegian residential real estate

The Norwegian authorities have decided to increase the minimum requirements on average risk weights for loans secured by Norwegian residential real estate applicable to banks using the internal ratings-based approach (IRB) from 20 to 25 percent, with effect from 1 July 2025. The new minimum requirement will increase the DNB Group’s risk exposure amount (REA) and is estimated to reduce the CET1 ratio by approximately 0.7 percentage points. 

The minimum requirement is imposed in accordance with article 458 of the Capital Requirements Regulation and will apply until 31 December 2026. The Norwegian authorities will ask the European Systemic Risk Board (ESBR) to recommend other countries to reciprocate the new minimum requirements in order for them to also be applicable to foreign banks’ residential real estate loans in Norway. 

For further information, please contact Rune Helland, Head of Investor Relations, tel.: (+47) 97 71 32 50 or Anne Engebretsen, tel.: (+47) 45 22 43 74. 

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