DNB will report a total tax expense of about NOK 460 million for the fourth quarter 2022

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The low tax expense is mainly a result of the liquidation of the subsidiary in Asia in the fourth quarter. DNB hedges investments in foreign subsidiaries to eliminate the foreign currency exposure which arises when the functional currency differs from that of the Group. Gains or losses on investments in foreign subsidiaries are exempt from tax while corresponding gains or losses on hedging instruments are taxable. When a foreign operation is disposed of or liquidated, the cumulative gains or losses of the hedging instruments recognised in equity is reclassified to the ordinary income statement. The result from tax on gains on these hedging instruments amounts to NOK 1 284 million for the fourth quarter.

This gives an effective tax rate for 2022 of 18 per cent but will have no effect on the tax guiding going forward (23 per cent).