Growth and strong results in a robust Norwegian economy

DNB’s profit in the second quarter of 2023 was NOK 9 462 million. This is an increase of NOK 1 505 million, or 18.9 per cent, from the corresponding quarter of 2022.

“We’re growing in both the personal and corporate customer markets, and we’re pleased that many new customers are choosing us,” says Kjerstin Braathen, Group Chief Executive Officer (CEO) of DNB.

Behind the strong results lies a robust Norwegian economy, even though the level of activity in the economy has slowed somewhat during the spring, and general uncertainty has risen. Unemployment remains at a very low level and is expected to stay low. The Norwegian central bank, Norges Bank, has raised the key policy rate several times to curb inflation, which is still far higher than the target level.

Committed to being close to customers

Net interest income increased by NOK 633 million, or 4.3 per cent, from the previous quarter, driven by profitable growth and higher interest rates.

There were impairment provisions of NOK 871 million in the quarter, mainly related to a legacy portfolio in Poland.

DNB has low levels of default on loans and unsecured credit, and the bank saw no noticeable increase in applications for interest-only periods in the quarter.

“We’re committed to providing sound advice, both to our personal and our corporate customers. Broadly speaking, we see that customers have a good overview of their finances and are making wise choices in this area. More people are contacting us for a review of their finances, and we have, among other things, strengthened the services we offer customers with financial concerns,” says Braathen.

At the same time, the bank sees that many customers are maintaining their savings schemes, and that the number of savings scheme agreements has also increased in the quarter.

High activity among companies

There is still good momentum in large parts of the Norwegian business sector, and the breadth of DNB’s products and services means that the bank is working work closely with customers across a number of sectors.

The corporate customer area delivered another record-breaking quarter, with a profit of NOK 5 560 million, and a continued positive trend in companies’ approach to the energy transition.

“From small local cornerstone companies to large industrial groups, the customers I meet are working with this in one way or another, and there’s a great demand for financing and for our expertise,” says Braathen.

The high demand for financing of sustainable initiatives is continuing. DNB has set a goal of financing and facilitating sustainable activities worth NOK 1 500 billion by 2030, and is on track to achieving this target, having reached NOK 457 billion so far.

Income from customer-driven activities (commission and fee income) amounted to a solid NOK 2 819 million in the quarter, which was an increase of 10.2 per cent compared with the corresponding quarter last year. All product areas contributed to the solid growth in income.

Financial key figures for the second quarter of 2023 (figures for the corresponding quarter in 2022):

Pre-tax operating profit before impairment amounted to NOK 13.1 billion (10.0)

Profit was NOK 9.5 billion (8.0)

Earnings per share were NOK 5.93 (5.02)

Return on equity was 15.6 per cent (14.2)

Cost/income ratio was 35.1 per cent (38.9)

Common equity Tier 1 (CET 1) capital ratio was 18.9 per cent (18.0)

For further information:
Rune Helland, Head of Investor Relations, tel.: 23 26 84 00 / 97 71 32 50
Kari Vartdal Riise, Executive Vice President of Communications (acting), tel. 97 51 67 07

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