Strong quarter despite international turmoil

28 April 2022

DNB delivered a profit in the first quarter of 2022 of NOK 7 555 million, an increase of NOK 1 670 million compared with the first quarter of 2021. The increase was driven by a strong Norwegian economy and a high level of activity in the corporate market.

The ‘reopening boom’ following the removal of the last infection control measures in February continued to lift the level of activity in the Norwegian economy. However, the strong growth in the Norwegian economy has taken place against a sombre macropolitical backdrop.

“The eyes of the world this quarter have been on Russia’s brutal invasion of Ukraine, which has also created volatility and increased uncertainty in the financial markets. DNB has hardly any exposure to Russia, but has helped individual customers in affected sectors by giving advice relating to economic sanctions and market turbulence. Once again, we have seen that Norway as a country sets itself apart from other countries, with a robust economy despite international turmoil. A number of international customers have sought to move to DNB, and see the bank as a safe haven in an unsettled world,” says CEO of DNB Kjerstin Braathen.

Historic result for the corporate market

DNB saw positive developments across all of the bank’s business areas in the quarter.

Net interest income increased by NOK 1 216 million, up 13.2 per cent from the first quarter of 2021, and up NOK 160 million, or 1.6 per cent, from the fourth quarter of 2021.

The high level of activity in investment banking, asset management and payment services contributed to an increase in income from customer-driven activities (commission and fee income) of NOK 213 million, up 8.1 per cent from the corresponding quarter last year.

“Despite turbulent markets, the number of savings schemes is stable, and customers are sticking to their long-term savings plans. There was record turnover in DNB’s savings app, Spare, with our customers buying mutual funds worth more than NOK 2.7 billion. In the corporate market, we delivered the best quarter in the bank’s 200-year history. Companies’ willingness to invest remains high, despite the macropolitical situation. This shows optimism in the Norwegian business sector, largely due to the fact that Norwegian businesses have a number of investment opportunities in connection with the green shift,” says Braathen.

Total income for the corporate market amounted to NOK 9.5 billion in the quarter, an increase of NOK 1.6 billion from the first quarter of last year. The income was mainly driven by a loan growth of 4.7 per cent from the first quarter of 2021, increased net interest income, high activity, and net reversals.

In March, DNB was given the go-ahead to buy Sbanken, and Sbanken is now a wholly owned subsidiary of DNB. DNB and Sbanken will continue as two banks with different customers, solutions and products, and the organisations will jointly identify how to unlock the potential of a future merger. 

Financial key figures for the first quarter of 2022 (figures for the corresponding quarter in 2021): 

• Pre-tax operating profit before impairment amounted to NOK 9.2 billion (7.5) 
• Profit for the quarter was NOK 7.6 billion (5.9) 
• Earnings per share were NOK 4.71 (3.65) 
• Return on equity was 12.9 per cent (10.0) 
• Cost/income ratio was 39.4 per cent (43.6) 
• Common equity Tier 1 (CET 1) capital ratio was 18.1 per cent (19.2) 

Further details on DNB’s results can be found on ir.dnb.no. 

For further information: 

Rune Helland, Head of Investor Relations, tel.: (+47) 23 26 84 00/(+47) 97 71 32 50 

Thomas Midteide, Group Executive Vice President of Communications & Sustainability, tel.: (+47) 96 23 20 17 

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