DNB Bank ASA

Earnings Release • Oct 22, 2024

Results DNB Group

Third quarter 2024

Kjerstin R. Braathen (CEO)

Strong performance and solid asset quality

Return on equity of 18.9 per cent in the quarter

Strong result with high activity across customer segments. 18.0 per cent adjusted for one-off gain from Fremtind/Eika merger.

Net interest income up 2.0 per cent from 2Q24

Driven by lending growth and increased activity. Strong momentum in personal customers segment during the quarter.

Net commissions and fees up 11.1 per cent from 3Q23

All-time high third quarter result driven by solid performance in asset management and investment banking.

Solid asset quality and low impairment provisions 99.2 per cent of portfolio in stages 1 and 2. Impairment provisions of NOK 170 million in the quarter.

Earnings per share up 22.5 per cent from 3Q23 Earnings per share of NOK 7.83 in the quarter, YTD NOK 21.15.

2

Norwegian economy remains robust – clear signs of a soft landing

• Expected growth in mainland economy through forecasting period
• Robust economic activity expected to support low unemployment rates
• Key policy rate expected to remain at current levels until March 2025

Sources: Statistics Norway, DNB Markets, Norges Bank (Norwegian central bank), NAV (Norwegian Labour and Welfare Administration).

Strong performance in all three customer segments

• First reporting of corporate customers in two segments demonstrating DNB's strong position among business customers in Norway
• High customer activity reflecting solid growth in other income, up 8.7 per cent from 3Q23
• Continued strong credit quality in all customer segments

Strong and diversified product offering

• DNB Markets strong market position in Norway and continuing to strengthen DNB's position in the Nordics
• Solid growth in net inflows due to strong position in savings
• Broad-based product offering ensuring recurring income

Accelerates our ambition to become a leading Nordic player in investment banking and wealth management

Step change to increase share of fee-related income

• Well positioned for future growth within high-margin products and services
• Strengthened position in the Nordics and internationally
• In line with DNB's strategy to grow share of fee-related income from capital-light products

Loan growth driven by increased activity

• Loan growth of 1.6 per cent in the quarter
  • ‒ up 0.8 per cent in Personal customers (PC), 0.3 in Business customers Norway (BCN), 4.7 in Large corporates and international customers (LCIC)
• Deposits reduced by 4.1 per cent in the quarter
  • ‒ down 2.1 per cent in Personal customers, 4.9 in Business customers Norway and 6.0 in Large corporates and international customers

Positive development in net interest margin

1 Total net interest income relative to average loans and deposits in the customer segments.

2 The principles relating to calculation of margins on short-term deposits were revised in the second quarter. Adjusted for this change, combined spreads were stable from 1Q24.

Net interest income up 2.0 per cent from 2Q24

1 Effects of repricings, portfolio development and change in product mix.

Commissions and fees – all-time high third quarter result

11

Stable operating expenses in the quarter

Continued strong credit quality in all customer segments

Impairment of financial instruments by customer segment
NOK million

	3Q24	2Q24	3Q23
Total	(170)	(560)	(937)
Of which:
Personal customers
- Stages 1 and 2	52	20	(0)
- Stage 3	(86)	(101)	(111)
Business customers Norway
- Stages 1 and 2	1	(32)	(98)
- Stage 3	(148)	(260)	(337)
Large corporates and international customers
- Stages 1 and 2	(26)	12	49
- Stage 3	38	(200)	(440)

Strong capital position

• CET1 capital ratio of 19.0 per cent, ~220 basis-point (bps) headroom to Financial Supervisory Authority's (FSA's) current expectation
• Solid profit generation increased CET1 capital ratio by 35 bps, offset by increased risk exposure amount from volume growth and currency effects

1 The FSA's current expectation: 16.8 per cent.

2 The FSA's current requirement: 15.6 per cent.

Strong third quarter result

15

Appendix

Income statement

NOK million	3Q24	2Q24	3Q23	Change from 2Q24	Change from 3Q23
Net interest income	16 129	15 817	15 718	312	411
Other operating income	6 722	5 756	5 252	966	1 470
Total income	22 851	21 572	20 970	1 279	1 881
Operating expenses	(7 431)	(7 505)	(6 858)	74	(574)
Pre-tax operating profit before impairment	15 419	14 067	14 112	1 352	1 307
Impairment of loans and guarantees and gains on assets	(169)	(562)	(941)	393	771
Pre-tax operating profit	15 250	13 504	13 172	1 746	2 078
Tax expense	(3 050)	(2 701)	(3 029)	(349)	(21)
Profit from operations held for sale, after taxes	(40)	(37)	(0)	(3)	(40)
Profit for the period	12 160	10 766	10 142	1 394	2 018
Portion attributable to shareholders	11 632	10 271	9 805	1 361	1 827

Other operating income

NOK million	3Q24	2Q24	3Q23	Change from 2Q24	Change from 3Q23
Net commissions and fees	3 038	3 439	2 735	(402)	303
Customer revenues in DNB Markets	921	851	752	70	168
Trading revenues in DNB Markets	138	225	251	(87)	(112)
Hedging of defined-benefit pension scheme	42	39	(19)	3	61
Credit spreads on bonds	32	57	(12)	(25)	44
Credit spreads on fixed-rate loans	(55)	110	136	(164)	(190)
CVA/DVA/FVA	(153)	42	65	(195)	(218)
Other mark-to-market adjustments	947	55	702	892	245
Basis swaps	(194)	(290)	(162)	96	(32)
Exchange rate effects related to additional Tier 1 capital	(19)	(79)	(11)	60	(8)
Net gains on financial instruments at fair value	1 660	1 010	1 703	650	(43)
Net life insurance result	318	433	364	(115)	(46)
Profit from investments accounted for by the equity method	1 016	258	(65)	758	1 082
Other	690	615	515	75	175
Net other operating income, total	6 722	5 756	5 252	966	1 470

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

The statements contained in this presentation may include forward-looking statements, such as statements of future expectations. These statements are based on the management's current views and assumptions and involve both known and unknown risks and uncertainties.

Although DNB believes that the expectations implied in any such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct.

Actual results, performance or events may differ materially from those set out or implied in the forward-looking statements. Important factors that may cause such a difference include, but are not limited to: (i) general economic conditions, (ii) performance of financial markets, including market volatility and liquidity, (iii) the extent of credit defaults, (iv) interest rate levels, (v) currency exchange rates, (vi) changes in the competitive climate, (vii) changes in laws and regulations, (viii) changes in the policies of central banks and/or foreign governments, or supranational entities.

DNB assumes no obligation to update any forward-looking statement.

This presentation contains alternative performance measures, or non-IFRS financial measures. Definitions and calculations are presented on ir.dnb.no.

Welcome to

Capital Markets Day

London, 19 November 2024 12:00 pm GMT