DNB Bank ASA

Earnings Release • Oct 19, 2023

Solid results and high customer activity in the third quarter

Solid results and high customer activity in the third quarter

DNB's profit in the third quarter of 2023 was NOK 10 142 million. This is an

increase of NOK 2 409 million, or 31.2 per cent, from the corresponding quarter

of 2022. The results are strong in all customer segments, with particularly

large contributions from the corporate market and the Group's international

operations. Over time, these good results help the bank support its personal and

corporate customers with everything from mortgages and financing for startups to

investments in the green shift.

"Overall, the Norwegian economy is still doing well, and has proved surprisingly

resilient in the face of rising prices and higher interest rates. At the same

time, we see that more customers are taking control of their own finances, which

is why we are spending extra time on talking with our customers, providing good

advice, creating a sense of security and finding solutions together. In the

third quarter alone, we had more than 1.5 million conversations with customers,"

says CEO Kjerstin Braathen.

Expecting a soft landing

Growth in the Norwegian economy has slowed somewhat, but remains steady. The

Norwegian central bank, Norges Bank, has raised its key policy rate several

times to curb inflation, which is still higher than the central bank's target.

However, the effect of the interest rate hikes is starting to be felt. At the

same time, the unemployment rate is very low. DNB is expecting the Norwegian

economy to be heading towards a soft landing.

DNB's net interest income totalled NOK 15 718 million in the quarter, up from

NOK 12 253 million in the corresponding period last year.

"We now have historically low margins on mortgages, but increased margins on

deposits, which is normal in a situation where interest rates are rising," says

Braathen.

Income from customer activities other than lending was higher than in any

previous third quarter, reflecting a continued high level of activity in the

Norwegian economy. DNB recognised impairment provisions of NOK 937 million this

quarter, mainly relating to individual customers in the corporate segment.

More customers requesting advisory services

Over the past few months, DNB has established dedicated advisory teams for young

people and for those who are particularly concerned about their finances.

"Since we started in June, the advisers who help customers with particularly

challenging finances have had 300 conversations per month, and we are hearing

that our advice is making a big difference," says Braathen.

At the same time, many of our customers still have room to set aside funds for

savings, they are keeping up their savings commitments, and the number of

savings agreements has also increased this quarter.

"Our most important task is to be a good adviser for our customers, and our

customer conversations are covering a wider range of topics than they have for a

long time. We find that the vast majority of the customers we talk with are

satisfied, and I'm proud to say that 90 per cent of all enquiries are resolved

by the first adviser the customer comes into contact with," says Braathen.

A plan for a sustainable transition

The wide range of DNB products and services allows the bank to work closely with

customers across different industries, and the demand for financing for

sustainable initiatives continues. DNB has set a target of financing and

facilitating sustainable activities worth NOK 1 500 billion by 2030, and is on

track to achieving this target, having reached NOK 505 billion so far.

On 17 October, DNB launched its roadmap to net-zero emissions by 2050. The

transition plan describes how the bank will achieve this target through specific

sub-targets for lending, investments and our own emissions.

"The transition will demand a lot from us and our customers, but the road to net

zero is also full of opportunities. With our expertise and capital, we will help

realise these opportunities in collaboration with the authorities and the rest

of the business community," says Braathen.

Financial key figures for the third quarter of 2023 (figures for the

corresponding quarter in 2022):

Pre-tax operating profit before impairment amounted to NOK 14.1 billion (9.8)

Profit was NOK 10.1 billion (7.7)

Earnings per share were NOK 6.39 (4.87)

Return on equity was 16.3 per cent (13.6)

Cost/income ratio was 32.7 per cent (38.9)

Common equity Tier 1 (CET 1) capital ratio was 18.3 per cent (18.1)

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 Securities Trading Act.