DNB Bank ASA

Quarterly Report • Jul 12, 2023

Second quarter and first half report 2023

Unaudited

Financial highlights

Income statement	2nd quarter	2nd quarter	Jan.-June	Jan.-June	Full year
Amounts in NOK million	2023	2022	2023	2022	2022
Net interest income	15 232	11 525	29 832	21 970	48 294
Net commissions and fees	2 819	2 557	5 453	5 144	10 328
Net gains on financial instruments at fair value	1 277	1 624	3 741	3 186	4 147
Net insurance result	338	277	493	469	1 235
Other operating income	536	404	1 221	686	2 129
Net other operating income	4 971	4 863	10 907	9 486	17 840
Total income	20 203	16 388	40 739	31 456	66 133
Operating expenses	(7 044)	(6 235)	(13 907)	(12 030)	(25 627)
Restructuring costs and non-recurring effects	(40)	(135)	(153)	(135)	(176)
Pre-tax operating profit before impairment	13 120	10 018	26 679	19 291	40 331
Net gains on fixed and intangible assets	15	0	15	1	(24)
Impairment of financial instruments	(871)	209	(792)	798	272
Pre-tax operating profit	12 263	10 227	25 902	20 090	40 579
Tax expense	(2 821)	(2 351)	(5 958)	(4 603)	(7 411)
Profit from operations held for sale, after taxes	19	81	(11)	117	270
Profit for the period	9 462	7 957	19 934	15 604	33 438
Balance sheet			30 June	31 Dec.	30 June
Amounts in NOK million			2023	2022	2022
Total assets			3 559 000	3 233 405	3 304 364
Loans to customers			2 025 481	1 961 464	1 924 520
Deposits from customers			1 472 869	1 396 630	1 393 381
Total equity			254 065	249 840	229 552
Average total assets			3 696 693	3 502 400	3 471 248
Total combined assets			4 111 179	3 726 791	3 789 644
Key figures and alternative performance measures	2nd quarter	2nd quarter	Jan.-June	Jan.-June	Full year
	2023	2022	2023	2022	2022
Return on equity, annualised (per cent)1	15.6	14.2	16.4	13.9	14.7
Earnings per share (NOK)	5.93	5.02	12.51	9.79	21.02
Combined weighted total average spreads for lending and deposits
(per cent)1	1.37	1.20	1.39	1.19	1.21
Average spreads for ordinary lending to customers (per cent)1	1.40	1.67	1.50	1.68	1.47
Average spreads for deposits from customers (per cent)1	1.34	0.58	1.24	0.54	0.88
Cost/income ratio (per cent)1	35.1	38.9	34.5	38.7	39.0
Ratio of customer deposits to net loans to customers at end of period,
customer segments (per cent)1	74.9	75.7	74.9	75.7	75.1
Net loans at amortised cost and financial commitments in stage 2, per cent of net loans at amortised cost1	9.16	8.35	9.16	8.35	9.28
Net loans at amortised cost and financial commitments in stage 3, per
cent of net loans at amortised cost1	1.09	1.43	1.09	1.43	1.25
Impairment relative to average net loans to customers at amortised
cost, annualised (per cent)1	(0.18)	0.05	(0.08)	0.09	0.01
Common equity Tier 1 capital ratio at end of period (per cent)	18.9	18.0	18.9	18.0	18.3
Leverage ratio (per cent)	6.6	6.5	6.6	6.5	6.8
Share price at end of period (NOK)	200.70	176.55	200.70	176.55	194.45
Book value per share	152.43	140.43	152.43	140.43	150.64
Price/book value1	1.32	1.26	1.32	1.26	1.29
Dividend per share (NOK)					12.50
Sustainability:
Finance and facilitate sustainable activities (NOK billion, accumulated)	456.8	302.9	456.8	302.9	390.9
Total assets invested in mutual funds with a sustainability
profile (NOK billion)	110.5	24.8	110.5	24.8	27.4
Score from Traction's reputation survey in Norway (points)	61	62	61	62	60
Customer satisfaction index, CSI, personal customers in Norway (score)	72.7	73.3	73.2	73.6	72.8
Female representation at management levels 1-4 (per cent)	40.0	38.4	40.0	38.4	38.3

1) Defined as alternative performance measure (APM). APMs are described on ir.dnb.no.

For additional key figures and definitions, please see the Factbook on ir.dnb.no.

	Directors' report 4
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	Income statement 10
	Comprehensive income statement 10
	Balance sheet 11
	Statement of changes in equity 12
	Cash flow statement 13
Note G1	Basis for preparation 14
Note G2	Segments 15
Note G3	Capital adequacy 16
Note G4	Development in gross carrying amount and maximum exposure 18
Note G5	Development in accumulated impairment of financial instruments 19
Note G6	Loans and financial commitments to customers by industry segment 20
Note G7	Financial instruments at fair value 22
Note G8	Debt securities issued, senior non-preferred bonds and subordinated loan capital 23
Note G9	Contingencies 24

	Income statement 25
	Comprehensive income statement 25
	Balance sheet 26
	Statement of changes in equity 27
Note P1	Basis for preparation 28
Note P2	Capital adequacy 29
Note P3	Development in accumulated impairment of financial instruments 30
Note P4	Financial instruments at fair value 31
Note P5	Information on related parties 31

Information about DNB 33
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Directors' report

The high level of activity in the Norwegian economy in 2022 cooled down somewhat in the second quarter, a trend that continued from the previous quarter. Despite this slowdown, the labour market remained tight, while inflation persisted at elevated levels. Furthermore, in response to the continued inflationary pressure, the Norwegian central bank, Norges Bank, raised the key policy rate from 3.00 per cent to 3.75 per cent during the quarter. These developments reflected the nuanced dynamics and challenges facing the Norwegian economy, highlighting the delicate balance between sustaining growth and managing inflationary pressure.

DNB's results in the second quarter were strong, driven by profitable volume growth, increased interest rates and subsequent customer repricings. The capital situation remained solid, and the portfolio was well-diversified and robust. The Group is well positioned to deliver on its ambitions and goals, including its dividend policy.

Second quarter financial performance

The Group delivered strong profits of NOK 9 462 million, an increase of NOK 1 505 million, or 18.9 per cent, from the corresponding quarter last year. Compared with the first quarter, profits decreased by NOK 1 011 million.

Earnings per share were NOK 5.93 compared with NOK 5.02 in the year-earlier period, and NOK 6.59 in the first quarter.

The common equity Tier 1 (CET1) capital ratio was 18.9 per cent at end-June, up from 18.0 per cent a year earlier, and from 18.6 per cent at end-March.

The leverage ratio was 6.6 per cent at end-June, up from 6.5 per cent in the year-earlier period and end-March.

Annualised return on equity (ROE) ended at 15.6 per cent, positively impacted by solid performance in the customer segments and increased net interest income. The corresponding figures were 14.2 per cent in the second quarter of 2022, and 17.2 per cent in the first quarter of 2023.

Profitable growth in both lending and deposits, as well as higher interest rates, led to an increase in net interest income of NOK 3 707 million, or 32.2 per cent, from the second quarter of 2022. There was an increase of NOK 633 million, or 4.3 per cent, from the previous quarter, due to profitable lending growth and increased interest rates.

Net other operating income amounted to NOK 4 971 million, up NOK 108 million from the corresponding period in 2022. Net commissions and fees reached an all-time high second quarter result, with strong deliveries across product areas. Compared with the first quarter of 2023, net other operating income was down NOK 965 million, due to extraordinarily high income from financial instruments in the previous quarter.

Operating expenses amounted to NOK 7 083 million in the quarter, up NOK 713 million from the corresponding period a year earlier, due to a further strengthening of core competence. Compared with the previous quarter, operating expenses were up NOK 107 million, mainly due to increased fixed salary related to the annual salary adjustments and currency effects.

Impairment of financial instruments amounted to NOK 871 million in the second quarter of 2023, primarily related to a legacy portfolio in Poland.

Sustainability

The second quarter saw several highlights in DNB's sustainability work, in addition to important regulatory developments in the sustainability area. The EU Commission released a sustainable finance package, including additional taxonomy criteria, and launched a period of public feedback on the reporting standards under the Corporate Sustainability Reporting Directive (CSRD). The CSRD is expected to enter into force in Norway in 2024, with reporting starting in 2025 for the accounting year 2024. To prepare for these new and extensive reporting requirements, a project group has started a process to identify gaps in the current reporting, and is developing an action plan to close these gaps. An updated materiality analysis was also concluded in the second quarter.

DNB's Sustainable Product Framework is currently being updated, in a joint effort with DNB's business partner Sustainalytics. The framework is expected to be ready for publishing in mid-July and will be closely aligned with the EU Taxonomy in terms of the activities and criteria listed.

In DNB Livsforsikring, the addressing of climate risk was incorporated into the company's governance processes in the quarter.

During the quarter, DNB's Group Sustainability Committee continued its work to ensure coherent implementation of sustainability measures across the Group. An important area of discussion in the Committee is the work to develop DNB's climate transition plan, which will be published later this year. Moreover, regulatory developments such as the reporting requirements under the CSRD and the Norwegian Transparency Act were important matters handled by the Committee. DNB's report for 2022 under the Transparency Act was published on 15 June.

As of 30 June 2023, DNB has facilitated a cumulative total of NOK 457 billion in sustainable financing. This is an increase of 8.0 per cent from the previous quarter and shows that DNB is on track to reaching the target of NOK 1 500 billion by 2030.

With regard to the target of NOK 200 billion in assets in mutual funds with a sustainability profile by 2025, NOK 111 billion had been invested as of 30 June 2023. The large increase from the previous period is due to reclassification. In the second quarter, DNB Asset Management reclassified several fixed-income funds as Article 8 funds and moved these funds to the 'low-carbon' platform. This means that the funds will have additional exclusion criteria relating to carbon emissions.

Other events in the second quarter

At the Annual General Meeting on 25 April 2023, the Board was given an authorisation for a new share buy-back programme of 3.5 per cent. In addition, DNB Markets was authorised to repurchase 0.5 per cent of the shares for hedging purposes. The authorisation is valid until the Annual General Meeting in 2024. In the first instance, DNB has applied for a 1.75 per cent repurchase limit from Finanstilsynet (the Financial Supervisory Authority of Norway), of which 0.25 per cent can only be used for hedging purposes by DNB Markets. Due to a regulatory change, whereby the full amount is to be deducted from the capital base upon approval from Finanstilsynet rather than when the programme is announced (which was previously the case), DNB amended its initial application. DNB's dividend policy remains unchanged.

In June 2023, the Court of Justice of the European Union (CJEU) issued a judgment in connection with a judicial proceeding against a Polish bank not related to DNB concerning foreign currency loan agreements in Poland. The judgment clarifies what claims the parties to a loan agreement can make against each other, if a national court finds that the loan agreement is invalid. The CJEU's decision is expected to affect other Polish banks with similar loan agreements. Based on the clarification from the CJEU, DNB Poland estimates an increased legal risk associated with a legacy foreign currency portfolio, and the accounts for the second quarter therefore include impairment of financial instruments of NOK 653 million.

In the second quarter, Finanstilsynet stated that it was satisfied with the bank's customer identity verification efforts, and as of

24 April this year DNB no longer has to pay an administrative daily fee.

As of 2 May, the merger with Sbanken was completed, and DNB Bank ASA assumed all of Sbanken's assets, rights and obligations.

DNB was the main partner of Oslo Pride 2023, which took place in the second quarter. Several hundred DNB employees took part in the parade, and DNB was the company with most participants.

In the second quarter, it was announced that DNB is to enter into a partnership with the US consulting firm Back Bay Life Science Advisors. The aim of this partnership is to enable DNB to offer a unique combination of financial and strategic advisory services, mainly aimed at companies in the healthcare industry in the Nordic region and North America.

DNB remains one of the best ranked banks in the world with a rating of AA- from S&P and of Aa2 from Moody's.

Every year, Universum ranks Norway's most attractive employers among students at Norwegian universities and university colleges. This year, around 11 000 students expressed their opinion. DNB continues to hold the top ranking among business students in the survey. The bank has also retained its title as the financial industry's best employer in the category of banking and finance. In addition, DNB is ranked number 6 among IT students and number 13 among law students.

In Traction's reputation survey for the second quarter of 2023, DNB scored 61 points. The goal is a result over 65 points.

Following the decisions made in the second quarter by Norges Bank to raise the key policy rate by a total of 0.75 percentage point to 3.75 per cent, DNB decided to increase its interest rates by up to 0.75 percentage point in the same period.

Half-year financial performance

DNB recorded profits of NOK 19 934 million in the first half of 2023, up NOK 4 330 million, or 27.7 per cent, from the previous year. Annualised return on equity was 16.4 per cent, compared with 13.9 per cent in the year-earlier period, and earnings per share were NOK 12.51, up from NOK 9.79 in the first half of 2022.

Net interest income increased by NOK 7 861 million from the corresponding period last year, driven by volume growth, increased interest rates, higher interest on equity, as well as the acquisition of Sbanken. There was an average increase in the healthy loan portfolio of 11.0 per cent, and an 11.7 per cent increase in average deposit volumes from the first half of 2022. The combined spreads widened by 20 basis points, compared with the year-earlier period. Average lending spreads for the customer segments narrowed by 18 basis points, and deposit spreads widened by 70 basis points.

Net other operating income increased by NOK 1 421 million, or 15.0 per cent, from the first half of 2022. Net commissions and fees showed a strong development and increased by NOK 309 million, or 6.0 per cent, compared with the first half of 2022.

Total operating expenses were up NOK 1 894 million from the first half of 2022, due to higher activity and a greater number of fulltime employees, as well as the acquisition of Sbanken.

There were impairment provisions of NOK 792 million in the first half of 2023, compared with net reversals of NOK 798 million in the corresponding year-earlier period.

For the personal customers industry segment there were impairment provisions of NOK 73 million in the first half of 2023, which were mainly in stage 3 and driven by consumer finance.

The corporate industry segments saw impairment provisions of NOK 719 million in the first half of 2023. The impairment provisions can primarily be ascribed to a legacy portfolio in Poland. In addition, the impairment provisions can be explained by specific customers in stage 3, spread across certain industry segments, curtailed by reversals within the oil, gas and offshore segment.

Second quarter income statement – main items

Net interest income

Amounts in NOK million	2Q23	1Q23	2Q22
Lending spreads, customer segments	6 595	7 381	7 302
Deposit spreads, customer segments	4 819	4 052	1 925
Amortisation effects and fees	1 066	1 038	1 097
Operational leasing	739	701	599
Contributions to the deposit guarantee and resolution funds	(266)	(377)	(337)
Other net interest income	2 278	1 805	939
Net interest income	15 232	14 600	11 525

Net interest income increased by NOK 3 707 million, or 32.2 per cent, from the second quarter of 2022. This was mainly driven by profitable growth in both lending and deposits, higher interest rates and subsequent customer repricings. There was an average increase of NOK 137.9 billion, or 7.9 per cent, in the healthy loan portfolio compared with the second quarter of 2022. Adjusted for exchange rate effects, volumes were up NOK 87.0 billion, or 5.0 per cent. During the same period, deposits were up NOK 105.1 billion, or 7.8 per cent. Adjusted for exchange rate effects, the increase was NOK 56.0 billion, or 4.2 per cent. Average lending spreads narrowed by 27 basis points, and deposit spreads widened by 76 basis points compared with the second quarter of 2022. Volumeweighted spreads for the customer segments widened by 18 basis points.

Compared with the first quarter of 2023, net interest income increased by NOK 633 million, or 4.3 per cent, driven by profitable lending growth, increased interest rates and subsequent customer repricings. There was an average increase of NOK 34.4 billion, or 1.9 per cent, in the healthy loan portfolio, and deposits were down NOK 1.6 billion, or 0.1 per cent. Average lending spreads narrowed by 21 basis points, and deposit spreads widened by 20 basis points compared with the previous quarter. Volume-weighted spreads for the customer segments narrowed by 3 basis points.

Net other operating income

Amounts in NOK million	2Q23	1Q23	2Q22
Net commissions and fees	2 819	2 634	2 557
Basis swaps	53	(4)	428
Exchange rate effects on additional Tier 1 capital	209	527	997
Net gains on other financial instruments at fair value	1 016	1 941	199
Net life insurance result	338	154	277
Net profit from associated companies	76	164	165
Other operating income	460	520	239
Net other operating income	4 971	5 936	4 863

Net other operating income increased by NOK 108 million from the second quarter of 2022. Compared with the previous quarter, net other operating income decreased by NOK 965 million. This can mainly be explained by the extraordinarily high income from financial instruments in the first quarter.

Net commissions and fees delivered solid results and reached an all-time high second quarter, reflecting a robust fee platform across business units. There was an increase of NOK 262 million and NOK 185 million from the corresponding quarter last year and the previous quarter, respectively, the primary drivers being corporate finance and asset management fees. In addition, money transfer and banking services contributed greatly compared with the second quarter of 2022.

Operating expenses

Amounts in NOK million	2Q23	1Q23	2Q22
Salaries and other personnel expenses	(4 010)	(3 924)	(3 584)
Restructuring expenses	(1)	(18)	(1)
Other expenses	(2 136)	(2 055)	(1 930)
Depreciation of fixed and intangible assets	(899)	(885)	(858)
Impairment of fixed and intangible assets	(37)	(95)	3
Total operating expenses	(7 083)	(6 976)	(6 370)

Operating expenses were up NOK 713 million from the second quarter of 2022. This was due to an increased number of full-time employees relating to a further strengthening of core competence and conversion of consultants. In addition, there were higher pensions expenses driven by the increased return on the closed defined-benefit pension scheme. The scheme is partly hedged, and a corresponding gain recognised in net gains on financial instruments.

Compared with the first quarter of 2023, operating expenses were up NOK 107 million, mainly due to increased fixed salary related to the annual salary adjustments and currency effects.

The cost/income ratio was 35.1 per cent in the second quarter.

Impairment of financial instruments by industry segment

Amounts in NOK million	2Q23	1Q23	2Q22
Personal customers	(3)	(70)	(94)
Commercial real estate	(66)	45	26
Residential property	(24)	23	(0)
Power and renewables	(196)	11	(3)
Oil, gas and offshore	606	515	313
Other	(1 188)	(445)	(32)
Total impairment of financial instruments	(871)	79	209

Impairment of financial instruments amounted to NOK 871 million in the quarter.

Impairment provisions amounted to NOK 3 million in the personal customers industry segment in the second quarter of 2023. The impairment provisions were in stage 3, curtailed by reversals in stages 1 and 2. The mortgage portfolio remained stable.

Impairment provisions of NOK 215 million in the corporate industry segments were driven by specific customers in certain industry segments in stage 3. The stage 3 impairment provisions were partly offset by reversals within the oil, gas and offshore segment, mainly driven by restructuring on a few specific customers. The impairment provisions in the other industry segment were mainly due to a provision of NOK 653 million related to a legacy portfolio in Poland.

The macro forecasts remained relatively stable and did not have a significant impact on the portfolio.

The portfolio remains robust with 99.2 per cent in stages 1 and 2. Net loans and financial commitments in stage 3 amounted to NOK 22 billion at end June 2023, compared with NOK 27 billion the previous year and NOK 21 billion end March.

Taxes

The DNB Group's tax expense for the second quarter has been estimated at NOK 2 821 million, or 23.0 per cent of the pre-tax operating profit.

Financial performance – segments

Financial governance in DNB is adapted to the different customer segments. Reported figures reflect total sales of products and services to the relevant segments.

Personal customers

Income statement in NOK million	2Q23	1Q23	2Q22
Net interest income	5 203	5 245	3 946
Net other operating income	1 467	1 296	1 341
Total income	6 670	6 541	5 286
Operating expenses	(2 744)	(2 695)	(2 658)
Pre-tax operating profit before impairment	3 926	3 845	2 628
Impairment of financial instruments	(104)	(147)	(65)
Pre-tax operating profit	3 822	3 699	2 563
Tax expense	(955)	(925)	(641)
Profit for the period	2 866	2 774	1 922
Average balance sheet items in NOK billion
Loans to customers	960.1	954.5	926.0
Deposits from customers	586.6	581.5	579.5
Key figures in per cent
Lending spreads1	0.57	0.91	1.09
Deposit spreads1	2.18	1.82	0.91
Return on allocated capital	18.2	18.1	13.6
Cost/income ratio	41.1	41.2	50.3
Ratio of deposits to loans	61.1	60.9	62.6

1) Calculated relative to the 3-month money market rate. See ir.dnb.no for additional information on alternative performance measures (APMs).

The personal customers segment delivered a solid profit and a return on allocated capital of 18.2 per cent in the second quarter, driven by increased interest rates and customer repricing.

Average loans to customers grew by 3.7 per cent from the second quarter of 2022. The healthy home mortgage portfolio increased by 3.2 per cent in the same period. Deposits from customers grew by 1.2 per cent from the corresponding quarter of 2022. The ratio of deposits to loans declined by 1.5 percentage point to 61.1 per cent.

Combined spreads on loans and deposits widened by 16 basis points from the second quarter of 2022 and narrowed by 8 basis points from the previous quarter.

Net other operating income increased by 9.4 per cent from the second quarter of 2022, driven by higher income from payment services, fees from increased assets under management and real estate broking. The increase in income from the previous quarter can mainly be ascribed to payment services, real estate broking activities and that the results were negatively affected by IFRS17 adjustments in the previous quarter.

Operating expenses grew by 1.8 per cent from the previous quarter, mainly due to higher activity within real estate broking.

Impairment of financial instruments amounted to NOK 104 million the second quarter, compared with NOK 147 million in the previous quarter and NOK 65 million in the second quarter of 2022. The impairment provisions were mainly within consumer finance in stage 3.

DNB's market share of credit to households in Norway was 23.9 per cent at end-May 2023. The market share of total household savings was 31.4 per cent at the same point in time, while the market share for savings in mutual funds amounted to 38.1 per cent. DNB Eiendom had an average market share of 16.1 per cent in the second quarter.

The Norwegian Lending Regulations are temporary rules that regulate the lending practices of financial institutions with regard to consumer loans. Initially introduced in 2015 for loans secured by residential property, these regulations have been extended until 2024. As of 1 July 2023, the regulations also cover loans secured by assets other than residential property, such as cars. Financial institutions are now allowed to grant loans with collateral in assets other than property for customers who do not meet certain requirements for debt-servicing capacity and maximum loan-toincome ratio. However, only up to 10 per cent of the loans granted each quarter may be loans of this kind. These changes in rules will result in stricter lending practices within the industry, but will not affect how DNB evaluate mortgage loan applications.

Corporate customers

Income statement in NOK million	2Q23	1Q23	2Q22
Net interest income	9 507	8 884	7 128
Net other operating income	2 725	2 814	2 661
Total income	12 232	11 697	9 789
Operating expenses	(4 067)	(4 031)	(3 625)
Pre-tax operating profit before impairment	8 165	7 666	6 165
Net gains on fixed and intangible assets	1	(0)	1
Impairment of financial instruments	(765)	225	276
Profit from repossessed operations	14	132	86
Pre-tax operating profit	7 414	8 023	6 526
Tax expense	(1 853)	(2 006)	(1 632)
Profit for the period	5 560	6 017	4 895
Average balance sheet items in NOK billion
Loans to customers	955.4	926.7	848.7
Deposits from customers	864.4	867.9	760.2
Key figures in per cent
Lending spreads1	2.24	2.34	2.31
Deposit spreads1	0.77	0.68	0.32
Return on allocated capital	20.8	22.9	18.7
Cost/income ratio	33.3	34.5	37.0
Ratio of deposits to loans	90.5	93.7	89.6

1) Calculated relative to the 3-month money market rate. See ir.dnb.no for additional information on alternative performance measures (APMs).

The corporate customers segment delivered a solid profit and a return on allocated capital of 20.8 per cent in the second quarter, up from 18.7 per cent in the corresponding quarter of last year, and down from 22.9 per cent in the previous quarter. The profit was mainly driven by solid net interest income from both loans and deposits, in addition to net other operating income from a broad range of products.

Net interest income increased by NOK 2 378 million from the corresponding quarter of 2022 and NOK 623 million from the previous quarter. Lending volumes were up 12.6 per cent compared with the corresponding quarter of last year. Adjusted for exchange rate effects, volumes were up 7.0 per cent. Compared with the previous quarter, lending volumes were up 3.1 per cent, or 1.1 per cent adjusted for exchange rate effects. After a first quarter with widening lending spreads, the spreads narrowed by 10 basis points in the second quarter of 2023. Lending spreads were 7 basis points below the level in the corresponding quarter of last year.

Deposit volumes increased by 13.7 per cent, or 8.0 per cent adjusted for exchange rate effects compared with the corresponding quarter of last year. Compared with the previous quarter, deposit volumes decreased by 0.4 per cent, or 2.4 per cent adjusted for exchange rate effects. Deposit spreads widened in the second quarter of the year, affected by the development in NOK money market rates. The ratio of deposits to loans has remained high for some time, but in the longer term it is expected to gradually decrease towards a more normalised level.

Net other operating income amounted to NOK 2 725 million in the second quarter, an increase of NOK 64 million from the corresponding quarter of last year, and down NOK 89 million from the previous quarter. Income from net commissions and fees remained at a high level, as did income from Markets activities, which were up NOK 95 million from the corresponding quarter of last year, and NOK 105 million from the previous quarter. Net gains on financial instruments at fair value amounted to NOK 114 million in the second quarter, compared with a positive result of NOK 349 million in the corresponding quarter of last year, and NOK 326 million in the previous quarter.

Total income for the quarter ended at NOK 12 232 million, an increase of 24.9 per cent compared with the second quarter of 2022, and an increase of 4.6 per cent compared with the previous quarter.

Operating expenses were up 12.2 per cent from the corresponding quarter of last year, driven by increased fixed salary related to the annual salary adjustments and currency effects.

Compared with the previous quarter, operating expenses were up 0.9 per cent.

Impairment of financial instruments amounted to NOK 765 million, of which NOK 653 million was related to a legacy portfolio in Poland. See note G9 Contingencies for further information. Stage 3 showed impairment provisions relating to a few specific customers curtailed by successful restructurings within oil, gas and offshore.

DNB is well positioned for continued profitable growth in the large corporate customers segment and for building further on its market-leading position in the SME segment. DNB continues to explore new opportunities to support the clients in the green transition, through innovative products and sustainable financing.

Other operations

This segment includes the results from risk management in DNB Markets and from traditional pension products with a guaranteed rate of return. In addition, the other operations segment includes Group items not allocated to the customer segments.

Income statement in NOK million	2Q23	1Q23	2Q22
Net interest income	523	471	451
Net other operating income	515	1 651	994
Total income	1 038	2 122	1 445
Operating expenses	(8)	(74)	(220)
Pre-tax operating profit before impairment	1 030	2 048	1 225
Net gains on fixed and intangible assets	14	0	(0)
Impairment of financial instruments	(1)	1	(1)
Profit from repossessed operations	(14)	(132)	(86)
Pre-tax operating profit	1 028	1 918	1 138
Tax expense	(12)	(207)	(79)
Profit from operations held for sale, after taxes	19	(30)	81
Profit for the period	1 035	1 681	1 140
Average balance sheet items in NOK billion
Loans to customers	112.4	108.0	107.1
Deposits from customers	68.5	50.7	28.2

The profit for the other operations segment was NOK 1 035 million in the second quarter.

Risk management income increased significantly from NOK 183 million in the corresponding quarter of last year, to NOK 705 million this quarter. Interest rate volatility remained high in the second quarter with income from interest rates contributing significantly to the strong results.

The results for guaranteed pension products are measured in accordance with the variable fee approach (VFA). During the first half of 2023, the interest rate level increased, and after the release of the contractual service margin (CSM) for the first and second quarter, the CSM as at 30 June 2023 amounted to NOK 11 553 million. The pre-tax profit for guaranteed pension products was NOK 383 million, compared with NOK 211 million in the second quarter of 2022. This can primarily be ascribed to an increase in profits in the corporate customers portfolio.

The solvency margin without transitional rules was 236 per cent as at 30 June 2023, an increase from 189 per cent at the end of the first quarter, mainly due to higher interest rates, increased volatility adjustments and reduced market risk. At the current interest rate level, the transitional rules for technical insurance provisions have no effect, and the solvency margins with and without transitional rules are equal.

DNB's share of the profit in associated companies (most importantly Luminor, Vipps and Fremtind) is included in this segment. There was a decrease in profit from these companies of NOK 87 million compared with the second quarter of 2022, and of NOK 90 million compared with the previous quarter. Furthermore, the second quarter of 2022 included the effects of the merger between Vipps and MobilePay.

Funding, liquidity and balance sheet

The bank's short-term funding programmes have for a long time shown themselves to be highly stable and reliable sources of funding, even in times of market volatility. The beginning of the second quarter was still affected by banking turbulence and widely fluctuating interest rates, which gave rise to pricing challenges. As the quarter progressed, the market stabilised and a number of countries were approaching their interest rate peak at the short end of the yield curve. This simplified the pricing situation and increased demand for somewhat longer investments. With higher interest rates in Europe, the interest in the bank's short-term programmes in euros is growing and this is contributing to increased diversification. However, the short-term USD commercial paper market is still the market that generates the highest volume and best covers the bank's short-term liquidity needs.

The markets for financial issuers of long-term funding were more stable during the second quarter of 2023 than was the case towards the end of the first quarter. Risk sentiment improved somewhat in the second quarter after the banking sector turmoil subsided. This turmoil was mainly related to the liquidity situation following the downfall of Silicon Valley Bank and Credit Suisse. However, the negotiations on an increase in the debt ceiling in the US, and the possible consequences for the financial markets if politicians failed to reach agreement on this, affected the markets up to the end of May/beginning of June, resulting in reduced activity in the market for issuing new debt. Activity picked up in June and credit risk premiums also fell somewhat from the levels seen at the end of the first quarter. However, at the end of the second quarter, they were still above the levels seen at the beginning of the year. DNB issued long-term debt instruments totalling NOK 22.9 billion in the second quarter of 2023, divided between covered bonds in NOK, senior debt in CHF and JPY, and subordinated loan capital in JPY and EUR.

The total nominal value of long-term debt securities issued by the Group was NOK 549 billion at end-June, compared with NOK 571 billion a year earlier. The average remaining term to maturity for long-term debt securities issued was 3.4 years, compared with 3.5 years a year earlier.

The short-term liquidity requirement, the Liquidity Coverage Ratio (LCR), remained stable at above 100 per cent throughout the quarter and stood at 153 per cent at the end of June. The net longterm stable funding ratio, NSFR, was 114 per cent, which was well above the minimum requirement of 100 per cent.

Total combined assets in the DNB Group were NOK 4 111 billion at the end of June, up from NOK 3 790 billion a year earlier. Total assets in the Group's balance sheet were NOK 3 559 billion, up from NOK 3 304 billion a year earlier.

Loans to customers increased by NOK 101 billion, or 5.2 per cent, from the second quarter of 2022. Customer deposits were up NOK 79 billion, or 5.7 per cent, during the same period. The ratio of customer deposits to net loans to customers was 74.9 per cent, down from 75.7 per cent a year earlier.

Capital position

The common equity Tier 1 (CET1) capital ratio was 18.9 per cent at end-June, up from 18.0 per cent a year earlier, and from 18.6 per cent at end-March 2023. Retained profits increased the CET1 ratio by 0.5 percentage point in the quarter, while volume growth and other effects reduced the ratio by 0.2 percentage points.

The counter-cyclical capital buffer requirement was increased by 0.5 per cent to 2.5 per cent with effect from 31 March 2023, and at its meeting on 3 May Norges Bank decided to maintain this level. Norges Bank emphasises that the Norwegian financial system is well equipped to withstand market turbulence. The CET1 requirement for DNB at end-June was 15.6 per cent, while the expectation from the supervisory authorities was 17.1 per cent including Pillar 2 Guidance. The Group thus had a solid 1.8

percentage-point headroom above the current supervisory authorities' capital level expectation.

The risk exposure amount increased by NOK 15 billion from end-March, to NOK 1 095 billion at end-June, mainly due to volume growth and exchange rate effects.

The leverage ratio was 6.6 per cent at end-June, up from 6.5 per cent in the year-earlier period and at end-March.

As of end-June, the Swedish Financial Supervisory Authority (Finansinspektionen) reciprocated Norwegian capital requirements for foreign banks that have lending exposures in Norway, with a new and lower threshold value. Previously, the threshold value for affected banks was NOK 32 billion, but the new threshold value is now NOK 5 billion in risk exposure amount in the Norwegian market. The fact that foreign authorities recognise capital requirements that are unique to Norway is important for competition in the Norwegian banking market.

Development in CET1 capital ratio

Per cent	CET1 capital ratio
1Q23	18.6
Profit (50 per cent after tax)	0.5
Volume growth and other effects	(0.2)
2Q23	18.9

Capital adequacy

The capital adequacy regulations specify a minimum requirement for own funds based on a risk exposure amount that includes credit risk, market risk and operational risk. In addition to meeting the Pillar 1 minimum requirement, DNB must meet the Pillar 2 requirements and the combined buffer requirements under Pillar 1.

Capital and risk

	2Q23	1Q23	2Q22
CET1 capital ratio, per cent	18.9	18.6	18.0
Tier 1 capital ratio, per cent	20.4	20.2	18.9
Capital ratio, per cent	23.0	22.0	20.9
Risk exposure amount, NOK billion	1 095	1 080	1 071
Leverage ratio, per cent	6.6	6.5	6.5

As the DNB Group consists of both a credit institution and a life insurance company, DNB has to satisfy a cross-sectoral calculation test to demonstrate that it complies with sectoral requirements: the capital adequacy requirement, in accordance with the CRR/CRD, and the Solvency II requirement. At end-June, DNB complied with these requirements by a good margin, with excess capital of NOK 31.6 billion.

Macroeconomic developments

Inflation in the OECD countries, measured as growth in the consumer price index, continued to decline in the second quarter. The decline was largely driven by lower energy prices. Core inflation in the US, the eurozone, Sweden and the UK had previously shown signs of abating, but remained fairly unchanged in the second quarter. During the quarter, the central banks in these countries raised their key policy rates further and/or announced future increases. In the US, the S&P 500 rose during the second half of March and continued to do so throughout the second quarter. Market interest rate expectations also rose during the quarter.

The Norwegian krone (NOK) depreciated during the first quarter, both against the euro and against the US dollar. This depreciation continued in the second quarter, but the NOK recovered somewhat during the first part of June.

Activity in the Norwegian economy, measured in terms of mainland GDP, declined somewhat at the beginning of the second quarter, after falling by 0.4 per cent from March to April. The second quarter saw little change in activity levels. It was particularly the level of activity in the service sector, probably pulled down by a fall in private consumption, that brought down growth in mainland GDP. Increased net exports of traditional goods have contributed positively so far this year. Norges Bank indicates that production increased slightly in the second quarter, and that a further rise in production is expected in the third quarter. In May, 1.8 per cent of the workforce were registered as unemployed, adjusted for seasonal variations, and vacant positions were still in ample supply.

Consumer prices were up 6.4 per cent in June, calculated from the same time last year. Inflation peaked at 7.5 per cent in October 2022. However, core inflation rose to a record high 7.0 per cent in June, well above Norges Bank's projections for the month. There was high inflation both for imported consumer goods and for domestic goods and services. In the pay settlement between LO and NHO, the parties agreed, following a strike, on an agreement that means an average wage growth of 5.2 per cent. Last year, the average wage growth was set at 3.7 per cent, but the average wage growth for all groups ended up being 4.4 per cent.

Higher-than-expected inflation, a substantial depreciation of the Norwegian krone and a further rise in interest rates internationally were key elements in Norges Bank's assessment when it raised the key policy rate to 3.75 per cent at its monetary policy meeting in June. At the same time, the central bank announced another increase in August, and the presented interest rate path indicates that the interest rate may be 4.25 per cent towards the end of the year.

Future prospects

The DNB Group's overriding financial target is a return on equity (ROE) above 13 per cent.

The stepwise increase in Norges Bank's key policy rate from 0.50 per cent to 2.75 per cent during 2022, followed by DNB's repricing announcements, will have full annual effect in 2023. Moreover, Norges Bank's stepwise increase of the key policy rate in March, May and June, to 3.75 per cent, will have additional positive effects on interest income in 2023.

In addition to positive effects from increasing NOK interest rates and subsequent repricing, the following factors will contribute to reaching the ROE target: growth in loans and in commissions and fees from capital-light products, combined with cost-control measures. The annual organic loan growth is expected to be between 3 and 4 per cent over time, while maintaining a sound deposit-to-loan ratio. DNB has an ambition to increase net commissions and fees by between 4 and 5 per cent annually, and to achieve a cost/income ratio below 40 per cent.

The tax rate going forward is expected to be 23 per cent. The supervisory expectation for the common equity Tier 1 (CET1) capital ratio for DNB is above 17.1 per cent. In its capital planning, DNB has set the supervisory expectation plus some headroom as its target capital level. The headroom will reflect foreign exchange (FX) and other market-driven fluctuations. The actual ratio achieved in the second quarter was 18.9 per cent.

The Group's dividend policy remains unchanged, with a payout ratio of more than 50 per cent in cash dividends and an ambition to increase the nominal dividend per share each year. In addition to dividend payments, repurchases of own shares will be used as a flexible tool for allocating excess capital to DNB's owners.

Oslo, 11 July 2023 The Board of Directors of DNB Bank ASA

Olaug Svarva (Chair of the Board)

Jens Petter Olsen (Vice Chair of the Board)

Gro Bakstad

Christine Bosse

Petter-Børre Furberg

Julie Galbo

Lillian Hattrem

Stian Tegler Samuelsen

Jannicke Skaanes

Kim Wahl

Kjerstin R. Braathen (Group Chief Executive Officer, CEO)

Accounts for the DNB Group

G – INCOME STATEMENT

	2nd quarter	2nd quarter	Jan.-June	Jan.-June	Full year
Amounts in NOK million	2023	2022	2023	2022	2022
Interest income, amortised cost	36 641	15 311	69 058	27 931	75 241
Other interest income	1 826	817	3 563	1 504	4 751
Interest expenses, amortised cost	(24 231)	(3 807)	(44 137)	(5 699)	(29 080)
Other interest expenses	996	(796)	1 347	(1 766)	(2 619)
Net interest income	15 232	11 525	29 832	21 970	48 294
Commission and fee income	3 765	3 548	7 306	6 983	14 184
Commission and fee expenses	(946)	(990)	(1 853)	(1 839)	(3 856)
Net gains on financial instruments at fair value	1 277	1 624	3 741	3 186	4 147
Net insurance result	338	277	493	469	1 235
Profit from investments accounted for by the equity method	76	165	241	226	746
Net gains on investment properties	(1)	2	(2)	(2)	(7)
Other income	461	237	982	463	1 390
Net other operating income	4 971	4 863	10 907	9 486	17 840
Total income	20 203	16 388	40 739	31 456	66 133
Salaries and other personnel expenses	(4 011)	(3 585)	(7 952)	(6 887)	(14 690)
Other expenses	(2 136)	(1 930)	(4 191)	(3 592)	(7 648)
Depreciation and impairment of fixed and intangible assets	(937)	(856)	(1 916)	(1 686)	(3 465)
Total operating expenses	(7 083)	(6 370)	(14 059)	(12 165)	(25 803)
Pre-tax operating profit before impairment	13 120	10 018	26 679	19 291	40 331
Net gains on fixed and intangible assets	15	0	15	1	(24)
Impairment of financial instruments	(871)	209	(792)	798	272
Pre-tax operating profit	12 263	10 227	25 902	20 090	40 579
Tax expense	(2 821)	(2 351)	(5 958)	(4 603)	(7 411)
Profit from operations held for sale, after taxes	19	81	(11)	117	270
Profit for the period	9 462	7 957	19 934	15 604	33 438
Portion attributable to shareholders	9 149	7 783	19 341	15 174	32 587
Portion attributable to non-controlling interests	11	36	11	66	82
Portion attributable to additional Tier 1 capital holders	302	138	581	364	769
Profit for the period	9 462	7 957	19 934	15 604	33 438
Earnings/diluted earnings per share (NOK)	5.93	5.02	12.51	9.79	21.02
Earnings per share excluding operations held for sale (NOK)	5.91	4.97	12.52	9.71	20.85

G – COMPREHENSIVE INCOME STATEMENT

	2nd quarter	2nd quarter	Jan.-June	Jan.-June	Full year
Amounts in NOK million	2023	2022	2023	2022	2022
Profit for the period	9 462	7 957	19 934	15 604	33 438
Actuarial gains and losses		118		532	414
Property revaluation	(1)	26	(1)	26	5
Financial liabilities designated at FVTPL, changes in credit risk	21	67	58	156	140
Tax	(5)	(40)	(15)	(165)	(131)
Items that will not be reclassified to the income statement	15	172	43	549	428
Currency translation of foreign operations	1 956	5 707	8 074	3 660	3 275
Currency translation reserve reclassified to the income statement					(5 213)
Hedging of net investment	(1 529)	(4 890)	(6 585)	(3 228)	(2 878)
Hedging reserve reclassified to the income statement					5 137
Financial assets at fair value through OCI	(124)	(321)	(109)	(694)	(704)
Tax	416	1 303	1 673	979	900
Tax reclassified to the income statement					(1 284)
Items that may subsequently be reclassified to the income statement	719	1 799	3 053	717	(767)
Other comprehensive income for the period	734	1 972	3 096	1 267	(340)
Comprehensive income for the period	10 196	9 929	23 030	16 871	33 098

G – BALANCE SHEET

		30 June	31 Dec.	30 June
Amounts in NOK million	Note	2023	2022	2022
Assets
Cash and deposits with central banks		568 971	309 988	382 631
Due from credit institutions		58 820	20 558	47 012
Loans to customers	G4, G5, G6, G7	2 025 481	1 961 464	1 924 520
Commercial paper and bonds	G7	426 375	485 440	425 826
Shareholdings	G7	30 903	33 350	34 614
Assets, customers bearing the risk	G7	152 437	138 259	130 260
Financial derivatives	G7	200 344	185 687	235 950
Investment properties		12 578	14 651	18 283
Investments accounted for by the equity method		19 149	19 246	18 799
Intangible assets		10 431	10 273	10 266
Deferred tax assets		566	510	2 314
Fixed assets		21 396	21 254	21 690
Assets held for sale		1 787	1 767	2 072
Other assets		29 762	30 956	50 128
Total assets		3 559 000	3 233 405	3 304 364
Liabilities and equity
Due to credit institutions		310 928	177 298	226 847
Deposits from customers	G7	1 472 869	1 396 630	1 393 381
Financial derivatives	G7	211 647	190 142	211 668
Debt securities issued	G7, G8	795 404	737 886	778 553
Insurance liabilities, customers bearing the risk		152 437	138 259	130 260
Insurance liabilities		194 344	200 601	202 431
Payable taxes		6 657	4 057	4 643
Deferred taxes		2 140	2 055	38
Other liabilities		32 693	33 972	52 006
Liabilities held for sale		381	541	476
Provisions		1 114	977	1 007
Pension commitments		4 969	4 657	4 538
Senior non-preferred bonds	G8	79 388	59 702	40 617
Subordinated loan capital	G7, G8	39 965	36 788	28 345
Total liabilities		3 304 935	2 983 565	3 074 812
Additional Tier 1 capital		18 704	16 089	11 438
Non-controlling interests		232	227	399
Share capital		19 282	19 378	19 380
Share premium		18 733	18 733	18 733
Other equity		197 115	195 413	179 602
Total equity		254 065	249 840	229 552
Total liabilities and equity		3 559 000	3 233 405	3 304 364

G – STATEMENT OF CHANGES IN EQUITY

	Non-			Additional	Net currency	Liability
	controlling	Share	Share	Tier 1	translation	credit	Other	Total
Amounts in NOK million	interests	capital1	premium	capital	reserve	reserve	equity1	equity1
Balance sheet as at 31 Dec. 2021	266	19 379	18 733	16 974	5 444	45	183 071	243 912
IFRS17 implementation							(9 836)	(9 836)
Balance sheet as at 1 Jan. 2022	266	19 379	18 733	16 974	5 444	45	173 235	234 076
Profit for the period	66			364			15 174	15 604
Actuarial gains and losses							532	532
Property revaluation							26	26
Financial assets at fair value through OCI							(694)	(694)
Financial liabilities designated at FVTPL, changes in credit risk						156		156
Currency translation of foreign operations	18				3 642			3 660
Hedging of net investment					(3 228)			(3 228)
Tax on other comprehensive income					807	(40)	47	814
Comprehensive income for the period	84			364	1 221	117	15 085	16 871
Interest payments AT1 capital				(500)				(500)
AT1 capital redeemed				(6 548)				(6 548)
Currency movements on interest payment and redemption AT1				445			(428)	17
Net purchase of treasury shares		0					0	0
Non-controlling interests	49							49
Aquisition of Sbanken				702				702
Dividends paid for 2021 (NOK 9.75 per share)							(15 116)	(15 116)
Balance sheet as at 30 June 2022	399	19 380	18 733	11 438	6 665	161	172 776	229 552
Balance sheet as at 31 Dec. 2022	227	19 378	18 733	16 089	5 200	150	190 063	249 840
Profit for the period	11			581			19 341	19 934
Property revaluation							(1)	(1)
Financial assets at fair value through OCI							(109)	(109)
Financial liabilities designated at FVTPL, changes in credit risk						58		58
Currency translation of foreign operations					8 074			8 074
Hedging of net investment					(6 585)			(6 585)
Tax on other comprehensive income					1 646	(15)	27	1 659
Comprehensive income for the period	11			581	3 135	44	19 259	23 030
Interest payments AT1 capital				(276)				(276)
Currency movements on AT1 capital				10				10
AT1 capital issued2				2 300				2 300
Net purchase of treasury shares1		0					8	9
Share buyback program		(97)					(1 437)	(1 534)
Non-controlling interests	(7)							(7)
Dividends paid for 2022
(NOK 12.50 per share)							(19 316)	(19 316)
Other equity transactions							10	10
Balance sheet as at 30 June 2023	232	19 282	18 733	18 704	8 335	193	188 586	254 065
1) Of which treasury shares held by DNB Markets for trading purposes:
Balance sheet as at 31 December 2022		(1)					(19)	(20)
Net purchase of treasury shares		0					8	9
Reversal of fair value adjustments through the income statement							(6)	(6)
Balance sheet as at 30 June 2023		(1)					(16)	(17)

2) DNB Bank ASA issued an additional Tier 1 capital instrument in the first quarter of 2023. It was issued in January, has a nominal value of NOK 2 300 million and is perpetual with a floating interest of 3 months NIBOR plus 3.5 per cent p.a.

G – CASH FLOW STATEMENT

	Jan.-June	Jan.-June	Full year
Amounts in NOK million	2023	2022	2022
Operating activities
Net payments on loans to customers	(28 794)	(71 761)	(108 632)
Net receipts on deposits from customers	34 111	52 233	57 382
Receipts on issued bonds and commercial paper	886 853	899 621	1 773 567
Payments on redeemed bonds and commercial paper	(878 440)	(850 487)	(1 732 556)
Net receipts on loans to credit institutions	112 244	81 429	53 607
Interest received	71 491	27 506	74 480
Interest paid	(32 677)	(5 999)	(29 465)
Net receipts on commissions and fees	6 123	5 721	10 672
Net receipts/(payments) on the sale of financial assets for investment or trading	102 153	11 786	(55 399)
Payments to operations	(14 560)	(12 260)	(22 701)
Taxes paid	(858)	(2 351)	(3 645)
Receipts on premiums	9 305	8 513	17 357
Net receipts/(payments) on premium reserve transfers	(1 199)	(164)	666
Payments of insurance settlements	(7 830)	(7 290)	(14 528)
Other net payments	(1 990)	(7 829)	(11 854)
Net cash flow from operating activities	255 934	128 667	8 952
Investing activities
Net payments on the acquisition or disposal of fixed assets	(2 247)	(2 163)	(3 513)
Receipts on investment properties	1 087	49	3 990
Payments on and for investment properties	(19)	(37)	(37)
Investment in long-term shares	(3)	(9 135)	(9 135)
Disposals of long-term shares	115	54	54
Dividends received on long-term investments in shares	14	821	993
Net cash flow from investing activities	(1 052)	(10 411)	(7 649)
Financing activities
Receipts on issued senior non-preferred bonds	14 306	727	21 584
Payments on redeemed senior non-preferred bonds	(130)
Receipts on issued subordinated loan capital	11 788	4 665	13 227
Redemptions of subordinated loan capital	(10 026)	(10 676)	(10 767)
Receipts on issued AT1 capital	2 300		4 800
Redemptions of AT1 capital		(6 548)	(6 548)
Interest payments on AT1 capital	(276)	(500)	(1 056)
Lease payments	(184)	(285)	(629)
Net sale/(purchase) of own shares	(1 526)	0	(15)
Dividend payments	(19 316)	(15 116)	(15 116)
Net cash flow from financing activities	(3 063)	(27 733)	5 481
Effects of exchange rate changes on cash and cash equivalents	9 000	(583)	2 603
Net cash flow	260 818	89 940	9 387
Cash as at 1 January	317 123	307 735	307 735
Net receipts of cash	260 818	89 940	9 387
Cash at end of period*	577 941	397 675	317 123
*) Of which: Cash and deposits with central banks	568 971	382 631	309 988
Deposits with credit institutions with no agreed period of notice1	8 970	15 045	7 135

1) Recorded under "Due from credit institutions" in the balance sheet.

NOTE G1 BASIS FOR PREPARATION

The quarterly financial statements for the Group have been prepared in accordance with IAS 34 Interim Financial Reporting, as issued by the International Accounting Standards Board and as adopted by the European Union. When preparing the consolidated financial statements, the management makes estimates, judgements and assumptions that affect the application of the accounting principles, as well as income, expenses, and the carrying amount of assets and liabilities. Estimates and assumptions are subject to continual evaluation and are based on historical experience and other factors, including expectations of future events that are believed to be probable on the balance sheet date. A description of the accounting policies, significant estimates, and areas where judgement is applied by the Group, can be found in Note G1 Accounting principles in the annual report for 2022. In the interim report, the accounting policies, significant estimates, and areas where judgement is applied by the Group are in conformity with those described in the annual report except for the accounting policy for insurance contracts, which is described below.

IFRS 17

IFRS 17 is the new standard for Insurance Contracts that replaces IFRS 4 Insurance Contracts. The DNB Group has applied IFRS 17 from 1 January 2023. The implementation of the new standard involves significant changes to the Group's accounting for insurance and reinsurance contracts. At the same time the DNB Group has changed its classification of some financial instruments under IFRS 9. IFRS 17 requires comparative figures for 2022.

The new IFRS 17 rules entail a new measurement method for the Group's life insurance liabilities, whereby estimated future cashflows in the insurance contracts are discounted using a marked-based interest rate. This affects the transition effect as at 1 January 2022, recognised liabilities and future profit and loss. There are also changes from the previous presentation in the income statement, as operating expenses relating to insurance contracts under the new rules are included in net operating income, whereas they were previously presented under operating expenses.

The full implementation effect of IFRS 17, including the effect of the changed measurement method for some financial instruments under IFRS 9, is NOK 9 836 million after tax, and the Group's equity at the transition date, 1 January 2022, has been reduced accordingly. The transition to IFRS 17 does not affect the DNB Group's common equity Tier 1 (CET1) capital, and thus does not affect the Group's capital adequacy, leverage ratio, minimum distributable amount (MDA) or dividend capacity.

For additional information on the adoption of IFRS 17, see note G52 Transition to IFRS 17 in the annual report for 2022.

Cash flow statement

As of 1 January 2023, the DNB Group presents the line items 'Receipts on issued bonds and commercial paper', 'Payments on redeemed bonds and commercial paper', 'Interest paid' and 'Interest received' as cash flow from operating activities in the cash flow statement. The changes are reflected in the comparative figures.

NOTE G2 SEGMENTS

According to DNB's management model, the operating segments are independent profit centres that are fully responsible for their profit after tax and for achieving the targeted returns on allocated capital. DNB has the following operating segments: Personal customers, Corporate customers, Risk management and Traditional pension products (with guaranteed rate of return). The Risk management and Traditional pension products segments are included in Other operations. DNB's share of profit in major associated companies (most importantly Luminor, Vipps and Fremtind) is included in Other operations.

Income statement, second quarter

	Personal Corporate			Other
	customers		customers		operations		Eliminations		DNB Group
	2nd quarter			2nd quarter		2nd quarter	2nd quarter		2nd quarter
Amounts in NOK million	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
Net interest income	5 203	3 946	9 507	7 128	523	451			15 232	11 525
Net other operating income	1 467	1 341	2 725	2 661	515	994	264	(133)	4 971	4 863
Total income	6 670	5 286	12 232	9 789	1 038	1 445	264	(133)	20 203	16 388
Operating expenses	(2 744)	(2 658)	(4 067)	(3 625)	(8)	(220)	(264)	133	(7 083)	(6 370)
Pre-tax operating profit before impairment	3 926	2 628	8 165	6 165	1 030	1 225			13 120	10 018
Net gains on fixed and intangible assets	0		1	1	14	(0)			15	0
Impairment of financial instruments	(104)	(65)	(765)	276	(1)	(1)			(871)	209
Profit from repossessed operations			14	86	(14)	(86)
Pre-tax operating profit	3 822	2 563	7 414	6 526	1 028	1 138			12 263	10 227
Tax expense	(955)	(641)	(1 853)	(1 632)	(12)	(79)			(2 821)	(2 351)
Profit from operations held for sale, after taxes					19	81			19	81
Profit for the period	2 866	1 922	5 560	4 895	1 035	1 140			9 462	7 957

Income statement, January-June

	Personal Corporate			Other
	customers		customers		operations		Eliminations		DNB Group
	Jan.-June			Jan.-June		Jan.-June		Jan.-June		Jan.-June
Amounts in NOK million	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
Net interest income	10 447	7 177	18 390	13 629	994	1 164			29 832	21 970
Net other operating income	2 763	2 582	5 539	5 551	2 166	1 745	439	(391)	10 907	9 486
Total income	13 211	9 759	23 929	19 180	3 160	2 908	439	(391)	40 739	31 456
Operating expenses	(5 440)	(4 928)	(8 099)	(7 117)	(82)	(511)	(439)	391	(14 059)	(12 165)
Pre-tax operating profit before impairment	7 771	4 831	15 831	12 063	3 078	2 397			26 679	19 291
Net gains on fixed and intangible assets	0		1	1	14	(0)			15	1
Impairment of financial instruments	(251)	(53)	(540)	852	(1)	(1)			(792)	798
Profit from repossessed operations			145	134	(145)	(134)
Pre-tax operating profit	7 520	4 778	15 437	13 051	2 946	2 262			25 902	20 090
Tax expense	(1 880)	(1 194)	(3 859)	(3 263)	(218)	(146)			(5 958)	(4 603)
Profit from operations held for sale, after taxes					(11)	117			(11)	117
Profit for the period	5 640	3 583	11 577	9 788	2 717	2 233			19 934	15 604

NOTE G3 CAPITAL ADEQUACY

Capital adequacy is calculated and reported in accordance with the EU capital requirements regulations for banks and investment firms (CRR/CRD). The regulatory consolidation deviates from consolidation in the accounts and comprises the parent company, subsidiaries and associated companies, excluding insurance companies.

Own funds

	30 June	31 Dec.	30 June
Amounts in NOK million	2023	2022	2022
Total equity	254 065	249 840	229 552
Effect from regulatory consolidation	2 295	2 244	3 088
Adjustment to retained earnings for foreseeable dividends	(8 863)		(7 180)
Additional Tier 1 capital instruments included in total equity	(18 274)	(15 974)	(11 174)
Net accrued interest on additional Tier 1 capital instruments	(430)	(114)	(261)
Common equity Tier 1 capital instruments	228 793	235 994	214 023
Regulatory adjustments Pension funds above pension commitments	(41)		(3)
Goodwill	(9 473)	(9 555)	(8 864)
Deferred tax assets that rely on future profitability, excluding temporary differences	(409)	(415)	(440)
Other intangible assets	(2 527)	(2 165)	(1 951)
Dividends payable and group contributions		(19 316)
Share buy-back program		(1 437)
Deduction for investments in insurance companies1	(4 543)	(4 677)	(5 832)
IRB provisions shortfall	(3 023)	(2 694)	(2 832)
Additional value adjustments (AVA)	(1 264)	(1 194)	(1 210)
Insufficient coverage for non-performing exposures	(254)	(90)	(29)
(Gains) or losses on liabilities at fair value resulting from own credit risk	(193)	(150)	(161)
(Gains) or losses on derivative liabilities resulting from own credit risk (DVA)	(233)	(214)	(249)
Common equity Tier 1 capital	206 833	194 088	192 614
Additional Tier 1 capital instruments	18 274	15 974	11 174
Deduction of holdings of Tier 1 instruments in insurance companies2	(1 500)	(1 500)	(1 500)
Non-eligible Tier 1 capital, DNB Group3		(117)	(134)
Additional Tier 1 capital instruments	16 774	14 357	9 540
Tier 1 capital	223 607	208 445	202 155
Perpetual subordinated loan capital			5 602
Term subordinated loan capital	33 407	28 729	22 028
Deduction of holdings of Tier 2 instruments in insurance companies2	(5 588)	(5 588)	(5 588)
Non-eligible Tier 2 capital, DNB Group3		(123)	(150)
Additional Tier 2 capital instruments	27 819	23 018	21 892
Own funds	251 427	231 463	224 047
Total risk exposure amount	1 095 070	1 061 993	1 070 703
Minimum capital requirement	87 606	84 959	85 656
Capital ratios:
Common equity Tier 1 capital ratio	18.9	18.3	18.0
Tier 1 capital ratio	20.4	19.6	18.9
Total capital ratio	23.0	21.8	20.9
Own funds and capital ratios excluding interim profit
Common equity Tier 1 capital	196 957		184 598
Tier 1 capital	213 732		194 138
Own funds	241 551		216 031
Common equity Tier 1 capital ratio	18.0		17.2
Tier 1 capital ratio	19.5		18.1
Total capital ratio	22.1		20.2

1) Deductions are made for significant investments in financial sector entities when the total value of the investments exceeds 10 per cent of common equity Tier 1 capital. The amounts that are not deducted are given a risk weight of 250 per cent.

2) Investments in Tier 1 and Tier 2 instruments issued by the Group's insurance companies are deducted from the Group's Tier 1 and Tier 2 capital.

3) Tier 1 and Tier 2 capital in subsidiaries not included in consolidated own funds in accordance with Articles 85-88 of the CRR.

NOTE G3 CAPITAL ADEQUACY (continued)

The majority of the credit portfolios are reported according to the IRB approach. Exposures to central and regional governments, institutions, equity positions and other assets are, however, reported according to the standardised approach.

Specification of exposures

				Risk
		Exposure	Average	exposure
	Original exposure	at default (EAD)	risk weight in per cent	amount (REA)	Capital requirement	Capital requirement
	30 June	30 June	30 June	30 June	30 June	31 Dec.
Amounts in NOK million	2023	2023	2023	2023	2023	2022
IRB approach
Corporate exposures	1 213 485	984 021	43.1	424 134	33 931	32 642
of which specialised lending (SL)	8 682	8 135	40.9	3 331	266	334
of which small and medium-sized enterprises (SME)	232 412	210 028	43.0	90 316	7 225	6 884
of which other corporates	972 391	765 858	43.2	330 487	26 439	25 425
Retail exposures	1 015 625	1 001 148	22.3	223 475	17 878	17 792
of which secured by mortgages on immovable property	931 454	931 454	21.7	201 694	16 136	16 008
of which other retail	84 171	69 694	31.3	21 781	1 742	1 785
Total credit risk, IRB approach	2 229 109	1 985 169	32.6	647 609	51 809	50 435
Standardised approach
Central government and central banks	597 085	596 205	0.0	88	7	0
Regional government or local authorities	45 194	39 096	1.5	601	48	61
Public sector entities	73 998	72 243	0.1	63	5	4
Multilateral development banks	50 777	50 777
International organisations	640	640
Institutions	89 139	57 622	29.7	17 129	1 370	1 530
Corporate	197 341	170 594	70.2	119 691	9 575	9 326
Retail	174 437	74 932	74.7	55 940	4 475	3 947
Secured by mortgages on immovable property	154 620	136 379	39.5	53 817	4 305	4 117
Exposures in default	3 498	2 573	136.5	3 511	281	211
Items associated with particular high risk	919	886	150.0	1 330	106	108
Covered bonds	46 887	46 887	10.0	4 689	375	351
Collective investment undertakings	1 120	1 120	16.9	189	15	19
Equity positions	25 332	25 330	219.3	55 562	4 445	4 368
Other assets	29 980	29 980	56.2	16 843	1 347	926
Total credit risk, standardised approach	1 490 966	1 305 265	25.2	329 453	26 356	24 969
Total credit risk	3 720 076	3 290 435	29.7	977 062	78 165	75 403
Market risk
Position and general risk, debt instruments				8 165	653	687
Position and general risk, equity instruments				632	51	41
Currency risk				3	0	12
Commodity risk				9	1	0
Total market risk				8 809	705	740
Credit value adjustment risk (CVA)				3 781	303	383
Operational risk				105 418	8 433	8 433
Total risk exposure amount				1 095 070	87 606	84 959

NOTE G4 DEVELOPMENT IN GROSS CARRYING AMOUNT AND MAXIMUM EXPOSURE

Loans to customers at amortised cost
		2023			2022
Amounts in NOK million	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total
Gross carrying amount as at 1 Jan.	1 750 560	142 273	27 499	1 920 333	1 566 150	112 099	30 453	1 708 702
Transfer to stage 1	46 625	(43 545)	(3 080)		47 923	(45 844)	(2 080)
Transfer to stage 2	(60 418)	62 521	(2 103)		(72 572)	73 656	(1 084)
Transfer to stage 3	(1 348)	(4 538)	5 887		(851)	(1 714)	2 565
Originated and purchased	237 441	9 292	1 773	248 506	258 937	4 191	801	263 929
Derecognition	(172 466)	(23 696)	(4 350)	(200 513)	(157 069)	(19 410)	(2 137)	(178 616)
Acquisition of Sbanken					77 255	3 309	826	81 390
Exchange rate movements	16 746	1 512	282	18 540	4 685	891	73	5 650
Other1	(362)	(342)	(15)	(720)
Gross carrying amount as at 30 June	1 816 778	143 476	25 892	1 986 147	1 724 459	127 178	29 419	1 881 056

Financial commitments

		2023			2022
Amounts in NOK million	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total
Maximum exposure as at 1 Jan.	686 122	36 127	3 194	725 444	702 470	30 054	5 330	737 854
Transfer to stage 1	10 682	(10 096)	(586)		14 877	(14 157)	(720)
Transfer to stage 2	(13 735)	13 836	(100)		(17 444)	17 489	(45)
Transfer to stage 3	(457)	(125)	582		(339)	(149)	488
Originated and purchased	209 164	334		209 498	216 794	1 012	198	218 003
Derecognition	(158 183)	(1 803)	(878)	(160 865)	(225 152)	(4 372)	(442)	(229 967)
Acquisition of Sbanken					28 435			28 435
Exchange rate movements	14 042	469	9	14 520	7 453	413		7 867
Maximum exposure as at 30 June	747 634	38 742	2 221	788 597	727 094	30 291	4 808	762 193

1) The reduction of the gross carrying value is related to a legacy foreign currency portfolio in Poland. See note G9 Contingencies.

NOTE G5 DEVELOPMENT IN ACCUMULATED IMPAIRMENT OF FINANCIAL INSTRUMENTS

Loans to customers at amortised cost

		2023			2022
Amounts in NOK million	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total
Accumulated impairment as at 1 Jan.	(637)	(793)	(6 544)	(7 974)	(533)	(749)	(8 700)	(9 982)
Transfer to stage 1	(231)	141	90		(105)	105
Transfer to stage 2	38	(52)	14		45	(52)	8
Transfer to stage 3	1	27	(29)			13	(13)
Originated and purchased	(137)	(26)	(3)	(166)	(128)	(36)		(164)
Increased expected credit loss	(194)	(366)	(2 580)	(3 141)	(157)	(360)	(1 683)	(2 199)
Decreased (reversed) expected credit loss	441	282	2 122	2 846	311	257	1 535	2 103
Write-offs			489	489			1 827	1 827
Derecognition	3	92	181	276	21	106	4	130
Acquisition of Sbanken					(9)	(44)	(275)	(328)
Exchange rate movements	(9)	(11)	(69)	(89)	(4)	(19)	(46)	(69)
Other
Accumulated impairment as at 30 June	(724)	(706)	(6 329)	(7 759)	(560)	(780)	(7 343)	(8 683)

Financial commitments

		2023			2022
Amounts in NOK million	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total
Accumulated impairment as at 1 Jan.	(194)	(195)	(204)	(593)	(211)	(330)	(669)	(1 209)
Transfer to stage 1	(32)	31	1		(82)	82
Transfer to stage 2	10	(12)	2		15	(15)
Transfer to stage 3		5	(6)
Originated and purchased	(115)	(83)		(198)	(76)	(4)		(79)
Increased expected credit loss	(27)	(114)	(67)	(207)	(17)	(75)	(15)	(106)
Decreased (reversed) expected credit loss	155	42	68	266	205	53	479	737
Derecognition		29	1	30	7	30	9	46
Acquisition of Sbanken					(2)	(2)	(1)	(5)
Exchange rate movements	(3)	(4)		(7)	(2)	(9)		(11)
Other
Accumulated impairment as at 30 June	(204)	(301)	(205)	(710)	(162)	(269)	(197)	(628)

For explanatory comments about the impairment of financial instruments, see the directors' report.

NOTE G6 LOANS AND FINANCIAL COMMITMENTS TO CUSTOMERS BY INDUSTRY SEGMENT

Loans to customers as at 30 June 2023

		Accumulated impairment
	Gross
	carrying				Loans at
Amounts in NOK million	amount	Stage 1	Stage 2	Stage 3	fair value	Total
Bank, insurance and portfolio management	101 215	(23)	(18)	(39)		101 136
Commercial real estate	238 852	(139)	(53)	(400)	76	238 336
Shipping	39 393	(30)	(1)	(211)		39 151
Oil, gas and offshore	37 619	(60)	(4)	(1 583)		35 972
Power and renewables	58 711	(35)	(12)	(681)		57 984
Healthcare	31 194	(7)	(25)	(27)		31 136
Public sector	2 148	(0)		(0)		2 148
Fishing, fish farming and farming	81 594	(14)	(20)	(501)	81	81 140
Retail industries	57 869	(48)	(54)	(371)	2	57 397
Manufacturing	45 671	(30)	(36)	(103)		45 502
Technology, media and telecom	31 112	(12)	(14)	(32)	2	31 056
Services	82 345	(80)	(93)	(589)	19	81 602
Residential property	128 396	(63)	(26)	(213)	239	128 334
Personal customers	972 266	(105)	(222)	(525)	46 663	1 018 077
Other corporate customers	77 762	(79)	(128)	(1 055)	12	76 513
Total1	1 986 147	(724)	(706)	(6 329)	47 094	2 025 483

1) Of which NOK 63 544 million in repo trading volumes.

Loans to customers as at 30 June 2022

		Accumulated impairment
	Gross
	carrying				Loans at
Amounts in NOK million	amount	Stage 1	Stage 2	Stage 3	fair value	Total
Bank, insurance and portfolio management	88 173	(17)	(16)	(62)		88 078
Commercial real estate	228 986	(97)	(28)	(199)	87	228 748
Shipping	42 457	(44)	(22)	(188)		42 203
Oil, gas and offshore	49 576	(57)	(173)	(3 300)		46 046
Power and renewables	48 259	(13)	(8)	(566)		47 671
Healthcare	28 834	(6)	(0)			28 828
Public sector	3 489	(1)	(0)	(0)		3 488
Fishing, fish farming and farming	62 267	(15)	(27)	(132)	89	62 183
Retail industries	44 927	(33)	(30)	(198)	2	44 667
Manufacturing	42 100	(22)	(23)	(76)		41 980
Technology, media and telecom	24 788	(5)	(3)	(20)	(0)	24 760
Services	79 540	(51)	(54)	(376)	13	79 072
Residential property	116 743	(43)	(16)	(143)	178	116 719
Personal customers	946 135	(112)	(220)	(628)	51 760	996 934
Other corporate customers	74 781	(44)	(159)	(1 453)	9	73 134
Total1	1 881 056	(560)	(780)	(7 343)	52 137	1 924 509

1) Of which NOK 49 707 million in repo trading volumes.

NOTE G6 LOANS AND FINANCIAL COMMITMENTS TO CUSTOMERS BY INDUSTRY SEGMENT (continued)

Financial commitments as at 30 June 2023

		Accumulated impairment
	Maximum
Amounts in NOK million	exposure	Stage 1	Stage 2	Stage 3	Total
Bank, insurance and portfolio management	36 466	(11)	(2)	(0)	36 454
Commercial real estate	27 206	(20)	(3)	(1)	27 182
Shipping	15 537	(8)	(0)		15 529
Oil, gas and offshore	71 929	(9)	(11)	(1)	71 909
Power and renewables	66 481	(19)	(31)	(1)	66 431
Healthcare	25 121	(5)	(19)	(3)	25 094
Public sector	12 289	(0)			12 289
Fishing, fish farming and farming	25 929	(4)	(1)	(1)	25 924
Retail industries	33 300	(20)	(29)	(20)	33 231
Manufacturing	54 158	(30)	(16)	(2)	54 110
Technology, media and telecom	24 853	(7)	(3)	(1)	24 842
Services	27 834	(27)	(74)	(11)	27 722
Residential property	33 193	(17)	(7)	(7)	33 163
Personal customers	301 602	(10)	(24)	(4)	301 564
Other corporate customers	32 699	(18)	(83)	(155)	32 444
Total	788 597	(204)	(301)	(205)	787 887

Financial commitments as at 30 June 2022

		Accumulated impairment
Amounts in NOK million	Maximum exposure	Stage 1	Stage 2	Stage 3	Total
Bank, insurance and portfolio management	34 406	(6)	(1)	(0)	34 399
Commercial real estate	31 938	(12)	(2)	(1)	31 922
Shipping	9 631	(7)	(2)		9 622
Oil, gas and offshore	59 695	(32)	(80)	(95)	59 488
Power and renewables	46 545	(9)	(4)		46 532
Healthcare	26 319	(4)	(0)		26 315
Public sector	10 095	(0)	(0)		10 095
Fishing, fish farming and farming	21 571	(4)	(4)	(0)	21 563
Retail industries	32 219	(16)	(6)	(4)	32 193
Manufacturing	47 980	(16)	(11)	(0)	47 952
Technology, media and telecom	22 120	(4)	(1)		22 114
Services	26 308	(16)	(43)	(9)	26 241
Residential property	39 613	(14)	(3)	(7)	39 589
Personal customers	316 478	(9)	(20)	(2)	316 447
Other corporate customers	37 274	(14)	(91)	(79)	37 090
Total	762 193	(162)	(269)	(197)	761 565

NOTE G7 FINANCIAL INSTRUMENTS AT FAIR VALUE

Amounts in NOK million	Level 1	Level 2	Level 3	Total
Assets as at 30 June 2023
Loans to customers			47 094	47 094
Commercial paper and bonds	21 047	386 649	804	408 499
Shareholdings	6 251	9 011	15 641	30 903
Assets, customers bearing the risk		152 437		152 437
Financial derivatives	1 192	195 344	3 808	200 344
Liabilities as at 30 June 2023
Deposits from customers		37 351		37 351
Debt securities issued		5 774		5 774
Senior non-preferred bonds		1 655		1 655
Subordinated loan capital		1 007		1 007
Financial derivatives	2 892	205 453	3 302	211 647
Other financial liabilities1	3 705			3 705
Assets as at 30 June 2022
Loans to customers			52 134	52 134
Commercial paper and bonds	44 578	362 299	982	407 859
Shareholdings	4 819	14 765	15 030	34 614
Assets, customers bearing the risk		130 260		130 260
Financial derivatives	3 185	229 176	3 588	235 950
Liabilities as at 30 June 2022
Deposits from customers		12 049		12 049
Debt securities issued		7 418		7 418
Senior non-preferred bonds		959		959
Subordinated loan capital		408		408
Financial derivatives	5 409	202 987	3 271	211 668
Other financial liabilities1	3 991			3 991

1) Short positions, trading activities.

For a further description of the instruments and valuation techniques, see the annual report for 2022.

Financial instruments at fair value, level 3

	Financial assets
		Commercial
	Loans to	paper and	Share-	Financial	Financial
Amounts in NOK million	customers	bonds	holdings	derivatives	derivatives
Carrying amount as at 1 January 2022	46 193	351	12 802	1 858	1 605
Net gains recognised in the income statement	(2 187)	(65)	644	768	779
Acquisition of Sbanken	8 033		144
Additions/purchases	6 027	548	1 974	1 307	1 233
Sales		(77)	(531)
Settled	(5 790)			(356)	(352)
Transferred from level 1 or level 2		239
Transferred to level 1 or level 2		(186)	(2)
Other	(143)	171		12	6
Carrying amount as at 30 June 2022	52 134	982	15 030	3 588	3 271
Carrying amount as at 31 December 2022	49 105	847	16 744	3 431	3 129
Net gains recognised in the income statement	(886)	4	1 540	677	516
Additions/purchases	3 307	622	738	638	586
Sales		(685)	(2 181)
Settled	(4 432)			(939)	(930)
Transferred from level 1 or level 2		149
Transferred to level 1 or level 2		(139)	(1 097)
Other		5	(103)	1
Carrying amount as at 30 June 2023	47 094	804	15 641	3 808	3 302

NOTE G7 FINANCIAL INSTRUMENTS AT FAIR VALUE (continued)

Sensitivity analysis, level 3

An increase in the discount rate on fixed-rate loans by 10 basis points will decrease the fair value by NOK 118 million. The effects on other Level 3 financial instruments are insignificant.

NOTE G8 DEBT SECURITIES ISSUED, SENIOR NON-PREFERRED BONDS AND SUBORDINATED LOAN CAPITAL

As an element in liquidity management, the DNB Group issues and redeems own securities issued by DNB Bank ASA, DNB Boligkreditt AS (bond debt only) and Sbanken Boligkreditt AS (bond debt only).

Debt securities issued 2023

	Balance sheet		Matured/	Exchange rate	Other	Merger	Balance sheet
	30 June	Issued	redeemed	movements	changes	of Sbanken	31 Dec.
Amounts in NOK million	2023	2023	2023	2023	2023	2023	2022
Commercial papers issued,
nominal amount	359 262	861 347	(802 489)	7 942			292 462
Bond debt, nominal amount1	167 893	12 512	(19 317)	15 586			159 111
Covered bonds, nominal amount1	295 730	12 994	(56 634)	26 246			313 125
Value adjustments	(27 481)			72	(742)		(26 812)
Debt securities issued	795 404	886 853	(878 440)	49 846	(742)	0	737 886
DNB Bank ASA	520 883	873 863	(821 483)	23 601	335	2 664	441 903

1) Excluding own bonds. The total nominal amount of outstanding covered bonds in DNB Boligkreditt was NOK 379.5 billion as at 30 June 2023. The market value of the cover pool represented NOK 692.8 billion.

Debt securities issued 2022

	Balance			Exchange			Balance
	sheet		Matured/	rate	Other	Acquisition	sheet
	30 June	Issued	redeemed	movements	changes	of Sbanken	31 Dec.
Amounts in NOK million	2022	2022	2022	2022	2022	2022	2021
Commercial papers issued,
nominal amount	264 832	854 479	(766 018)	9 524			166 847
Bond debt, nominal amount	188 937	45 109	(16 439)	8 866		4 034	147 367
Covered bonds, nominal amount	337 597	32	(68 029)	9 176		22 682	373 736
Value adjustments	(12 813)			9	(27 865)	234	14 809
Debt securities issued	778 553	899 621	(850 487)	27 576	(27 865)	26 950	702 759
DNB Bank ASA	447 144	899 588	(782 331)	18 400	(4 751)		316 238

Senior non-preferred bonds 2023

	Balance			Exchange	Balance
	sheet		Matured/	rate	Other	Merger	sheet
	30 June	Issued	redeemed	movements	changes	of Sbanken	31 Dec.
Amounts in NOK million	2023	2023	2023	2023	2023	2023	2022
Senior non-preferred bonds, nominal amount	85 425	14 306	(130)	6 065			65 185
Value adjustments	(6 037)				(554)		(5 483)
Senior non-preferred bonds	79 388	14 306	(130)	6 065	(554)	0	59 702
DNB Bank ASA	79 388	14 296	(54)	6 065	(566)	1 903	57 746

Senior non-preferred bonds 2022

	Balance			Exchange		Balance
	sheet		Matured/	rate	Other	Acquisition	sheet
	30 June	Issued	redeemed	movements	changes	of Sbanken	31 Dec.
Amounts in NOK million	2022	2022	2022	2022	2022	2022	2021
Senior non-preferred bonds,
nominal amount	44 512	727		3 285		2 000	38 499
Value adjustments	(3 895)				(3 121)	(43)	(730)
Senior non-preferred bonds	40 617	727	0	3 285	(3 121)	1 957	37 769
DNB Bank ASA	38 678	727		3 285	(3 104)		37 769

NOTE G8 DEBT SECURITIES ISSUED, SENIOR NON-PREFERRED BONDS AND SUBORDINATED LOAN CAPITAL (continued)

Subordinated loan capital and perpetual subordinated loan capital securities 2023

	Balance			Exchange			Balance
	sheet		Matured/	rate	Other	Merger	sheet
	30 June	Issued	redeemed	movements	changes	of Sbanken	31 Dec.
Amounts in NOK million	2023	2023	2023	2023	2023	2023	2022
Term subordinated loan capital,
nominal amount	33 407	11 788	(10 026)	1 049			30 596
Perpetual subordinated loan capital,
nominal amount	6 789			483			6 306
Value adjustments	(232)				(118)		(114)
Subordinated loan capital and perpetual
subordinated loan capital securities	39 965	11 788	(10 026)	1 532	(118)	0	36 788
DNB Bank ASA	39 965	11 788	(10 028)	1 532	(110)	905	35 877

Subordinated loan capital and perpetual subordinated loan capital securities 2022

	Balance			Exchange			Balance
	sheet		Matured/	rate	Other	Acquisition	sheet
	30 June	Issued	redeemed	movements	changes	of Sbanken	31 Dec.
Amounts in NOK million	2022	2022	2022	2022	2022	2022	2021
Term subordinated loan capital,
nominal amount	22 028	4 665	(10 676)	67		900	27 073
Perpetual subordinated loan capital,
nominal amount	6 332			580			5 752
Value adjustments	(15)		1		(250)	12	223
Subordinated loan capital and perpetual
subordinated loan capital securities	28 345	4 665	(10 675)	647	(250)	912	33 047
DNB Bank ASA	27 434	4 665	(10 676)	647	(249)		33 047

NOTE G9 CONTINGENCIES

Due to its extensive operations in Norway and abroad, the DNB Group will regularly be party to various legal actions and tax-related disputes. None of the current disputes are expected to have any material impact on the Group's financial position.

Legal risk associated with legacy foreign currency portfolio in DNB Bank Polska S.A.

In June 2023, the Court of Justice of the European Union (CJEU) issued a judgment in connection with a judicial proceeding against a Polish bank not related to DNB concerning foreign currency loan agreements in Poland. The judgment clarifies what claims the parties to a loan agreement can make against each other, if a national court finds that the loan agreement is invalid. The CJEU's decision is expected to affect other Polish banks with similar loan agreements. Based on the clarification from the CJEU, DNB Poland estimates an increased legal risk associated with a legacy foreign currency portfolio, and the accounts for the second quarter therefore include impairment of financial instruments of NOK 653 million. The Group has recognised the provisions by reducing the gross carrying amount in line with IFRS 9. If the recognised exposure is not sufficient, the provisions is recognised in accordance with IAS 37. Total provisions at the end of the second quarter 2023 were NOK 944 million.

Tax effect of the reorganisation of the lending activities in Sweden and the UK in 2015

In the second quarter of 2023, DNB Bank ASA received a draft decision from the Norwegian tax authorities relating to a reorganisation of the lending activities in Sweden and in the UK in 2015. The tax authorities questioned the valuation and calculation of taxable gains/losses relating to loan portfolios that were sold from branches of DNB Bank ASA to subsidiaries in Sweden and the UK. The Group's maximum tax exposure is estimated to be approximately NOK 1.2 billion. DNB disagrees with the Norwegian tax authorities' approach. It is DNB's view that it has a strong case, and no provisions have been recognised in the accounts.

See note G26 Taxes in the annual report for 2022.

Accounts for DNB Bank ASA

P – INCOME STATEMENT

Amounts in NOK million	2nd quarter 2023	2nd quarter 2022	Jan.-June 2023	Jan.-June 2022	Full year 2022
Interest income, amortised cost	31 350	11 281	57 837	20 557	58 681
Other interest income	2 521	709	4 873	1 318	5 136
Interest expenses, amortised cost	(22 480)	(3 709)	(40 781)	(5 686)	(27 755)
Other interest expenses	924	610	1 889	935	2 499
Net interest income	12 316	8 892	23 818	17 125	38 562
Commission and fee income	2 575	2 298	5 008	4 521	9 048
Commission and fee expenses	(843)	(767)	(1 594)	(1 434)	(2 973)
Net gains on financial instruments at fair value	1 029	1 282	3 532	1 551	2 246
Other income	1 296	1 997	1 453	2 788	10 638
Net other operating income	4 057	4 810	8 399	7 426	18 959
Total income	16 372	13 702	32 217	24 550	57 521
Salaries and other personnel expenses	(3 383)	(2 932)	(6 637)	(5 686)	(12 113)
Other expenses	(1 959)	(1 697)	(3 759)	(3 269)	(6 794)
Depreciation and impairment of fixed and intangible assets	(951)	(849)	(1 922)	(1 693)	(3 445)
Total operating expenses	(6 293)	(5 478)	(12 317)	(10 647)	(22 352)
Pre-tax operating profit before impairment	10 080	8 224	19 900	13 903	35 169
Net gains on fixed and intangible assets	2	33	3	34	175
Impairment of financial instruments	265	69	364	581	57
Pre-tax operating profit	10 346	8 325	20 267	14 518	35 401
Tax expense	(2 380)	(1 915)	(4 662)	(3 339)	(4 632)
Profit for the period	7 967	6 410	15 605	11 179	30 768
Portion attributable to shareholders of DNB Bank ASA	7 669	6 280	15 039	10 823	30 026
Portion attributable to additional Tier 1 capital holders	298	131	567	356	743
Profit for the period	7 967	6 410	15 605	11 179	30 768

P – COMPREHENSIVE INCOME STATEMENT

Amounts in NOK million	2nd quarter 2023	2nd quarter 2022	Jan.-June 2023	Jan.-June 2022	Full year 2022
Profit for the period	7 967	6 410	15 605	11 179	30 768
Actuarial gains and losses		118		523	408
Financial liabilities designated at FVTPL, changes in credit risk	26	37	47	84	77
Tax	(6)	(32)	(12)	(145)	(114)
Items that will not be reclassified to the income statement	19	124	35	463	371
Currency translation of foreign operations	(19)	20	144	(47)	(52)
Currency translation reserve reclassified to the income statement					3
Financial assets at fair value through OCI	(167)	(274)	(159)	(619)	(732)
Tax	42	69	40	155	183
Items that may subsequently be reclassified to the income statement	(145)	(186)	25	(511)	(597)
Other comprehensive income for the period	(125)	(62)	60	(48)	(227)
Comprehensive income for the period	7 841	6 348	15 666	11 130	30 542

P – BALANCE SHEET

Amounts in NOK million	Note	30 June 2023	31 Dec. 2022	30 June 2022
Assets
Cash and deposits with central banks		568 510	309 331	380 512
Due from credit institutions		533 584	471 949	497 150
Loans to customers	P3, P4	1 142 094	1 010 029	969 950
Commercial paper and bonds	P4	366 427	413 878	323 627
Shareholdings	P4	6 511	5 575	6 144
Financial derivatives	P4	230 884	213 665	256 053
Investments in associated companies		10 293	10 232	9 496
Investments in subsidiaries		130 546	133 360	133 644
Intangible assets		8 176	3 561	3 444
Deferred tax assets		104	94	136
Fixed assets		15 703	15 434	15 692
Other assets		23 421	31 107	22 082
Total assets		3 036 254	2 618 215	2 617 929
Liabilities and equity
Due to credit institutions		400 586	275 556	312 156
Deposits from customers	P4	1 466 068	1 322 995	1 318 809
Financial derivatives	P4	255 338	206 820	225 976
Debt securities issued	P4	520 883	441 903	447 144
Payable taxes		5 884	1 719	3 533
Deferred taxes		2 338	2 325	3 801
Other liabilities		29 667	54 672	26 262
Provisions		760	656	644
Pension commitments		4 380	4 095	3 985
Senior non-preferred bonds		79 388	57 746	38 678
Subordinated loan capital	P4	39 965	35 877	27 434
Total liabilities		2 805 256	2 404 364	2 408 422
Additional Tier 1 capital		18 704	15 386	10 736
Share capital		19 282	19 378	19 380
Share premium		18 733	18 733	18 733
Other equity		174 279	160 354	160 659
Total equity		230 997	213 851	209 507
Total liabilities and equity		3 036 254	2 618 215	2 617 929

P – STATEMENT OF CHANGES IN EQUITY

				Net
			Additional	currency	Liability
	Share	Share	Tier 1	translation	credit	Other	Total
Amounts in NOK million	capital1	premium	capital	reserve	reserve	equity1	equity1
Balance sheet as at 31 December 2021	19 379	18 733	16 974	554	(8)	149 765	205 399
Profit for the period			356			10 823	11 179
Actuarial gains and losses						523	523
Financial assets at fair value through OCI						(619)	(619)
Financial liabilities designated at FVTPL, changes in credit risk					84		84
Currency translation of foreign operations				(47)			(47)
Tax on other comprehensive income					(21)	31	10
Comprehensive income for the period			356	(47)	63	10 758	11 130
Interest payments AT1 capital			(492)				(492)
AT1 capital redeemed			(6 548)				(6 548)
Currency movements on interest payment and redemption AT1			445			(428)	17
Net purchase of treasury shares	0					0	0
Balance sheet as at 30 June 2022	19 380	18 733	10 736	508	56	160 096	209 507
Balance sheet as at 31 December 2022	19 378	18 733	15 386	506	50	159 798	213 851
Profit for the period			567			15 039	15 605
Financial assets at fair value through OCI						(159)	(159)
Financial liabilities designated at FVTPL,
changes in credit risk					47		47
Currency translation of foreign operations				144			144
Tax on other comprehensive income					(12)	40	28
Comprehensive income for the period			567	144	35	14 920	15 666
Interest payments additional Tier 1 capital			(263)				(263)
Currency movements on interest payment AT1			10				10
AT1 capital issued2			2 300				2 300
Net purchase of treasury shares1	0					8	9
Share buyback program	(97)					(1 437)	(1 534)
Merger Sbanken ASA			705			245	950
Other equity transactions						10	10
Balance sheet as at 30 June 2023	19 282	18 733	18 704	650	85	173 543	230 997
1) Of which treasury shares held by DNB Markets for trading purposes:
Balance sheet as at 31 December 2022	(1)					(19)	(20)
Net purchase of treasury shares	0					8	9
Reversal of fair value adjustments through the income statement						(6)	(6)
Balance sheet as at 30 June 2023	(1)					(16)	(17)

2) DNB Bank ASA issued an additional Tier 1 capital instrument in the first quarter of 2023. It was issued in January, has a nominal value of NOK 2 300 million and is perpetual with a floating interest of 3 months NIBOR plus 3.5 per cent p.a.

NOTE P1 BASIS FOR PREPARATION

DNB Bank ASA has prepared the financial statements according to the Norwegian Ministry of Finance's regulations on annual accounts. A description of the accounting principles applied by the company when preparing the financial statements can be found in Note 1 Accounting principles in the annual report for 2022. In the interim report, the accounting policies, significant estimates, and areas where judgement is applied by the company are in conformity with those described in the annual report.

See note G8 to the consolidated accounts for information about debt securities issued, senior non-preferred bonds and subordinated loan capital, and note G9 for information about contingencies.

Intragroup merger

The merger of Sbanken ASA and DNB Bank ASA was completed on 2 May 2023.

The merger was completed with accounting and tax continuity. No additional consideration has been paid. As part of the merger, Sbanken's net assets were transferred to DNB Bank ASA for the sake of Group continuity in the parent company accounts, except for Sbanken's ownership of the wholly owned subsidiary Sbanken Boligkreditt AS which was transferred at company continuity. Group continuity means that identified intangible assets and goodwill from the acquisition of the Sbanken group in March 2022, with a total book value of NOK 4.3 billion, are recognised in DNB Bank ASA's accounts as a result of the merger.

Comparative figures for DNB Bank ASA have not been restated. As a result of the merger, DNB Bank ASA's equity increased by NOK 838 million (including NOK 703 million in additional Tier 1 capital) at the date of completion.

NOTE P2 CAPITAL ADEQUACY

Capital adequacy is calculated and reported in accordance with the EU capital requirements regulations for banks and investment firms (CRR/CRD).

Own funds

2023 2022 Total equity 230 997 213 851 209 507 Adjustment to retained earnings for foreseeable dividends (7 519) (5 411)
	Amounts in NOK million			2022
	Additional Tier 1 capital instruments included in total equity	(18 274)	(15 274)	(10 474)
Net accrued interest on additional Tier 1 capital instruments (430) (111)				(261)
Common equity Tier 1 capital instruments 204 774 198 465				193 360
Regulatory adjustments
Pension funds above pension commitments (41)
Goodwill (6 427) (2 376)				(2 386)
Deferred tax assets that rely of future profitability, excluding temporary differences (24) (24)				(25)
Other intangible assets (1 545) (1 020)				(818)
Share buy-back program (1 437)
IRB provisions shortfall (1 703) (1 412)				(1 660)
Additional value adjustments (AVA) (1 152) (1 047)				(1 045)
Insufficient coverage for non-performing exposures (160) (49)
(Gains) or losses on liabilities at fair value resulting from own credit risk (85) (50)				(56)
(Gains) or losses on derivative liabilities resulting from own credit risk (DVA) (571) (391)				(467)
Common equity Tier 1 capital 193 066 190 659				186 903
Additional Tier 1 capital instruments 18 274 15 274				10 474
Tier 1 capital 211 340 205 934				197 378
Perpetual subordinated loan capital				5 602
Term subordinated loan capital 33 407 27 829				21 128
Additonal Tier 2 capital instruments 33 407 27 829				26 730
Own funds 244 748 233 763				224 108
Total risk exposure amount 965 474 904 035				908 786
Minimum capital requirement 77 238 72 323				72 703
Capital ratios:
Common equity Tier 1 capital ratio 20.0 21.1				20.6
Tier 1 capital ratio 21.9 22.8				21.7
Total capital ratio 25.4 25.9				24.7
Own funds and capital ratios excluding interim profit
Common equity Tier 1 capital 185 547				181 492
Tier 1 capital 203 821				191 966
Own funds 237 228				218 696
Common equity Tier 1 capital ratio 19.2				20.0
Tier 1 capital ratio 21.1				21.1
Total capital ratio 24.6				24.1

NOTE P3 DEVELOPMENT IN ACCUMULATED IMPAIRMENT OF FINANCIAL INSTRUMENTS

Loans to customers at amortised cost
--------------------------------------	--	--	--

		2023			2022
Amounts in NOK million	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total
Accumulated impairment as at 1 Jan.	(483)	(617)	(5 806)	(6 905)	(433)	(494)	(7 979)	(8 905)
Transfer to stage 1	(199)	114	85		(85)	84	1
Transfer to stage 2	27	(37)	10		29	(35)	6
Transfer to stage 3	1	20	(21)			13	(13)
Originated and purchased	(78)	(23)	(1)	(101)	(93)	(38)		(131)
Increased expected credit loss	(118)	(249)	(1 575)	(1 942)	(90)	(260)	(1 520)	(1 869)
Decreased (reversed) expected credit loss	307	210	1 658	2 175	233	150	1 270	1 653
Write-offs			441	441			1 821	1 821
Derecognition (including repayments)		57	116	172	13	69	5	87
Merger Sbanken ASA	(12)	(46)	(252)	(309)
Exchange rate movements	(2)	(2)	(3)	(7)			(4)	(3)
Accumulated impairment as at 30 June	(557)	(573)	(5 348)	(6 479)	(426)	(510)	(6 413)	(7 349)

Financial commitments

		2023			2022
Amounts in NOK million	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total
Accumulated impairment as at 1 Jan.	(165)	(173)	(203)	(540)	(169)	(250)	(669)	(1 087)
Transfer to stage 1	(29)	28	1		(75)	75
Transfer to stage 2	8	(9)	2		14	(14)
Transfer to stage 3		5	(6)
Originated and purchased	(93)	(68)		(161)	(61)	(4)		(65)
Increased expected credit loss	(26)	(92)	(67)	(184)	(12)	(72)	(15)	(99)
Decreased (reversed) expected credit loss	128	40	67	235	166	39	479	684
Derecognition	2	29	2	33	7	26	9	42
Merger Sbanken ASA	(2)	(2)	(1)	(5)
Exchange rate movements	(1)	(2)		(2)		(2)		(2)
Other
Accumulated impairment as at 30 June	(178)	(243)	(205)	(626)	(130)	(202)	(195)	(527)

For explanatory comments about the impairment of financial instruments, see the directors' report.

NOTE P4 FINANCIAL INSTRUMENTS AT FAIR VALUE

Amounts in NOK million	Level 1	Level 2	Level 3	Total
Assets as at 30 June 2023
Loans to customers		149 912	13 951	163 864
Commercial paper and bonds	18 053	347 716	658	366 427
Shareholdings	4 920	877	714	6 511
Financial derivatives	1 192	225 884	3 808	230 884
Liabilities as at 30 June 2023
Deposits from customers		37 351		37 351
Debt securities issued		1 464		1 464
Senior non-preferred bonds		1 655		1 655
Subordinated loan capital		1 007		1 007
Financial derivatives	2 892	249 144	3 302	255 338
Other financial liabilities1	3 705			3 705
Assets as at 30 June 2022
Loans to customers		132 965	6 001	138 966
Commercial paper and bonds	40 555	282 090	982	323 627
Shareholdings	3 865	395	1 884	6 144
Financial derivatives	3 185	249 280	3 588	256 053
Liabilities as at 30 June 2022
Deposits from customers		12 049		12 049
Debt securities issued		2 827		2 827
Senior non-preferred bonds		959		959
Subordinated loan capital		408		408
Financial derivatives	5 409	217 296	3 271	225 976
Other financial liabilities1	3 991			3 991

1) Short positions, trading activities.

Loans with floating interest rate measured at fair value through other comprehensive income are categorised within level 2, since the valuation is mainly based on observable inputs.

For a further description of the instruments and valuation techniques, see the annual report for 2022.

NOTE P5 INFORMATION ON RELATED PARTIES

DNB Boligkreditt AS

In the first half of 2023, loan portfolios representing NOK 0.8 billion (NOK 4.3 billion in the first half of 2022) were transferred from the bank to DNB Boligkreditt in accordance with the "Agreement relating to transfer of loan portfolio between DNB Bank ASA and DNB Boligkreditt AS".

At end-June 2023, the bank had invested NOK 92.2 billion in covered bonds issued by DNB Boligkreditt.

The servicing agreement between DNB Boligkreditt and DNB Bank ensures DNB Boligkreditt a minimum margin achieved on loans to customers. A margin below the minimum level will be at DNB Bank's risk, resulting in a negative management fee (payment from DNB Bank to DNB Boligkreditt). The management fee paid to the bank for purchased services amounted to a negative NOK 906 million in the first half of 2023 (a negative NOK 36 million in the first half of 2022).

In the first half of 2023, DNB Boligkreditt entered into reverse repurchasing agreements (reverse repos) with the bank as counterparty. The value of the repos amounted to NOK 7.1 billion at end-June 2023.

As of end-June 2023, DNB Bank's ownership of subordinated loan issued by DNB Boligkreditt amounted to NOK 1.9 billion.

DNB Boligkreditt has a long-term overdraft facility in DNB Bank with a limit of NOK 335 billion.

Sbanken Boligkreditt AS

At end-June 2023, the bank had invested a total amount of NOK 13.9 billion in bonds issued by Sbanken Boligkreditt.

Statement pursuant to Section 5-6 of the Securities Trading Act

We hereby confirm that the half-yearly financial statements for the Group and the company for the period 1 January through 30 June 2023 to the best of our knowledge have been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the European Union, and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group and the company taken as a whole.

To the best of our knowledge, the half-yearly report gives a true and fair:

• overview of important events that occurred during the accounting period and their impact on the half-yearly financial statements
• description of the principal risks and uncertainties facing the Group over the next accounting period
• description of major transactions with related parties.

Oslo, 11 July 2023 The Board of Directors of DNB Bank ASA

Olaug Svarva (Chair of the Board)

Jens Petter Olsen (Vice Chair of the Board)

Gro Bakstad

Christine Bosse

Petter-Børre Furberg

Julie Galbo

Lillian Hattrem

Stian Tegler Samuelsen

Jannicke Skaanes

Kim Wahl

Kjerstin R. Braathen (Group Chief Executive Officer, CEO)

Ida Lerner (Group Chief Financial Officer, CFO)

Information about DNB

Head office

Telephone +47 91 50 48 00 Internet dnb.no

Mailing address P.O.Box 1600 Sentrum, NO-0021 Oslo Visiting address Dronning Eufemias gate 30, Oslo Organisation number Register of Business Enterprises NO 984 851 006 MVA

Board of Directors

Olaug Svarva Chair of the Board Jens Petter Olsen Vice Chair of the Board Gro Bakstad Christine Bosse Petter-Børre Furberg Julie Galbo Lillian Hattrem Stian Tegler Samuelsen Jannicke Skaanes Kim Wahl

Group Management

Kjerstin R. Braathen Group Chief Executive Officer (CEO) Ida Lerner Group Chief Financial Officer (CFO) Ingjerd Blekeli Spiten Group Executive Vice President of Personal Banking Harald Serck-Hanssen Group Executive Vice President of Corporate Banking Håkon Hansen Group Executive Vice President of Wealth Management Alexander Opstad Group Executive Vice President of Markets Per Kristian Næss-Fladset Group Executive Vice President of Products & Innovation Fredrik Berger Group Chief Compliance Officer (CCO) Sverre Krog Group Chief Risk Officer (CRO) Maria Ervik Løvold Group Executive Vice President of Technology & Services Anne Sigrun Moen Group Executive Vice President of People Gine Therese Wang-Reese Acting Group Executive Vice President of Communications & Sustainability

Investor Relations

Rune Helland, Head of Investor Relations tel. +47 23 26 84 00 rune.helland@dnb.no Anne Engebretsen, Investor Relations tel. +47 23 26 84 08 anne.engebretsen@dnb.no Johanna Gateman, Investors Relations tel. +47 97 13 74 03 johanna.gateman@dnb.no Thor Tellefsen, Long Term Funding tel. +47 23 26 84 04 thor.tellefsen@dnb.no

Financial calendar

2023

19 October Q3 2023

2024

31 January	Q4 2023
14 March	Annual report 2023
23 April	Q1 2024
29 April	Annual General Meeting
30 April	Ex-dividend date
8 May	Distribution of dividends
11 July	Q2 2024
22 October	Q3 2024

Other sources of information

Separate annual and quarterly reports are prepared for DNB Boligkreditt and DNB Livsforsikring. The reports and the Factbook are available on ir.dnb.no. Annual and quarterly reports can be ordered by sending an e-mail to Investor Relations.

The quarterly report has been produced by Group Financial Reporting in DNB. Cover design: Hyper

DNB

Mailing address: P.O.Box 1600 Sentrum N-0021 Oslo

Visiting address: Dronning Eufemias gate 30 Bjørvika, Oslo

dnb.no