DNB Bank ASA

Earnings Release • Apr 28, 2022

Results DNB Group

First quarter 2022

Kjerstin R. Braathen (CEO) Ida Lerner (CFO)

Q1 Sbanken included in balance sheet figures as of 31 March 2022, but not in average balance sheet or profit figures for the quarter.

28 April 2022

Continued strong results and solid asset quality

Return on equity (ROE) of 12.9 per cent in the quarter Strong performance in the customer segments and net reversals of impairment provisions

Net interest income (NII) up 13.2 per cent from 1Q21 and 1.6 from 4Q21 Driven by repricing and volume growth

Net commissions and fees up 8.1 per cent from 1Q21 Strong performance across product areas

Net reversals of impairment provisions Reflecting successful restructuring of customer-specific cases in stage 3 and an overall robust portfolio

Earnings per share (EPS) up 29 per cent from 1Q21 EPS of NOK 4.71 for the quarter

Sbanken and DNB – above all a good fit

The acquisition of Sbanken approved 16 March 2022 Sbanken to remain separate entity until further details are in place

Sbanken showed strong growth in the quarter Loans to customers increased by 5.6 per cent

Determined to create the best digital customer experiences Combining two institutions with leading tech and innovation capabilities

High activity in the Norwegian economy

• High activity level in Norwegian economy, society fully reopened since February 2022
• Unemployment back at pre-pandemic level, demonstrating high activity level in the economy
• Three rate hikes already implemented Norges Bank forecasts seven additional rate hikes before the end of 2023

Resilient and robust Norwegian economy

• Global inflation expected to rise due to higher energy and utility prices Norwegian core inflation still at healthy level
• Norwegian housing prices expected to grow moderately going forward
• Investment activity expected to increase

Investments in Norway NOK billion (constant 2021 prices)

1) Core inflation, excluding energy and utility prices. Sources: DNB Markets, Norges Bank, Norwegian Ministry of Finance.

Personal customers – strong net interest income and further growth in deposits

Highlights in the quarter

• Net interest income up 5.3 per cent, primarily driven by repricing of customer loans and deposits
• Stable development in inflow from savings schemes demonstrates their resilience

Solid development in savings

Savings volumes at end of period, NOK billion

Corporate customers – high customer activity and successful restructurings

Pre-tax operating profit

Highlights in the quarter

• NOK million Pre-tax operating profit up 15.8 per cent from 4Q21 strong performance across all industry segments
• Strong and diversified income from Markets, up 16.5 per cent from 1Q21
• Reversals of impairment provisions as a result of successful restructurings

Before impairment provisions

Solid growth in loans and deposits in the customer segments

• Loan growth of 1.1 per cent1) in the quarter healthy growth in Corporate customers and stable in Personal customers
• Growth in deposits of 0.5 per cent1) solid growth in Personal customers, partly offset by a seasonal decrease in Corporate customers
• Ambition of annual organic loan growth of 3-4 per cent stands firm

Net interest margin up 4 basis points

• Spreads on lending and deposits affected by increase in average NOK money market rates and repricing
• Combined spreads relatively stable

1.79 1.69

0.50

0.30

Net interest income up 1.6 per cent

• Full effect of the customer repricing implemented mid-November 2021 and partial effect of the repricing from end-January 2022
• Norges Bank increased key policy rate from 0.50 to 0.75 per cent in March
• DNB announced repricing of loans and deposits with effect from mid-May 2022

Commissions and fees up 8.1 per cent from 1Q21 – all-time high first quarter

Low expenses in the quarter

• Variable salaries, fees and other personnel expenses affected by somewhat lower activity compared with 4Q21
• Pension expenses approximately NOK 120 million below expected long-term average

Net reversals driven by successful restructurings and robust portfolio

• 98.9 per cent of the portfolio in stages 1 and 2 reflecting a robust and well-diversified portfolio
• Reversals in stage 3 driven by successful restructurings of customer-specific cases in stage 3

Impairment of financial instruments by industry segment NOK million (excluding Sbanken)				Maximum exposure (on- and off-balance sheet items), net of accumulated impairment provisions (including Sbanken)
	1Q22	4Q21	1Q21	Stage 1 NOK 2 392 billion	Stage 2 NOK 144 billion	Stage 3
Personal customers				(+124)	(+2)	(-2)
- Stages 1 and 2	3	(2)	20
- Stage 3	(39)	(62)	(44)
Corporate customers
- Stages 1 and 2	78	177	209			1.0%
- Stage 3	547	(388)	(74)	93.4%	5.6%
Total	589	(275)	110

NOK 25 billion (-2)

Continued strong capital position

• CET1 capital ratio reduced by close to 125 basis points as result of acquisition of Sbanken

• Financial Supervisory Authority of Norway's (FSA's) expectation increased to 17.7 per cent portfolio mix following inclusion of Sbanken impacting counter-cyclical and systemic risk buffer requirements

• 1) FSA's expectation including pre-pandemic counter-cyclical buffer requirements.

• 2) FSA's current expectation.
• 3) FSA's current requirement.

Strong key figures

Appendix

Income statement

NOK million	1Q22	4Q21	1Q21	Change from 4Q21	Change from 1Q21
Net interest income	10 445	10 285	9 230	160	1 216
Other operating income	4 695	4 348	4 116	347	579
Total income	15 141	14 633	13 346	507	1 795
Operating expenses	(5 966)	(6 427)	(5 817)	461	(149)
Pre-tax operating profit before impairment	9 175	8 206	7 528	969	1 646
Impairment of loans and guarantees and gains on assets	590	(251)	107	841	483
Pre-tax operating profit	9 765	7 955	7 636	1 810	2 130
Tax expense	(2 246)	(2 025)	(1 680)	(221)	(566)
Profit from operations held for sale, after taxes	36	225	(71)	(190)	107
Profit for the period	7 555	6 155	5 885	1 400	1 670
Portion attributable to shareholders	7 299	5 875	5 665	1 424	1 634

Other operating income

NOK million	1Q22	4Q21	1Q21	Change from 4Q21	Change from 1Q21
Net commissions and fees	2 844	3 049	2 631	(205)	213
Customer revenues in DNB Markets	626	653	502	(27)	123
Trading revenues in DNB Markets	386	2	69	383	317
Hedging of defined-benefit pension scheme	(28)	76	66	(103)	(94)
Credit spreads on bonds	(144)	(75)	153	(70)	(298)
Credit spreads on fixed-rate loans	(285)	(67)	81	(218)	(366)
CVA/DVA/FVA	48	1	241	47	(193)
Other mark-to-market adjustments	469	(110)	2	579	467
Basis swaps	629	100	(345)	529	974
Exchange rate effects on additional Tier 1 capital	(138)	125	29	(263)	(167)
Net gains on financial instruments at fair value	1 562	704	799	858	763
Net financial and risk result, life insurance	32	203	212	(171)	(180)
Profit from investments accounted for by the equity method	(15)	(6)	86	(8)	(100)
Other	272	397	389	(125)	(116)
Net other operating income, total	4 695	4 348	4 116	347	579

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

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

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

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

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

We are here. So you can stay ahead. Results DNB Group We are you can First quarter 2022