DNB Bank ASA

Earnings Release • Jul 13, 2021

Great optimism in the Norwegian economy leads to growth in all areas

Great optimism in the Norwegian economy leads to growth in all areas

13 July 2021

DNB is experiencing increased customer activity and optimism in step with the

reopening of the Norwegian economy. The profit for the second quarter of 2021

was NOK 6 432 million, an increase of NOK 548 million from the first quarter of

this year.

After a very good first quarter, DNB's financial performance has been further

strengthened in the second quarter, supported by higher growth as a result of

the reopening of the Norwegian economy and solid liquidity in most households.

"Even though we haven't put the pandemic completely behind us yet, a sense of

optimism has definitely returned to the Norwegian business community and

Norwegian households. We're seeing growth in all parts of the bank, and I can't

remember a quarter with comparably high customer activity across the entire

spectrum of the services we offer. I'm pleased that our customers are choosing

DNB to an even greater extent than before, now that we're preparing ourselves

for more normal times," says CEO Kjerstin Braathen.

Growth in all parts of the bank

Throughout the quarter, DNB has experienced profitable growth on loans of 1.4

per cent and 2.7 per cent in the personal customer market and corporate customer

market, respectively - in line with the plan for annual growth of around 3-4 per

cent. Deposit growth for the quarter was 4.1 per cent, while net interest income

was at the same level as in the corresponding quarter in 2020.

DNB experienced growth in all customer segments and areas of the bank, and

customer activity was particularly high in the areas of capital raising and

initial public offerings (IPOs), as well as across the entire spectrum from long

-term saving and asset management, to real estate and insurance. Income from

customer-driven activities (commission and fee income) was record high, with an

increase of NOK 486 million, or 20.3 per cent, compared with the corresponding

period last year, and 9.6 per cent compared with the first quarter of 2021.

Norwegians' high level of saving and investing was maintained, even though

consumption has increased along with the reopening of society.

Will cooperate with customers on sustainable transition

In the second quarter, DNB presented its revised sustainable strategy. The

strategy states that DNB will be a driving force for sustainable transition, for

instance by financing, facilitating, and investing in sustainable activities

worth NOK 1 500 billion by 2030, and by increasing total assets in mutual funds

with a sustainability profile to NOK 100 billion by 2025.

During the course of last year, we saw a clear shift in mood, with many people

looking for sustainable products and seeking to make sustainable investments. In

May, DNB launched the index fund DNB Klima Indeks, a mutual fund that, to the

best of our knowledge, is the very first in Norway to be fully aligned with the

goals of the Paris Agreement. The fund reached NOK 1 billion in total assets

just a few weeks after its launch in May.

"The very strong reception DNB Klima Indeks has received provides additional

motivation to further develop our range of sustainable and green products, in

other parts of the personal customer and corporate customer markets, as well.

Our customers will notice that sustainable transition is an issue that we'll

spend more time on in our customer dialogue in the time ahead," says Kjerstin

Braathen.

Strong position for paying out dividends

The bank maintained a very strong financial position throughout the quarter,

with a common equity Tier 1 (CET1) capital ratio of 19.1 per cent. Return on

equity (ROE) was 11.1 per cent for the quarter, and is the result of high

activity and growth in all areas of the bank, as well as net reversals of

impairment provisions. Earnings per share (EPS) were NOK 4.01 in the quarter,

which is an increase of 31 per cent from the corresponding quarter last year.

The bank is in a strong position to pay out dividends, and the Board of

Directors has been authorised by the General Meeting to pay out up to NOK 9 per

share for the year 2020, after 30 September this year.

During the quarter, DNB also received acceptance for its offer to

acquire Sbanken, and the Ministry of Finance approved the acquisition. The

approval of the Norwegian Competition Authority remains, and the decision is

expected during the third quarter.

Financial key figures for the second quarter of 2021

(figures for the corresponding quarter in 2020):

·

Pre-tax operating profit before impairment amounted to NOK 7.6?billion (8.4)

·

Profit for the quarter was NOK 6.4 billion (5.0)

·

Earnings per share were NOK 4.01 kroner (3.06)

·

Return on equity was 11.1 per cent (8.7)

·

Cost/income ratio was 44.4 per cent (40.4)

·

Common equity Tier 1 (CET 1) capital ratio was 19.1 per cent (18.2)

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

For further information:

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

977 13 250

Thomas Midteide, Group Executive Vice President of Communications &

Sustainability, tel.: (+47) 96 23 20 17

This information is subject to the disclosure requirements pursuant to section 5

-12 of the Securities Trading Act.