DNB Bank ASA

Earnings Release • Feb 5, 2025

Results DNB Group

Fourth quarter 2024

Kjerstin R. Braathen (CEO)

Strong performance in all customer segments

12.7

Return on equity of 19.0 per cent in the quarter

Driven by strong growth and activity across customer segments and product areas. 16.1 per cent adjusted for low tax rate in the quarter.

Net interest income up 3.7 per cent from 3Q24 Profitable lending and deposit growth in all segments.

Net commissions and fees up 12.3 per cent from 4Q23

All-time high fourth quarter result driven by strong results across products areas – solid and well-diversified fee platform.

Robust and well-diversified portfolio

99.3 per cent of portfolio in stages 1 and 2. Impairment provisions of NOK 157 million in the quarter.

Proposed dividend of NOK 16.75 per share

Earnings per share of NOK 8.21 in the quarter and NOK 29.34 in 2024 – up 18.2 per cent from 2023.

19.4

Solid outlook for the Norwegian economy

• Moderate growth expected in the mainland economy with low unemployment rate throughout the forecasting period
• Continued decline in inflation levels, with positive real wage development expected from 2024 onwards
• First key policy rate cut anticipated in March 2025 expected to stabilize at 3.75 per cent from September 2025

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

High level of activity across all customer segments

• Personal customers: high activity and strong performance in all areas, lending growth of 1.7 per cent in second half of 2024
• Corporate customers Norway: solid growth in loans and deposits and high cross-sales activity, other income up 18.8 per cent from 2023
• Large corporates and international customers: profitable volume growth and increased income from Markets products of 21.1 per cent from 2023
• Continued solid credit quality and low impairment provisions in all customer segments

All-time high income from Wealth Management and DNB Markets

• Continued growth in AUM1 up NOK 183 billion from 4Q23 positive net in-flow from both retail and institutional customers of NOK 34 billion
• Customer income from DNB Markets of NOK 8.3 billion in 2024, up 18.0 per cent from 2023 strong performance in both IBD1 and FICC1
• Solid and well-diversified platform positioned to further accelerate growth with announced acquisition of Carnegie

1 AUM: assets under management – IBD: Investment Banking Division – FICC: fixed income currency and commodities.

Key figures reflecting high activity and solid performance across the Group

Proposed dividend of

2.2 BNOK

to the DNB Savings Bank Foundation for 20241

Employer in Norway ranked by business students, and #5 among tech students2

Positioned for Nordic acceleration with acquisition of Carnegie

Staying close to our customers during time of uncertainty Making a social impact while maintaining a relentless customer focus

uses DNB's digital channels

46% of Norwegian population actively

752 BNOK Mobilised a cumulative total of

at the end of 2024 to the sustainable transition, through lending and facilitation

Stopped attempted fraud worth

2.1 BNOK in 2024

7 ¹ Pending approval by the Annual General Meeting.

2 Source: Universum.

Strong commitment to dividend policy – continued increase in dividend per share

• Dividend per share of NOK 16.75 to be proposed by Board of Directors increase of NOK 0.75 from 2023
• Total share buy-back programme of 1.0 per cent initiated in 2024 completed in September 2024
• Board of Directors expected to request authorisation from Annual General Meeting for share buy-back programme in line with previous years
• Solvency II margin of 248 per cent in DNB Liv enabled capital repayment of NOK 1.5 billion in 4Q24 dividend of NOK 1.5 billion to be paid in 1Q25

Solid growth in loans and deposits in all customer segments

• Loan growth of 2.5 per cent in the quarter
  • ‒ up 0.8 per cent in Personal customers (PC), 1.4 in Corporate customers Norway (CCN), 7.0 in Large corporates and international customers (LCIC)
• Deposit growth of 4.7 per cent in the quarter
  • ‒ up 1.3 per cent in Personal customers, 7.3 in Corporate customers Norway and 7.0 in Large corporates and international customers

Positive development in net interest margin and stable combined spreads

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

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

Net interest income up 3.7 per cent from 3Q24

Commissions and fees – all-time high fourth quarter result

Operating expenses driven by non-recurring item and seasonally high activity

Continued strong credit quality in all customer segments

Impairment of financial instruments by customer segment NOK million
	4Q24	3Q24	4Q23
Total	(157)	(170)	(920)
Of which:
Personal customers
- Stages 1 and 2	3	52	(3)
- Stage 3	(58)	(86)	(146)
Corporate customers Norway
- Stages 1 and 2	5	1	(103)
- Stage 3	(49)	(148)	(315)
Large corporates and international customers
- Stages 1 and 2	(213)	(26)	4
- Stage 3	155	38	(356)

Strong capital position

• CET1 capital ratio of 19.4 per cent 280 basis-points (bps) headroom to the Financial Supervisory Authority's (FSA's) current expectation
• NOK 1.5 billion repayment of excess capital from DNB Livsforsikring in 4Q24 ordinary dividend of NOK ~1.5 billion to be paid in 1Q25
• Future capital headwinds CRR3: ~20 bps, Carnegie acquisition: ~120 bps, risk weight floors on residential real estate from 1 July 2025: ~70 bps
• Board of Directors expected to request authorisation from the Annual General Assembly for share buy-back programs in line with previous years

Excluding central bank deposits

• 1 The FSA's current expectation: 16.6 per cent according to new SREP.
• 2 The FSA's current requirement: 15.3 per cent according to new SREP.

Appendix

Income statement

NOK million	4Q24	3Q24	4Q23	Change from 3Q24	Change from 4Q23
Net interest income	16 718	16 129	15 997	589	721
Other operating income	4 998	6 722	3 991	(1 724)	1 006
Total income	21 716	22 851	19 988	(1 135)	1 727
Operating expenses	(8 227)	(7 431)	(7 703)	(795)	(524)
Pre-tax operating profit before impairment	13 489	15 419	12 286	(1 930)	1 203
Impairment of loans and guarantees and gains on assets	(155)	(169)	(920)	14	765
Pre-tax operating profit	13 334	15 250	11 366	(1 916)	1 968
Tax expense	(765)	(3 050)	(1 824)	2 285	1 059
Profit from operations held for sale, after taxes	106	(40)	(138)	146	244
Profit for the period	12 675	12 160	9 403	515	3 271
Portion attributable to shareholders	12 178	11 632	9 019	546	3 159

Other operating income

NOK million	4Q24	3Q24	4Q23	Change from 3Q24	Change from 4Q23
Net commissions and fees	3 287	3 038	2 927	249	360
Customer revenues in DNB Markets	894	921	816	(27)	78
Trading revenues in DNB Markets	268	138	222	129	45
Hedging of defined-benefit pension scheme	(5)	42	82	(47)	(87)
Credit spreads on bonds	(50)	32	(16)	(82)	(33)
Credit spreads on fixed-rate loans	(28)	(55)	22	27	(50)
CVA/DVA/FVA	77	(153)	(137)	230	214
Other mark-to-market adjustments	(930)	947	(260)	(1 877)	(671)
Basis swaps	(836)	(194)	(500)	(642)	(336)
Exchange rate effects related to additional Tier 1 capital	982	(19)	(392)	1 001	1 374
Net gains on financial instruments at fair value	372	1 660	(162)	(1 288)	533
Net life insurance result	467	318	326	149	141
Profit from investments accounted for by the equity method	256	1 016	274	(760)	(18)
Other	617	690	626	(73)	(9)
Net other operating income, total	4 998	6 722	3 991	(1 724)	1 007

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.