DNB Bank ASA

Earnings Release • Jul 12, 2022

Robust results in turbulent times

Robust results in turbulent times

12 July 2022

DNB can now look back on yet another strong quarterly result, with a profit of

NOK 7 785 million in the second quarter. This is an increase of NOK 1 353

million compared with the second quarter of last year, and of NOK 230 million

from the first quarter.  DNB's strong capital adequacy and increased

profitability make the bank well positioned for further growth.

Despite turmoil in the international arena, activity in the Norwegian economy

remained at a very high level throughout the second quarter, and was

characterised by rapid recovery and consumption growth. Record-low unemployment,

high capacity utilisation and high inflation formed the backdrop for the

decision by the Norwegian central bank, Norges Bank, to raise the key policy

rate by 0.5 percentage points in June, to ease the pressure on the Norwegian

economy. Inflation is nevertheless still at a lower level in Norway than in

comparable countries.

"Yet again, the Norwegian economy is proving robust in the face of international

turmoil. The Norwegian business community is maintaining its momentum, and the

high level of activity is reflected across all areas of the bank. We are also

expecting that Norwegian companies' investments will continue to grow, well

above what we are seeing in other countries," says CEO Kjerstin Braathen.

Profitable growth

The bank experienced positive developments in all product areas during the

quarter. Despite market turbulence, income from customer-driven activities

(commission and fee income) remained stable, and declined 1.9 per cent compared

with the historically high level in the corresponding quarter last year.

Profitable volume growth and positive repricing effects as a result of the

raised key policy rate contributed to an increase in the bank's net interest

income of NOK 2 116 million, or 22.5 per cent, from the second quarter of 2021,

and of NOK 1 079 million, or 10.3 percent, from the first quarter of this year.

"We have experienced strong lending growth in the quarter. Our prices are

competitive, and we are pleased that so many customers have chosen DNB and

Sbanken when buying a home. We have strengthened products and services offered

to young people, who get our best prices and access to special customer

advisers," says Braathen.

The bank's customer portfolio is solid, and sound banking practices in the

restructuring work contributed to net reversals of impairment provisions

amounting to NOK 209 million in the quarter, mainly associated with corporate

customers within oil, gas and offshore.

DNB has now passed the milestone of having issued 100 green and sustainability

-linked loans to corporate customers since this type of loan was introduced in

2018.  This means that the bank has facilitated NOK 302 billion in sustainable

financing and is thus well on the way to achieving the goal of financing and

facilitating sustainable activities worth NOK 1 500 billion by 2030.

Financial key figures for the second quarter of 2022 (figures for the

corresponding quarter in 2021):

· Pre-tax operating profit before impairment amounted to NOK 9.8 billion (7.6)

· Profit for the quarter was NOK 7.8 billion (6.4)

· Earnings per share were NOK 4.91 (4.01)

· Return on equity was 13.3 per cent (11.1)

· Cost/income ratio was 40.0 per cent (44.4)

· Common equity Tier 1 (CET 1) capital ratio was 18.0 per cent (19.1)

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

For further information:

Rune Helland, Head of Investor Relations, tel.: (+47) 23 26 84 00/(+47) 97 71 32

50

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.