DNB Bank ASA

Investor Presentation • Nov 15, 2022

Capital Markets Day

15 November 2022

DNB Capital Markets Day 2022

DNB towards 2025 Kjerstin Braathen

Achieving financial ambitions Ida Lerner

Strong foundation for further profitable growth in personal customer segment Ingjerd Blekeli Spiten

Well positioned for continued profitable growth in corporate customer segment Harald Serck-Hanssen

Robust investment banking and capital markets business Alexander Opstad

Q&A Kjerstin Braathen and Ida Lerner

DNB towards 2025

• Resilience and track record of delivering through cycles
• Robust Norwegian economy
• Solid platform for continued profitable growth

DNB continues to deliver on targets

Financial ambitions

4

1) Previous expectation of Financial Supervisory Authority of Norway (FSA), adjusted for changes in buffer requirements. Expectation included full counter-cyclical buffer (CCyB). (Proposed expectation including management buffer as at 31 December 2019: 17.9 per cent.)

Strong resilience in earnings and profitability

Return on equity and pre-tax operating profit before impairment

Proven ability to generate earnings through cycles

Track record of delivering on dividend policy

Strong platform for continued profitable growth in an open and robust Norwegian economy

Financial targets 2022–2025

Corporate investments expected to fuel growth and activity

Sources: Statistics Norway, DNB Markets forecast, Norwegian Labour and Welfare Administration, World Bank / Lithuanian Free Market Institute.

Robust Norwegian households

Sources: DNB Markets, Statistics Norway, Norwegian Labour and Welfare Administration, forecast from Norges Bank (Norwegian central bank), OECD Data.

Proven stability and resilience in the economy over time

1) Includes fiscal spending, foregone revenue, equity, loans and guarantees. Sources: Databank (World Bank), Statistics Norway, IMF.

Three stabilisers in Norwegian economy

1) Fiscal rule: Transfers from Government Pension Fund Global should not be higher than expected real return, estimated at 3 per cent p.a. (reduced from 4 per cent in 2017). Sources: Norges Bank (Norwegian central bank), DNB Markets forecast, NBIM (Norges Bank Investment Management), proposed national budget for 2023 (Norwegian Government).

Creating attractiveness for customers

Traditional banks' strengthened position as preferred provider of financial services1) Share of respondents, per cent

The most attractive bank in the young segment2)

Norway's leading startup bank

No. 1 savings position in Norway

No. 1 adviser across corporate segments3)

Leading strategic positions Monetising on a strong savings position

159 per cent growth in number of users of savings app Spare (3Q19–3Q22)

22 per cent growth in annual savings volume through mutual funds savings schemes (CAGR 2019–2022)

20 per cent growth in number of mutual fund savings schemes (CAGR 2019–2022)

90 per cent of mutual funds purchased through digital channels

~30 per cent market share defined- % contribution pensions in Norway

• 1) Survey by Ipsos for DNB, interviewing a representative group of Norway´s population, multiple choices available.
• 2) Survey by Kantar in 3Q22, interviewing Norwegians between 18 and 33 years of age.
• 3) Prospera 2022.

Increasing share of customer value chain through partnerships and investments

Exploring new opportunities with Vipps and MobilePay merger approval

Utilising business partners to expand product offering

Digital accounting

New feature in the accounting solution DNB Regnskap allows customers to integrate carbon accounting directly into the solution

Payment infrastructure

BankID/BankAxept acquires Kundesjekk.no to build stronger position and expand its KYC offerings

Embedded finance

Car financing from DNB integrated into customer journeys and offered directly to customers for premium cars in the Nordics

Strong platform for profitable growth

International presence within selected growth industries

Energy transition supporting growth

Seafood

Healthcare

Power and Renewables Infrastructure

Energy transition supporting activity

Shipping Oil and gas

Growth across customer segments NOK billion

Deposits from customers

Sustainability – an integral part of business operations

Nordic countries at the forefront of the green shift

DNB plays an important role in financing the transition

Finance and facilitate sustainable activities worth NOK 1 500 billion by 2030

Reduce emissions in - oil and gas - shipping - commercial property by 25–33 per cent

Reduce emissions intensity in lending portfolio by 2030

Driving force for sustainable value creation

Developing products to promote sustainable activities

Piloting new use of proceed products, transition loans and green guarantees

Scaling team and building competence across the organisation

Continuously developing framework to adapt to market trends

• Developing science-based targets
• Enhancing reporting in 2023

Digitally advanced and efficient

Strengthening position in the race for competence and talent

Develop

No. 1 attractive employer

In Universum's surveys that rank the most attractive employers for students and professionals within business

86 points

Average rating of DNB employees' "willingness to recommend own employer externally". Scandinavian benchmark = 77.5, score 0–100

5.9 per cent turnover

Lower than pre-pandemic levels

>50 per cent

Of new hires in Graduate programme have technology background

5.5 out of 61)

Employees' score on the use of digital tools to enhance hybrid work and working from home

No. 1 on diversity

In Financial Times' ranking of diversity within 'Banking & Financial Services' in Europe, no. 7 overall

DNB towards 2025

• Resilience and track record of delivering through cycles
• Robust Norwegian economy
• Solid platform for continued profitable growth

Achieving financial ambitions

• Strong profitability and proven ability to deliver results
• Well diversified offering provides solid foundation for further income growth
• Delivering on cost efficiency and continued strong focus on cost control
• Solid capital position supporting dividend policy

ROE >13 per cent – an ambitious financial target

NII increase supported by profitable growth and customer repricing

• Loan and deposit growth combined with repricing generated strong result in competitive market
• Well positioned to capture future growth within personal customers through DNB and Sbanken combined, and within corporate customers through strong position in SME segment and industries with growth potential
• Maintaining long-term ambition of annual loan growth of 3–4 per cent

1) NIM: Net interest margin. NIBOR: Norwegian interbank offered rate. CAGR: Compound annual growth rate

Strengthened and diversified product offering provides solid foundation for income growth

Other operating income from customers

Well positioned to deliver on ambition of 4–5 per cent through the cycle growth

• Increased FICC1) customer income in Markets driven by higher volumes and competitive pricing
• Broad-based product offering ensuring recurring income from real estate broking, money transfer and banking services, guarantee commissions and sale of insurance products
• Strengthened position across products, industries and geographies within investment banking services
• Well positioned for further growth in savings and pensions through strong footprint in Norwegian market

DNB's position combined with structural market changes provide opportunities

• Growth in defined-contribution pensions and recurring savings schemes expected to increase assets under management (AUM)
• Savings app Spare important part of strategy to further strengthen position in Norwegian market

26

1) Source: Finance Norway.

2) Source: Norwegian Fund and Asset Management Association (VFF). Market share of savings agreements: yearly reporting, figures for 2022 not yet available.

Delivered on gross cost reduction of NOK 1.7 billion from CMD 2019

Main initiatives

• Discontinued distribution agreement with Norwegian postal service
• Automated and digitalised credit processes
• Operational efficiency
• New IT operating model reducing complexity

Continued focus on cost efficiency partly curtailing inflationary pressure and enabling strategic investments

+ Strategic investments and inflationary pressure

• Competence within strategic areas

- Gross cost reduction towards 2025: NOK 1.5–2.0 billion

Automation and operational efficiency: NOK 1 000–1 400 million

• Integration of Sbanken (NOK 300 million)
• Further automation of the credit process, manual processes and reporting

Supplier cost: NOK 500–600 million

• Optimisation and automation
• Reduce use of external consultants

Cost of risk reduced through rebalancing of credit portfolio

• Solid and well-diversified portfolio with proven resilience through cycles
• Rebalancing of credit portfolio with reduced exposure towards more cyclical industries and larger proportion of personal customers

Solid personal customer portfolio

• Norwegian lending regulations require debt-servicing ability after an immediate 5 percentage point rate increase, minimum 15 per cent equity and maximum 5 times debt-to-income ratio
• Robust mortgage portfolio with 94 per cent of exposures below 60 per cent marginal LTV ratio
• Mortgage customers have saved more during COVID-19 pandemic than non-mortgage customers, on average

Diversified and high-quality corporate customer portfolio

• Corporate customers constitute 48 per cent of total portfolio
  • ‒ Solid portfolio with 93.6 per cent in low and medium risk categories
  • ‒ Well diversified across industries
  • ‒ 26 per cent within SME segment

Risk classification of corporate customer portfolio NOK billion, per cent

Diversified and high-quality commercial real estate (CRE) portfolio

Key message

Robust CRE portfolio

• Credit strategy focusing on:
  • cash flow
  • industrial ownership
  • residual value
• Diversified portfolio with 75 per cent of exposure towards low-risk customers
• 94 per cent of exposure in Norway

Risk-alleviating market conditions

• Increasing rental prices, low vacancy rates and limited new-build activity
• Extensive use of interest rate hedging
• Relatively low dependency on bond market, ~80 per cent of Norwegian CRE bank-financed

Robust and resilient capital position

• Strong profitability provides recurring through-the-cycle capital generation
• High leverage ratio compared to peers
• Profit generation and conservative internal ratings-based (IRB) models result in limited downside in the European Banking Authority (EBA) stress test

Solid capital position enables delivery on our dividend policy

• Supervisory Review and Evaluation Process (SREP)
  • Pillar 2 requirement: 2.1 per cent (up 20 bps)
  • Pillar 2 CET1 requirement: 1.2 per cent (down 70 bps due to implementation of EU Banking Package)
  • Pillar 2 guidance (P2G): 1.5 per cent (unchanged)
• CET1 capital ratio long-term expectation: 17.0 per cent from 31 March 2023
• Sbanken portfolio expected to be included in IRB models in 2024
  • Estimated CET1 capital ratio increase of ~25 basis points
• Dividend policy stands
  • Payout ratio >50 per cent of net profits in cash dividends
  • Ambition of annual increase in nominal dividend per share

34

Share buy-backs used to optimise capital position

Financial targets 2022–2025

Achieving financial ambitions

• Strong profitability and proven ability to deliver results
• Well diversified offering provides solid foundation for further income growth
• Delivering on cost efficiency and continued strong focus on cost control
• Solid capital position supporting dividend policy

Strong foundation for further profitable growth

• Strengthened market position with a solid portfolio
• Market-leading digital platform
• Well positioned for future growth with two strong and complementary brands

Strengthened market position through organic growth and Sbanken acquisition

Strong growth momentum and substantial potential within savings

1) VFF, DNB personal customers, Sept. 2022.

2) Excluding Sbanken.

3) Source: Household composition statistics, Eurostat 2021.

Market-leading digital platform

World-class engagement and ranking

Best customer ranking1) among closest peers

1) Among iOS users.

2) Personal Finance Management.

Increased customer loyalty and digital sales

41

1) Excluding Sbanken.

2) Survey carried out by Ipsos for DNB, asking a representative group of Norway´s population – week 2–3 of 2022.

Continuously transforming to increase business efficiency

Increased automation leads to FTE efficiency Number of customer enquiries handled automatically, in thousands1) Saving costs

~9% reduction of FTEs in customer service centre

Sbanken demonstrating strong growth after DNB's acquisition

Well positioned in strategic segments

44

1) Survey by Kantar in 3Q22, interviewing Norwegians between 18 and 33 years.

Strong foundation for further profitable growth

• Strengthened market position with a solid portfolio
• Market-leading digital platform
• Well positioned for future growth with two strong and complementary brands

Well positioned for continued profitable growth

• Build further on market-leading position in SME segment
• Leverage product offering, industry competence and market position for further growth
• Continue to develop profitable positions relating to green transition

Leading corporate bank in Norway with a selective international scope

… to SMEs with growth ambitions …

From the adventurous entrepreneurs …

… to the industrial locomotives

of the Norwegian and international economy

• Better risk pricing
• Stronger cross-selling
• Cost synergies
• More knowledge sharing

Profitable growth despite challenging market gives solid platform for the future

• Strong post-pandemic profit growth, driven by increase in volumes, deposit margins and other income combined with efficient cost control
• Solid growth in return on allocated capital (ROAC) through capital optimisation and growth in non-lending income

Broad product platform enables increased income over and above lending growth

• Continued leverage of industry competence in close cooperation with Markets enables strong platform for further growth
• Strong market position and distribution platform, in combination with regulatory changes, provide growth opportunities in pensions and asset management

Unique position in Norwegian SME segment – a key driver for further profitable growth

Continue to offer digital solutions that drive engagement and improve efficiency

59 per cent YTD growth in users of corporate mobile banking services

Use market position and digital platforms to further enhance cross-selling of capital-light products

Capitalise further on regions in Norway with historically lower market share

50

Reinforce and retain position as the Norwegian startup bank

1) Excluding DNB Finans.

2) Share of active customers in DNB compared with total number of companies in Norway as at September 2022. Source: The Brønnøysund Register Centre.

Unique position in Norwegian large corporates segment

• In-depth industry knowledge and full range of banking products and services
• Strategic advisers to owners and top management as well as provider of daily banking services
• Combining strong cross-selling capabilities with an originate-and-distribute model to continue to deliver return on capital

Offering a broad and extensive product portfolio…

Non-lending income, large corporates in Norway …to a wide range of industries

Ocean energy

Manufacturing

Comm. & Tech

Seafood

Shipping

Service

Financial institutions

Public sector

International presence provides diversification and flexibility

• Enables risk diversification, flexibility in growth strategy, and access to capital markets, world-class industry competence and talent
• Profitable operations in all locations, due to continuous efficiency and a selective business strategy

Solid profitability growth in Swedish large corporates segment driven by non-lending income

• Non-lending income has grown five times faster than loan book
• Comprehensive product range enables solid customer base
• Continuing to develop growth opportunities in close collaboration with Markets

Exploring new and existing profitable positions relating to the green transition

• Continuing to build a profitable renewables position and diversify energy mix to include sustainable sources with proven technologies
• Leveraging competence in traditional industries to develop unique and valuable positions relating to the green transition e.g. offshore wind vessels, offshore wind turbines and electrification of Norwegian ferry sector
• Aiming to play a key role for emerging green industries such as hydrogen production, carbon capture and battery production and storage

Well positioned for continued profitable growth

• Build further on market-leading position in SME segment
• Leverage product offering, industry competence and market position for further growth
• Continue to develop profitable positions relating to green transition

Robust investment banking and capital markets business

• Regional champion, benefiting from local currencies and knowledge in capital markets
• Well diversified across products, geographies and industry expertise
• Strong track record of organic growth with ample future growth opportunities

Operating at regional scale with well-diversified product mix

Leading investment bank in Norway with broad international presence

• Unique market position in Norway across investment banking and capital markets products, corresponding to more than a third of total income pool1)
• Ranked number one across most advisory and securities categories in third-party customer surveys by Prospera
• Leading bank globally in NOK foreign exchange (FX) and rates

Unrivalled market position in the Norwegian market Diversified customer and income base through broad international presence

A structural shift in business mix with growing customer income

• A shift in business mix from reliance on risk management (trading) income to advisory-focused commission and fee income
• Risk exposure amount (REA) reduced by 51 per cent from 2012 to 3Q22
• Customer income more than doubled in last ten years, yielding a healthy return on allocated capital (ROAC) above 30 per cent last two years

Growth in capital-light customer income set to continue

Business areas combined provide a holistic set of solutions for customers

• Corporate Banking, Wealth Management and DNB Markets provide a complete set of products and services for customers
• Create greater value for customers and increase profitability by using strengths and expertise across DNB

Alignment across business areas increases share of wallet Markets income generated for customer segments NOK million

• Markets income generated for customer segments has increased by 119 per cent since 2013
• Continued growth supported by improving alignment across business areas

DNB Markets and Corporate Banking will continue to grow footprint in Sweden

NOK million Key drivers for continued profitable growth in Sweden

Exporting Norwegian scale to other Nordic markets with a focus on Sweden

Building on the organic growth achieved and the strong foundation established since 2007

Continuing close cooperation and strategic alignment with Corporate Banking – key to success

Making use of strong market position, which indicates considerable further room for growth across products

A driving force in mobilising capital for the sustainable transition

• Energy transition and ongoing energy crisis triggering increased investments in both fossil and renewable energy
• Nordic market is a leading geographical market with regard to sustainable bonds
• Will continue to combine strong industry expertise with global capital market presence to mobilise capital for DNB's core industries

Robust investment banking and capital markets business

• Regional champion, benefiting from local currencies and knowledge in capital markets
• Well diversified across products, geographies and industry expertise
• Strong track record of organic growth with ample future growth opportunities

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.