DNB's profit in the second quarter of 2023 was NOK?9?462 million. This is an
increase of NOK?1?505?million, or 18.9 per cent, from the corresponding quarter
of 2022.
"We're growing in both the personal and corporate customer markets, and we're
pleased that many new customers are choosing us," says Kjerstin Braathen, Group
Chief Executive Officer (CEO) of DNB.
Behind the strong results lies a robust Norwegian economy, even though the level
of activity in the economy has slowed somewhat during the spring, and general
uncertainty has risen. Unemployment remains at a very low level and is expected
to stay low. The Norwegian central bank, Norges Bank, has raised the key policy
rate several times to curb inflation, which is still far higher than the target
level.
Committed to being close to customers
Net interest income increased by NOK 633?million, or 4.3 per cent, from the
previous quarter, driven by profitable growth and higher interest rates.
There were impairment provisions of NOK 871 million in the quarter, mainly
related to a legacy portfolio in Poland.
DNB has low levels of default on loans and unsecured credit, and the bank saw no
noticeable increase in applications for interest-only periods in the quarter.
"We're committed to providing sound advice, both to our personal and our
corporate customers. Broadly speaking, we see that customers have a good
overview of their finances and are making wise choices in this area. More people
are contacting us for a review of their finances, and we have, among other
things, strengthened the services we offer customers with financial concerns,"
says Braathen.
At the same time, the bank sees that many customers are maintaining their
savings schemes, and that the number of savings scheme agreements has also
increased in the quarter.
High activity among companies
There is still good momentum in large parts of the Norwegian business sector,
and the breadth of DNB's products and services means that the bank is working
work closely with customers across a number of sectors.
The corporate customer area delivered another record-breaking quarter, with a
profit of NOK?5?560?million, and a continued positive trend in companies'
approach to the energy transition.
"From small local cornerstone companies to large industrial groups, the
customers I meet are working with this in one way or another, and there's a
great demand for financing and for our expertise," says Braathen.
The high demand for financing of sustainable initiatives is continuing. DNB has
set a goal of financing and facilitating sustainable activities worth NOK 1?500
billion by 2030, and is on track to achieving this target, having reached NOK
457 billion so far.
Income from customer-driven activities (commission and fee income) amounted to a
solid NOK?2?819?million in the quarter, which was an increase of 10.2 per cent
compared with the corresponding quarter last year. All product areas contributed
to the solid growth in income.
Financial key figures for the second quarter of 2023 (figures for the
corresponding quarter in 2022):
Pre-tax operating profit before impairment amounted to NOK?13.1 billion?(10.0)
Profit was NOK 9.5 billion (8.0)
Earnings per share were NOK 5.93 (5.02)
Return on equity was 15.6 per cent (14.2)
Cost/income ratio was 35.1 per cent (38.9)
Common equity Tier 1 (CET 1) capital ratio was 18.9 per cent (18.0)
For further information:
Rune Helland, Head of Investor Relations, tel.: 23 26 84 00 / 97 71 32 50
Kari Vartdal Riise, Executive Vice President of Communications (acting), tel. 97
51 67 07
This information is subject to the disclosure requirements pursuant to Section 5
-12 of the Norwegian Securities Trading Act.