DNB Bank Earnings Supported by Corporate Market and Strong Economy
By Dominic Chopping
DNB Bank's first-quarter earnings beat forecasts, helped by a positive trend in the corporate market and a resilient Norwegian economy.
Norway's largest lender made a profit attributable to shareholders of 9.79 billion Norwegian kroner ($890.8 million), compared with NOK10.19 billion a year earlier. Net interest income fell 6.3% to NOK15.53 billion.
A company-compiled consensus had seen net profit at NOK9.29 billion and net interest income of NOK15.98 billion.
Results are partly driven by a positive trend in the corporate market both in Norway and abroad, while at the same time, the Norwegian economy continues to show resilience, also contributing positively to results, it said.
The bank said net interest income is leveling off in step with the key policy rate seemingly peaking, and debt growth in Norwegian households falling to its lowest level since before the turn of the millennium.
"DNB's results for the first quarter remained strong, driven by lag effects from increased interest rates and a diversified fee platform," it said.
It still targets a return on equity above 13%, annual organic loan growth of around 3%-4% over time, an annual 4%-5% rise in net commissions and fees, and a cost-to-income ratio below 40%.
DNB's common equity Tier 1 capital ratio--a measure of a bank's financial strength--rose to 19.0% from 18.6%.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
April 23, 2024 02:24 ET (06:24 GMT)
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