DNB Bank (DNB) investor relations material

Financial performance and capital position

• Achieved resilient earnings in H1 2026 with NOK 19,681 million profit and ROE of 14.3%.

• CET1 ratio at 17.4%, well above the regulatory expectation of 16.4%.

• Cost/income ratio maintained below 40%, supporting strong profitability.

• Solid capital generation, with >350 bps CET1 built annually pre-distributions in recent years.

• Successfully completed share buy-backs and divestment of Luminor, positively impacting CET1 ratio.

Loan book and asset quality

• Loan portfolio is robust and diversified, with 99.4% in stage 1 and 2, and low impairment levels.

• Residential mortgage book is highly resilient, with 75% of loans below 75% LTV.

• Exposure to cyclical industries like oil, gas, and shipping has been reduced.

• Commercial real estate and oil-related portfolios are predominantly low risk.

• Non-performing loans and arrears remain at historically low levels.

Norwegian economy and regulatory environment

• Norwegian economy shows resilience with stable GDP growth and low unemployment.

• Inflation remains above target, prompting policy rate hikes to 4.25% in 2026.

• Lending regulations enforce strict LTV and debt-to-income limits, supporting asset quality.

• Norway’s net wealth exceeds 4x GDP, providing a buffer against downturns.

• Lending stress tests and regulatory buffers ensure financial system stability.