DNB Bank (DNB) CMD 2024 summary

Strategic direction and financial targets

• Raised return on equity target to above 14% for 2025–2027, with a cost/income ratio below 40% and CET1 capital ratio above 16.7%.

• Dividend policy remains: payout ratio above 50%, ambition to increase nominal cash dividend annually, and use of share buybacks to optimize capital.

• NOK 3 billion in further gross cost reductions targeted, leveraging digitalization, automation, and IT modernization.

• Focus on capital-light growth, especially in fee-generating businesses like asset management, pensions, and investment banking, with the Carnegie acquisition expected to accelerate this.

• Annual commission and fee income growth target increased to above 9%, up from 4-5%.

Business area developments and growth levers

• Personal Banking leverages two strong brands, a leading digital platform, and high customer engagement to drive profitable growth and loyalty.

• Corporate Banking Norway maintains a diversified portfolio, strong deposit base, and leading digital solutions, focusing on SMEs and local presence.

• Large Corporates and International segment emphasizes cross-selling, reduced reliance on lending income, and international expansion, especially in the Nordics and select global industries.

• DNB Markets (to be DNB Carnegie) aims to become the Nordic leader in investment banking, leveraging complementary strengths with Carnegie.

• Wealth Management continues robust growth in defined contribution pensions, private banking, and digital savings, with scalable digital platforms and recurring fee growth.

Digitalisation, innovation, and customer value

• Over 62% of IT systems migrated to the cloud, with significant decommissioning of legacy systems, driving cost savings and scalability.

• AI and machine learning are actively used in fraud detection, co-coding, and customer service, with ongoing investments in digital engagement and personalized advice.

• Digital sales penetration is high, with 98% of mutual fund sales and 81% of car loans sold digitally; ongoing efforts to further increase digital and personalized sales.

• Customer loyalty is reinforced by broad product usage, with average mortgage and corporate customers holding over five products, and digital platforms driving daily engagement.

• Sustainability and societal impact remain core, with strong positions in green finance, anti-fraud initiatives, and community contributions through Sparebankstiftelsen DNB.