DNB Bank (DNB) Pre-close call summary

Executive summary

• Net interest income for Q3 is expected to benefit by NOK 120 million due to one additional interest day compared to Q2.

• Lending volume showed FX-adjusted growth in Q2, with stable development in Q3 so far.

• Central bank raised the key policy rate twice, now at 4.50%, with expectations for rates to remain elevated.

• A 1% share buyback program was initiated in July, to be completed by October 16th.

• Agreement to divest 20% shareholding in Luminor, with an expected accounting loss of NOK 1 billion in Q3 and a positive CET1 effect of 20 basis points upon completion.

Trading performance and revenue trends

• Q3 typically sees lower activity levels, negatively impacting net commission, fees, and customer revenues.

• Mark-to-market effects on AT1s and basis swaps will be announced after quarter end.

Profitability and margins

• Seasonally lower activity in Q3 is expected to result in somewhat lower costs.

• Integration costs related to Carnegie are expected to reach up to NOK 200 million in 2026; NOK 77 million incurred year-to-date by Q2.

• Normalized pension expenses are approximately NOK 500 million per quarter.

• An accounting loss of NOK 1 billion from the Luminor divestment will be recognized in Q3.