DNB Bank (DNB) Pre-Close Call summary

Executive summary

• Q2 pre-close call reviewed key market statistics, recent financial performance, and upcoming changes impacting results.

• Focus remains on profitable growth amid muted loan demand and evolving market conditions.

Trading performance and revenue trends

• Loan growth in Q1 was +0.7% (FX adjusted: -0.2%), with muted credit demand expected in H1 and a pickup in H2.

• Investment banking and real estate brokerage activity seasonally higher in Q2, with positive trends in residential housing prices and transactions.

• Asset management AUM increased, driven by positive market development as of May.

• Customer revenues in FICC typically higher in Q2; mark-to-market effects on AT1s and basis swaps to be announced post quarter-end.

Profitability and margins

• Margins supported by a tailwind from repricing in February, but negatively impacted by deposit mix shifts to higher-yielding alternatives.

• Negative margin effect from SME deposits being replaced by lower-margin public sector deposits.

• Net insurance results materially impacted in Q1 each year due to IFRS 17 requirements.