DNB Bank (DNB) Q1 2025 (Media) earnings summary

Executive summary

• Return on equity reached 15.9% in Q1 2025, reflecting strong performance across all customer segments and product areas.

• Net profit for Q1 2025 was NOK 10,849 million, up 6.3% year-over-year, with earnings per share at NOK 7.04, up 8.6% year-over-year.

• The Carnegie acquisition was completed in March, strengthening investment banking and wealth management, and contributed to results and capital ratios.

• Capital position remains solid with CET1 ratio at 18.5%, despite a 120 bps negative impact from the Carnegie acquisition.

• DNB continues to advance sustainability initiatives, mobilising NOK 792 billion towards the sustainable transition.

Financial highlights

• Net interest income was NOK 16,410 million, up 5.7% year-over-year but down 1.8% sequentially.

• Net commissions and fees reached an all-time high for Q1, up nearly 30% year-over-year, driven by investment banking and real estate broking.

• Operating expenses were NOK 7,907 million, reflecting higher personnel costs from the Carnegie acquisition.

• Impairment provisions booked at NOK 410 million for the quarter.

• Total assets reached NOK 4,030 billion at end-March 2025.

Outlook and guidance

• Norwegian GDP growth forecast at 1.5% for 2024, with moderate growth and low unemployment expected.

• Inflation is expected to decline, supporting household spending capacity.

• CET1 capital ratio outlook for Q2 2025 is neutral, with a -60 bps effect expected in Q3 2025 due to risk weight floors.

• Dividend payout ratio above 50% and annual increases in nominal dividend per share planned.

• Cost/income ratio to be maintained below 40%.