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

Executive summary

• Delivered strong Q1 results with profit reaching NOK 10,849 million, up 6.3% year-over-year, reflecting robust activity across all customer segments and a resilient Norwegian economy.

• Legal close of the Carnegie transaction in March, strengthening investment banking and wealth management in the Nordics; March results included in Q1 figures.

• General Assembly approved NOK 25 billion dividend for 2024, with NOK 12 billion returning to Norwegian society.

• Return on equity reached 15.9%, well above the 14% target.

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

Financial highlights

• Net interest income rose 5.7% year-over-year to NOK 16,410 million, driven by profitable volume growth.

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

• Earnings per share at NOK 7.04, up 8.6% year-over-year.

• Impairment provisions booked at NOK 410 million for the quarter, up from NOK 323 million a year earlier.

• Cost/income ratio at 36.1%.

Outlook and guidance

• Norwegian GDP growth forecast at 1.5% for 2024, up from 0.6% in 2023.

• ROE target remains above 14%, with ambitions for 3–4% annual organic loan growth and over 9% annual growth in net commissions and fees for 2025–2027.

• Cost/income ratio to be maintained below 40%; dividend payout ratio above 50% with annual increases in nominal dividend per share.

• Central bank policy rate held at 4.5%, with two rate cuts expected in H2 2024.

• Wage growth anticipated at 4.45%, supporting real wage growth and disposable income.