DNB Bank (DNB) Q2 2025 earnings summary

Executive summary

• Norwegian economy remains robust, with GDP growth forecast at 1.2% for this year and 1.5% next year; unemployment stable at 2%.

• Achieved strong Q2 2025 performance with high activity across customer segments, supported by the successful integration of Carnegie and digital innovation initiatives.

• All-time high customer satisfaction in Private Banking and Large Corporates & International, with notable product launches and digital enhancements.

• Annualised ROE for Q2 was 15.4%, with EPS at NOK 6.79; CET1 capital ratio at 18.3% under new CRR3 rules.

• Net interest income rose 2.1% year-over-year but fell 1.6% sequentially; net other operating income up 10.1% year-over-year, driven by commissions and fees, with first full-quarter contribution from Carnegie.

Financial highlights

• Net interest income for Q2 was NOK 16,152 million, up 2.1% year-over-year but down 1.6% from Q1 2025.

• Net commissions and fees increased 27.1% year-over-year, driven by the Carnegie acquisition.

• Profit for Q2 was NOK 10,442 million, down 3% year-over-year and 3.7% sequentially.

• Operating expenses increased 16.2% year-over-year, mainly due to the Carnegie acquisition; cost/income ratio at 38.8%.

• CET1 capital ratio stood at 18.3%, 180bps above regulatory expectations.

Outlook and guidance

• Economists expect two more rate cuts in 2025, bringing the key policy rate to 3.75%.

• Guidance for fee and commission income growth maintained at 9% annually; cost/income ratio to stay below 40%.

• Loan growth target of 3%-4% for the year reaffirmed, with 1.7% growth year-to-date and expectations of increased credit demand.

• Net interest income expected to be negatively impacted by policy rate cuts; further reductions anticipated in September and December.

• Dividend payout policy unchanged, with >50% payout and share buybacks as flexible capital allocation.