DNB Bank (DNB) Q4 2024 (Media) earnings summary

Executive summary

• Delivered all-time high Q4 and full-year 2024 results, with Q4 profit at NOK 12,675 million (up 34.8% year-over-year) and annual profit at NOK 45,804 million, a 16% increase from 2023.

• Return on equity reached 19.0% in Q4 (16.1% adjusted for tax), with full-year ROE at 17.5%.

• Net interest income and commissions/fees saw strong growth, with all-time high Q4 results in commissions and fees.

• Board proposes a dividend of NOK 16.75 per share for 2024, up NOK 0.75 from last year, totaling NOK 24,835 million.

• Profitable growth across all areas, driven by stable margins, increased activity, and robust asset quality.

Financial highlights

• Net interest income for Q4 was NOK 16,718 million, up 4.5% year-over-year and 3.7% from previous quarter; full-year net interest income was NOK 64,190 million, up 4.3%.

• Commission and fees reached an all-time high for a fourth quarter, with strong performance in Investment Banking and DNB Markets.

• Earnings per share for Q4 were NOK 8.21, and NOK 29.34 for 2024, up 18.2% from 2023.

• Pre-tax profit grew 16% year-over-year; cost/income ratio improved to 35.2% in 2024.

• Impairments were low at NOK 157 million in Q4, with 99.3% of the portfolio in stages 1 and 2.

Outlook and guidance

• Norwegian GDP growth expected at 1.5% in 2025, with moderate growth, low unemployment, and declining inflation.

• Unemployment to remain low, around 2–2.2%, with positive real wage development anticipated.

• Inflation is declining but at a slower pace; three rate cuts expected in 2025, with policy rate stabilizing at 3.75%.

• Lending growth guidance for a normal year is 3–4%, with potential for higher growth as seen in 2024 (5.1%).

• ROE target raised to above 14%; ambition for net commissions and fees growth above 9% annually for 2025–2027.