DNB Bank (DNB) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 2025 results with robust growth across customer segments and product areas, supported by a resilient Norwegian economy, low unemployment, and solid real wage development, despite a slower investment pace and downward-trending inflation.

• Q4 profit was NOK 11,612 million, down 8.4% year-over-year but up 8.7% sequentially; earnings per share reached NOK 7.65 for the quarter and NOK 28.45 for 2025.

• Return on equity reached 16.6% in Q4, with a full-year ROE of 15.9%.

• Board proposes a dividend of NOK 18.00 per share for 2025, totaling NOK 26.2 billion, with share buy-backs increasing total payout ratio to 86%.

• Acquisition of Carnegie Group completed in March 2025, strengthening investment banking and wealth management in the Nordics.

Financial highlights

• Net interest income for 2025 rose 0.8% to NOK 64,731 million, with 1.2% quarter-over-quarter growth in Q4, driven by 4.5% loan and 4.1% deposit growth, but spreads narrowed.

• Net commissions and fees rose 40.3% year-over-year in Q4, with full-year net other operating income up 16% to NOK 25,918 million.

• Operating expenses rose to NOK 9,361 million in Q4, including NOK 200 million in non-recurring costs, mainly due to higher activity and Carnegie integration.

• Cost/income ratio improved to 37.4% in Q4 2025; full-year ratio was 38.0%.

• Pre-tax operating profit before impairment was NOK 14,194 million in Q4 2025, nearly flat sequentially but up NOK 705 million year-over-year.

Outlook and guidance

• Norwegian mainland GDP growth forecast at 1.5% for 2026, with positive real wage growth expected to drive consumption and savings.

• Two rate cuts are expected in 2025, with the key policy rate stabilizing around 3.75%.

• Targeting ROE above 14% and annual organic loan growth of 3–4% over time, with ambition to increase net commissions and fees by more than 9% annually in 2026–2027.

• Fee income from investment banking is expected to remain strong in Q4s, reflecting a normalized seasonal pattern.

• Long-term tax rate expected at 23%; CET1 capital ratio target set above 16.3%.