The Board of Directors of DNB Bank ASA has decided to initiate a share buy-back programme comprising up to 1.5 percent of the company’s own shares, which represents a total of 23,139,197 shares. The buy-back programme was adopted based on an authorisation given by the Annual General Meeting held on 25 April 2023. The Financial Supervisory Authority of Norway has approved the buy-back programme, on the condition that the total buy-backs do not reduce the company’s own funds by more than NOK 4.9 billion.

The purpose of the buy-back programme is to optimise the company’s capital structure, by reducing the common equity tier 1 (CET1) capital ratio by approximately 0.50 percentage points. At the end of Q2 2023, the company had a CET1 capital ratio of 18.9 percent.

Up to 0.99 percent of the company’s own shares, which equals 15,271,870 shares, will be bought back on trading venues, at a price of between NOK 10 and NOK 300 per share. The buy-backs will, at the latest, end on 18 October 2023. DNB Markets will manage the buy-backs on behalf of the company, and will decide the timing of the purchases independently of the company. The shares that are purchased will be proposed cancelled at the Annual General Meeting in 2024.

The remaining 0.51 per cent of the shares - up to 7,867,327 shares - will at the same Annual General Meeting be proposed redeemed from the Norwegian Government, represented by the Ministry of Trade, Industry and Fisheries (“NFD”), so that NFD’s ownership interest of 34 percent remains unchanged. NFD’s shares will be redeemed at a price equal to the average price of the shares bought back on trading venues, with the addition of an interest compensation.

The buy-back programme will be carried out in accordance with the Market Abuse Regulation and the regulation regarding buy-back programmes and stabilisation measures.

For further information, please contact Rune Helland, Head of Investor Relations, on +47 23 26 84 00 or +47 97 71 32 50.

This announcement contains information that is subject to disclosure requirements pursuant to the Market Abuse Regulation and section 5-12 of the Norwegian Securities Trading Act.

Petter-Børre Furberg, member of the Board of Directors in DNB Bank ASA, has 13 July 2023 bought 5 000 shares in DNB Bank ASA at a share price of NOK 196,25. See attachment for further details.

This information is subject to the disclosure requirements according to Section 5-12 of the Norwegian Securities Trading Act. 

DNB’s profit in the second quarter of 2023 was NOK 9 462 million. This is an increase of NOK 1 505 million, or 18.9 per cent, from the corresponding quarter of 2022.

“We’re growing in both the personal and corporate customer markets, and we’re pleased that many new customers are choosing us,” says Kjerstin Braathen, Group Chief Executive Officer (CEO) of DNB.

Behind the strong results lies a robust Norwegian economy, even though the level of activity in the economy has slowed somewhat during the spring, and general uncertainty has risen. Unemployment remains at a very low level and is expected to stay low. The Norwegian central bank, Norges Bank, has raised the key policy rate several times to curb inflation, which is still far higher than the target level.

Committed to being close to customers

Net interest income increased by NOK 633 million, or 4.3 per cent, from the previous quarter, driven by profitable growth and higher interest rates.

There were impairment provisions of NOK 871 million in the quarter, mainly related to a legacy portfolio in Poland.

DNB has low levels of default on loans and unsecured credit, and the bank saw no noticeable increase in applications for interest-only periods in the quarter.

“We’re committed to providing sound advice, both to our personal and our corporate customers. Broadly speaking, we see that customers have a good overview of their finances and are making wise choices in this area. More people are contacting us for a review of their finances, and we have, among other things, strengthened the services we offer customers with financial concerns,” says Braathen.

At the same time, the bank sees that many customers are maintaining their savings schemes, and that the number of savings scheme agreements has also increased in the quarter.

High activity among companies

There is still good momentum in large parts of the Norwegian business sector, and the breadth of DNB’s products and services means that the bank is working work closely with customers across a number of sectors.

The corporate customer area delivered another record-breaking quarter, with a profit of NOK 5 560 million, and a continued positive trend in companies’ approach to the energy transition.

“From small local cornerstone companies to large industrial groups, the customers I meet are working with this in one way or another, and there’s a great demand for financing and for our expertise,” says Braathen.

The high demand for financing of sustainable initiatives is continuing. DNB has set a goal of financing and facilitating sustainable activities worth NOK 1 500 billion by 2030, and is on track to achieving this target, having reached NOK 457 billion so far.

Income from customer-driven activities (commission and fee income) amounted to a solid NOK 2 819 million in the quarter, which was an increase of 10.2 per cent compared with the corresponding quarter last year. All product areas contributed to the solid growth in income.

Financial key figures for the second quarter of 2023 (figures for the corresponding quarter in 2022):

Pre-tax operating profit before impairment amounted to NOK 13.1 billion (10.0)

Profit was NOK 9.5 billion (8.0)

Earnings per share were NOK 5.93 (5.02)

Return on equity was 15.6 per cent (14.2)

Cost/income ratio was 35.1 per cent (38.9)

Common equity Tier 1 (CET 1) capital ratio was 18.9 per cent (18.0)

For further information:
Rune Helland, Head of Investor Relations, tel.: 23 26 84 00 / 97 71 32 50
Kari Vartdal Riise, Executive Vice President of Communications (acting), tel. 97 51 67 07

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

DNB will publish its results for the second quarter of 2023 on Wednesday, 12 July 2023 at 7.30 CET.

9:30 CET: Presentation

CEO Kjerstin Braathen and CFO Ida Lerner present the results at a live streamed presentation. It will be possible to ask questions online and a broadcast will be available on the Investor Relations pages at ir.dnb.no. It will also be possible to physically attend the presentation at DNB's head office in Bjørvika, Dronning Eufemias gate 30. Please register your attendance in Oslo, at [email protected].

13:30 CET: Conference call for analysts and investors

Call inn details: Norway +47 21 56 33 18, UK Wide +44 (0) 33 0551 0200, US +1 786 697 3501. Password: DNB Q2. Please join the call 5 minutes early to allow the operator to transfer you into the call by the scheduled start time.

The conference call (listen-only mode) and a recording of this will be available on the Investor Relations pages at ir.dnb.no.

For further information, please contact:
Investor contact: Rune Helland, Head of Investor Relations, tel.: (+47) 23 26 84 00 / (+47) 97 71 32 50
Media contact: Kari Vartdal Riise, Executive Vice President of Communications (acting), tel.: (+47) 97 51 67 07

This information is subject to the disclosure requirements according to Section 5-12 of the Norwegian Securities Trading Act.

In accordance with the purpose of the buy-back programme carried out by DNB Bank ASA from 9 February 2023 to 10 March 2023, the company's annual general meeting held on 25 April 2023 decided to reduce the company's share capital with NOK 96,897,725, from NOK 19,379,562,762.50 to NOK 19,282,665,037.50, by deletion or redemption of a total of 7,751,818 shares.

The capital reduction was filed with the Norwegian Register of Business Enterprises on 6 May 2023. The creditor notice period of six weeks has now expired, and the capital reduction has been completed in accordance with the resolution from the annual general meeting. 

The new share capital of DNB ASA is NOK 19,282,665,037.50 divided between 1,542,613,203 shares of NOK 12.50 each.

For further information, please contact Rune Helland, head of Investor Relations, tel. (+47) 23 26 84 00 / (+47) 977 13 250

In the second quarter of 2023, the DNB Group will recognise a positive mark-to-market effect of NOK 52.6 million from basis swaps connected to funding. Furthermore, a positive effect of NOK 208.8 million from the USD Additional Tier 1 capital will also be recognised. The effects will appear under Net gains on financial instruments at fair value in our financial statement.

For furhter information, please contact:
Rune Helland, Head of Investor Relations, tel.: (+47) 23 26 84 00 / (+47) 97 71 32 50

DNB will publish its results for the second quarter of 2023 on Wednesday, 12 July 2023 at 7.30 CET.

9:30 CET: Presentation

CEO Kjerstin Braathen and CFO Ida Lerner present the results at a live streamed presentation. It will be possible to ask questions online and a broadcast will be avaliable on the Investor Relations pages at ir.dnb.no. It will also be possible to physically attend the presentation at DNB's head office in Bjørvika, Dronning Eufemias gate 30. Please register your attendance in Oslo, at [email protected].

13:30 CET: Conference call for analysts and investors

Call inn details: Norway +47 21 56 33 18, UK Wide +44 (0) 33 0551 0200, US +1 786 697 3501. Password: DNB Q2. Please join the call 5 minutes early to allow the operator to transfer you into the call by the scheduled start time.

The conference call (listen-only mode) and a recording of this will be avaliable on the Investor Relations pages at ir.dnb.no.

For further information, please contact:
Investor contact: Rune Helland, Head of Investor Relations, tel.: (+47) 23 26 84 00 / (+47) 97 71 32 50
Media contact: Kari Vartdal Riise, Executive Vice President of Communications (acting), tel.: (+47) 97 51 67 07

This information is subject to the disclosure requirements according to Section 5-12 of the Norwegian Securities Trading Act.

"On the basis of Norges Banks's decision at the monetary policy meeting on 22 June to raise the key policy rate by 0.50 percentage points, DNB has decided to increase the interest rate on home mortgages and deposits by up to 0.50 percentage points," says Ingjerd Blekeli Spiten, head of Personal Banking in DNB.

In DNB, we want to help young people enter the housing market, and customers who are buying their first home will therefore be given our best floating interest rate of 4.84 per cent. We have also strengthened our advisory services targeting this customer group.

All customers whose interest rates are adjusted will be given information in the online bank or recieve a letter by post, explaining how this will affect them. The new interest rates will apply from 27 June for new mortgages and deposits, and from 7 August for existing mortgages and deposits.

For further information:

Rune Helland, Head of Investor Relations, tel.: (+47) 23 26 84 00 / (+47) 97 71 32 50

Kari Vartdal Riise, Executive Vice President of Communications (acting), tel.: (+47) 97 51 67 07

On 8 February 2023, the Board of Directors of DNB Bank ASA decided to offer employees in DNB Bank ASA shares with a discount of up to 25 % (up to NOK 14,500 per employee).

The shares were allotted today, 16 May 2023, at a gross price of NOK 185.2821 per share.

Please see attachment for further details regarding the primary insiders that made use of the offer.

This information is subject of the disclosure requirements pursuant to MAR article 19 and section 5-12 of the Norwegian Securities Trading Act.