Stock and press releases

DNB's profit for the fourth quarter of 2021 was NOK 6 155 million, an increase of NOK 881 million from the corresponding quarter last year.

The reopening of society has boosted the level of activity in the Norwegian economy. With unemployment back at a pre-pandemic level and companies showing a high willingness to invest, DNB is experiencing a rush of customer enquiries.

"This growth reflects the strong resilience of the Norwegian business community, and once again large parts of the business sector are going at full speed. We are pleased to see that many of our corporate customers are including us in their growth plans. Activity has been historically high in DNB Markets this quarter, and we have raised capital for ensuring growth and creating new jobs. We have also seen strong growth in loans to companies," says CEO Kjerstin Braathen.

Prospera has named DNB the best-liked bank among large corporate customers in Norway, after interviewing 1 145 major Norwegian companies in 2021.

After a year of high activity and good results in all areas of the bank, DNB is in a very solid financial position. At the Annual General Meeting, the Board of Directors will propose a dividend of NOK 9.75 per share for 2021, in line with the Group's dividend policy. 

Record-high activity resulting in profitable growth

Increased customer activity also contributed to a growth in net interest income of NOK 806 million, or 8.5 per cent, compared with the fourth quarter of 2020, despite historically low interest rates in the market.

Income from customer-driven activities (commission and fee income) increased by NOK 555 million, or 22.2 per cent, compared with the corresponding quarter last year. This growth was mainly driven by higher income from DNB Markets and long-term saving, in addition to income from money transfer and banking services. 

Loans to customers increased by NOK 56.8 billion, or 3.6 per cent, during the course of 2021. Customer deposits increased by NOK 140.6 billion, or 12.7 per cent, during the same period. 

A driving force for sustainable transition

During the course of 2021, DNB strengthened its expertise on renewable value chains, as well as its focus on this area. The bank aims to be a driving force for sustainable transition and will facilitate financing of NOK 1 500 billion for the sustainable transition by 2030. 

"We are well on the way to achieving this ambitious goal, and last year we financed or facilitated sustainable activities worth more than NOK 200 billion, together with our customers. We are receiving a great number of enquiries from companies that are developing new technology or undergoing a sustainable transition. This reinforces my belief that banks and the business sector will play a key role in achieving the ambitions of the Paris Agreement," says Braathen.

Financial key figures for the fourth quarter of 2021 (figures for the corresponding quarter in 2020):

• Pre-tax operating profit before impairment amounted to NOK 8.2 billion (6.8)
• Profit was NOK 6.2 billion (5.3)
• Earnings per share were NOK 3.79 (3.28)
• Return on equity was 10.3 per cent (8.9)
• Cost/income ratio was 43.9 per cent (48.8)
• Common equity Tier 1 (CET 1) capital ratio was 19.4 per cent (18.7)

Financial key figures for 2021 (corresponding figures for 2020):

• Pre-tax operating profit before impairment amounted to NOK 31.9 billion (33.0)
• Profit for the year was NOK 25.4 billion (19.8)
• Earnings per share were NOK 15.74 (12.04)
• Return on equity was 10.7 per cent (8.4)
• Cost/income ratio was 43.0 per cent (41.5)

DNB's financial ambitions remain unchanged: a return on equity (ROE) above 12 per cent, a cost ratio (C/I) of less than 40 per cent and a long-term dividend policy where more than half of the annual profit is to be paid out to our owners. DNB's ambition for the capital level (CET1 capital ratio) has been adjusted from 17.1 to 17.6 per cent to reflect new capital expectations from Finanstilsynet (the Financial Supervisory Authority of Norway). DNB is changing its tax guidance from 22 to 23 per cent.

For further information:

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

Thomas Midteide, Group Executive Vice President of Communications & Sustainability, tel.: (+47) 96 23 20 17

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

DNB will publish its results for the fourth quarter of 2021 on Thursday, 10 February 2022 at 07.30 CET.

The fourth quarter results will be presented at 9:30-11:00 CET the same day, at an extended presentation which also will include presentations from the Personal Banking and Wealth Management segments. A broadcast will be available on the Investor Relations website at ir.dnb.no and it will be possible to ask questions online.

Agenda:

• Kjerstin Braathen (CEO)
• Ida Lerner (CFO)
• Ingjerd Blekeli Spiten (Group EVP Personal Banking)
• Håkon Hansen (Group EVP Wealth Management)
• Q&A 

A conference call for analysts and investors will be held at 13:30 CET. Call in details: Norway +47 21 56 33 18, UK Wide +44 (0) 33 0551 0200, US +1 212 999 6659. Password: DNB Q4. Please join the call 5 minutes early to allow the operator to transfer you into the call by the scheduled start time.

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

For further information, please contact:

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

Media contact: Thomas Midteide, Group EVP, Communication & Sustainability, tel. (+47) 962 32 017

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

DNB will publish its results for the fourth quarter of 2021 on Thursday, 10 February 2022 at 07.30 CET.

The fourth quarter results will be presented at 9:30-11:00 CET the same day, at an extended presentation which also will include presentations from the Personal Banking and Wealth Management segments. A broadcast will be available on the Investor Relations website at ir.dnb.no and it will be possible to ask questions online.

Agenda:

• Kjerstin Braathen (CEO)
• Ida Lerner (CFO)
• Ingjerd Blekeli Spiten (Group EVP Personal Banking)
• Håkon Hansen (Group EVP Wealth Management)
• Q&A

A conference call for analysts and investors will be held at 13:30 CET. Call in details: Norway +47 21 56 33 18, UK Wide +44 (0) 33 0551 0200, US +1 212 999 6659. Password: DNB Q4. Please join the call 5 minutes early to allow the operator to transfer you into the call by the scheduled start time.

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

For further information, please contact:

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

Media contact: Thomas Midteide, Group EVP, Communication & Sustainability, tel. (+47) 962 32 017

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

In the fourth quarter of 2021, the DNB Group will recognise a positive effect of NOK 100 million from basis swaps connected to funding. Furthermore, a positive effect of NOK 125 million from the USD Additional Tier 1 capital will also be recognised.

For further information, please contact:

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

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

Yesterday, the Norwegian central bank, Norges Bank, raised the key policy rate by 0.25 percentage points, and today, DNB has decided to increase the interest rates on home mortgages by up to 0.25 percentage points.

“On the basis of Norges Bank's decision to raise the key policy rate, DNB has decided to adjust the interest rate on home mortgages by up to 0.25 percentage points," says Ingjerd Blekeli Spiten, head of Personal Banking in DNB.

All customers whose interest rates are adjusted will be given information in the internet bank or receive a letter by post, explaining how their home mortgage will be affected. The new interest rates will be effective from 18 December for new customers, and from 28 January 2022 for existing customers.  

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

Vibeke Hansen Lewin, Executive Vice President Communications tel.: (+47) 99 01 33 49

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

The Financial Supervisory Authority of Norway (“the FSA”) regularly (and usually each year) carries out a Supervisory Review and Evaluation Process (“SREP”), where they evaluate DNB’s risks and capital needs. The SREP includes a decision regarding the Pillar 2 Requirement and the Pillar 2 Guidance for the following year. DNB Bank ASA has now received this year’s decision from the FSA, which will apply from 31 December 2021.

The new Pillar 2 Requirement for DNB Bank ASA and the DNB Bank Group is 1.9 % of the total risk exposure amount (TREA). The requirement must be met with common equity tier 1 (CET1) capital and comes in addition to the minimum requirements and combined buffer requirements under pillar 1. The current Pillar 2 Requirement is 1.8 % of TREA, but the requirement must be met with CET1 capital of no less than 15.3 billion NOK for DNB Bank ASA and 19.4 billion NOK for the DNB Bank Group, which at the end of Q3 2021 amounted to 1.8 and 2.0 % of TREA.

Further, the FSA expects DNB Bank ASA and the DNB Bank Group to maintain a Pillar 2 Guidance, i.e. a margin in the form of CET1 capital, that exceeds the total capital requirement with 1.5 % of TREA. The current expectation is a margin in the form of CET1 capital that exceeds the total CET1 capital requirement with 1.0 % of TREA.

Compared to the requirements at the end of Q3 2021, the overall CET1 ratio requirement for DNB Bank ASA will increase from 14.7 to 14.8 %, while the requirement for the DNB Bank Group will be reduced from 14.9 to 14.8 %. Including the FSA’s expectations regarding Pillar 2 Guidance, the ratios for DNB Bank ASA and the DNB Bank Group will, respectively, increase from 15.7 to 16.3 %, and from 15.9 to 16.3%.

For capital planning purposes, DNB’s ambition is a CET1 capital ratio above 17.1 %. This is based on the current Pillar 2 Requirement, current Pillar 2 Guidance and a full countercyclical capital buffer rate of 2.5 %. As a result of the FSA’s Pillar 2 Guidance increasing from 1.0 % to 1.5 %, the ambition for the CET1 capital ratio increases correspondingly, i.e. to 17.6 %.

At the end of Q3 2021, DNB Bank ASA and the DNB Bank Group had CET1 ratios of 21.9 % and 19.2 %.

For further information, please contact:

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

Media contact: Thomas Midteide, Group Executive Vice President, Communication & Sustainability, tel. (+47) 962 32 017

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