DNB's profit in the second quarter of 2024 was NOK 10.8 billion. This is NOK 1.3 billion, or 13.8 per cent, higher than the corresponding quarter of last year.

The results were strong in all customer segments, and were supported by a stable Norwegian economy, with low unemployment and a higher activity level than expected. 

Residential property prices have increased by 8 per cent so far this year. At the same time, the market for sale of new builds appears to have bottomed out, and several players in the sector will be working on new housing projects in the time ahead.

"Increasing wages and more stable interest rates have helped shift the mood among our customers. We have seen an increase in the number of mortgage applications, and an increasing proportion of the questions we get from our customers relates to home financing and planning personal finances," says Kjerstin Braathen, Group Chief Executive Officer (CEO) of DNB.

She also points out that the Norwegian economy is coping well with the increased interest rates.

"Inflation is declining, and real wage growth is anticipated for most people this year. At the same time, we see that the uncertainty in the world around us will be higher than normal in the period ahead," states Braathen.

Sound credit quality

DNB's net interest income totalled NOK 15.8 billion in the quarter. This is an increase of 1.9 per cent from the previous quarter. 

DNB's customers are continuing to save, and more and more people are establishing savings schemes. 

"We see a growing interest from our customers in savings, both in the form of funds in bank accounts and investment in mutual funds," says Braathen.

DNB's popular savings app Spare will soon reach 300 000 active users, and the bank's personal customers placed NOK 5 billion in fresh funds in mutual funds this quarter.

DNB's loan portfolio has proved sound throughout the interest rate hikes in the past few years, both in the personal customer market and the corporate market. DNB's impairment provisions amounted to NOK 560 million in the quarter, compared with NOK 871 million in the corresponding quarter of last year.

Income from other customer activities than lending and deposits (commission and fee income) ended at NOK 3.4 billion this quarter. This is a 22.0 per cent increase from the corresponding quarter of last year, and the best result for any quarter ever. Activity was particularly high among customers raising money in the bond market, and DNB Markets served as an adviser in many transactions this quarter.

Contributing to the green transition 

As the first Norwegian bank to do so, DNB partnered with the European Investment Fund (EIF) under the InvestEU programme in June. By giving access to financing at favourable terms, this agreement will accelerate investment in green and digital transitions. 

"In order to succeed at the transition, we must ensure that Norwegian companies have access to sufficient capital from national and international investors. As Norway's largest bank, we must use our financial heft and our international network to secure innovation and growth for Norway," says Braathen.

DNB is hosting the Group's Capital Markets Day in London on 19 November 2024.

Financial key figures for the second quarter of 2024 (figures for the corresponding quarter of 2023): 

Pre-tax operating profit before impairment amounted to NOK 14.1 billion (13.1) 

Profit was NOK 10.8 billion (9.5) 

Earnings per share were NOK 6.83 (5.93) 

Return on equity was 16.6 per cent (15.6) 

Cost/income ratio was 34.8 per cent (35.1) 

Common equity Tier 1 (CET 1) capital ratio was 19.0 per cent (18.9) 
 
 

For further information: 

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

Øystein Kløvstad Langberg, Executive Vice President of Communications, tel.: (+47) 98 04 88 25 

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