Dnb Bank Asa Stock Earnings Reports

DNB reported a solid Q3 with return on equity of 15.8% and EPS NOK 6.98 (YTD EPS NOK 20.81). Net interest income fell ~1% (impacted by policy rate cuts, repricing and product mix). Lending showed positive, profitable growth across segments (Personal +0.4%, Large Corporates +0.5%); deposits were broadly stable but seasonally mixed (Personal down seasonally, Corporate deposits up). Fee and commission income was strong (+28.9% y/y) supported by asset management and investment banking (AUM increased NOK 54bn in the quarter; net +NOK 15bn after Holberg divestment). Investment banking momentum (ECM/DCM) accelerated into Q4 following the DNB–Carnegie combination, with the Verisure IPO noted as a major upcoming event. Credit quality remains robust: 99.4% of exposures are Stage 1 & 2. Total impairment provisions this quarter were NOK 862m — consisting notably of NOK 281m for the legacy Polish FX portfolio and NOK 150m from an ECL model adjustment (underlying customer portfolio provisions NOK 431m). The bank has accumulated NOK 1.6bn of provisions on the Polish legacy portfolio (outstanding NOK 3.7bn), and management states they are comfortable with current provisioning while continuing close monitoring. Capital remains strong (CET1 17.9%, ~135 bps above regulatory requirement) and the bank launched a new 1% share buyback in addition to the earlier program. Management commentary: competition in Norwegian mortgages remains fierce but rational; DNB prioritizes profitability over market share. DNB does not see need for large additional investments beyond the Carnegie integration to deliver its targeted revenue growth. Renewables exposure (power & renewables) equals ~4.2% of group EAD and management does not expect regulatory-driven risk-weight model changes from recent supervisory reviews.