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DNB Bank Raises Dividend, Launches Buyback As 4Q Earnings Beat Views

By Dominic Chopping


DNB Bank ASA on Thursday raised its dividend and said it will initiate a share buyback program after it posted a forecast-beating fourth-quarter net profit amid higher net interest income.

Norway's largest lender made a profit attributable to shareholders of 9.7 billion Norwegian kroner ($939.3 million), compared with NOK5.88 billion a year earlier. Net interest income rose 37% to NOK14.07 billion, it said.

A company-compiled consensus had seen net profit at NOK7.45 billion and net interest income of NOK13.41 billion.

The bank said the high level of activity in the Norwegian economy continued into the fourth quarter while earnings were also driven by a NOK1.28 billion reduction in tax following the winding up of a subsidiary in Asia.

DNB is targeting a return on equity above 13%, and it said it is still aiming for annual organic loan growth of around 3%-4% over time, as well as an annual 4%-5% rise in net commissions and fees, and a cost-to-income ratio below 40%.

DNB's common equity Tier 1 capital ratio--a measure of a bank's financial strength--fell to 18.3% from 19.4%, it said.

DNB proposed a dividend of NOK12.50 a share, up from NOK9.75, and said its buyback will comprise up to 0.5% of its own shares.


Write to Dominic Chopping at


(END) Dow Jones Newswires

February 09, 2023 02:16 ET (07:16 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.

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