DNB Bank 1Q Net Profit Beat Forecasts on Higher Net Interest Income

By Dominic Chopping

DNB Bank ASA on Thursday posted a forecast-beating first-quarter net profit amid higher net interest income.

Norway's largest lender made a profit attributable to shareholders of 10.19 billion Norwegian kroner ($957.9 million), compared with NOK7.39 billion a year earlier. Net interest income rose 40% to NOK14.6 billion, it said.

A company-compiled consensus had seen net profit at NOK8.67 billion and net interest income of NOK14.47 billion.

The bank said its first quarter results were driven by profitable volume growth and increased interest rates, adding that the capital situation remained solid while the portfolio is well-diversified and robust.

"We are experiencing growth in both the personal and corporate customer markets," said Chief Executive Kjerstin Braathen.

"We see that the number of savings agreements is increasing and monthly savings amounts are going up, and that customers are taking a more conscious approach to investing."

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--rose to 18.6% from 18.1%, it said.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

April 27, 2023 02:13 ET (06:13 GMT)

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