Dnb Bank Asa · OSL:DNB
Dnb Bank Asa — Q1 2024 Earnings Presentation
19 slides from Dnb Bank Asa's earnings presentation, Apr 23, 2024
Slide 1: Results DNB Group First quarter 2024
Results DNB Group First quarter 2024 Kjerstin R. Braathen (CEO) Ida Lerner (CFO) Q1 23 April 2024
Slide 2: Continued strong performance and solid asset quality
Continued strong performance and solid asset quality Return on equity Return on equity (ROE) of 15.6 per cent in the quarter Per cent, trailing 12-month figures Solid results across customer segments and product areas. 16.6 15.9 15.6 15.9 15.5 14.6 12.3 12.9 Net interest income (NII) down 2.9 per ce
Slide 3: Norwegian economy remains robust, and first key policy rate cut pushed out in time
Norwegian economy remains robust, and first key policy rate cut pushed out in time ▪ Moderate growth in mainland economy forecast in short term, followed by accelerating growth from 2025 ▪ Continued easing of inflationary pressure ▪ Key policy rate expected to remain at 4.50 per cent until December
Slide 4: Improved purchasing power sets stage for rise in consumer spending
Improved purchasing power sets stage for rise in consumer spending ▪ Resilient activity level supports low unemployment levels going forward ▪ Real wage growth for households expected to boost purchasing power ▪ Growth anticipated in residential property prices in the ensuing period, due to improved
Slide 5: Personal customers – solid results
Personal customers – solid results Highlights of the quarter Pre-tax operating profit NOK million ▪ Loans and deposits down from end-2023 by 1.4 and 0.9 per cent, respectively ▪ Activity level in residential real estate market picked up during the quarter ▪ Norwegian households remain robust and res
Slide 6: Corporate customers – high activity level and strong performance
Corporate customers – high activity level and strong performance Highlights of the quarter Pre-tax operating profit NOK million ▪ Profitable growth from end-2023 in both loans and deposits of 2.8 per cent and 7.2 per cent, respectively ▪ Other income excluding mark-to-market effects on a level with
Slide 7: Volumes affected by lower credit growth
Volumes affected by lower credit growth ▪ Total loan volume up 0.7 per cent – up 2.8 per cent in Corporate customers and down 1.4 per cent in Personal customers ▪ Total deposit volume up 3.9 per cent – up 7.2 per cent in Corporate customers and down 0.9 per cent in Personal customers Loans by custom
Slide 8: Net interest margin remains strong
Net interest margin remains strong Net interest margin1 Spreads in customer segments Per cent Per cent 2.08 1.94 1.95 1.97 1.87 1.87 1.69 1.78 1.61 1.51 1.62 1.62 1.38 1.46 1.50 1.25 1.40 1.38 1.37 1.36 1.43 1.38 1.23 1.16 1.28 1.18 1.19 1.16 1.18 1.14 1.05 0.49 0.50 0.13 0.11 (0.00) 1Q20 3Q20 1Q21
Slide 9: Net interest income down 2.9 per cent
Net interest income down 2.9 per cent ▪ Increased competition, product-mix effects and fewer interest days affected the result this quarter ▪ Lending growth in Corporate customers picked up late in the quarter ▪ Full effect of repricings implemented end-October and end-November 2023, partial effect
Slide 10: Commissions and fees – all-time high first quarter result
Commissions and fees – all-time high first quarter result Commissions and fees NOK million / Change in per cent from 1Q23 2 927 2 702 Real estate broking 2 634 207 -14.0 Fewer properties for sale due to Easter falling in first quarter. Activity level increased 220 towards end of quarter. 256 667 551
Slide 11: Operating expenses reflect seasonally lower activity level
Operating expenses reflect seasonally lower activity level Operating expenses NOK million 1 1 The pension scheme is partly hedged and recognised in net gains on financial instruments. 11
Slide 12: Robust and well-diversified portfolio – 99.3 per cent in stages 1 and 2
Robust and well-diversified portfolio – 99.3 per cent in stages 1 and 2 ▪ Personal customer portfolio – continued strong credit quality ▪ Corporate customer portfolio – stage 3 impairment provisions relating to customer-specific events in both large corporates and small and medium- sized enterprises
Slide 13: Strong capital position
Strong capital position ▪ CET1 capital ratio increased by 78 basis points to 19.0 per cent, ~210 basis point headroom to Financial Supervisory Authority’s (FSA’s) expectation ‒ Profit generation and ordinary dividends from DNB Livsforsikring increased CET1 capital ratio by 31 and 8 basis points, res
Slide 14: Strong first quarter result
Strong first quarter result Return on equity Earnings per share Cost/income ratio Per cent NOK Per cent 17.2 15.6 38.5 14.6 6.59 35.7 6.48 34.0 5.93 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 14
Slide 15: Appendix
Appendix
Slide 16: Income statement
Income statement Change Change NOK million 1Q24 4Q23 1Q23 from 4Q23 from 1Q23 Net interest income 15 526 15 997 14 600 (471) 927 Other operating income 4 872 3 991 5 936 880 (1 065) Total income 20 398 19 988 20 536 409 (138) Operating expenses (7 284) (7 703) (6 976) 418 (308) Pre-tax operating pro
Slide 17: Other operating income
Other operating income Change Change NOK million 1Q24 4Q23 1Q23 from 4Q23 from 1Q23 Net commissions and fees 2 702 2 927 2 634 (225) 68 Customer revenues in DNB Markets 715 816 781 (101) (66) Trading revenues in DNB Markets 227 222 324 5 (97) Hedging of defined-benefit pension scheme 99 82 62 17 37
Slide 18: Disclaimer
DISCLAIMER CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS The statements contained in this presentation may include forward-looking statements, such as statements of future expectations. These statements are based on the management’s current views and assumptions and involve both known and unk
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