Dnb Bank Asa · OSL:DNB
Dnb Bank Asa — Debt Investor Presentation (February 2025)
29 slides from Dnb Bank Asa's debt investor presentation, Feb 11, 2025
Slide 1: Capital: AT1, Tier 2, MREL
Capital - AT1 - Tier 2 - MREL 11 February 2025
Slide 2: DNB’s outstanding Additional Tier 1 instruments
DNB’s outstanding Additional Tier 1 instruments*) USD denominated: Issue Date Type Amount Coupon First Call Date 30.05.2024 PerpNC5.5 USD 700 mn 7.375% 30.11.2029 26.03.2015 PerpNC5 USD 750 mn 5.75% 26.03.2020 (Redeemed) 18.10.2016 PerpNC5.5 USD 750 mn 6.50% 26.03.2022 (Redeemed) 12.11.2019 PerpNC5
Slide 3: DNB’s outstanding dated Tier 2 instruments
DNB’s outstanding dated Tier 2 instruments Currency Issue Date Type Amount First Call Date EUR 28.11.2022 10.25NC5.25 750 mn 28.02.2028*) EUR 13.06.2023 10.25NC5.25 500 mn 13.09.2028*) JPY 25.08.2022 10.5NC5.5 9,000 mn 25.02.2028*) JPY 24.02.2023 10.25NC5.25 12,500 mn 24.05.2028*) JPY 12.05.2023 10.
Slide 4: DNB Senior Non-Preferred benchmark bonds
DNB Senior Non-Preferred benchmark bonds Volume Tenor Call Date Maturity USD 1 000 mn 6NC5 2025 – Sep 2026 – Sep USD 900 mn 4NC3 2025 – Oct 2026 – Oct USD 1 000 mn 6NC5 2026 – May 2027 – May USD 750 mn 6.5NC5.5 2027 – Mar 2028 – Mar EUR 1 000 mn (Green) 4NC3 2026 – Feb 2027 – Feb EUR 1 000 mn (Green
Slide 5: Capital Instruments previously issued by Sbanken
Capital Instruments previously issued by Sbanken - Assumed by DNB Bank ASA following the merger between DNB and Sbanken effective 2 May 2023 AT1 Instruments: Issue Date Type Amount Coupon First Call Date 17.06.2020 PerpNC5 NOK 300 mill 3M NIBOR + 3.10% 17.06.2025 28.08.2020 PerpNC5 NOK 100 mill 3M N
Slide 6: DNB Group structure
DNB Group structure DNB Bank ASA Aa2/AA- DNB DNB Life Insurance DNB Asset Management Boligkreditt AS (Covered Bonds) AAA/Aaa DNB Boligkreditt ✓ 100% owned by DNB Bank and functionally an integrated part of the parent ✓ Mortgages originated within DNB Bank’s distribution network in accordance with th
Slide 7: DNB – Capital ratios
DNB – Capital ratios • DNB has to meet all capital requirements on DNB Bank Group level (“DNB Group”) and DNB Bank ASA solo level (“DNB Bank”) • DNB’s total capital consists of CET1 capital, AT1 capital and Tier 2 capital. As per the 2024 SREP, DNB Group’s total capital requirement was ~20.8% per YE
Slide 8: DNB delivers resilient and solid earnings
DNB delivers resilient and solid earnings Total income split 2024 Net gains on financial Other instruments income 7% at fair value 5% Net Pre-tax operating profit before impairment commission and fees Net interest NOK billion 14% income 74% 56.1 55 53.1 45 40.3 34.1 35 33 31.7 31.9 30.8 29 28.5 28.3
Slide 9: Strong capital position - well above capital requirements
Strong capital position - well above capital requirements • CET1 ratio of 19.4% per 31 December 2024, versus regulatory expectation of 16.6% • Strong profitability has on average built ~350bps in CET1 capital annually last three years before dividends • Future capital headwinds: • CRR3: ~20 bps • Ca
Slide 10: Strong capital position - Leverage ratio versus Peers
Strong capital position - Leverage ratio versus Peers As per 31 December 2024 7.3% 6.9%1) 6.8% 5.4% 5.0% 4.9% 4.6% DNB Swedbank SEB Nordea SHB Danske Bank Rabobank 1) Leverage ratio 31 December 2024 excluding central bank deposits = 7.2% 10
Slide 11: The rating agencies’ view of DNB’s capital
Strong capital position The rating agencies’ view of DNB’s capital Moody’s Moody’s assigns DNB a Capital Score of ‘aa1’ As per 30 June 2024 Moody’s Capital Score1) vs Peers DNB Swedbank2) Rabobank SHB3) SEB2) Danske Bank2) Nordea2) aa1 aa2 aa2 aa3 aa3 aa3 a1 1) Tangible Common Equity / Risk-Weighted
Slide 12: CET1 capital requirements
CET1 capital requirements • SREP 2024: P2R reduced from 2.0% to 1.7% (fulfilled with min. ~1.0% CET1), P2G unchanged at 1.25% • Strong profitability has on average built ~350bps in CET1 capital annually last three years before dividends • Future capital headwinds: • CRR3: ~20 bps • Carnegie acquisit
Slide 13: CET1 well above MDA trigger level
CET1 well above MDA trigger level • Pillar 2 Requirement included in the MDA trigger level with effect from Q2 2022 • SREP 2024: P2R set to 1.7%, to be fulfilled with ~1.0% CET1 (minimum), ~0.3% AT1 and ~0.4% Tier 2 • Future capital headwinds: • CRR3: ~20 bps • Carnegie acquisition: ~120 bp (expecte
Slide 14: AT1 and Tier 2 capital
AT1 and Tier 2 capital • SREP 2024: P2R set to 1.7%, to be fulfilled with ~1.0% CET1 (minimum), ~0.3% AT1 and ~0.4% Tier 2 • Thus, DNB’s capital requirements can be met with AT1 capital of ~1.8% and Tier 2 capital of ~2.4% AT1 and Tier 2 Maximum utilization of AT1 and Tier 2 to fulfill Per YE 2024 c
Slide 15: Solid profitability should ensure AT1 coupon payments
Solid profitability should ensure AT1 coupon payments NOK billion Profit Before Tax Dividend Share buy-back AT1 Coupon Payments 54.9 55 50.4 50 45 40.6 40 35 34.82) 32.7 31.9 31.2 30 29.0 28.11) 26.9 10.6 3.2 25 23.4 23.8 20.8 20 1.4 17.1 17.8 15.2 14.0 15.1 15 3.9 4.8 3.8 23.9 24.8 10 19.4 11.4 14.
Slide 16: EBA’s 2023 EU-wide stress test – DNB performs very well
EBA’s 2023 EU-wide stress test – DNB performs very well - DNB amongst best performing banks across Nordic and international peers • Under the 2023 EU stress test1) DNB’s CET1 ratio was reduced by • In the Adverse Scenario, DNB’s CET1 ratio is always above the MDA 212 bps2) (294 bps in the 2021 EU st
Slide 17: CRR3 | Risk weighted density
CRR3 | Risk weighted density - DNB is well positioned for future regulatory requirements1) • CRR3 • DNB is well positioned due to already high risk weights • The implementation of CRR3 is expected to have a ~20bps negative CET1 effect • Risk weighted density Risk exposure amount in % of total assets
Slide 18: DNB fulfills the MREL requirement with a solid buffer
DNB fulfills the MREL requirement with a solid buffer • DNB’s MREL requirement1) is ~37% of adjusted REA2) – leading to a need for minimum EUR ~12bn in MREL eligible debt as per end YE 2024. • DNB’s need for MREL eligible debt is influenced by excess CET1 capital, which fulfills part of the MREL req
Slide 19: MREL fulfillment as of 31 December 2024
MREL fulfillment as of 31 December 2024 MREL per Q4 2024 Reported Requirement1) Own funds and eligible liabilities as precentage of REA ~42.9% ~36.9% - Of which own funds and subordinated libabilities ~34.4% ~29.3% Adjusted Risk Exposure Amount2) (NOK mill) 994 951 1) The MREL requirement will vary
Slide 20: Further details on DNB’s capital requirements
Further details on DNB’s capital requirements Counter-Cyclical Buffer (CCyB) • CCyB in Norway increased to 2% with effect from 31 December 2022 and increased further to 2.5% with effect from 31 March 2023. • Taking into account countercyclical buffers in other countries, DNB’s effective CCyB was ~2.
Slide 21: Implementation of CRR/CRD IV
Implementation of CRR/CRD IV • Announced by Ministry of Finance December 2019. • With the final implementation of CRR/CRD IV in Norway from 31 December 2019, the Basel I floor was removed and the capital requirements for exposures to Small and Medium sized enterprises were reduced (SME discount). •
Slide 22: ADI – Available distributable items
ADI – Available distributable items • Items available for distribution is defined in the Norwegian Public Limited Liability Companies Act1): Following this definition, the ADI level is calculated as follows: ADI = total equity – share capital – fund for unrealised gains • From 1 January 2019, DNB de
Slide 23: Implementation of BRRD and change in creditor hierarchy
Implementation of BRRD and change in creditor hierarchy • The legislation implementing BRRD in Norway, entered into force 1 January 2019. • The legislation sets forth that the resolution authorities shall establish a resolution plan for each institution with specific description of the tools availab
Slide 24: DNB’s legacy perpetual bonds (discos)
DNB’s legacy perpetual bonds (discos) • On 16 November 2023, DNB announced, with reference to the legislative proposal published by the Ministry of Finance of Norway on 10 November 2023 regarding the implementation of BRRD Article 48(7) in Norway, its intention to redeem its outstanding legacy perpe
Slide 25: Temporary write-down/conversion of AT1
Temporary write-down/conversion of AT1 • The CET1 trigger for temporary write-down in DNB’s AT1 instruments is 5.125%. • DNB’s CET1 ratio was 19.4% as of 31 December 2024. • Separately, Norwegian Statutory Point of Non-Viability Rules (the Norwegian Financial Institutions Act § 20-14) are in line wi
Slide 26: DNB is among the best rated banks globally
DNB is among the best rated banks globally Moody’s Investors Service S&P Global Ratings DNB Bank ASA1) DNB Bank ASA2) • Counterparty Risk / Deposit Rating (LT): Aa13) • Resolution Counterparty Rating (LT): AA- • Senior Preferred Rating: Aa2 • Senior Preferred Rating: AA- • Outlook: Stable • Outlook:
Slide 27: Funding contacts
Funding contacts Long Term Funding: Short Term Funding: • Thor Tellefsen • Kristoffer Vilbo Hansen Senior Vice President, Head of Long Term Funding Head of Liquidity Mgt. (Short Term Funding), Group Treasury Phone direct: + 47 24 16 91 22 Phone direct: +47 24 16 90 86 Mobile: + 47 915 44 385 Mobile:
Slide 28: Disclaimer (1/2)
Disclaimer (1/2) THIS PRESENTATION AND ITS CONTENTS ARE NOT FOR DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OF AMERICA AND THE DISTRICT OF COLUMBIA) (THE "UNIT
Slide 29: Disclaimer (2/2)
Disclaimer (2/2) AN INVESTMENT IN THE ISSUER INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE ISSUER TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN
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