Dnb Bank Asa · OSL:DNB

Dnb Bank Asa — Q4 2023 Earnings Presentation

22 slides from Dnb Bank Asa's earnings presentation, Jan 31, 2024

  1. Slide 1: Results DNB Group Fourth quarter 2023

    Results DNB Group Fourth quarter 2023 Kjerstin R. Braathen (CEO) Ida Lerner (CFO) Q4 31 January 2024

  2. Slide 2: Strong performance in 2023 – delivering on financial ambitions

    Strong performance in 2023 – delivering on financial ambitions  Net interest income (NII) up 27.4 per cent from last year, driven by profitable volume growth and repricing effects  All-time high result from net commissions and fees (NCF), up 7.6 per cent from last year, strong performance across p

  3. Slide 3: Strong commitment to dividend policy – continued increase in dividend per share

    Strong commitment to dividend policy – continued increase in dividend per share  Dividend per share of NOK 16.00 to be proposed by Board of Directors – increase of NOK 3.50 from 2022  Total share buy-back programmes of 3.25 per cent initiated in 2023 – 78 per cent completed at year-end  Board of

  4. Slide 4: Norwegian economy heading for soft landing

    Norwegian economy heading for soft landing  Moderate growth in mainland economy anticipated in short term – growth expected to pick up from 2025  Corporate investments expected to increase in both mainland economy and petroleum sector  Key policy rate expected to remain at 4.50 per cent until Sep

  5. Slide 5: Norwegian households remain resilient

    Norwegian households remain resilient  Unemployment expected to remain low in coming years  Debt-servicing ratio close to peak – annuity loan structure alleviating burden on households of higher interest rates  Positive real wage development expected from 2024 onwards, improving households’ purch

  6. Slide 6: Solid platform for profitable growth

    Solid platform for profitable growth Market-leading position in International presence within Growth across customer segments Norwegian banking selected growth industries NOK billion, year-end Deposits from customers 23% loans to households 1 399 1 422 1 246 1 107 967 30% retail deposits 1 out of 3

  7. Slide 7: Leading positions within savings and investment supporting future growth

    Leading positions within savings and investment supporting future growth Assets under management from Leading strategic positions Commissions and fees DC pensions1 and savings NOK million NOK billion, year-end 371 2 397 2 231 300 283 2 030 1 660 223 No. 1 in asset 1 480 Strong market position manage

  8. Slide 8: Continued growth in customer revenue from DNB Markets

    Continued growth in customer revenue from DNB Markets Ranked no.1 across most advisory and Customer income – breakdown of Total income securities categories NOK million Revenues per product area NOK million  Unique market position in Norway 9 056  Leading bank globally in NOK foreign 6 788 6 609 e

  9. Slide 9: Constantly aiming to deliver better customer value in highly competitive market

    Constantly aiming to deliver better customer value in highly competitive market Capitalising on our strong digital platform Innovative solutions promoting Customers benefiting from efficient and physical distribution a transparent banking market Norwegian banks2 DNB mobile banking app highly Average

  10. Slide 10: Strong performance in the fourth quarter

    Strong performance in the fourth quarter Return on equity (ROE) of 14.6 per cent in the quarter Return on equity Driven by strong results across customer segments and product areas and Per cent, trailing 12-month figures extraordinarily low tax rate in the quarter 16.6 15.9 15.6 15.9 14.6 12.3 12.9

  11. Slide 11: Volumes affected by lower market activity

    Volumes affected by lower market activity  Loans down 0.5 per cent, currency adjusted, in both customer segments  Deposits down 0.3 per cent, currency adjusted ‒ Personal customers down 1.3 per cent and Corporate customers up 0.4 per cent  Continued strong deposit-to-loan ratio within the custome

  12. Slide 12: Positive development in net interest margin

    Positive development in net interest margin Net interest margin1 Spreads in customer segments Per cent Per cent 2.14 2.02 2.05 1.90 1.80 1.79 1.81 1.67 1.70 1.61 1.30 1.50 1.40 1.48 1.29 1.42 1.39 1.42 1.42 1.36 1.37 1.31 1.34 1.25 1.23 1.31 1.34 1.18 1.15 1.20 0.62 0.58 0.30 0.08 0.02 (0.07) 4Q19 2

  13. Slide 13: Net interest income driven by increased interest rates

    Net interest income driven by increased interest rates  Net interest income up NOK 279 million, or 1.8 per cent  Full effect of repricing implemented in early August and partial effect of repricings implemented end-October and end-November, respectively  Following Norges Bank’s key policy rate hi

  14. Slide 14: Net commissions and fees up 8.1 per cent from 4Q22

    Net commissions and fees up 8.1 per cent from 4Q22 Commissions and fees NOK million / Change in per cent from 4Q22 2 927 2 709 2 735 Real estate broking 207 -9.7 Lower number of transactions in the market compared with 2022 229 261 667 Investment banking services 525 531 +27.0 All-time high activity

  15. Slide 15: Operating expenses reflecting seasonally high activity level

    Operating expenses reflecting seasonally high activity level  Seasonally high activity level combined with strong results led to increase of approximately NOK 200 million in activity-based expenses  Non-recurring expenses of approximately NOK 80 million in the quarter  Higher return on closed def

  16. Slide 16: Robust and well-diversified portfolio – 99.2 per cent in stages 1 and 2

    Robust and well-diversified portfolio – 99.2 per cent in stages 1 and 2  Personal customer portfolio – continued strong credit quality  Corporate customer portfolio – increase in stage 3 impairment provisions relating to customer-specific events in both large corporates and small and medium-sized

  17. Slide 17: Strong capital position enabling delivery on dividend policy

    Strong capital position enabling delivery on dividend policy  CET1 capital ratio of 18.2 per cent with ~140 basis-point headroom to Financial Supervisory Authority’s (FSA) expectation following new SREP  Proposed cash dividend of NOK 16.00 per share (payout ratio of 63 per cent), up from NOK 12.50

  18. Slide 18: Appendix

    Appendix

  19. Slide 19: Income statement

    Income statement Change Change NOK million 4Q23 3Q23 4Q22 from 3Q23 from 4Q22 Net interest income 15 997 15 718 14 071 279 1 926 Other operating income 3 991 5 252 4 487 (1 260) (496) Total income 19 988 20 970 18 558 (982) 1 431 Operating expenses (7 703) (6 858) (7 366) (845) (337) Pre-tax operati

  20. Slide 20: Other operating income

    Other operating income Change Change NOK million 4Q23 3Q23 4Q22 from 3Q23 from 4Q22 Net commissions and fees 2 927 2 735 2 709 192 218 Customer revenues in DNB Markets 816 752 835 64 (18) Trading revenues in DNB Markets 222 251 157 (28) 65 Hedging of defined-benefit pension scheme 82 (19) 63 101 19

  21. Slide 21: 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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