Dnb Bank Asa · OSL:DNB
Dnb Bank Asa — Q2 2024 Earnings Presentation
19 slides from Dnb Bank Asa's earnings presentation, Jul 11, 2024
Slide 1: Results DNB Group Second quarter 2024
Results DNB Group Second quarter 2024 Kjerstin R. Braathen (CEO) Ida Lerner (CFO) Q2 11 July 2024
Slide 2: Strong performance – all-time high net commissions and fees
Strong performance – all-time high net commissions and fees Return on equity of 16.6 per cent in the quarter Return on equity Solid result with high and increasing activity across customer segments and Per cent, trailing 12-month figures product areas. 15.9 16.6 15.9 15.8 15.6 15.5 14.6 12.3 12.9 Ne
Slide 3: Norwegian economy remains resilient – likely to further delay key policy rate cuts
Norwegian economy remains resilient – likely to further delay key policy rate cuts Growth in mainland economy expected to pick up through the forecasting period Continued gradual reduction in inflation levels Markets expect first cut in key policy rate in March 2025 Mainland GDP growth Inflati
Slide 4: Purchasing power strengthening during the year
Purchasing power strengthening during the year Robust economic activity expected to support low unemployment rates Increased household real wages expected to enhance spending capacity Residential property prices expected to show strong positive development, driven by increased purchasing power
Slide 5: Personal customers – increasing activity during the quarter
Personal customers – increasing activity during the quarter Highlights of the quarter Pre-tax operating profit NOK million Stable loan volumes and 2.9 per cent growth in deposits Other income up 15.7 per cent from 1Q24, mainly driven by DNB Eiendom – increasing activity in residential property m
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 Loans up 1.1 per cent and deposits down 1.2 per cent, currency-adjusted (YoY loans up 1.7 and YoY deposit up 5.7 per cent) Strong performance in other income, up 35.4 p
Slide 7: Volumes affected by increased customer activity
Volumes affected by increased customer activity Currency-adjusted loan growth of 0.6 per cent in the quarter ‒ up 1.1 per cent in Corporate customers and stable in Personal customers Currency-adjusted deposit growth of 0.4 per cent in the quarter ‒ up 2.9 per cent in Personal customers and down
Slide 8: Net interest margin remains strong
Net interest margin remains strong Net interest margin1 Spreads in customer segments Per cent Per cent 2.14 2.05 1.90 1.89 1.81 1.67 1.67 1.70 1.50 1.40 1.48 1.42 1.39 1.42 1.36 1.40 1.37 1.42 1.25 1.20 1.34 1.31 1.18 2 1.04 0.58 0.02 (0.07) 2Q20 4Q20 2Q21 4Q21 2Q22 4Q22 2Q23 4Q23 2Q24 2Q20 4Q20 2Q2
Slide 9: Net interest income up 1.9 per cent from 1Q24
Net interest income up 1.9 per cent from 1Q24 Net interest income NOK million 1 1 Effects of repricings, portfolio development and change in product mix. 9
Slide 10: All-time high commissions and fees – up 22.0 per cent from 2Q23
All-time high commissions and fees – up 22.0 per cent from 2Q23 Commissions and fees NOK million / Change in per cent from 2Q23 3 439 +5.3 Real estate broking 344 Solid quarter driven by higher activity level in the market. 2 819 2 702 326 220 1 017 +60.0 Investment banking services All-time high re
Slide 11: Operating expenses reflecting seasonally high activity level
Operating expenses reflecting seasonally high 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 – 99.2 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 – 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 stable from 1Q24 at 19.0 per cent, ~210 basis-point (bps) headroom to Financial Supervisory Authority’s (FSA’s) expectation ‒ Solid profit generation increased CET1 capital ratio by 33 bps, offset by new share buy-back programme of 1.0 per cent (-29 bps)
Slide 14: Strong second quarter result
Strong second quarter result Return on equity Earnings per share Cost/income ratio Per cent NOK Per cent 6.83 35.1 35.7 16.6 34.8 15.6 15.6 6.48 5.93 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 14
Slide 15: Appendix
Appendix
Slide 16: Income statement
Income statement Change Change NOK million 2Q24 1Q24 2Q23 from 1Q24 from 2Q23 Net interest income 15 817 15 526 15 232 290 585 Other operating income 5 756 4 872 4 971 884 785 Total income 21 572 20 398 20 203 1 174 1 369 Operating expenses (7 505) (7 284) (7 083) (221) (422) Pre-tax operating profi
Slide 17: Other operating income
Other operating income Change Change NOK million 2Q24 1Q24 2Q23 from 1Q24 from 2Q23 Net commissions and fees 3 439 2 702 2 819 737 621 Customer revenues in DNB Markets 851 715 771 136 80 Trading revenues in DNB Markets 225 227 401 (2) (176) Hedging of defined-benefit pension scheme 39 99 48 (60) (9)
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
Slide 19: Save the date: Capital Markets Day
Save the date: Capital Markets Day London, 19 November 2024