Slide 1: Results DNB Group Third quarter 2024
Results DNB Group Third quarter 2024 Kjerstin R. Braathen (CEO) Ida Lerner (CFO) Q3 22 October 2024
Slide 2: Strong performance and solid asset quality
Strong performance and solid asset quality Return on equity of 18.9 per cent in the quarter Return on equity Per cent, trailing 12-month figures Strong result with high activity across customer segments. 18.0 per cent adjusted for one-off gain from Fremtind/Eika merger. 15.9 16.6 15.9 15.8 16.4 15.6
Slide 3: Norwegian economy remains robust – clear signs of a soft landing
Norwegian economy remains robust – clear signs of a soft landing ▪ Expected growth in mainland economy through forecasting period ▪ Robust economic activity expected to support low unemployment rates ▪ Key policy rate expected to remain at current levels until March 2025 Mainland GDP growth Unemploy
Slide 4: Strong performance in all three customer segments
Strong performance in all three customer segments ▪ First reporting of corporate customers in two segments demonstrating DNB’s strong position among business customers in Norway ▪ High customer activity reflecting solid growth in other income, up 8.7 per cent from 3Q23 ▪ Continued strong credit qual
Slide 5: Strong and diversified product offering
Strong and diversified product offering ▪ DNB Markets – strong market position in Norway and continuing to strengthen DNB’s position in the Nordics ▪ Solid growth in net inflows due to strong position in savings ▪ Broad-based product offering ensuring recurring income Customer income from Markets an
Slide 6: Accelerates our ambition to become a leading Nordic player in investment banking and wealth management
Accelerates our ambition to become a leading Nordic player in investment banking and wealth management Significant increase in highly competent Strong increase in Nordic income DNB Bank ASA acquires Carnegie professionals across the Nordics 2Q24 Rolling 12 months, NOK billion Employees, Carnegie, Se
Slide 7: Step change to increase share of fee-related income
Step change to increase share of fee-related income ▪ Well positioned for future growth within high-margin products and services ▪ Strengthened position in the Nordics and internationally ▪ In line with DNB’s strategy to grow share of fee-related income from capital-light products Markets products o
Slide 8: Loan growth driven by increased activity
Loan growth driven by increased activity ▪ Loan growth of 1.6 per cent in the quarter ‒ up 0.8 per cent in Personal customers (PC), 0.3 in Business customers Norway (BCN), 4.7 in Large corporates and international customers (LCIC) ▪ Deposits reduced by 4.1 per cent in the quarter ‒ down 2.1 per cent
Slide 9: Positive development in net interest margin
Positive development in net interest margin Net interest margin1 Spreads in customer segments Per cent Per cent 1.87 1.90 1.87 1.89 1.90 1.67 1.81 1.61 1.62 1.62 1.78 1.70 1.51 1.50 1.40 1.50 1.29 1.37 1.25 1.38 1.40 1.42 1.43 1.40 1.39 1.31 1.34 1.28 1.31 1.16 1.30 1.18 1.14 1.05 1.04 1.07 2 3Q22 4
Slide 10: Net interest income up 2.0 per cent from 2Q24
Net interest income up 2.0 per cent from 2Q24 Net interest income NOK million 1 preads reasury Interest on olumes dditional mortisation ther e uity and interest days effects and currency fees 1 Effects of repricings, portfolio development and change in product mix. 10
Slide 11: Commissions and fees – all-time high third quarter result
Commissions and fees – all-time high third quarter result Commissions and fees NOK million / Change in per cent from 3Q23 3 439 Real estate broking 344 3 038 +1.6 Increased income from residential real estate offset by somewhat lower activity in commercial real estate. 2 735 265 261 1 017 +19.1 Inve
Slide 12: Stable operating expenses in the quarter
Stable operating expenses in the quarter Operating expenses NOK million I arketing tra el mployer s national Fi ed salaries ther and training insurance contribution 12
Slide 13: Continued strong credit quality in all customer segments
Continued strong credit quality in all customer segments Impairment of financial instruments by customer segment Maximum exposure1 NOK million Changes from 2Q24 in parentheses 3Q24 2Q24 3Q23 Stage 1 Stage 2 Stage 3 NOK 2 669 billion NOK 176 billion NOK 21 billion Total (170) (560) (937) (+87) (-8) (
Slide 14: Strong capital position
Strong capital position ▪ CET1 capital ratio of 19.0 per cent, ~220 basis-point (bps) headroom to Financial uper isory uthority’s (F ’s) current e pectation ▪ Solid profit generation increased CET1 capital ratio by 35 bps, offset by increased risk exposure amount from volume growth and currency effe
Slide 15: Strong third quarter result
Strong third quarter result Return on equity Earnings per share Cost/income ratio Per cent NOK Per cent 7.83 34.8 18.9 32.7 32.5 6.83 16.3 16.6 6.39 3Q23 2Q24 3Q24 3Q23 2Q24 3Q24 3Q23 2Q24 3Q24 15
Slide 16: Appendix
Appendix
Slide 17: Income statement
Income statement Change Change NOK million 3Q24 2Q24 3Q23 from 2Q24 from 3Q23 Net interest income 16 129 15 817 15 718 312 411 Other operating income 6 722 5 756 5 252 966 1 470 Total income 22 851 21 572 20 970 1 279 1 881 Operating expenses (7 431) (7 505) (6 858) 74 (574) Pre-tax operating profit
Slide 18: Other operating income
Other operating income Change Change NOK million 3Q24 2Q24 3Q23 from 2Q24 from 3Q23 Net commissions and fees 3 038 3 439 2 735 (402) 303 Customer revenues in DNB Markets 921 851 752 70 168 Trading revenues in DNB Markets 138 225 251 (87) (112) Hedging of defined-benefit pension scheme 42 39 (19) 3 6
Slide 19: Disclaimer
DISCLAIMER CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS The statements contained in this presentation may include forward-looking statements, such as statements of future e pectations. hese statements are based on the management’s current iews and assumptions and in ol e both known and unkno
Slide 20: Welcome to Capital Markets Day
Welcome to Capital Markets Day London, 19 November 2024 12:00 pm GMT