DNB Bank 2Q Common Equity Tier 1 capital ratio 18.0% vs. 19.1%

By Dominic Chopping

DNB Bank ASA reported higher-than-expected second-quarter net profit on Tuesday as profits were boosted by higher net interest income.

Norway’s biggest lender reported profit attributable to shareholders of 7.61 billion Norwegian kroner ($745.6 million), up from NOK 6.21 billion a year earlier. Net interest income increased by 22% to NOK 11.53 billion, it said.

Analysts polled by FactSet had expected net profit of NOK 6.9 billion and net interest income of NOK 11.22 billion.

The bank said it saw strong loan growth in the quarter, adding that Norway’s economy was proving robust in the face of international turmoil.

“The Norwegian business community maintains its momentum and the high level of activity is reflected in all areas of the bank,” Chief Executive Kjerstin Braathen said.

“We also expect Norwegian business investment to continue to grow, well beyond what we are seeing in other countries.”

DNB is targeting a return on equity above 12% and said it still targets an annual increase in loan volumes of around 3% to 4% over time, as well as an increase of 4% to 5% net commissions and fees. , and a cost/income ratio of less than 40%.

DNB’s Common Equity Tier 1 capital ratio – a measure of a bank’s financial strength – fell to 18.0% from 19.1%, he said.

Write to Dominic Chopping at [email protected]

Sallie R. Loera