DNB Bank (DNB) Q2 2025 earnings summary

Executive summary

• Norwegian economy remains robust with GDP growth forecast at 1.2% for 2024 and 1.5% for 2025, and unemployment stable at 2%.

• Achieved strong Q2 2025 performance with high activity across customer segments, supported by the successful integration of Carnegie and digital innovation initiatives.

• All-time high customer satisfaction in Private Banking and Large Corporates & International, with notable product launches and digital enhancements.

• Annualised ROE for Q2 was 15.4%, with EPS at NOK 6.79; CET1 capital ratio at 18.3% under new CRR3 rules.

• Profit for Q2 was NOK 10,442 million, down 3% year-over-year and 3.7% sequentially.

Financial highlights

• Net interest income was NOK 16,152 million, down 1.6% from Q1 2025 but up 2.1% from Q2 2024.

• Net commissions and fees increased 27.1% year-over-year, driven by the Carnegie acquisition.

• Operating expenses increased 16.2% year-over-year, mainly due to Carnegie acquisition; cost/income ratio at 38.8%.

• Permanent provisions of NOK 677 million taken, mainly in large corporate and corporate customer Norway segments.

• Core equity tier 1 capital ratio at 18.3%, 180bps above regulatory expectations.

Outlook and guidance

• Economists expect two more rate cuts in 2024 and two additional in 2025, with inflation seen as the main differentiator from Norges Bank's more dovish outlook.

• Full effect of mortgage repricing to be implemented by August 25, with an eight-week lag on both deposits and mortgage lending.

• Confident in achieving 3%-4% loan growth for the year, with 1.7% growth year-to-date and signs of increased credit demand.

• Guidance maintained for 9% annual growth in fee and commission income through 2027; cost/income ratio to stay below 40%.

• CET1 capital ratio expected to be above 16.5%, with 60bps negative impact from higher mortgage risk weights offset by profit generation.