Norwegian lender DNB has decided to initiate a share buyback program for up to 1 percent of its outstanding shares, equivalent to approximately 14.4 million shares. The program has been approved by the Norwegian Financial Supervisory Authority with a cap of approximately NOK 4.76 billion, according to a press release.

The buybacks aim to optimize the capital structure and reduce the Common Equity Tier 1 (CET1) ratio by approximately 0.4 percentage points. Up to 0.66 percent of the shares will be repurchased on the open market by August 14 at the latest.

The remaining shares are planned to be redeemed from the Norwegian state to maintain its 34 percent ownership stake. The repurchased shares are intended to be cancelled following a resolution at the upcoming Annual General Meeting.