DNB Bank 1Q Net Profit Boosted by Net Interest Income, Impairment Reversals

By Dominic Chopping

DNB Bank ASA on Thursday posted a forecast-beating rise in first-quarter net profit, as earnings were boosted by higher net interest income and impairment reversals.

Norway's largest lender made a profit attributable to shareholders of 7.3 billion Norwegian kroner ($786 million), compared with NOK5.67 billion a year earlier. Net interest income rose 13% to NOK10.45 billion, it said.

Analysts polled by FactSet had expected net profit of NOK5.82 billion and net interest income of NOK10.44 billion.

Impairment of financial instruments showed net reversals of NOK589 million in the quarter, mainly as a result of reversals in corporate customers within the oil, gas and offshore industry, the bank said.

DNB is targeting a return on equity above 12%, and it said it is still set to deliver on this target by the end of 2023.

The bank still targets an annual increase in lending volumes of around 3%-4%, net commissions and fees to rise by 4%-5%, and a cost-to-income ratio below 40%.

DNB's common equity Tier 1 capital ratio--a measure of a bank's financial strength--fell to 18.1% from 19.2%, it said.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

04-28-22 0214ET