Equity story
February 2022
A resilient and robust Norwegian economy
- High activity level in the Norwegian economy, fully reopened society since mid February with no significant restrictions
- Unemployment back at pre-pandemic level, indicating a positive outlook for the economy
- Two rate hikes already implemented, and Norges Bank forecasts an additional five rate hikes before the end of 2024
Mainland GDP growth | Key policy rate | Registered unemployment | ||
YoY, per cent | Per cent | Full-time unemployment, per cent | ||
4.2 | 1.75 | 10.4 |
3.6 | ||
1.50 | ||
2.3 | ||
1.6 | 1.5 | |
(2.3) |
2.6 | 2.2 | 2.3 | ||||||||||||||||||||||||||||||||||||||||
2.3 | ||||||||||||||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021e | 2022e | 2023e | 2024e | |||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022e | 2023e | 2024e | Feb 20 | Mar 20 | Apr 20 | May 20 | Aug 20 | Dec 20 | Apr 21 | Jun 21 | Sep 21 | Dec 21 | Jan 22 | 2022e | 2023e | 2024e | |||||||||||||||||
Forecast December | Forecast September | |||||||||||||||||||||||||||||||||||||||||
80% of DNB group's revenue comes from the Norwegian units | ||||||||||||||||||||||||||||||||||||||||||
Sources: DNB Markets, Statistics Norway, Norges Bank (the Norwegian central bank), NAV (the Norwegian Labour and Welfare Administration). | 2 |
The Norwegian economy has proven its resilience through the pandemic
- The floating currency provides a natural hedge
- The monetary policy gives room to maneuver and support an inflation of close to 2 per cent over time
- The fiscal policy allows room for flexibility to smooth out cycles
Floating currency | Monetary policy | |
Development in USD/NOK | Key policy rate | |
11.40 | 1.75 | |
1.50 |
8.90
5.52 | |||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022e | 2023e | 2024e | ||
Forecast December |
Flexible fiscal room to maneuver
Norwegian sovereign wealth fund
Market value, NOK billion
12 340
10 088
5038
172 | 1 016 | ||||||||||
1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
Currency | Financial return | Inflows | |||||||||||||||||||||
Sources: Norges Bank (the Norwegian central bank), | 3 |
DNB is a broad-based financial institution and by far the largest in Norway
A full-service financial institution and market leader in Norway
Market shares in Norway | |
23% retail loans | 21% corporate loans |
29% retail deposits | 35% corporate deposits |
38% retail mutual funds | 17% real estate brokerage |
29% Defined contribution
Sources: Norwegian Fund and Asset Management Association, Real Estate Norway, Finance Norway
Partnership
The dominant mobile wallet in Norway
88% of Norwegians 13 years and older have the app
More than 80% are active users
DNB owns 45% of Vipps
Ongoing merge with MobilePay and Pivo
Leading non-life insurance provider
Joint venture with SpareBank 1 Alliance
Third largest insurance provider in Norway
DNB owns 35% of Fremtind
4
Our financial ambitions towards year-end 2023
Overriding target:
Return on equity
>12%
CET1 capital ratio | C/I ratio | Payout ratio |
>17.6%1) | <40% | >50% |
Capital level | Key performance indicator | Dividend policy |
1) Financial Supervisory Authority of Norway's (FSA) expectation including pre-pandemiccounter-cyclical buffer requirements | 5 |
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DnB Bank ASA published this content on 04 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2022 15:35:02 UTC.