DNB Bank : Equity story December 2021

Equity story

December 2021

A resilient and robust Norwegian economy

• High activity level in the Norwegian economy, fully reopened society since September with no significant restrictions
• Before the reopening, Norway was ranked no. 1 in Bloomberg's Covid Resilience Ranking of the countries handling COVID-19 most effectively
• After a key policy rate hike of 25 basis points in September, Norges Bank forecasts an additional six rate hikes before the end of 2024

Mainland GDP growth

Key policy rate

Registered unemployment

YoY, per cent

3.8

2.3

(2.5)

3.5

1.5 1.5

Per cent

1.68

1.50

1.07

Full-time unemployment, per cent

10.4

2013

2014

2015

2016

2017

2018

2019

2020

2021e

2022e

2023e

2024e

								0.25
2013	2014	2015	2016	2017	2018	2019	2020	2021e	2022e	2023e	2024e
				Forecast September			Forecast June

2.3

2.3

2.4

Dec 19

Feb 20

Mar 20

Apr 20

May 20

Aug 20

Dec 20

Apr 21

Jun 21

Sep 21

Oct 21

2022e

2023e

2024e

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		Flexible fiscal room to maneuver
		Norwegian sovereign wealth fund
Development in USD/NOK		Key policy rate
		Market value, NOK billion

1.68

11.40	1.50
	11 673
		10 088

8.58

5038

0.25	172	1 016

5.52

2013	2014	2015	2016	2017	2018	2019	2020	2021	2013	2014	2015	2016	2017	2018	2019	2020	2021e	2022e	2023e	2024e	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021
														Forecast September												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	36% corporate deposits

39% 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

4

Our financial ambitions towards year-end 2023

Return on equity

>12%

Overriding target

CET1 ratio	C/I ratio	Payout ratio
>17.6%1)	<40%	>50%
Capital level	Key performance indicator	Dividend policy

1) Supervisory authorities' expectation with full CCyB (counter-cyclical capital buffer) requirement expected to take effect in 2023 at the earliest.

5