DNB Bank : Equity story February

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