DNB Bank : Presentation DNB 3Q22

Results DNB Group

Third quarter 2022

Kjerstin R. Braathen (CEO)	Q3
Ida Lerner (CFO)

20 October 2022

Strong performance and solid asset quality

Return on equity

Per cent, trailing 12-month figures

				10.3	10.7	11.4	12.0	12.3
			9.8
8.8		9.2
8.4

3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22

Profit for	CET1
the period	capital ratio
NOK billion	Per cent
7.6	18.1

Return on equity (ROE) of 12.7 per cent in the quarter

Driven by strong performance in the customer segments and increased fee- related income

Net interest income (NII) up 25.5 per cent from 3Q21 and 6.3 per cent from 2Q22

Driven by profitable growth, acquisition of Sbanken and repricing

Net commissions and fees up 12.0 per cent from 3Q21

All-time high third quarter result - strong increase in income from money transfer and solid performance across other product areas

Robust and well-diversified portfolio 99.1 per cent in stages 1 and 2

Net reversals of impairment provisions in stage 3

Earnings per share (EPS) up 11.2 per cent from 3Q21

EPS of NOK 4.77 for the quarter

2

Continued high activity in the Norwegian economy

• Mainland GDP expected to decrease temporarily as efforts to combat inflation are implemented
• High share of floating-rate mortgages ensures efficient monetary policy
• Growing corporate investments expected to keep unemployment at low level

GDP and inflation

Actual and DNB Markets forecast

YoY growth, Per cent

4.1	3.7	4.3
2.3	3.3	2.8

							(2.3)
2015	2016	2017	2018	2019	2020	2021	2022F	2023F	2024F	2025F
				Mainland GDP					Core inflation

Full-time unemployment

Actual and DNB Markets forecast

Per cent

					5.0
	3.0									3.0
							1.8
2015	2016	2017	2018	2019	2020	2021	2022F	2023F	2024F	2025F
				Full-time unemployment

Key policy rate

Actual and DNB Markets forecast

Per cent

								3.25
2015	2016	2017	2018	2019	2020	2021	2022	2023F	2024F	2025F
					Key policy rate

Sources: Norges Bank (Norwegian central bank), DNB Markets forecast, Statistics Norway, NAV (Norwegian Labour and Welfare Administration)

3

Personal customers - strong increase in other income and solid loan growth

Total income

NOK million

			5 326	5 388
4 459	4 352	4 497
	53.0
48.8		50.7	50.1
			47.8
3Q21	4Q21	1Q22	2Q22	3Q22
	Sbanken		Cost/income ratio

Highlights in the quarter

• Pre-taxoperating profit up 4.7 per cent from 2Q22. Solid performance in Sbanken, up 23.7 per cent from 2Q22
• Loan growth of 1.1 per cent in the quarter, Sbanken 4.9 per cent
• Underlying savings volumes stable despite market turmoil and seasonal effects

Money transfer and banking services

NOK million

430

308

229

162

3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22

4

Corporate customers - strong result reflects high activity across industries

Total income

NOK million

			9 773	10 018
		9 483
	9 158
8 240
39.7	39.1
		37.3	37.5	36.9
3Q21	4Q21	1Q22	2Q22	3Q22
		Cost/income ratio

Highlights in the quarter

• Pre-taxoperating profit up 26.5 per cent from 3Q21 and 1.7 from 2Q22
• Year-to-dategrowth in loans to SMEs of 7.4 per cent
• Net interest income up 13.3 per cent in the quarter
• Solid performance in other income, up 27.1 per cent from 3Q21 adjusted for income from financial instruments

Income from Markets products

NOK million

1 293

982	1 056

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

3Q22

5