Stock and press releases

DNB's profit for the fourth quarter of 2022 was NOK 9 947 million, an increase of NOK 3 792 million from the corresponding quarter last year.

The high level of activity in the Norwegian economy continued into the fourth quarter. A tight labour market and rising inflation contributed to Norges Bank raising the key policy rate several times to curb inflation. In addition, the result was driven by growth and a reduction in tax of NOK 1 284 million following the winding up of a subsidiary in Asia.

"Looking back, it's been a highly unusual year, with the reopening of society after the pandemic, geopolitical turmoil and uncommonly high inflation. In a turbulent financial market, the Norwegian economy has once again shown resilience, and Norwegian companies' ability to adapt has really impressed me. DNB is well equipped for supporting personal customers and businesses through uncertain times," says CEO Kjerstin Braathen.

After a year of high activity and good results in all areas of the bank, DNB is in a very sound financial position. At the Annual General Meeting, the Board of Directors will propose a dividend of NOK 12.50 per share for 2022, in line with the Group's dividend policy. Around half of DNB's dividends are channelled back into Norwegian society.

"For the fifth year in a row, the DNB Savings Bank Foundation will receive more than NOK 1 billion in dividends from DNB, and this year they will receive more than NOK 1.6 billion. They use this money to promote positive causes in society, for example by donating more than NOK 20 million to the Norwegian Trekking Association. That's something we're proud of," says Braathen.

Increased activity in all product areas

Loans to customers increased by NOK 220 billion, or 12.3 per cent, in 2022. Customer deposits increased by NOK 153 billion, or 10.7 per cent, during the same period. A high level of customer activity, increased interest rate levels and volume growth contributed to an increase in net interest income of NOK 3 785 million, or 36.8 per cent, compared with the fourth quarter of 2021, which was characterised by historically low interest rates in the market. Compared with the third quarter of 2022, the increase was NOK 1 818 million, or 14.8 per cent.

"Never before have we spoken with more customers, and we find that, on the whole, our customers are well prepared. Our customers are seeking advice, and businesses and personal customers alike are making necessary adjustments in the face of the new economic situation," says Braathen.

Income from customer-driven activities (commission and fee income) remained on a level with that of the corresponding quarter of last year and reached a solid 3 038 million, in a turbulent financial market. All product areas, and in particular money transfer and banking services, contributed to a solid growth in income of NOK 441 million in 2022, or 4 per cent, compared with the previous year.

A driving force for sustainable transition

Throughout 2022, DNB saw a strong demand for financing for sustainable initiatives. The bank aims to be a driving force for sustainable transition by financing and facilitating sustainable activities worth NOK 1 500 billion by 2030. We are well on track to reach our target, and the status for this goal was a total of NOK 391 billion at the end of last year. DNB Markets participated in 51 transactions across a wide range of regions and sectors, increasing its transaction volume by 47 per cent compared with the previous year.

Financial key figures for the fourth quarter of 2022 (figures for the corresponding quarter in 2021):

• Pre-tax operating profit before impairment amounted to NOK 10.98 billion (8.2)
• Profit was NOK 9.9 billion (6.2)
• Earnings per share were NOK 6.26 (3.79)
• Return on equity was 16.2 per cent (10.3)
• Cost/income ratio was 40.7 per cent (43.9)
• Common equity Tier 1 (CET 1) capital ratio was 18.3 per cent (19.4)

Financial key figures for 2022 (corresponding figures for 2021):

• Pre-tax operating profit before impairment amounted to NOK 39.6 billion (31.9)
• Profit was NOK 32.9 billion (25.4)
• Earnings per share were NOK 20.65 (15.74)
• Return on equity was 13.8 per cent (10.7)
• Cost/income ratio was 40.1 per cent (43.0)

For further information:

Rune Helland, Head of Investor Relations, tel.: (+47) 23 26 84 00 / 97 71 32 50

Thomas Midteide, Group Executive Vice President of Communications & Sustainability, tel.: (+47) 96 23 20 17

This information is subject to the disclosure requirements pursuant to section 5-12 of the Securities Trading Act.

DNB will publish its results for the fourth quarter of 2022 on Thursday, 9 February 2023 at 7.30 CET.

9:30 CET: Presentation

CEO Kjerstin Braathen and CFO Ida Lerner present the results at a live streamed presentation. It will be possible to ask questions online and a broadcast will be available on the Investor Relations pages at ir.dnb.no. It will also be possible to physically attend the presentation at DNB's head office in Bjørvika, Dronning Eufemias gate 30. Please register your attendance in Oslo, at [email protected].

13:30 CET: Conference call for analysts and investors

Call in details: Norway +47 21 56 33 18, UK Wide +44 (0) 33 0551 0200, US +1 78 6697 3501. Password: DNB Q4. Please join the call 5 minutes early to allow the operator to transfer you into the call by the scheduled start time.

The conference call (listen-only mode) and a recording of this will be available on the Investor Relations pages at ir.dnb.no.

For further information, please contact:

Investor contact: Rune Helland, head of Investor Relations, tel. (+47) 23 26 84 00 / (+47) 977 13 250

Media contact: Thomas Midteide, Group Executive Vice President, Communication & Sustainability, tel. (+47) 962 32 017

This information is subject to the disclosure requirements according to Section 5-12 of the Norwegian Securities Trading Act.

The new accounting rules for the recognition, measurement and presentation of insurance contracts (IFRS 17) was mandatory for the reporting period beginning on 1 January 2023, with requirements for comparable figures for 2022. The DNB Group will report in accordance with IFRS 17 as of the first quarter of 2023. Meaning there will be no changes related to IFRS 17 in the fourth quarter report 9 February 2023.

The IFRS 17 rules are effective only for the DNB Group's accounts; that is, the rules are not being introduced in the company accounts for DNB Livsforsikring. The transition to IFRS 17 does not therefore affect DNB Livsforsikring's capitalisation, tax base or dividend capacity. There are no changes in the underlying business model, operations or strategy as a result of the introduction of IFRS 17.

The transition to IFRS 17 does not affect the DNB Group's common equity Tier 1 (CET1) capital, and thus does not affect the Group's capital adequacy, leverage ratio, maximum distributable amount (MDA) or dividend capacity.

The full implementation effect of IFRS 17, as well as the effect of the changed measurement of financial instruments, is estimated to be in the order of NOK 10 billion after tax, and will reduce the Group's equity at the transition date. The one-time effect on equity will be compensated for by positive results in future periods.

For further information, please contact:

Rune Helland, head of Investor Relations, tel. (+47) 23 26 84 00 / (+47) 977 13 250

DNB will publish its results for the fourth quarter of 2022 on Thursday, 9 February 2023 at 7.30 CET.

9:30 CET: Presentation

CEO Kjerstin Braathen and CFO Ida Lerner present the results at a live streamed presentation. It will be possible to ask questions online and a broadcast will be available on the Investor Relations pages at ir.dnb.no. It will also be possible to physically attend the presentation at DNB's head office in Bjørvika, Dronning Eufemias gate 30. Please register your attendance in Oslo, at [email protected].

13:30 CET: Conference call for analysts and investors

Call in details: Norway +47 21 56 33 18, UK Wide +44 (0) 33 0551 0200, US +1 78 6697 3501. Password: DNB Q4. Please join the call 5 minutes early to allow the operator to transfer you into the call by the scheduled start time.

The conference call (listen-only mode) and a recording of this will be available on the Investor Relations pages at ir.dnb.no.

For further information, please contact:

Investor contact: Rune Helland, head of Investor Relations, tel. (+47) 23 26 84 00 / (+47) 977 13 250

Media contact: Thomas Midteide, Group Executive Vice President, Communication & Sustainability, tel. (+47) 962 32 017

This information is subject to the disclosure requirements according to Section 5-12 of the Norwegian Securities Trading Act.

The low tax expense is mainly a result of the liquidation of the subsidiary in Asia in the fourth quarter. DNB hedges investments in foreign subsidiaries to eliminate the foreign currency exposure which arises when the functional currency differs from that of the Group. Gains or losses on investments in foreign subsidiaries are exempt from tax while corresponding gains or losses on hedging instruments are taxable. When a foreign operation is disposed of or liquidated, the cumulative gains or losses of the hedging instruments recognised in equity is reclassified to the ordinary income statement. The reclassification reduces the tax expense in the fourth quarter with NOK 1 284 million.

This gives an effective tax rate for 2022 of 18 per cent but will have no effect on the tax guiding going forward (23 per cent).

For further information, please contact:

Rune Helland, head of Investor Relations, tel. (+47) 23 26 84 00 / (+47) 977 13 250

This information is subject to the disclosure requirements according to Section 5-12 of the Norwegian Securities Trading Act.

The low tax expense is mainly a result of the liquidation of the subsidiary in Asia in the fourth quarter. DNB hedges investments in foreign subsidiaries to eliminate the foreign currency exposure which arises when the functional currency differs from that of the Group. Gains or losses on investments in foreign subsidiaries are exempt from tax while corresponding gains or losses on hedging instruments are taxable. When a foreign operation is disposed of or liquidated, the cumulative gains or losses of the hedging instruments recognised in equity is reclassified to the ordinary income statement. The result from tax on gains on these hedging instruments amounts to NOK 1 284 million for the fourth quarter.

This gives an effective tax rate for 2022 of 18 per cent but will have no effect on the tax guiding going forward (23 per cent).