Business · NEWS EXPLAINER
DNB beats forecasts as third-quarter profit falls and fund inflows hit a record
Net profit declined 7.9% to NOK 9.84 billion, while mutual-fund net inflows reached NOK 54.5 billion.
DNB reported third-quarter net profit of NOK 9.84 billion, down 7.9% from a year earlier but above the NOK 9.06 billion analyst consensus.
The bank also reported record mutual-fund net inflows of NOK 54.5 billion, while net interest income remained under pressure from lending competition.
Profit fell but beat expectations
Third-quarter net profit fell 7.9% from a year earlier to NOK 9.84 billion, above the NOK 9.06 billion analyst consensus compiled by DNB. A result can decline year on year and still beat a forecast.
Net interest income showed the margin pressure
Net interest income fell to NOK 15.50 billion from NOK 15.99 billion a year earlier and was slightly below the NOK 15.59 billion consensus. It rose 2.5% from the previous quarter as repricing, higher interest on equity and one additional interest day helped.
Savings and investment activity set records
Mutual-fund assets under management reached NOK 1,849 billion, up NOK 67.6 billion from the previous quarter. Net inflows reached a record NOK 54.5 billion, while investment-banking income rose 44% to NOK 1.1 billion.
Lending and deposits grew in a competitive market
Lending volume rose 1.3% to NOK 989 billion and deposits increased 3.8% to NOK 653 billion. Average lending spreads widened three basis points quarter on quarter to 1.33%, while return on equity was 14.5% and the CET1 ratio was 17.3%.
