The bank’s performance was buoyed by growth in savings and investments, a trend CEO Kjerstin Braathen attributed to a expanding customer base. Profitable lending growth remained consistent across business units, with average lending spreads widening by 3 basis points to 1.33% quarter-on-quarter. Although net interest income dipped to 15.50 billion crowns from 15.99 billion a year ago, it saw a 2.5% increase from the second quarter, aided by repricing effects and a favorable interest day count.
DNB Profit Beats Forecasts Despite Intense Lending Competition
Norway’s largest lender, DNB, reported a third-quarter net profit of 9.84 billion crowns, exceeding analyst expectations of 9.06 billion. While the result marks a 7.9% decline compared to the same period last year, the bank successfully navigated aggressive market competition and persistent margin pressure throughout the summer months.
These results arrive as Norges Bank maintains a hawkish stance to combat inflation. Last month, the central bank hiked its policy rate to 4.50%, with further increases possible. These adjustments are set to impact existing mortgages and deposits starting November 29. With core inflation holding at 3.0% in September, the current environment of elevated interest rates appears likely to persist for the remainder of the year.
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