DNB Bank misses profit forecast in Q2, citing weaker corporate lending.

DNB Bank ASA, Norway's leading financial group, missed its profit forecast in Q2. The bank's net banking product breakdown includes corporate banking (59.3%), retail banking (34.5%), and other services (6.2%), with current deposits and credits totaling NOK 1,487.8 billion and NOK 2,251.5 billion, respectively.

Norway's leading financial group, DNB Bank ASA, reported mixed second-quarter results, with profits after tax amounting to NOK 10.4 billion, a decrease of NOK 0.3 billion compared to the same period last year. The bank's CEO, Kjerstin Braathen, attributed the results to strong customer activity and robust economic conditions in Norway.

Loan growth in all segments contributed to the bank's performance. Personal customer segment activity remained high, with mortgage demand driving a 3.2% increase over the past 12 months. Corporate loans also grew by 1.8% in Norway and 3.3% for large Norwegian and international companies, compared to the previous quarter. The acquisition of Carnegie, completed in March, has further bolstered DNB's position in the Nordic investment banking market, with the new entity assisting in 119 capital markets transactions globally since its launch in May.

DNB's financial key figures for the second quarter of 2025 include a pre-tax operating profit of NOK 13.8 billion, earnings per share of NOK 6.79, and a return on equity of 15.4%. The bank's cost/income ratio was 38.8%, and the common equity Tier 1 (CET1) capital ratio stood at 18.3%.

Despite the mixed results, DNB's portfolio remains well-diversified, with impairment provisions totaling NOK 677 million, of which only NOK 12 million was related to personal customers. The bank's net commission and fee income increased by 27.1% in the quarter, reaching NOK 4.4 billion, reflecting a significant increase in income from areas other than loans and deposits.

References:
[1] https://www.tradingview.com/news/reuters.com,2025-07-11:newsml_WkrbdJFMZ:0-solid-results-driven-by-loan-growth-and-high-customer-activity/