Norway: Siltanews – News Desk
DNB Bank ASA, Norway’s largest bank, reported better-than-estimated lending profit driven by volume growth and said it’s seeing more clients seek advice on how to deal with turbulent markets.
First-quarter net interest income grew by 5.7% to 16.41 billion kroner ($1.6 billion) from a year ago, the Oslo-based lender said in a statement on Wednesday. That was more than the 16.28 billion kroner estimated by analysts.
The Norwegian lender has benefited from a longer period of higher central bank interest rates than its Nordic peers, as Norges Bank has yet to begin easing borrowing costs. Norway’s policymakers gather again this week to set rates, with economists projecting a decision to stay on hold at 4.5%. Still, two rate reductions are expected later this year and four in 2026, set to weigh on DNB’s top line.
Income from fees and commissions also grew in the first three months of the year, and the bank said clients sought more advisory services than previously on account of market turmoil.
“Amidst market volatility, customers are seeking advice and oversight, and are getting in touch with the bank more frequently,” Chief Executive Officer Kjerstin Braathen said in the statement. “Globally, we see increased uncertainty associated with trade conflicts, and a weakened global economy will affect growth in a small, open economy like ours.”
DNB’s net income rose 6.6% to 10.43 billion kroner. The bank’s return on equity was 15.9% for the quarter, above its long-term target of more than 14%.
In a move to diversify its revenue base, DNB in March completed the acquisition of Swedish investment bank and asset manager Carnegie Holding AB. The all-cash transaction, valued at about 12 billion kronor ($1.3 billion), is intended to enhance DNB’s presence in the Nordic region and increase its fee-based income.