Norway’s DNB posts Q4 revenue increase as stop to lockdown boosts company

Persons wander previous DNB lender department in Stavanger, Norway December 5, 2019. REUTERS/Ints Kalnins

OSLO, Feb 10 (Reuters) – DNB (DNB.OL) noted a 17% increase in fourth-quarter earnings on Thursday in line with forecasts as eased coronavirus restrictions boosted Norway’s premier bank.

Web profit rose to 6.16 billion crowns ($698 million) for the October-December quarter from 5.27 billion a 12 months before, in line with the 6.15 billion anticipated by analysts in a poll compiled by the bank.

“The moment yet again significant parts of the business sector are likely at complete speed,” CEO Kjerstin Braathen mentioned in a assertion.

DNB proposed a dividend of 9.75 crowns for each share for 2021, up from 9 crowns the prior year but down below the 9.94 crowns anticipated by analysts.

Net fascination profits rose 8.5% to 806 million crowns, and when its return on equity of 10.7% in 2021 fell short of its target of earlier mentioned 12%, it claimed it was to deliver this by conclusion-2023 assisted partly by mounting desire costs.

Norway’s central lender started off increasing its critical policy price in September last yr following a collection of cuts in 2020 experienced still left it at an unparalleled zero p.c.

Small costs contributed to a growth in housing costs as debtors took edge of affordable credit score, boosting banks’ lending volumes even though weighing on internet curiosity income.

Now at .5%, the central financial institution stated it aims to increase the price a further three periods in 2022. examine a lot more

($1 = 8.8271 Norwegian crowns)

Reporting by Victoria Klesty, enhancing by Terje Solsvik and Jason Neely

Our Expectations: The Thomson Reuters Rely on Principles.