The following is a summary of the DNB Bank ASA (DNBBY) Q1 2024 Earnings Call Transcript:

Financial Performance:

• DNB's return on equity was 15.6% for Q1 2024.

• Loan growth of 0.7% was observed, largely due to a 2.8% rise in corporate banking.

• A 3.9% deposit growth was recorded with a substantial 7.2% contribution from corporate banking.

• Net interest income decelerated by 2.9% owing to lower credit growth, product mix effects, and reduced interest days.

• Net commission and fees rose 2.6% from a strong preceding quarter, assets under management surpassed NOK1,000 billion.

• For Q1, the capital ratio stood at 19%, leverage ratio at 6.2%, and earnings per share increased to NOK6.48.

• Impairment provisions for the quarter totaled NOK323 million.

Business Progress:

• The Norwegian economy is expected to exhibit modest growth, with mainland GDP growth projected at 0.8% in 2024 and 1.5% in 2025.

• The revitalization in household consumption is forecasted for H2 2024.

• DNB plans to increase corporate investments in manufacturing and power supply by 2026 and 2027.

• Interest rates are predicted to sustain their high level for a more extended period, followed by a gradual reduction starting from the end of 2024.

• Regarding strategy, DNB focuses on its market shifts and the technical integration of Sbanken to reinforce its competitive strength.

• In terms of capital, DNB demonstrated a strong position with a core equity ratio of 19% and aims a sustainable cost-income ratio below 40%.

• The integration with Sbanken has impacted DNB in terms of improving credit quality and customer numbers and is expected to reduce the gross cost base.

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