Equity story
December 2021
A resilient and robust Norwegian economy
- High activity level in the Norwegian economy, fully reopened society since September with no significant restrictions
- Before the reopening, Norway was ranked no. 1 in Bloomberg's Covid Resilience Ranking of the countries handling COVID-19 most effectively
- After a key policy rate hike of 25 basis points in September, Norges Bank forecasts an additional six rate hikes before the end of 2024
Mainland GDP growth
Key policy rate
Registered unemployment
YoY, per cent
3.8
2.3
(2.5)
3.5
1.5 1.5
Per cent
1.68
1.50
1.07
Full-time unemployment, per cent
10.4
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021e | 2022e | 2023e | 2024e |
0.25 | ||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021e | 2022e | 2023e | 2024e | |
Forecast September | Forecast June |
2.3 | 2.3 | 2.4 | |||||||||||
Dec 19 | Feb 20 | Mar 20 | Apr 20 | May 20 | Aug 20 | Dec 20 | Apr 21 | Jun 21 | Sep 21 | Oct 21 | 2022e | 2023e | 2024e |
80% of DNB group's revenue comes from the Norwegian units
Sources: DNB Markets, Statistics Norway, Norges Bank (the Norwegian central bank), NAV (the Norwegian Labour and Welfare Administration). | 2 |
The Norwegian economy has proven its resilience through the pandemic
- The floating currency provides a natural hedge
- The monetary policy gives room to maneuver and support an inflation of close to 2 per cent over time
- The fiscal policy allows room for flexibility to smooth out cycles
Floating currency | Monetary policy | Flexible fiscal room to maneuver | ||
Norwegian sovereign wealth fund | ||||
Development in USD/NOK | Key policy rate | |||
Market value, NOK billion | ||||
1.68
11.40 | 1.50 | |
11 673 | ||
10 088 |
8.58 | 5038 |
0.25 | 172 | 1 016 |
5.52
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021e | 2022e | 2023e | 2024e | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
Forecast September | Currency | Financial return | Inflows | |||||||||||||||||||||||||||||||||||||||||
Sources: Norges Bank (the Norwegian central bank), | 3 |
DNB is a broad-based financial institution and by far the largest in Norway
A full-service financial institution and market leader in Norway
Market shares in Norway | |
23% retail loans | 21% corporate loans |
29% retail deposits | 36% corporate deposits |
39% retail mutual funds | 17% real estate brokerage |
29% Defined contribution
Sources: Norwegian Fund and Asset Management Association, Real Estate Norway, Finance Norway
Partnership
The dominant mobile wallet in Norway
88% of Norwegians 13 years and older have the app
More than 80% are active users
DNB owns 45% of Vipps
Ongoing merge with MobilePay and Pivo
Leading non-life insurance provider
Joint venture with SpareBank 1 Alliance
Third largest insurance provider in Norway
4
Our financial ambitions towards year-end 2023
Return on equity
>12%
Overriding target
CET1 ratio | C/I ratio | Payout ratio |
>17.6%1) | <40% | >50% |
Capital level | Key performance indicator | Dividend policy |
1) Supervisory authorities' expectation with full CCyB (counter-cyclical capital buffer) requirement expected to take effect in 2023 at the earliest. | 5 |
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DnB Bank ASA published this content on 14 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 December 2021 13:17:02 UTC.