DNB ASA logo

DNB - DNB ASA News Story

NOK179.55 -2.7  -1.5%

Last Trade - 11/05/21

Sector
Financials
Size
Large Cap
Market Cap £24.18bn
Enterprise Value £55.87bn
Revenue £4.98bn
Position in Universe 30th / 1836

Norway's DNB eyes NOK 2 bln cost cuts by 2022

Wed 20th November, 2019 12:01pm
OSLO, Nov 20 (Reuters) - Norway's biggest bank DNB  DNB.OL 
will expand its share buybacks in the near term and aims to cut
costs by between 1.5 billion and 2 billion Norwegian crowns
($163 million-$218 million) in the next three years, it said on
Wednesday.
    Savings will come from initiatives in IT, distribution and
automation, as well as structural changes, the bank said in a
statement ahead of a strategy update in London.
    The company last month said it would buy back 0.5% of its
shares by April of next year, but on Wednesday doubled the
target to 1%.
    DNB maintained its current goal that operating costs should
amount to less than 40% of operating income. In the third
quarter, the cost-income ratio stood at 38.8%.
    It also increased its targeted capital level to 17.9% of
so-called common equity Tier 1 capital (CET1), from the earlier
ratio of 16.8%, and said it was well positioned for future
capital requirements.
    The bank maintained that it aims to reach a return on equity
(ROE) above 12% in the same period. By the end of September, the
year-to-date ROE was 12.1%. 

($1 = 9.1870 Norwegian crowns)

 (Reporting by Victoria Klesty, editing by Terje Solsvik)
 ((victoria.klesty@thomsonreuters.com; +47 2331 6592; Reuters
Messaging: victoria.klesty.thomsonreuters.com@reuters.net))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.