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DNB - DNB ASA News Story

NOK181.25 -0.8  -0.4%

Last Trade - 05/05/21

Sector
Financials
Size
Large Cap
Market Cap £24.30bn
Enterprise Value £56.17bn
Revenue £5.01bn
Position in Universe 30th / 1831

UPDATE 1-Norway's DNB lifts dividend more than expected

Thu 5th February, 2015 7:53am
* To pay dividend of 3.80 crowns/shr vs forecast 3.58 crowns 
    * To lift payout ratio to 30 percent from 25 percent 
    * Q4 pretax before impairment charges 6.96 billion crowns 
    * Analysts had forecast 7.33 billion 
 
 (Adds detail, analyst) 
    OSLO, Feb 5 (Reuters) - DNB  DNB.OL , Norway's largest bank, 
raised its dividend more than expected on Thursday as it 
continued to amass capital, and predicted loan losses would 
remain below normal levels this year, even as it maintained a 
big exposure to the oil sector. 
    DNB said it would lift its payout ratio to 30 percent of its 
profits from the previous 25 percent, as it seeks to return to a 
50 percent payout by 2016 or 2017 after years of holding back 
earnings to meet Norway's capital requirements, which are among 
the most demanding in Europe.  
    The lender said that while Norway's oil industry, which 
generates a fifth of the country's GDP, is suffering from the 
more than 50 percent fall in crude prices since June, large 
parts of the economy will either benefit from or avoid the 
energy sector's pain.  
    "The depreciation of the Norwegian krone will give a 
long-awaited boost to large parts of the Norwegian manufacturing 
industry and to the travel industry," Chief Executive Rune 
Bjerke said in a statement.  
    "Record-low interest rates and continued strong purchasing 
power mean that Norwegians can afford to save more without 
reducing the current high level of demand for goods and 
services." 
    DNB said its volume-weighted spreads will be stable in 2015, 
lending volumes would rise between 3 and 4 percent and its 
impairment losses in 2015 would stay below normalised levels. 
    Its return on equity rose to 13.8 percent in 2014 from the 
previous year's 13.1 percent, staying well above the bank's 12 
percent target. 
    In the fourth quarter, DNB's pretax profit before impairment 
charges rose to 6.96 billion crowns ($914 million) from 6.75 
billion, missing forecasts for 7.33 billion in a Reuters poll of 
analysts as its net interest income was below forecasts. 
    "The quarterly earnings are strong," Geir Kristiansen, an 
analysts at Fondsfinans, said. "Pretax profit before impairment 
charges are lower, but that is because of net financials and 
that's not core, so that's why I say it's a strong quarter. 
    "The share has been strong recently and the oil price has 
come down again, but except from that it should react 
positively," Kristiansen added. 
    DNB said it would pay a dividend of 3.80 crowns per share, 
up from the previous year's 2.70 crowns and above analysts' 
forecast for 3.58 crowns. 
 
 (Reporting by Balazs Koranyi, Terje Solsvik and Stine Jacobsen; 
Editing by David Holmes) 
 ((Balazs.Koranyi@thomsonreuters.com; +47 2331 6596; Reuters 
Messaging: balazs.koranyi.thomsonreuters.com@reuters.net)) 
 
Keywords: DNB RESULTS/
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