Norway's DNB Q4 profit falls but less than expected (updated)
04/02/2026 06:46
Q4 profit, NII beat expectations Shares rise 3% Resistant economy, high activity boosts performance Pressure from rate cuts, competition Adds share move in the lede, management quotes, context throughout and dividend in paragraph 10 By Jagoda Darlak and Agnieszka Gosciak Feb 4 (Reuters) - Norway's largest bank DNB DNB.OL reported higher-than-expected fourth-quarter earnings on Wednesday, boosted by strong activity across all customer segments, lifting its shares 3%. DNB's fourth-quarter profit fell 8.4% to 11.61 billion Norwegian crowns ($1.21 billion), beating analysts' expectations in a company-compiled poll. Its net interest income, a key metric measuring banks' income from lending and deposits, also exceeded market expectations at 16.18 billion crowns for the quarter. "Despite the fact that 2025 was a year characterised by geopolitical turmoil, the Norwegian economy remains strong, with a high level of activity and low unemployment," CEO Kjerstin Braathen said in a statement. After years of benefiting from high rates, DNB now faces a shifting landscape due to margin pressure stemming from central bank rate cuts and intense competition, particularly in personal banking. "Competition is strong. We don't win every deal," Braathen told a conference call. Norway's central bank kept its policy interest rate on hold at 4.0% last month, after cutting it in September, and reiterated that it plans to reduce borrowing costs over the course of the year. DNB felt the effect of the first cut in the fourth quarter and will see the effect of the second cut in the current one, finance chief Rasmus Figenschou told a conference call. The bank proposed a dividend of 18 crowns per share for 2025. Its shares were up 3.4% at 1407 GMT. ($1 = 9.6153 Norwegian crowns) (Reporting by Jagoda Darlak and Agnieszka Gosciak-Rabalska; editing by Matt Scuffham) ((jagoda.darlak@tr.com))