Norway's DNB tops Q1 profit forecast (updated)
23/04/2026 06:45
Recasts, adds share move in paragraph 2, quotes from CEO and CFO in paragraphs 5 and 7-9, context in paragraph 6 Net interest income misses market forecast Bank highlights intensifying competition Rates set to rise later in 2026 Shares fall around 4% By Jagoda Darlak and Agnieszka Gosciak April 23 (Reuters) - Norway's largest bank DNB DNB.OL on Thursday reported weaker-than-expected interest income for the first quarter and said competition was intensifying, despite resilient economic activity and high customer activity seen in its home market. The lender's shares were down around 4% by 0950 GMT. Net interest income, a key measure of banks' income from lending and deposits, fell 6.8% from a year ago to 15.30 billion Norwegian crowns ($1.65 billion) in the quarter. Analysts were expecting 15.53 billion on average. DNB said this was mainly due to repricing effects and competition, which had a negative impact on spreads—the difference between the interest rate a bank charges on loans and the rate it pays on deposits. "We note that spreads are down, where roughly one third stems from the full effects of the most recent repricing in November, roughly one third comes from portfolio and product mix effects and slightly less than a third comes from stronger competition," Chief Financial Officer Rasmus Figenschou told a conference call. A wave of consolidation among Norwegian savings banks is stirring up competition, challenging DNB's dominance in the market. "Competition is fierce. I would say it's gradually intensifying," CEO Kjerstin Braathen said. She added competition was not limited to a specific category of banks. DNB is feeling the sting across both the mortgage market for personal customers and corporate customers. The Norwegian central bank cut rates twice last year. Braathen told Reuters that the first quarter included the full impact of the last rate reduction that took effect from November last year. Quarterly net profit fell 9.1% to 9.86 billion crowns, narrowly beating analysts' expectations in a poll compiled by the bank. After weathering a year of margin pressures from easing rates cycle and intense competition, DNB could be set for a boost as the central bank reverses course, now signalling rate hikes later this year to combat stubborn inflation and wage-driven price pressures. ($1 = 9.2942 Norwegian crowns) (Reporting by Jagoda Darlak and Agnieszka Gosciak-Rabalska; editing by Matt Scuffham and Milla Nissi-Prussak) ((jagoda.darlak@tr.com))