DNB in brief
We are here
As Scandinavia’s largest financial services group, we offer a complete range of financial services through mobile solutions, online banking, 24/7 customer service centres, branch offices, real estate broking and international offices.
We are Norway’s leading financial services group with 2.1 million personal customers and 221 000 corporate customers.
DNB carried out 269 million payment transactions in 2018. This provides insight that DNB can transform into new value for the customers.
More than one million customers use our mobile bank, and in 2018, we registered on average 769 000 logins per day.
327 113 customers have downloaded the savings app Spare and saved NOK 1.6 billion in mutual funds since the beginning in 2017. At present, 25 per cent of all new mutual fund sales take place in Spare.
In 2018, a total of 5 061 start-up and growth companies received help and advice from DNB’s start-up pilots.
As Norway’s largest bank, we have a particular responsibility and opportunity to contribute positively to society. As the only Nordic bank, DNB received the highest score of A from CDP (formerly the Carbon Disclosure Project), which has evaluated 6 500 companies internationally and is particularly aimed at investors.
DNB offers super-fast processing of digital mortgage applications – it only takes 2 minutes. The share of mortgage applications received digitally has increased to above 80 per cent.
DNB Eiendom sold 23 563 residential properties in 2018. This represents an average market share of 18.7 per cent.
In 2018, DNB Markets participated in arranging bond and commercial paper issues to customers worth over NOK 400 billion.
DNB Livsforsikring had just over 1.2 million personal customers with individual and group agreements and approximately 27 000 agreements with companies at year-end 2018.
Financial highlights
Income statement 2018
wdt_ID | Amounts in NOK million | 2018 | 2017 | 2016 | 2015 | 2014 |
---|---|---|---|---|---|---|
1 | Net interest income | 36 822 | 35 422 | 34 110 | 35 358 | 32 487 |
2 | – Net commissions and fees | 9 310 | 8 448 | 8 280 | 8 862 | 8 969 |
3 | – Net gains on financial instruments at fair value | 1 342 | 4 548 | 6 513 | 8 683 | 5 317 |
4 | – Net financial and risk result, DNB Livsforsikring | 969 | 1 295 | 664 | (389) | 609 |
5 | – Net insurance result, DNB Forsikring | 622 | 683 | 648 | 534 | 491 |
6 | – Other operating income | 1 302 | 744 | 1 948 | 959 | 1 490 |
7 | Net other operating income, total | 13 546 | 15 718 | 18 053 | 18 648 | 16 877 |
8 | Total income | 50 368 | 51 140 | 52 163 | 54 006 | 49 363 |
9 | Operating expenses | (21 490) | (21 429) | (20 693) | (21 068) | (20 452) |
10 | Restructuring costs and non-recurring effects | (567) | (1 165) | (639) | 1 157 | (223) |
Balance sheet 2018
wdt_ID | Amounts in NOK million | 31 Dec. 2018 | 31 Dec. 2017 | 31 Dec. 2016 | 31 Dec. 2015 | 31 Dec. 2014 |
---|---|---|---|---|---|---|
1 | Total assets | 2 634 903 | 2 698 268 | 2 653 201 | 2 598 530 | 2 649 341 |
2 | Loans to customers | 1 597 758 | 1 545 415 | 1 509 078 | 1 542 744 | 1 438 839 |
3 | Deposits from customers | 927 092 | 971 137 | 934 897 | 944 428 | 941 534 |
4 | Total equity | 223 966 | 216 897 | 206 423 | 190 425 | 159 059 |
5 | Average total assets | 2 771 998 | 2 856 988 | 2 841 117 | 2 946 119 | 2 711 624 |
6 | Total combined assets | 2 950 748 | 3 026 065 | 2 930 891 | 2 900 714 | 2 936 331 |
Key figures and alternative performance measures 2018
wdt_ID | - | 2018 | 2017 | 2016 | 2015 | 2014 |
---|---|---|---|---|---|---|
1 | Return on equity, annualised (per cent)¹⁾ | 11.7 | 10.8 | 10.1 | 14.5 | 13.8 |
2 | Earnings per share (NOK) | 14.56 | 12.84 | 11.46 | 14.99 | 12.67 |
3 | Combined weighted total average spread for lending and deposits (per cent)¹⁾ | 1.30 | 1.30 | 1.32 | 1.33 | 1.31 |
4 | Average spread for ordinary lending to customers (per cent)¹⁾ | 1.94 | 2.07 | 2.04 | 2.17 | 2.33 |
5 | Average spread for deposits from customers (per cent)¹⁾ | 0.29 | 0.17 | 0.21 | 0.01 | (0.25) |
6 | Cost/income ratio (per cent)¹⁾ | 43.8 | 44.2 | 40.9 | 36.9 | 41.9 |
7 | Ratio of customer deposits to net loans to customers at end of period¹⁾ | 58.0 | 62.8 | 62.0 | 61.2 | 65.4 |
8 | Net loans and financial commitments in stage 2, per cent of net loans¹⁾ | 6.99 | ||||
9 | Net loans and financial commitments in stage 3, per cent of net loans¹⁾ | 1.45 | 1.12 | 1.65 | 0.91 | 1.20 |
10 | Impairment relative to average net loans to customers (per cent)¹⁾ | 0.01 | (0.15) | (0.48) | (0.15) | (0.12) |
1) Defined as alternative performance measure (APM). APMs are described on ir.dnb.no.
For additional key figures and definitions, please see the Fact book on ir.dnb.no.
Global systemically important bank and indicator values
DNB Bank ASA has been defined by the EBA (European Banking Authority) as a potential global systemically important bank, as its total on and off-balance sheet exposures exceed EUR 200 billion. As a result, DNB Bank ASA delivers data to the EBA for the calculation of defined indicator values. See bis.org/bcbs/gsib/ for more information.DNB’s indicator values are available on ir.dnb.no.
Important events
The share
This is an overview of the development of the DNB share. You can find more information about the share on ir.dnb.no.
This is an overview of the development of the DNB share. You can find more information about the share on ir.dnb.no.
At year-end 2018, DNB was the third largest primary listed company on the Oslo Stock Exchange in 2018, and the largest financial services group in Scandinavia, with a market capitalisation of NOK 220 billion. The total return on the DNB share, including dividends, was negative 4.5 per cent in 2018. The unweighted average total return for the other Nordic financial services groups was negative 13.4 per cent.
In the same period, the OSEBX1) index rose by 2 per cent, while the OSEFX2) index was negative 2.2 per cent. Over the past ten years, the DNB share has generally been priced higher than the Group’s recorded book value (P/B ratio). At year-end, the share was traded at NOK 138.15 and 1.1 times the book value. The share price peaked at NOK 173.15 in September, while the lowest price of NOK 136.40 was recorded in December.
1) Oslo Stock Exchange Benchmark Index
2) Oslo Stock Exchange Mutual Fund Index
3) Nordic financial services groups: an unweighted average of Nordic Banks
(Danske Bank, Nordea, SEB, Svenska Handelsbanken, SEB and Swedbank) in local currencies
TRADING
Trading volume in 2018 ended at 1 703 million shares, equal to 6.8 million shares per day, which is in line with the volume in 2017. The value of all traded DNB shares was NOK 265 billion. The trading in open market places, such as Oslo Børs (Oslo Stock Exchange), represented 46.9 per cent while the volumes traded by systematic internalisers increased from 1.5 per cent in 2017 to 23.6 per cent in 2018. Correspondingly, the volumes traded “off book” or in dark pools decreased to 29.5 per cent.
At the beginning of 2019, the DNB share was weighted on all relevant Oslo Stock Exchange indices, hereunder OSEBX, OSEAX1), OBX2) and OSEFX with 11.0, 9.2, 13.4 and 9.1 per cent weight, respectively.
DNB’s share price and book value per share including reinvested dividend3)
NOK
1) Oslo Stock Exchange All-share Index
2) OBX Total Return Index
3) Recorded equity and the share price for the period 2008–2009 have been adjusted for the share issue in the autumn of 2009. Return on equity, which is used to calculate reinvested dividends, has not been adjusted for the share issue.
DIVIDEND POLICY
DNB’s Board of Directors has approved a dividend policy which aims to create value for shareholders, both through increases in the share price and dividend payments. Overall, this will ensure an attractive and competitive return. The Group’s long-term dividend policy is to have an ordinary dividend payout ratio of more than 50 per cent and to increase nominal ordinary dividends per share each year. In addition to dividend payments, DNB has issued share buy-back programmes. For more information, please see the Directors’ report.
Share dividends and payout ratio
NOK
SHARE CAPITAL AND SHAREHOLDER STRUCTURE
At year-end 2018, DNB’s share capital was NOK 16 044 million divided into 1 604 million shares, each with a nominal value of NOK 10. Adjusted for completed repurchases and government holdings, there were a total of 1 594 million outstanding shares.
DNB has approximately 41 500 private and institutional shareholders, of which the two largest are the Norwegian government, represented by the Ministry of Trade, Industry and Fisheries, and Sparebankstiftelsen DNB (the DNB Savings Bank Foundation). A further description of the government’s ownership can be found in the section on Equity and dividends in Corporate governance.
Largest shareholders as at 31 December 2018
wdt_ID | Shareholders as at 31 December 2018 1) | Number of shares in 1000 | Ownership in per cent |
---|---|---|---|
1 | Norwegian Government/Ministry of Trade, Industry and Fisheries 2) | 545 485 | 34.21 |
2 | Sparebankstiftelsen DNB | 130 001 | 8,15 |
3 | Folketrygdfondet | 96 989 | 6,08 |
4 | Fidelity International | 30 680 | 1,92 |
5 | The Vanguard Group | 30 011 | 1,88 |
6 | BlackRock | 29 814 | 1,87 |
7 | DWS Investment GmbH | 24 788 | 1,55 |
8 | Schroder Investment | 20 452 | 1,28 |
9 | Capital World Investors | 18 601 | 1,17 |
10 | Storebrand Kapitalforvaltning | 16 483 | 1,03 |
1) The owners of shares in nominee accounts are determined on the basis of third-party analyses. See note 50 for an overview of the 20 largest shareholders.
2) In connection with DNB’s share buy-back programme, the Norwegian government will, according to an agreement, redeem shares on a proportional basis so as to maintain its holding at 34 per cent. For further information on the share buy-back programme, see Directors’ report.
Source: DNB, VPS, Nasdaq
RATING
The creditworthiness of DNB Bank ASA is assessed by the rating agencies Moody’s and Standard & Poor’s (S&P). DNB Bank ASA had the following ratings as at 6 March 2019: Aa2 from Moody’s (negative outlook) and AA- from S&P (stable outlook). Covered bonds issued by DNB Boligkreditt was rated AAA by S&P and Aaa by Moody’s.